Canadian housing mortgage rates are all over the map. Don’t get trapped in an unnecessarily costly mortgage agreement.
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Renting out your home can bring cash—and complications + MORE May 21st
If you search “Airbnb how to get started” you’ll reach their splash page with a big number. As of May in Toronto, Airbnb says you can make more than $4,000 per month during the FIFA World Cup. It’s a powerful lure for someone who needs help with their rent or mortgage, and has a spare room t.... More »
Why Canadian investors should avoid MLPs Jan 20th
For better or worse, a sizable group of Canadian investors still screens prospective investments by dividend yield. When that search expands beyond Canadian stocks, it often leads into parts of the U.S. market that look attractive on the surface but are poorly understood.
Common examples include .... More »
Enforcement against mortgage professionals jumps as FSRA flexes new powers Apr 3rd
With higher fine limits now in place, regulators say recent penalties may only reflect the early stages of a stricter regime.... More »
Vancouver Feb. home sales fall amid mortgage, interest rate changes + MORE Mar 4th
VANCOUVER _ Home sales in Metro Vancouver fell more than 14 per cent below the 10-year average in February as buyers contended with stricter mortgage rules and higher interest rates, according to statistics released Thursday.
The Real Estate Board of Greater Vancouver’s data showed that 2,207 .... More »
TD launches agentic AI for mortgage and HELOC applications + MORE May 24th
The bank says its first autonomous AI model is already reducing parts of the pre-adjudication process from an average of 15 hours to less than three minutes..... More »
First Calgary Financial – 2 year Closed : 2.89% (0.22%)
– ratesupermarket.ca
First Calgary Financial 2 year Closed mortgage rate was changed on July 24, 2013
CMHC limits and their affect on you
– mortgageshowdown.com
The Department of Finance and CMHC recently announced that they were enforcing their CMHC limits on Canadian Lenders.
First, a little bit of the back story on CMHC limits:
Every January, the government of Canada and CMHC set a maximum amount of mortgage volume that CMHC is allowed to insure. For 2013, that number was $85 billion, however, by the end of July lenders had already used $66 billion or 78% the insurance allowed for this year. To ensure that the insurance limit is not reached before the end of the year, and that all lenders and in turn Canadians have fair access to CMHC insurance, it has recently been announced that each lender has been limited to $350 million of insurance for this month. This is a stop gap procedure until a more formalized allocation and process can be created by CMHC.
Rylan, what do you think could have caused this run on CMHC limits?
Well, I am glad you asked. My personal thought is that the blame for this “emergency” lies with the banks and more specifically with their pocket protector wearing risk managers…
First, a little bit of the back story on CMHC limits:
Every January, the government of Canada and CMHC set a maximum amount of mortgage volume that CMHC is allowed to insure. For 2013, that number was $85 billion, however, by the end of July lenders had already used $66 billion or 78% the insurance allowed for this year. To ensure that the insurance limit is not reached before the end of the year, and that all lenders and in turn Canadians have fair access to CMHC insurance, it has recently been announced that each lender has been limited to $350 million of insurance for this month. This is a stop gap procedure until a more formalized allocation and process can be created by CMHC.
Rylan, what do you think could have caused this run on CMHC limits?
Well, I am glad you asked. My personal thought is that the blame for this “emergency” lies with the banks and more specifically with their pocket protector wearing risk managers…
Mortgage conundrums
– moneysense.ca
Real estate blogger Jamie Sarner has interesting post about how to finance the stage in between buying a new home and selling the old one.
On a related note, The Greater Fool has good blog post on VTBs, or vendor take-back mortgages. Here’s why the concept popularized in the 1990s is catching on again and why he thinks you should be wary of it.
BMO and Vanguard launched new investment products this week. BMO introduced two new portfolio solutions andfive new mutual funds. Vanguard meanwhile introduced five new equity ETFs with average management fee of 0.21%.
On a related note, The Greater Fool has good blog post on VTBs, or vendor take-back mortgages. Here’s why the concept popularized in the 1990s is catching on again and why he thinks you should be wary of it.
BMO and Vanguard launched new investment products this week. BMO introduced two new portfolio solutions andfive new mutual funds. Vanguard meanwhile introduced five new equity ETFs with average management fee of 0.21%.
Uptrending Rates Aren’t Time to Gamble
– canadianmortgagetrends.com
Take a peek at the recent trend in this chart. (Chart source: MarketWatch) It’s a graph of the 5-year government bond yield—the guiding force behind long-term fixed mortgage rates. On…
When to rent out your property
– moneysense.ca
Q: We have purchased a new home and were planning to sell our current home. We are now thinking about renting it and taking some equity out to use for the down payment on our new home. Does this make sense?
—J.O., Woodstock, Ont.
A: We don’t love this strategy. While it is possible, we think it is too complex for most people to pull off effectively. Ask yourself some questions before you decide if it is right for you.
First, would this rental business be profitable? Look at how much you could realistically rent the property for, subtract the costs of the mortgage, maintenance, and property taxes and factor in the relevant tax deductions on those expenses to see if you’d be able to at least break even. You’ll need to talk to your lender to see how financing will work between the new home and the rental property to see what your interest expense will be. And be sure to factor into your math higher interest rates down the road. While you’re at it, talk to a professional tax adviser, says Evelyn Jacks, author of Jacks on Tax…
—J.O., Woodstock, Ont.
A: We don’t love this strategy. While it is possible, we think it is too complex for most people to pull off effectively. Ask yourself some questions before you decide if it is right for you.
First, would this rental business be profitable? Look at how much you could realistically rent the property for, subtract the costs of the mortgage, maintenance, and property taxes and factor in the relevant tax deductions on those expenses to see if you’d be able to at least break even. You’ll need to talk to your lender to see how financing will work between the new home and the rental property to see what your interest expense will be. And be sure to factor into your math higher interest rates down the road. While you’re at it, talk to a professional tax adviser, says Evelyn Jacks, author of Jacks on Tax…
