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Latest News
Should You Accept That Pre-Approved Credit Limit Increase? Jun 5th
If you faithfully pay your loans, mortgage and credit cards each month, then you’ve probably received a call or letter from your bank with the news that you were pre-approved for a credit increase or a line of credit.
You might be thinking, I don’t even use all the credit I currently have. I do.... More »
6 ways to pay off your mortgage faster + MORE Feb 16th
While the Bank of Canada has yet to raise their overnight rate—a rate that dictates what happens with variable mortgage interest rates—there are changes within the current Canadian mortgage climate.
In late 2016, TD Canada raised it’s variable rate mortgage—not just for new mortgage bus.... More »
Avoiding an Economic Deep Freeze + MORE Feb 21st
February has been a busy month for finance headlines, as global markets and governments rally against possible economic downturn. Oil prices have jumped slightly in response to news of an OPEC production freeze – will there be a positive impact for Canada? Meanwhile, all eyes are on the Liber.... More »
Latest in Mortgage News: BoC Sees Early Signs of Housing Overheating, but Will Keep Rates Low for Now Feb 27th
Fixed rates may be heading higher, but variable-rate holders can rest assured their rates won’t be going up just yet, at least according to Bank of Canada Governor Tiff Macklem. During a speech on Canada’s labour market, Macklem said monetary policy will need to continue to provide stimu.... More »
CMHC moves to make it easier for self-employed to get a mortgage Jul 23rd
Self-employed Canadians seeking to buy a home may soon find it easier to secure a mortgage in the wake of changes announced by Canada Mortgage and Housing Corp..... More »
Bank of Canada rate cuts and its impact on mortgage rates
– moneysense.ca
Bank of Canada rate cuts and its impact on mortgage rates (mstay/Getty Images)For home buyers and sellers it could be considered Christmas in July. The Bank of Canada rate cut today already prompted one bank to cut its lending rate and others are expected to follow.
But is this good news? Well it depends where you are in the real estate cycle.
Buying a home
If you’re in the market to buy a home, today is just another day. Sorry. It’s just not Christmas in July. Why, you ask? Because the BoC’s rate cut won’t translate into any new significant savings. Both fixed and variable rates are already at historically low levels and any cut the banks will offer will be minimal, at best.
But the rate cut is still good news. It means that your cost to buy that home continues to be extremely low and will remain low for the next few months, at least. What’s even crazier is the possibility that rates could actually drop again this year. “Economists believe there’s more than a 70% chance of another rate cut in September,” says Robert McLister of RateSpy…
A Rate Cut Cuts Both Ways
– canadianmortgagetrends.com
If you believe financial traders who bet on interest rates, the chance of the Bank of Canada lowering rates this Wednesday is almost a coin flip. If the Bank does bring down rates, it could goose the housing market even more. As most of us intuitively realize, there’s an inverse relationship between interest rates and property prices. According to TD’s research, for example, a 50 bps reduction in the 5-year mortgage rate can lead to as much as a 15% increase in home sales nationally. That’s top of mind for policy-makers who are bombarded by headlines about how housing markets READ MORE
Bank of Canada lowers key interest rate to 0.5%
– moneysense.ca
OTTAWA – The Bank of Canada cut its key interest rate Wednesday as it slashed its outlook for the economy and predicted a pullback in the second quarter due to the impact of lower oil prices and weaker-than-expected exports.
The central bank cut its target for the overnight rate by a quarter of a percentage point to 0.5 per cent.
The Bank of Canada said its lower outlook for growth has increased the downside risks to inflation.
“While vulnerabilities associated with household imbalances remain elevated and could edge higher, Canada’s economy is undergoing a significant and complex adjustment,” the bank said in its rate decision.
“Additional monetary stimulus is required at this time to help return the economy to full capacity and inflation sustainably to target.”
Live Chat: Interest rates and you »
How the Bank of Canada influences mortgage rates »
A contraction by the economy in the second quarter would mean the country slipped into a recession in the first half of the year, but the Bank of Canada did not make that distinction, noting that the downturn was focused in the energy sector…
The central bank cut its target for the overnight rate by a quarter of a percentage point to 0.5 per cent.
The Bank of Canada said its lower outlook for growth has increased the downside risks to inflation.
“While vulnerabilities associated with household imbalances remain elevated and could edge higher, Canada’s economy is undergoing a significant and complex adjustment,” the bank said in its rate decision.
“Additional monetary stimulus is required at this time to help return the economy to full capacity and inflation sustainably to target.”
Live Chat: Interest rates and you »
How the Bank of Canada influences mortgage rates »
A contraction by the economy in the second quarter would mean the country slipped into a recession in the first half of the year, but the Bank of Canada did not make that distinction, noting that the downturn was focused in the energy sector…
Radius Financial
– canadianmortgagetrends.com
Company: Radius Financial Position: Regional Vice President, Ontario West Location: Southwest Region Regional Vice President, Ontario West Radius Financial, a growing Canadian mortgage company is seeking a skilled sales person to further build & develop the broker network in the Southwest Ontario region. The successful candidate will bring previous lending and strong sales experience within the residential mortgage lending/brokerage industry. Job Description Establish, maintain & manage key business relationships with mortgage brokerage firms, brokers & agents Use sales & service principals, practices & techniques to generate residential mortgage business Plan and implement effective business & marketing plans and sales & communication READ MORE
Canada Needs $9 Billion to Cover Housing Crash: C.D. Howe Institute
– ratesupermarket.ca
If the housing market crashed, how would Canadians weather it? Without some changes, not very well, according to a recent report by the C.D. Howe Institute.
“In an era of rising house prices and high mortgage debt, heightened concern over the potential exposure of Canada’s mortgage insurance system — and taxpayers — is merited,” reads the report’s brief.
Higher Risk Buyers On The Rise
With the prices of homes reaching new highs, few homebuyers can pay the 20 per cent down payment that exempts buyers from requiring mortgage insurance. There’s currently $1.2 trillion in outstanding mortgage debt in Canada and more than half of that is backstopped by Canadian federal insurance. Translation: in the wake of a crash and employment losses, thousands of Canadian homeowners would be unable to make their monthly mortgage payments and Canadian taxpayers could be left to cover $9 billion in losses.
Also read: What is CMHC Mortgage Insurance?>
The report recommends reforms that would “better position the Canadian mortgage insurance system to address the risk of a severe housing crash”:
The Canadian government should create an independent fund that accumulates reserves to be used in the case of widespread mortgage payment defaults…
