The State of Mortgage Consumers + MORE Apr 27th

Canadian housing mortgage rates are all over the map. Don’t get trapped in an unnecessarily costly mortgage agreement.
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What’s the TRUE Impact of Policy Changes on the Canadian Mortgage Market? Dec 15th

It’s certainly not what the Bank of Canada (BoC) is claiming! The BoC recently released a document detailing what it believes to be a positive report on the Canadian Mortgage Market, but this article clearly shows how out of touch our government is. The BoC is applauding their statistics̷.... More »
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Looser Mortgage Standards Hit the UK! Is Canada Next?! Aug 28th

There’s nothing surprising about the loosening of mortgage standards to spur growth. In the last real housing bubble of 1990, banks and government brought in stricter lending rules, making it tougher for borrowers to get a mortgage. Fast forward to the present. We’ve yet to see a housin.... More »

Lender Insights from the 2018 National Mortgage Conference Nov 3rd

Mortgage professionals from across Canada descended on Montreal last weekend for the annual National Mortgage Conference. Hosted by Mortgage Professionals Canada, the annual gathering was once again well attended, with about 1,200 participants and 60+ exhibitors at the Exhibitor Expo. The two-day ev.... More »

Broker Lender Market Share – Q1 2018 Jun 11th

Credit unions saw their slice of the broker pie shrink in Q1. That comes despite OSFI’s January 1 stress test, which played right into their hands given they are provincially regulated. Broker market share for CUs fell 0.6% versus Q1 2017. Less competitive pricing was a key reason. In particul.... More »
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Housing slump? Recession? Not so fast… Nov 24th

Remember all those pessimists who were calling for a housing bubble or collapse? If you listened to them and rented for the past eight years, how much would you have lost? How much would your rent have increased since then? And would you still be able to rent that condo or house… or would you.... More »

The State of Mortgage Consumers

– canadianmortgagetrends.com

Mortgage consumer debt reached a record level in the second quarter of 2017, yet mortgage holders have proven capable of managing their increasing monthly obligations. That’s according to CMHC’s recently released Mortgage and Consumer Credit Trends report, which said Canadian households’ credit market debt reached a record $1.70 for every dollar of disposable income. Mortgage […]

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Mortgage Penalties: You could pay thousands to break your mortgage depending on your lender!
I originally posted a breakdown of how mortgage penalties are calculated by different lenders on January 4, 2011.
This remains relevant today and, since this has been my most popular article to date, it’s worth a repost!
WE TOOK THE MYSTERY OUT OF HOW PENALTIES ARE CALCULATED
We decided this needed a more detailed explanation… but a strange thing happened when we started to answer these questions. We made a startling discovery. We caution you – the results could get your blood boiling if you’ve had to pay a penalty!
We found that the banks have shrunk or reduced the spreads between their Posted and Discounted rates on shorter-term mortgages over the past few years… and this has had a huge impact on Interest Rate Differential (IRD) penalty calculations.
QUICK FACTS:

The most popular mortgage product is a 5-year fixed
The most profitable is a 5-year fixed
On average, a mortgage is refinanced or someone moves every 3 years
Mortgage penalties affect more people than you think!

FIRST, YOU NEED TO UNDERSTAND THE HISTORY OF MORTGAGE PENALTIES
To better explain the above statements, I need to explain why mortgage penalties exist at all…

Continue Reading On canadamortgagenews.ca »

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