Author Archives: Dan

Dan

About Dan

Dan Wowk has over 20 years experience in the financial services industry with a focused expertise in the residential mortgage market. Dan's accomplished career includes an MBA from the Schulich school of business, and roles ranging from vice president of Canada's largest mortgage bank to running an independent brokerage. Dan believes in sharing his expertise with the Canadian consumer to improve their financial well being. Knowledge is Power. Be Powerful!

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Maxed Out and Ready to Refinance

The average non-mortgage debt held by Canadians has climbed by 3.47% to $27,131 over last year.  One reason behind the increase is the new mortgage rule limiting the amount you can refinance.  Canadians who have maintained their spending patterns can no longer use the equity in their house to wipe the slate clean.  Instead they are left with a mountain of high interest debt. While the new rule makes sense … Read More

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BMO Bumps 5 Year Mortgage Rate

Bank of Montreal (BMO) has bumped their “no frills” 5 year fixed mortgage rate by 20 bps to 3.79% effective today.  The move demonstrates the roller-coaster ride clients can expect if they choose the “no frills” option.  Less than a year ago, BMO made headlines by promoting this product at 2.99%.  The move was so bold that it warranted a phone call from the Department of Finance who was concerned … Read More

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Fixed Mortgage Rate Forecast – August 2013

Fixed mortgage rates are primed for a .25% to .50% increase over the next couple of months.  The Department of Finance’s policy change restricting the amount of MBS mortgages that Canada Mortgage and Housing Corp (CMHC) will insure is to blame. Without the ability to insure and then securitize as many mortgage assets, Canada’s mortgage lenders will have to resort to more expensive sources of capital to fund Canadian mortgages.  … Read More

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Flaherty Fights Growing Housing Market

July’s strong market results just may have been the latest tipping point for Ottawa and the Department of Finance (DOF).  A new government initiative to slow housing growth is restrictions on cost effective funding sources.  Canada Mortgage and Housing Corporation (CMHC) has already notified banks and other mortgage lenders that it’s putting a $350 million monthly cap on the amount of Mortgage-Backed Securities (MBS) that each lender can issue.  Although … Read More

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Jubilant July for Toronto Real Estate

The Toronto Real Estate Board (TREB) announced that 2013 brought the 3rd best July on record.  Not only did sales rocket by 16% but average sale prices also shot up by 8% to $513,246.  This is particularly good news for an industry that typically sees a summer slowdown July and August. The implication of these strong numbers is that tighter mortgage rules imposed by the Department of Finance (DOF) have … Read More

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Fixed Mortgage Rate Forecast – July 2013

5 year fixed mortgage rates are currently overpriced and you can expect to see a 0.25% drop in the next 30 days.  Fixed mortgage rates are priced off of bond yields of the same duration.  Last month the market reacted to comments from the Fed’s Ben Bernanke and bond yields shot upwards by 50 bps.  This reaction was without merit as Mr Bernanke’s comments were nothing new from his previous … Read More

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Variable Mortgage Rate Forecast – July 2013

It’s steady as she goes for variable mortgage rates for the foreseeable future.  Variable mortgage rates are linked to the overnight rate which is controlled by the Bank of Canada (BOC), and the BOC’s new chief, Stephen Poloz is maintaining the same cautious hand as outgoing chief Mark Carney. When asked when we can expect to see rates rise Mr. Poloz replied, “The honest answer is, we really don’t know”.  … Read More

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Proud to Be Canadian!

I’m proud to be Canadian but even prouder to be a Canadian mortgage broker.  Our great country fared better then any other industrialized nation through the great real estate recession of 2008 that continues to linger today.  Foreign mortgage financing practices caused the massive economic downturn, but Canadian mortgage financing practices have kept our country stronger than others. What makes our mortgage system so strong is not individual rules, regulations … Read More

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Spike in Mortgage Rates Temporary

The recent spike in fixed mortgage rates is a direct result of an incredibly sharp rises in bond yields.  I say incredibly because the market grossly over-reacted to Ben Bernake’s comment that the Fed will eventually begin to taper monetary stimulus.  Following this over-reaction, you can expect to see bond yields ease back nearer to their previous lows. Kent Engelke, chief economic strategist at Capitol Securities Management Inc., confirms that … Read More

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Bond Yields Hit 1 Year High

5 year Government of Canada benchmark bond yields were 1.30% just a year ago today and after a year of relatively minor changes are just now spiking at 1.81%.  This 0.51% increase is putting upward pressure on 5 year mortgage rates suggesting the new 5 year mortgage rate should be 3.39% up from 2.89% just a few weeks ago. Although nobody wants to pay an extra .50% on their mortgage … Read More

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