New mortgage rules sending borrowers to alternatives + MORE Feb 7th

Learn more about Canadian mortgage rates, rules and the latest news – read on!
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Credit counselling, Consumer proposal or Bankruptcy… Which option is most favourable? + MORE Mar 16th

A couple in their 30s contacts me for a mortgage. They want to buy a new home. She’s a high school teacher and he’s a computer firm manager. Incomes are good. I check their credit. Let’s stop here for a minute… If they have good credit, an approval is simple and we can provi.... More »

Lendesk Offers Documentation Collection Solution Feb 10th

For mortgage brokers looking to automate the tedious process of down payment verification, Lendesk’s release of Level in early December was something of an early Christmas gift. It is touted as the only product on the Canadian market that automates the collection of client bank statements on t.... More »
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Opinion: S&P Overstates Broker Fraud Driver + MORE Mar 22nd

A few weeks ago, S&P said Canadian bank risk was rising, and it blamed mortgage brokers in the process. The rating agency wrote: “…The growing share of residential mortgages originated via brokers, compound the risks of high household debt and house prices…As brokers do not bear credit ri.... More »
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Mortgage up for renewal? Read this first + MORE May 9th

New mortgage rules and higher interest rates may make it more difficult for you to renew your mortgage..... More »

Reaction to CMHC’s Clampdown on Mortgage Fraud Aug 13th

Last month the Canadian Mortgage and Housing Corporation (CMHC) formally asked the Canada Revenue Agency to take a more active role in verifying income claimed on mortgage applications in an effort to clamp down on mortgage fraud. The CMHC says the move is necessary given that “the industry’.... More »
Ontario’s crackdown on syndicated mortgages comes far too lateConstruction at Fortress Real Developments’ LINK condominium project in Burlington in 2016 (CNW Group/Fortress Real Developments)
Marijuana stocks and cryptocurrencies might have been the hottest speculative bets in recent months, but before that, another investment enchanted Ontario residents: syndicated mortgages. These products allow regular mom-and-pop investors to put cash into mortgages used to finance real estate developments, such as residential condo buildings. Salespeople marketed these products as fully secured, risk-free, and high-return.
Many investors have since learned those claims are not true. The promised returns have not materialized, and some of the projects attached to these loans have fallen through or have been beset by delays. Multiple lawsuits are before the courts. The provincial regulator has started issuing penalties, too. But these actions come far too late.
On Friday, the Financial Services Commission of Ontario (FSCO) issued $1.1 million in fines as part of a settlement with four mortgage brokerage companies involved with syndicated mortgages tied to real estate projects for Fortress Real Developments Inc…

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Financial planning and mental illness
Q: I am 43 with no children or spouse. I have a mental illness that is chronic and has prevented me from working and saving in my past up until the past two years.
I was able to buy a home which I converted into a duplex. I live in the walkout basement apartment while I rent the upstairs which pays the mortgage and utilities. I have $187,000 on my mortgage and I am able to work now and save $1,000 a month.
I don’t know what my future holds in terms of health and work. I am wondering if I should pay down my mortgage or invest in a TFSA mutual fund? My income is not high but I’m able to save because I’m frugal and the renters pay my mortgage.
Once my home is paid off, I can live for free and collect the rental income. What should I do with my extra $1,000 a month? My furnace is two years old and my roof is new on my home. All appliances were bought two years ago. My car is paid off and five years old.
A: Sometimes, people go about financial planning the wrong way…

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Commentary: Another Regulatory Witch Hunt?


CMHC head Evan Siddall made a comment last fall that has credit unions worried. “CMHC will be seeking data from securitization program participants on their uninsured conventional mortgage lending,” he said. That information could result in “changes” (read, new rules) to the rulebook that approved non-federally regulated lenders—like credit unions—must abide by. Recently, I asked a […]

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TORONTO — Mortgage brokers say the borrower rejection rate from large banks and traditional monoline mortgage lenders has gone up as much as 20 per cent after Canada’s banking regulator imposed a new stress test for home buyers who don’t need mortgage insurance.
As a result, alternative lenders are seeing an uptick in business as brokers increasingly direct home buyers toward borrowing options that are beyond the reach of the Office of the Superintendent of Financial Institutions’ newly enacted tighter lending requirements.
READ: Your mortgage is about to get more expensive
Clients who don’t meet the bar are turning to private lenders, mortgage investment corporations (MICs) and credit unions, which are provincially regulated and not required to implement the stress test, said Carmen Campagnaro, president of Pro Funds Mortgages in Burlington, Ont.
Campagnaro is one of the brokers who said rejected loan applications to traditional lenders have risen by 20 per cent since Jan…

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Toronto and Vancouver’s real estate markets have responded to surging prices and a growing demand for homes with a supply of new housing that is “significantly weaker than other Canadian metropolitan areas.”
The disparity between supply and demand has been largest in the two cities, but “we do not fully know why this is the case,” said the Canadian Mortgage and Housing Corporation, in a report it released Wednesday on escalating house prices in the country’s large metropolitan centres between 2010 and 2016.
Data gaps are keeping CMHC from developing a full picture of why Montreal, Calgary and Edmonton don’t have as big of an inconsistency between supply and demand as Toronto and Vancouver do, but CMHC’s deputy chief economist Aled ab Iorwerth said he has noticed Calgary and Edmonton responding to demand with “horizontal sprawl.”
As for Montreal, he said “they already have a large rental sector, there is perhaps an acceptance of living in denser housing there and they seem to be more ready to convert industrial land into housing…

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