Category Archives: Blog

Mortgage Gymnastics

Arranging a mortgage can be an exhausting process, especially if you aren’t familiar with the process.  By the time the whole thing is done you can be left feeling like you’ve just completed  a gymnastics competition. In order to ward off the potential pains and strains make sure you familiarize yourself with the process and work with a trusted mortgage professional. Although the steps are the same for all mortgages, … Read More

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Mark Carney’s Departure won’t Impact Mortgage Rates

Mark Carney has been named governor of the Bank of England and will leave his current job as the head of the Bank of Canada mid-2013.  Many Canadians take great pride in the fact that one of our own leaders has acquired such international respect as to be hired to oversee a foreign bank.  No doubt that this appointment speaks volumes of the respect he’s enjoyed internationally and his departure … Read More

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Mortgage Rules Mean More Renters

The new tighter mortgage rules not only mean that we’ll have to pay-down our mortgages faster, but that 9% of potential home buyers will be kept out of the market completely.  Most Canadians are financially responsible and can support the idea of paying down our mortgages faster, even if it’s a practice enforced by the Department of Finance.  Although higher mortgage payments might cause some short term pain, the long … Read More

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Non-Mortgage Debt on the Rise

Canadian non-mortgage related debt increased 4.6% in the fourth quarter over the same period last year bringing the average to $26,768, its highest point in 2 years.  This increase has many pundits scratching their heads trying to understand why Canadians aren’t getting the message.  Both the Bank of Canada and the Department of Finance have been so concerned about the amount of overall consumer debt that have been working to … Read More

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Fixed Mortgage Rate Forecast – November 2012

5 year fixed mortgage rates are tied directly to the government of Canada benchmark bond yields.  The last reported yield was at 1.29% on November 8th.  This is the rate of return mortgage lenders can expect to receive when they sell pools of mortgages on the open market.  This yield is 1.7% below the 5 year fixed mortgage rate of 2.99% that’s available in the marketplace.  The 1.7% spread delivers … Read More

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November Variable Mortgage Rate Forecast

The Bank of Canada’s last interest rate announcement was October 23rd and as expected there was no change in the overnight interest rate.  Variable mortgage rates are tied directly to the prime rate of interest which is in turn tied directly to the overnight interest rate.  No change in the overnight rate means no change to your variable rate mortgage. The Bank of Canada only meets 8 times per year … Read More

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Why You Need CMHC Insurance

CMHC provides mortgage default insurance to the lender in case the borrower defaults and there isn’t enough money after a sale to pay-out the mortgage.  There are 2 other Canadian mortgage default insurers in Canada that provide identical products, Genworth Financial and Canada Guarantee. Regulated financial institutions are prohibited from lending beyond 80% of the value of your home unless they obtain this mortgage default insurance.  Although this premium is … Read More

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Self Employed Excluded From Home Ownership

Most Canadians are now familiar with the fact that mortgage rules have been tightened 4 times in 4 years by the Department of Finance.  What many don’t realize is that OSFI, the regulator of all Canadian Financial Institutions, is using its new found powers to tighten mortgage lending even further.  It recently imposed a new set of rules for mortgage lenders that’s been titled B-20. Perhaps the most restrictive component … Read More

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Lopsided Mortgage Rate Specials

It’s counter intuitive, but a large downpayment on your house purchase might mean you’ll have to settle for a higher mortgage rate.  The concept isn’t new, but recent regulatory changes have made this proposition a reality in the mortgage market. Traditional thinking is that the greater the downpayment, the safer the mortgage, and the safer the mortgage the lower the mortgage rate.  The reason this isn’t the case is because … Read More

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