Canada Mortgage News

Canada Mortgage News 2017-09-13T16:33:54+00:00

Bank of Canada Holds Rates

The Bank of Canada today maintained its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent. Inflation has picked up in recent months, as anticipated in the Bank’s July Monetary Policy Report (MPR), reflecting stronger economic activity and higher gasoline prices. Measures of core inflation have edged up, in line with a narrowing [...]

October 25th, 2017|

How New Mortgage Rules Change Your Qualification

New mortgage qualification guidelines include a stress test for uninsured mortgages or mortgages with more than a 20% down payment or 20% in existing equity. This new stress test means that borrowers will be qualified at the greater of their contract rate + 2% or the five year benchmark rate published by the Bank of Canada, which is currently 4.89%. Here is how that will affect you the next time [...]

October 20th, 2017|

OSFI Publishes Final Guideline B-20

Today, the Office of the Superintendent of Financial Institutions Canada (OSFI) published the final version of its Guideline B-20. The revised Guideline, which takes effect January 1, 2018, applies to all federally regulated financial institutions. We were pleased that OSFI agreed with our recommendation not to create a prohibition on all co-lending activities and instead clarified that the restrictions only apply to arrangements that are designed to circumvent existing laws [...]

October 17th, 2017|

First National Surpasses $100 Billion in Mortgages

First National Financial Corporation today announced it has crossed the $100 billion threshold in Mortgages Under Administration, a significant accomplishment that reflects the Company’s stature as a primary lender to Canadian homeowners and commercial real estate buyers.“Achieving this milestone reinforces First National’s position as Canada’s largest non-bank mortgage lender and Canada’s largest CMHC multi-residential lender,” said Stephen Smith, Chairman and CEO. “We are proud of the role our Company has [...]

October 13th, 2017|

How to Prepare for Rising Interest Rates

Over the past few years it seemed every expert was telling us that interest rates would be rising, and now after years of record low rates, the Bank of Canada has started to raise them. The first increase was in July, the first in seven years from 0.5% to 0.75%, citing "bolstered" confidence that the Canadian economy has emerged from years of slow growth. The second increase came in September [...]

October 2nd, 2017|

5 Tips for First Time Home Buyers

Buying your first home has become more difficult with rising real estate prices and tougher qualification guidelines as lenders are becoming more conservative. Here are 5 tips for first time home buyers to help you qualify for your first home: 1. Write a Conditional Offer Always set up your offer to be conditional to financing. This gives you time to complete your mortgage approval, but most importantly it allows you [...]

September 18th, 2017|

Canada’s Big 5 Banks All Raise Interest Rates

Bank of Montreal, CIBC, Royal Bank of Canada, TD Bank and Scotiabank all announced they are raising their prime lending rate to 3.2 per cent, from 2.95 per cent, increasing rates by the same 0.25 percentage points as the Bank of Canada. Borrowers who have variable rate mortgages will feel the impact immediately, with more of their payments going to cover interest. And in the longer term, those looking [...]

September 11th, 2017|

Equifax Breach May Affect Canadians

A security breach at credit-monitoring company Equifax Inc. that could affect up to 143 million people in the United States has also exposed "limited personal information" for an undisclosed number of Canadians. The information accessed primarily includes names, Social Security numbers, birth dates, addresses and, in some instances, driver’s license numbers. In addition, credit card numbers for approximately 209,000 U.S. consumers, and certain dispute documents with personal identifying information for [...]

September 8th, 2017|

Bank of Canada Surprises With a Rate Hike

The Bank of Canada is raising its target for the overnight rate to 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent. Recent economic data have been stronger than expected, supporting the Bank’s view that growth in Canada is becoming more broadly-based and self-sustaining. Consumer spending remains robust, underpinned by continued solid employment and income growth. There has also [...]

September 6th, 2017|

New Mortgage Lending Guidelines Proposed

The Office of the Superintendent of Financial Institutions (OSFI) has proposed new mortgage lending guidelines, yet again, that includes a stress test for uninsured mortgages. This is in addition to the existing stress test on insured mortgages. The federal government and OSFI have been taking steps since last year to cool the housing market and reign in risks taken on by lenders as house prices in certain markets have soared. [...]

September 5th, 2017|
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