Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
The head of the Canada Mortgage and Housing Corporation (CMHC) gave a candid assessment of the country’s housing market, saying the “party” of homeownership as a sole savings vehicle will come to an end. Evan Siddall made the comments during an interview with BNN Bloomberg’s Aman.... More »
No, Quicken Loans has no plans to start selling mortgages in Canada. But it does want a piece of our mortgage technology market. That’s why its parent company, Rock Holdings Inc., has acquired a majority stake in Vancouver-based Lendesk. Lendesk is a mortgage fintech company that connects borrower.... More »
Contrary to media reports about our ‘record personal debt levels’, it’s extremely prudent to ensure you have access to emergency money. The line of credit popularity that took place in the ’90s wasn’t a bad thing. It allowed us to borrow at low rates to invest or spend.... More »
The stress test continues to be the focus of much research, with new data released recently on the full extent of its impacts on the housing market. We’ve summarized the latest findings, which look at the stress test’s impacts on home sales and prices over the past year, as well as the c.... More »
Earlier this week Bank of Canada Governor Stephen Poloz called on banks and other lenders to offer more innovative mortgage products, namely longer-term mortgages. During a speech in Winnipeg, he said longer mortgage terms would “mitigate the normal risks in the system both for lenders and for.... More »
The Canadian Real Estate Association (CREA) largely blames tighter mortgage lending rules for the slow housing market in March. Sales dropped 4.6% year-over-year to levels not seen since 2013. Sales were 12% below the 10-year average for March, and 20% below the average for British Columbia, Alberta and Saskatchewan. But there was a glimmer of […]
Looking at mortgage rates for a new house? Need a mortgage calculator? Canada residents know it’s easy to fall in love with your dream home. But, it helps to factor in the mortgage loan amount and interest rate beforehand. You want to determine how much house you can afford - preferably before you call the movers!
Use these steps to walk-through how to use a mortgage calculator. You can find a mortgage that’s affordable (and, then tell the kids to go pack their toys).
When to Use a Mortgage Payment Calculator
A mortgage payment calculator can help determine your monthly mortgage payment. The payment is based on interest and principal (the mortgage).
To use a mortgage payment calculator, you need:
The mortgage loan amount: If the home costs $50,000, and you put down 20 percent, or $10,000, the loan balance is $40,000.
The payment type: Do you want monthly or bi-weekly payments?
The loan term: Typically loan terms (amortization) are 30-years unless you select a shorter term…
Every once in a while you may get a notice from your bank. Your account’s monthly fees are going up. It may be a modest difference, of a dollar or so. You may write it off as the cost of doing business with your financial institution.
But right now, that fee hike may be a symptom of a broader economic phenomenon. It affects almost everything about your money, from how much you may pay for a mortgage to how much return you get on your savings.
What is it? The yield curve, which in Canada is teetering between flat and inverted. An inverted yield curve is uncommon, and it has ripple effects throughout the financial industry.
What is the Yield Curve?
The yield curve shows the relationship between expected returns on short-term versus long-term fixed income instruments. We’re talking here about how much banks make on the purchase of government treasury bonds.
When things are normal, the curve plots upwards. Typically, longer term vehicles bring in a greater return…