Tag Archives: mortgage market

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

Posted in Blog, Government Policy | Tagged , , , , , | Leave a comment

Mortgage Basics

When we get down to the basics of life, it’s really quite simple.  Down to its core, all we really need is food, shelter and love.  Everything else is optional. Shelter can come in many forms.  Living with relatives, renting your home, or the loftier goal of owning your own home.  Although home ownership is not a necessary part of life, it’s a goal for most Canadians.  The good news … Read More

Posted in Blog, Canadian Housing Market, Credit Cards, Personal Finance | Tagged , , , , , , | Leave a comment

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

Posted in Blog, Canadian Housing Market | Tagged , , , , , , , | Leave a comment

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

Posted in Blog, Canadian Housing Market, Government Policy | Tagged , , , , | Leave a comment

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

Posted in Blog, Canadian Housing Market, Government Policy | Tagged , , , , , , | Leave a comment

Fixed Mortgage Rate Forecast – 2014

It appears that an era of consistently low mortgage rates with no significant prospects for increases is about to come to an end.  At least for long term fixed mortgage rates. Mortgage rates are directly tied to the market yield for government bonds of similar duration, and a significant economic stimulus program is beginning to wind down. The US Federal reserve began a bond purchase program in November of 2008 … Read More

Posted in Blog, Canadian Housing Market, Mortgage Rates | Tagged , , , , , | 1 Comment

A Look Back at 2013 5 Year Mortgage Rates

Mortgage rates were a hot topic throughout 2013.  Governments intervened in money markets to manipulate mortgage rates in both Canada and the US.  While the US’ quantative easing (QE) program was focused on keeping rates low, Canadian policy makers were busy threatening rate increases and chiding banks for low mortgage rates.  Looking back at 2013 we can see that the US won the rate manipulation game. Quantative easing used the … Read More

Posted in Blog, Canadian Housing Market, Mortgage Rates | Tagged , , , , , | Leave a comment

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

Posted in Blog, Canadian Housing Market, Government Policy | Tagged , , , , , , | Leave a comment

Fixed Mortgage Rate Forecast – October 2013

The fixed mortgage rate forecast for October 2013 is for rates to decline in the near term.  Fixed mortgage rates, particularly the most popular 5 year fixed mortgage rates, are tied to 5 year benchmark bond yields.  Insight into the direction of bond yields provides us with a crystal ball with which to predict near term fixed mortgage rates. The price of bonds have been kept low by the US … Read More

Posted in Blog, Mortgage Rates, Personal Finance | Tagged , , , , | Leave a comment

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

Posted in Blog, Canadian Housing Market, Government Policy | Tagged , , , , , , | Leave a comment