Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
Canada’s big banks felt the effects of a sharply slowing economy and cooling housing market in the second quarter. Most reported net income growth in the low-to-mid single digits. Several saw 90+ day delinquencies rise slightly in the quarter, and all of the banks, with the exception of Nation.... More »
Q. I have just turned 40, am single, and earn $86,000 a year. I also have zero debt. I just finished paying off my house, worth $315,000, and I would like to continue to put away my mortgage payment of $1,000 every two weeks as savings. Because all money went to debt repayment, I’ve never really i.... More »
I recently had clients who were refinancing their mortgage completely reject a very attractive offering from one of the big chartered banks. Their reasoning? All of this bank’s mortgages are registered as collateral charges, and all of their online research into this topic spooked them complet.... More »
Note: This editorial piece was previously published on RateSpy.com. It is being reprinted with permission due to the important and timely issues raised. Rarely have the heads of Canada’s housing agency and largest mortgage broker association been at such odds publicly. It feels like CMHC bos.... More »
The big news of the week was the Federal Reserve’s interest rate cut, the first one since the financial crisis more than 10 years ago. Despite a strong domestic economy, Federal Reserve Chairman Jerome Powell said the cut was a pre-emptive move to brace against “downside risks.” .... More »
The housing market remains the biggest threat to Canada’s economic health. That is according to a report by the International Monetary Fund (IMF), published this week after an official visit to Canada.
They are responding to calls by several real estate boards in Canada to ease the new B-20 stress-test guidelines that were brought into effect in January 2018.
The new rules raise the bar for a borrower’s mortgage affordability. Now borrowers have to prove they could afford their mortgage even if rates were two percentage points higher than their contract rate or the Bank of Canada posted five year fixed rate, whichever is higher. This has had a cooling effect on the two hottest real estate markets in Canada, Toronto and Vancouver. Both cities real estate boards have said the rules are “hurting” Canada’s economy.
The Toronto Real Estate Board (TREB) says B-20 needs to be “revisited.” They say it’s discouraging otherwise qualified buyers to get into the market.
But the IMF disagrees…
Earlier this month, Bank of Canada Governor Stephen Poloz called on banks and other lenders to start pushing longer-term mortgages. Last week, HSBC responded by offering a record-low 10-year fixed rate of 2.99%. That means the peace of mind of knowing mortgage payments won’t change for 10 years can be had for just a quarter-point […]
The leaders lost ground in the broker channel last quarter. The top five lenders reportedly accounted for the lowest combined market share in two years. That came as mortgage growth is trying to halt its long industry-wide descent. Here’s a look at individual lender performance in the broker space, in Q1: Rank Broker Channel Lender […]