Category Archives: Blog

CMHC Releases Canadian Housing Market Outlook

Canada Mortgage and Housing Corporation (CMHC) released their Second Quarter 2012 Canadian Housing Market Outlook on Thursday.  The Canadian housing market is expected to remain strong over the remainder of 2012 and for all of 2013.  This, in a nutshell, is the CMHC’s mid-term forecast for the housing market.  Although there will always be pockets that stray from the norm, it’s largely expected that we’ll have a balanced market with … Read More

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Banks Respond to Appraisal Concerns

In the wake of the Office of the Superintendent of Financial Institution’s (OSFI’s) letter to federally regulated financial institutions, (FRFI’s) the big banks are already responding to the concern on property valuations.  “We have tightened our process, and make sure that we are getting an accurate read,” reported RBC through David McKay, its head of Canadian banking.  TD bank however feels further tightening isn’t necessary.  “We’re really not seeing a … Read More

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Mortgage Rates New Normal

Here in Canada, the buzz is all about rising mortgage rates.  Interest rates and specifically mortgage rates have been at record lows for an extended period of time and the prevailing logic is what goes down, must come back up.  However as time goes on, we have to start questioning traditional economic logic.  Just because it’s always been that way doesn’t mean that interest rates have to go back up … Read More

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OSFI Interim Update

The office of the superintendent of financial institutions (OSFI) released a letter on Wednesday providing an interim update on Draft Guideline B-20.  These guidelines are the proposals put forth by OSFI to tighten the mortgage lending practices of federally regulated financial institutions (FRFI’s).  The purpose of this letter is to provide a brief description of OSFI’s key decisions on their proposals after having incorporated industry feedback. The good news is … Read More

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Variable Mortgage Rate Forecast – June 2012

The prime lending rate and thus variable rate mortgages are expected to remain at current levels for the midterm (3-6 months).  Variable rate mortgages are tied directly to the prime lending rate which in turn is a function of the overnight rate set by the Bank of Canada (BOC).  Mark Carney, director of the Bank of Canada, kept the overnight rate at 1% Tuesday and their commentary made it clear … Read More

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Bank of Canada Maintains Interest Rates

Mark Carney and the Bank of Canada (BOC) announced today that they are keeping the overnight rate at 1%.  This will in turn leave the prime lending rate at 3%.  Existing variable rate mortgagors will be pleased to know that their ultra-low mortgage interest rate will remain unchanged, at least until the next Bank of Canada meeting date scheduled for July 17, 2012 In the announcement the BOC acknowledged that … Read More

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Fixed Mortgage Rate Forecast – June 2012

Fixed mortgage rates are linked directly the rates offered by Canadian 5 year government bonds.  These bonds represent the cost of funds for fixed rate mortgage lenders.  Already near all-time lows these bond yields took a nosedive last week.  This swansong is a direct result of last week’s flow of disappointing economic news from around the word.  Abysmal job numbers from the US, a slowdown in China, and a European … Read More

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