Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
Latest News
How To Navigate Three Common Mortgage Scenarios + MORE Aug 15th
It’s a confusing time to be a homeowner. Rates are up, and everyone has an opinion on what will happen next. It’s easy to get sucked into social media rabbit holes and make decisions motivated by fear. But at times like these, it’s crucial to block out the noise and do what’s right for you.
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CMHC reports September pace for housing starts up from August + MORE Oct 19th
Canada Mortgage and Housing Corp. says the annual pace of housing starts in September was up 5% compared with August..... More »
Canada’s Best Credit Cards for People with Bad Credit 2020 Jul 19th
Conventional wisdom may lead you to believe that if you have bad credit, you should swear off credit cards. But if you want to improve your credit score you’ll have to show you can handle credit responsibly—and the only way to do that is (you guessed it) to have a credit card. Used properly, it .... More »
Opinion: Mortgage loyalty isn’t given, it’s earned + MORE Feb 5th
Jill Moellering shares why clients aren’t just chasing the lowest rate—they’re looking for trust, service, and the right mortgage for their needs..... More »
Looking for a mortgage in B.C.? Don’t limit your options to the big banks + MORE Aug 11th
At last, interest rates are coming down again. For Canadians who are in the market for a new home, facing renewal of their mortgage in the foreseeable future, or feeling unsatisfied with their current home loan, this poses two choices: do you pounce now, or stay on the sidelines in the hope that rat.... More »
CMHC Report Shows the Emotional Impact of the Housing Bubble
– ratesupermarket.ca
A June 2019 Housing Market Insight report, from the Canada Mortgage and Housing Corporation (CMHC) has highlighted the impact of bidding wars on property prices over the past two years. The report demonstrates the emotional factors that drive Canadians to stretch their budget and engage in bidding wars, regardless of their self-identified appetite for risk.
The CMHC surveyed more than 65,000 households during the fall of 2018 in an effort to gauge the motivating factors for homebuyers in Vancouver, Montreal, and Toronto – Canada’s largest and most heated housing markets.
More than half the respondents believe foreign investors are helping drive up prices, particularly in Vancouver where 70 percent of people cite foreign investment as an issue. The CMHC report pointed out that in Toronto, homebuyers were aware of the impacts of macro-economic factors and believed those to be more substantial in the cost of housing than other factors.
“Respondents’ perceived traditional fundamental drivers, such as employment growth, interest rate changes and population growth, to be less influential than subjective ones linked to speculation, such as city attractiveness and the presence of foreign investors…
Lower Rates Means Less Stress in the “Stress Test”
– ratesupermarket.ca
Starting now, Canadian mortgage seekers will find it easier to qualify for more money. That’s because the Bank of Canada has dropped its five year benchmark qualifying rate from 5.34 percent to 5.19 percent. This is the rate banks use to qualify would-be-homebuyers for a mortgage.
This is the first time the rate has dropped since September 2016. Since then the rate has only gone higher. The Bank of Canada posted rate is calculated by using the five year fixed rate at the big six commercial banks.
Why this is significant?
Since January 2018, all Canadians, insured and uninsured, shopping for a new mortgage have to pass the so called “stress test.” Previously only those with less than 20 percent down, or insured mortgages, were subjected to an affordability test. Now everyone has to prove they can pay. Formally called, guideline B-20, it was brought in as a tool to better assess if Canadians could afford rates for the long term, especially if rates were to rise.
Housing slowdown
Real estate sales have slowed and prices are lower since the stress test was implemented…
