Mortgage Stress Test Sidelining Young Buyers + MORE Aug 22nd

Canadian housing mortgage rates are all over the map. Don’t get trapped in an unnecessarily costly mortgage agreement.
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Mortgage Amortization: Should You Go Long or Short? + MORE Aug 31st

If you’re in the market for a new home you probably understand the different mortgage options. But what about amortization? Should you go short or long on your amortization, and what impact does it have on your finances? The most common amortization is 25 years. If you have at least a 20 percent .... More »
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Why didn’t the Bank of Canada Gov cut rates last week? + MORE Sep 12th

WAS THIS A BIG MISTAKE? Last week, Stephen Poloz, the Bank of Canada Governor, kept the Prime Rate as is during the 6th of their eight scheduled meetings for 2019.  The Current Target rate is 1.75%.  (Bank Prime rate is derived from this rate.  Today’s Bank Prime rate is 3.95%..... More »

The Latest in Mortgage News: iA Exits the Residential Mortgage Market Sep 18th

After nearly 50 years of providing residential mortgages to Canadians, Industrial Alliance Financial Group announced its exit from the space this month. “This is a result of our decision to focus on investments in key sectors for the Group,” iA spokesperson Pierre Picard told CMT. “.... More »

Canadians Not Deterred By Homeownership Obstacles Sep 6th

Those dreaming of homeownership face a long list of obstacles: high prices, low supply and ever-changing mortgage rules and qualification requirements, to name a few. But that hasn’t shaken Canadians’ desire to have a place to call their own, according to the latest consumer survey from .... More »

Mortgage Stress Test Sidelining Young Buyers

– canadianmortgagetrends.com

New data shows the country’s youngest buyers are being affected most by the government’s mortgage stress tests. Mortgage originations were down 8.9% overall in Q2, while those among buyers between the ages of 18 and 25 were down 13.4% compared to last year, according to TransUnion’s latest Industry Insights Report. This marks the fourth consecutive […]

Continue Reading On canadianmortgagetrends.com »

Mortgage Rates are still trending Lower… Yes, in August!
A couple years ago, the federal government brought in some tighter mortgage qualifying rules. The ‘stress test’ was just one of several changes, but it’s definitely the most well known.
The feds wanted to slow the housing market. They also wanted to ensure that borrowers could afford the much anticipated mortgage rate hikes. Rates have to go up some time, right?! When?!

Well, let’s fast forward to 2019! The real estate market has cooled off with fewer transactions in both 2018 and 2019. The government’s wish was granted. Fewer people could pass the stress test. But those imminent rate hikes never happened.
Today, you must qualify with an interest rate that is DOUBLE your actual contract rate. Yes, DOUBLE!
Another popular phrase? Housing Bubble…
The real estate market has to crash, right?! Well, it seems like the expected rate increases and housing bubble just haven’t materialized. In fact, interest rates have come down by around 1% since January 2019…

Continue Reading On canadamortgagenews.ca »

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