Canada Mortgage News

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

The Growth of Private Mortgage Lending

Getting a mortgage from a bank or a non-bank lender has become a bit more challenging. With the recent introduction of new mortgage rules, lenders have had to tighten their qualifying guidelines. The new mortgage rules have also impacted those who want to refinance their mortgage loan. And at renewal time, if you want to increase your existing loan, change your amortization or shop for a better rate, the new [...]

February 9th, 2018|

Bank of Canada Raises Rates

As predicted, the Bank of Canada opted to increase its target for the overnight rate today to 1.25%, up from 1%. It's reasoning? Strong recent data, close-to-target inflation and an economy that's operating pretty much at capacity. While things are looking up right now, however, the Bank doesn't expect it to stay this strong for long. It predicts real GDP growth will slow to 2.2% in 2018 and 1.6% [...]

January 17th, 2018|

Buying a House in 2018?

Buying a house should be exciting but it can get pretty stressful at times. Now, with new mortgage rules, that stress might get worse. You may worry you won’t qualify or you’re not sure if your down payment is enough. Some may not even know about the mortgage rule changes and the impact it might have on them. There may be uncertainty about house prices and about interest rates. Not [...]

January 10th, 2018|

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|
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