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 leaves mortgage stress test in place, reaffirms LTI limits for lenders + MORE Jan 29th
OSFI offered no new direction on the qualifying rate, but reiterated that loan-to-income caps for uninsured mortgages remain in place and opened a new six-month consultation tied to its broader guidance review..... More »
Why mortgage brokers should know prepayment penalty calculations inside and out Mar 20th
All mortgage brokers should have a comfortable working knowledge of how prepayment penalties are calculated and applied. .... More »
Popularity of variable-rate mortgages plummets to pre-pandemic levels + MORE Jun 21st
The popularity of variable-rate mortgages is continuing to fall and is now nearly at levels last seen prior to the pandemic in early 2020..... More »
RBC warns of rising mortgage losses through 2025 with upcoming renewals + MORE Sep 4th
BoC rate cuts will ease pressure, but mortgage renewal shocks still loom, RBC says.... More »
Toronto housing bubble: Is it ready to pop? + MORE Nov 25th
The Toronto real estate market has experienced remarkable growth over the past two decades. The average home price in Toronto surged by a staggering 489% from 2000 to 2022, according to the Toronto Real Estate Board (TRREB). This rapid price growth has raised concerns about the future of affordable .... More »
Understanding mortgage affordability
– moneysense.ca
Let’s talk about mortgage affordability. We know that housing affordability is getting further out of reach for many Canadians. But, what determines mortgage affordability? How is it calculated by financial institutions and lenders? And what hidden costs should potential home buyers factor in before applying for a mortgage?
You’re 2 minutes away from getting the best mortgage rates in CanadaAnswer a few quick questions to get a personalized rate quoteI’m buying a homeI’m renewing/refinancingYou will be leaving MoneySense. Just close the tab to return.
First, let’s take a step back and look at what mortgage affordability means.
What does mortgage affordability mean?
Mortgage affordability refers to how much money a person can borrow to purchase a home. It’s a figure based on their household income, future living expenses (i.e. the mortgage payments, heating costs and property taxes associated with the potential home) and their current debt payment obligations…
