Mortgage Digest: 50% odds of a 50-bps October rate cut, experts say + MORE Oct 4th

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Recognizing leaders in Canadian mortgages: New inductees join the Hall of Fame + MORE Nov 3rd

This week, Canada’s mortgage industry gathered to celebrate the remarkable achievements of this year’s Mortgage Hall of Fame inductees..... More »

Breaking a mortgage for better rates can pay off – but beware of the costs + MORE Oct 7th

Interest rates are dropping, but many Canadians are still feeling the hangover of the highest lending costs in a generation..... More »

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 »

Mortgage Digest: MPC National Conference edition + MORE Oct 31st

Highlights from this week’s MPC National Conference in Montreal, including key insights from the panel discussions, keynote speakers and concurrent sessions..... More »

The Great Mortgage Reset

– canadamortgagenews.ca

The Great Mortgage ResetA FOUR PART SPECIAL EDITION… PART 3 of 4

Canada’s mortgage lending rules and policies are broken.  They just don’t work.  And the more our Federal government tries to help, the worse it gets.  This is a 4 part series of what our government can do to make home ownership affordable.

KNOWING THE PAST WILL HELP OUR FUTURE.

I’m going to list some of the changes that have handicapped Canadians from buying and renting.  There are over 30 changes over the last 18 years but I’m just going to list the ones that have had the greatest impact.  Notice the pattern of ever tightening government lending rules that increase a homeowner’s

minimum monthly mortgage payment. But first, look at how inviting our mortgage rules were back in 2006.   Some would argue they were too loose and perhaps this is true but I would argue the pendulum has swung way too far the other way. We’ve become way too tight.

2006  

February.  Canada Mortgage and Housing Corporation (CMHC) increases amortization from 25 years to 30 years…

Continue Reading On canadamortgagenews.ca »

A report by Canada Mortgage and Housing Corp. says higher interest rates decreased housing starts by about 30,000 units last year.

Continue Reading On canadianmortgagetrends.com »

The recent decision by Canada’s banking regulator to relax a mortgage stress test rule was shaped in part by concerns about public perception of the agency, said Office of the Superintendent of Financial Institutions head Peter Routledge.

Continue Reading On canadianmortgagetrends.com »

The recent decision by Canada’s banking regulator to relax a mortgage stress test rule was shaped in part by concerns about public perception of the agency, said Office of the Superintendent of Financial Institutions (OSFI) head Peter Routledge.

Speaking at Global Risk Institute summit on Wednesday, Routledge said he was worried that the requirement by lenders to run the “OSFI stress test” is making Canadians feel the regulator is too directly involved in their affairs.

“If I were that person, I would feel regulated by OSFI. And that’s what we hear from Canadians. And I don’t think that was ever part of its intent.”

The concern helped lead to OSFI’s announcement last week that starting Nov. 21, it would no longer require a stress test for uninsured mortgages when borrowers are making a straight switch between lenders, meaning they aren’t changing things like their amortization or borrowing amount.

Only between 2% and 6% of borrowers make such a switch, so while it was something Routledge previously maintained was part of sound underwriting practices, the agency no longer saw it as worth the cost…

Continue Reading On moneysense.ca »

A weekly review of the latest mortgage and real estate news, a recap of key headlines, and a preview of upcoming economic releases.

Continue Reading On canadianmortgagetrends.com »

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