Locked Out of the Market: How the Mortgage Stress Test Could Be Hurting Homebuyers Mar 12th

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The Latest in Mortgage News: New Data on Financial Distress in Canada + MORE Jun 29th

A significant number of Canadian households reported being late on a debt payment or missing it entirely, according to a new report from Statistics Canada. The 2016 data from the agency’s Survey of Financial Security shows that more than 1-in-10 Canadians (11%) with some form of debt reported skip.... More »
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Mortgage Pre-Approval: How to Improve Your Credit Score + MORE Jul 5th

Are you interested in learning about the mortgage pre-approval process? Or, do you want to learn how to improve your credit score? One of the biggest steps you’ll take in life is buying a home. And, while you might want to go and pick out your dream home first, this is a mistake. You need to get .... More »

Q2 2019 Bank Earnings – Mortgage Morsels Jun 26th

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 »

CMHC’s First-Time Home Buyer Incentive Falls Short of Expectations Jun 20th

The Canada Mortgage and Housing Corporation held an official announcement yesterday to release details of its First-Time Home Buyer Incentive (FTHBI). While officials reiterated how this shared-equity program will help young middle-class Canadian buyers, there were scant new details beyond what has .... More »

Beyond financial planning: How to achieve the lifestyle you want May 27th

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 »
Locked Out of the Market: How the Mortgage Stress Test Could Be Hurting Homebuyers
It was created with the intention of saving Canadians from becoming over-burdened with their mortgages, but some critics of the Canadian government’s mortgage stress test say it is slamming the door on first-time homebuyers who would otherwise be able to break into the market. In a recent opinion article in the Financial Post, Christopher Alexander, who is executive vice-president and regional director of RE/MAX INTEGRA for Ontario-Atlantic Canada, writes the stress test “is causing more harm than good.”
The stress test requires homebuyers that make a down payment of less than 20 percent to qualify for an interest rate that is at or higher than the Bank of Canada’s five-year benchmark rate (5.34 percent at the time of writing). In 2018, it was expanded to homebuyers who put down 20 percent or more; they now need to qualify for a mortgage rate two percent higher than the one offered by their lender (or the Bank of Canada’s rate five-year benchmark rate, whichever one is higher)…

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