OSFI calls stress test “incomplete,” seeks to address “problem” of fixed-payment variable-rate mortgages + MORE Sep 8th

The Bank of Canada opted to leave interest rates unchanged today but maintained its hawkish bias, confirming it won’t hesitate to hike rates further if inflation doesn’t continue to trend downward.

It’s no secret that Canada’s banking regulator has its sights set on fixed-payment variable-rate mortgage products. And OSFI chief Peter Routledge reiterated that point during a speech today.

Thinking about asking a senior-age parent to move in with you? If this involves renovating your home to create a secondary unit for them, you may qualify for a new federal tax credit: the Multigenerational Home Renovation Tax Credit (MHRTC).

Multigenerational households—those composed of three or more generations under one roof—are Canada’s fastest-growing type of household. From 2001 to 2021, they increased by 50%, according to numbers from the 2021 census. Factors contributing to this remarkable spike include bloated housing costs, a tight real estate market, rising interest rates and an aging population. For Canadians with aging parents or other relatives who require care, establishing a multigenerational home can make a lot of sense, practically and financially. However, there are substantial costs associated with creating a secondary unit, and that’s where the new Multigenerational Home Renovation Tax Credit (MHRTC) comes in.

You’re 2 minutes away from getting the best mortgage rates in CanadaAnswer a few quick questions to get a personalized rate quote*I’m buying a homeI’m renewing/refinancingYou will be leaving MoneySense…

With 10 interest rate hikes since March 2022 and most mortgages facing renewal by 2026, a lot of Canadian home owners are staring down steep increases in their mortgage payments. At a time when household finances are already stretched thin, many could see their mortgage payments go up 20% to 40%. But, “in many cases, the news isn’t as bad as people think,” says David Larock, a mortgage broker with Integrated Mortgage Planners in Toronto. Instead, he says, there are a number of strategies that can be employed to manage mortgage payments. The key is to talk to a mortgage expert to ensure every avenue is explored—and not to panic.

You’re 2 minutes away from getting the best mortgage rates in CanadaAnswer a few quick questions to get a personalized rate quote*I’m buying a homeI’m renewing/refinancingYou will be leaving MoneySense. Just close the tab to return.

Who’s facing higher mortgage payments? 

The impact of higher rates depends on the type of mortgage borrowers have…