Tag Archives: bank regulation

NOA revisions, already up for re-revisions?

Are the recent revisions the Canadian Revenue Agency made to the Notices of Assessment (NOA) really that bad?  Well no, they’re really quite good.  In the way that they have become user friendly that is.  They have become simpler and less cluttered, and all around easier for the general public to understand.  However, there is some speculation (specifically with the Canadian Mortgage Brokers Association or CMBA) that the revisions have … Read More

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10% Minimum, Raising the Wrong Bar

If you’ve been in the market for a mortgage in the last couple of months there is almost no chance you haven’t noticed the talk of an increased minimum down payments from 5 to 10% on loan amounts over $500,000.  What this means for you?  Well if you’re buying a house under 500k, nothing, if you’re buying a house over 500k?  Simple, instead of putting a down payment of 5% … Read More

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RBC Starts Paying Realtor’s For Mortgage Referrals

Ever wonder how a Real Estate agent picks their team?  Well usually they partner with lawyers, mortgage agents, and home inspectors that are experts in their field, professional in their dealings, and can be be trusted to provide top notch service and products.  RBC is trying a different approach.  Royal Bank of Canada (RBC) is offering real estate agents $1,000 for referring first time buyers to them. First time buyers … 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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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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CMHC’s Volume Cut in Half

Stricter mortgage rules on CMHC insured mortgages have had a profound impact on the housing market as well as the insurer itself.  CMHC reports that in the first quarter of this year the number of housing units insured dropped to 52,078 from 114,045 over the same period last year.  This translates to a drop of underwritten insurance to $8.2 billion down by 56.8% from $19 billion last year. The good … Read More

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RBC Blunder Benefits Competition

The Royal Bank of Canada (RBC) was recently exposed outsourcing jobs to foreign workers at the expense of Canadian employees. What was especially abhorrent was the fact that they were prepared to lay off existing long term employees in favor of the cheap labour.  The images and tears of the affected employees on national television attracted government attention and called for an immediate response from RBC.  Other than decrying the … Read More

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TD Understands Ottawa’s Position – Give Me A Break!

Ed Clark, the CEO of Canada’s second largest bank supports Jim Flaherty’s recent move to prevent banks from competing on low mortgage rates.  In a statement after yesterday’s annual shareholder meeting Mr. Clark remarked “I think we understand his concern, we’ve been an advocate all along”. In March Mr. Flaherty took the controversial step of contacting 2 of Canada’s banks, warning them against offering low mortgage rates.  Mr. Flaherty was … Read More

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Flaherty Doesn’t Make Cents

Jim Flaherty is defending his decision to interfere in the mortgage market on the basis that he is preventing Canadians from borrowing more than they can afford.  This is nonsense.  After tightening mortgage rules 4 times in the past 4 years and enhancing the powers of the Office of the Superintendent of Financial Institutions (OSFI) to oversee prudent lending practices, we now have extremely conservative lending practices.  Anybody that still … Read More

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House Flipping Clause in Reverse Mortgage Stops Momentarily till 2014

Though momentary, the flipping regulation that had come to be in the circles of the Federal Housing Administration’s (FHA) rulebook will bear positively, for now, on those seeking to acquire financing for property that is, according to the rule, too tender to avail. The clause has gone under hiatus until the end of 2014 when it will, perforce, come back to life to hinder applicants after homes that have gone … Read More

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