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
OSFI’s stress test change sparks industry confusion Nov 30th
Canada's banking regulator threw the mortgage industry a curve ball last week when a representative suggested there were some restrictions to a recent policy change most brokers weren’t aware of..... More »
Unsure about buying a home? Why you should open an FHSA now anyway Dec 12th
Buying a home in Canada hasn’t been easy in recent years, but thanks to recent changes to mortgage rules, falling interest rates and more cuts expected in the months ahead, many prospective home owners are feeling freshly optimistic. It all starts with a down payment, though—and the bigger, the .... More »
What’s the best mortgage for first-time home buyers? + MORE Dec 8th
Q: I’m buying my first home—a starter home—that I plan to live in for the next five to seven years. How do I know which mortgage is right for me? — First-time Buyer, Toronto
Get the mortgage rate that works for you.Find the best rate for you in under 2 minutes at ratehub.ca. Let's ge.... More »
Siddall and Taylor Go Head-to-Head Over Housing + MORE Jun 8th
Note: This editorial piece was previously published on RateSpy.com. It is being reprinted with permission due to the important and timely issues raised. Rarely have the heads of Canada’s housing agency and largest mortgage broker association been at such odds publicly. It feels like CMHC bos.... More »
How do credit card payment deferrals work during COVID-19? Apr 19th
If you’re dreading your credit card bill, you’re not alone. According to the Bank of Canada, 30% of us carry a balance from month to month, accruing interest, on average, at an eye-watering 19.99%. Simply put, we’re in the red, with an average of $23,800 per Canadian owing on credit cards, lin.... More »
What the new mortgage rules mean for homebuyers
– moneysense.ca
Today, the Office of the Superintendent of Financial Institutions (OSFI) introduced new rules on mortgage lending to take effect next year.
OSFI is setting a new minimum qualifying rate, or “stress test,” for uninsured mortgages (mortgage consumers with down payments 20% or greater than their home price).
The rules now require the minimum qualifying rate for uninsured mortgages to be the greater of the five-year benchmark rate published by the Bank of Canada (presently 4.89%) or 200 basis points above the mortgage holder’s contractual mortgage rate. “The main effect will be felt by first-time buyers,” says James Laird, co-founder of Ratehub.ca. “No matter how much money they put down as a down payment, they will have to pass the stress test.” The effect of the changes will be huge, resulting in a 20% decrease in affordability, meaning a first-time homebuyer will be able to buy 20% less house, explains Laird.
MoneySense asked Ratehub.ca to run the numbers on two likely scenarios and find out what it would mean for a family’s bottom line…
The Canada Mortgage and Housing Corporation has crunched numbers on the assumption that the economy could get rocked by any number of different calamities and come to the same conclusion: the corporation itself would be all right.
OSFI announces strictest mortgage rules ever… what you need to know.
– canadamortgagenews.ca
HARDER TO QUALIFY WITH 50% DOWN THAN WITH 5% DOWN.. DOES THIS MAKE SENSE? October 2016, our Federal govt announced a number of new mortgage rules including the infamous new ‘stress test’ for all insured mortgages. Mortgage default insurance is required for all mortgages greater than 80% loan to value. You have to qualify at […]
BREAKING: Ontario Car Insurance Rates Decrease
– ratesupermarket.ca
Here at RateSupermaket.ca, we keep you in the loop of different ways to save, whether it be on your mortgage, through investments, or on your car insurance. The Financial Services Commission of Ontario (FSCO) has reported that Ontario car insurance rates have decreased by 0.1 per cent on average.
Car insurance rates fluctuate based on a number of different factors. However, before an insurance company can change rates, it must first be approved by the Financial Services Commission of Ontario (a regulatory agency of the Ministry of Finance).
FSCO publishes approved rate changes quarterly, and the latest results are in:
In the third quarter of 2017, approved rates from auto insurance companies decreased by 0.1 per cent on average – not a huge increase, but notable.
The range of approved rates seemed to be significant, with some companies lowering their rates by as much as 8.9 per cent, and another inflating its rates by 5.9 per cent on average.
“Ontario has a very competitive marketplace,” FSCO said in its quarterly statement…
Family celebrating a graduation. (Hero Images/Getty Images)Most parents have barely taken their baby on their first stroller ride when they start to wonder how to pay for a university education. There’s a lot to figure out. Can they afford it? How much will they need to save? And what’s the proper way to invest their money now? With Canadian universities estimating that a single year of post-secondary expenses—including tuition, room and board, food, transportation and books—costs between $18,000 and $25,000, the price tag for four years can easily reach $80,000 or more. Further, recent studies by the Canadian University Survey Consortium show that Canadian post-secondary students leave university with an average debt load of $27,000. But don’t feel discouraged by the steep costs. Having a plan will make things feel far more manageable. “Life is so busy,” says Annie Kvick, a certified money coach in Vancouver. “It pays to put milestones in your calendar . . . when there may be a little extra money to put toward your child’s education savings, like when daycare costs are done, the mortgage is paid off or the stay-at-home spouse goes back to work…
