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
Have fixed mortgage rates peaked? May 25th
Notwithstanding some additional rate hikes last week, fixed mortgage rates have seemingly plateaued following a stellar run-up over the past several months..... More »
Haventree Bank launches direct-to-consumer digital bank + MORE Jul 8th
The Schedule 1 bank is rolling out a new consumer deposit platform, marking a major move beyond broker-distributed mortgages and brokered deposits after more than three decades in the alternative lending space..... More »
How to keep your home after separation—even if you don’t qualify alone + MORE Apr 18th
Separation and divorce are hard enough without throwing mortgage stress into the mix. One of the most emotional questions we hear is, 'I want to keep the house, but I don’t make enough on my own to qualify—what can I do?'.... More »
Q1 Earnings Mortgage Morsels: TD + MORE Mar 11th
TD Bank kicked off the first quarter with a 13% increase in net income, while the bank's U.S. division saw a 27% leap in earnings growth..... More »
How to improve your credit score with rent payments in Canada + MORE Feb 8th
If you’re renting in Canada, you might not think that your monthly rent payments have anything to do with building your credit score. While home owners can strengthen their credit profile through mortgage payments, renters traditionally haven’t had the same opportunity. After all, paying rent is.... More »
Motusbank Online Bank Launches With Low HELOC, Competitive GICs
– ratesupermarket.ca
Motusbank, a subsidiary of Meridian Credit Union, has launched in Canada. First announced in February, a full range of banking and borrowing services are now available on its website, motusbank.ca.
As an online-only bank, Motusbank can be accessed via its mobile app on the Apple App Store and Google Play. App users can check balances, transfer funds, and deposit cheques; Apple Pay and Google Pay, however, are not supported. Statements and other documents are available only on desktop.
The main appeal of Motusbank lies in its competitive mortgage rate and simple online application. Fixed-rate mortgages are available with terms ranging from six months to five years; variable-rate mortgages all have five-year terms. The bank is currently advertising a 3.09 percent interest rate for closed fixed-rate mortgages with terms ranging from one year to five years; the same rate also applies to its closed variable-rate mortgages.
Given the current crop of online-only banks, which offer many of the same services and advantages, Motusbank is making a direct play for home buyers who are shopping for the lowest rates and don’t want to spend time haggling…
Taking on a “Fraction” of the Cost; Vancouver Start-Up Promises a Better Incentive for Home Buyers than CMHC
– ratesupermarket.ca
An incentive for first-time home buyers offered through the Canadian Mortgage Housing Corporation (CMHC) was only announced a week ago, promising to provide $1.25 billion over three years to help lower mortgage costs for eligible Canadians.
However, a new company is now also promising to provide an alternative form of relief for potential home buyers.
If a home buyer chooses to work with Fraction, the Vancouver-based start-up says it will take up to a 40 percent stake in the buyer’s property, securely reducing mortgage payments by up to 35 percent.
Since Fraction is putting up 40 percent of the purchase price, the home buyer is then only required to take out a mortgage for the remaining 60 percent.
“It’s almost like selling shares in a home,” said Fraction’s Chief Technology Officer Josh Baker, as you’re essentially selling equity in your home and paying it back to Fraction upon resale at its future value.
For instance, if your home is worth $500,000 and you want to sell 40 percent of your property, Fraction will take on that $200,000 share…
