Tag Archives: CMHC

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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The Home of Your Dreams is Within Reach

The home of your dreams is still within reach.  Weather you’re currently renting and saving to buy your own home or are currently a home owner and dreaming of that ideal home, be advised, that home is within reach.  All the talk about an overvalued housing market and the implementation of the tightest mortgage rules in decades shouldn’t discourage you from working towards the home of your dreams.  The Canadian … Read More

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CMHC Cutting Programs

Effective May 30th, 2014 CMHC will be discontinuing 2 existing mortgage programs and  further tighten Canada’s mortgage market.  Self-employed borrowers will no longer be eligible for CMHC insurance unless they are able to verify sufficient income through traditional sources.  Also being cut, is the the 2nd home mortgage program. CMHC’s rationale for this move is that these programs are no longer core to the insurer’s objectives, and only represent a … Read More

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CMHC Poised to Increase Mortgage Insurance Premiums

The annoucement made earlier this year by CHMC regarding increases to their mortgage insurance premiums is set to take effect Thursday of next week.  The 2 other mortgage insurers are following suit making this a unilateral price increase in the oligopic mortgage insurance industry. You still have a chance to avoid the increase by getting your mortgage approved by CMHC before the May 1st deadline.  However in order to give … Read More

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CMHC Mortgage Premiums Set to Soar

Despite billion dollar profits, stricter lending guidelines and a robust housing market, CMHC is spearheading an increase to mortgage insurance premiums.  These premiums are a necessary evil for home buyers with less than 20% downpayment.  The new premiums take effect May 1st, but don’t impact mortgage applications that have been submitted prior to the May 1 deadline regardless of the actual closing date.  As is standard practice in this oligopoly, … Read More

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CMHC Confirms Housing Market Strength

Canada Mortgage and Housing Corporation (CMHC) dropped their provisions for claims by $19 million dollars during the third quarter citing lower expectations for bad loans.  Loan loss provisions which now stand at $895 million are sufficient to withstand a catastrophic market downturn. According to Brian Naish, CMHC’s CFO, “We have seen improvement in the economic indicators that underlie all of that, so for example, unemployment has improved and home price … Read More

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Time For A CMHC Price Cut

It’s time for CMHC to reduce it’s insurance premiums.  These premiums, charged to purchasers with less than 20% downpayment, insure lenders against default.  The 3 mortgage insurers in Canada have been reaping substantial profits on the backs of Canadian homeowners for a decade.  Canada Mortgage and Housing Corporation (CMHC) has held the lions-share of the market (typically 70%) and has reported an average annual net income in excess of $1.1 … Read More

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How Much Mortgage Debt is Too Much Debt?

The Canadian government is concerned about our level of consumer debt, including mortgage debt, and so are most Canadians.  When surveyed however, the vast majority of Canadians feel comfortable with their own level of debt.  The question remains, how much debt is too much debt. The yardstick our Department of Finance has been using is the ratio of debt to disposable annual income.  Let’s look at that at the household … 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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