Tag Archives: mortgage policy

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

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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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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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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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High Housing Costs Hurting Canadians

A letter from the Federation of Canadian Municipalities cites the high cost of housing as the most urgent financial issue facing Canadians today.  “Housing costs and, as the Bank of Canada notes, household debt, are undermining Canadians personal financial security, while putting our national economy at risk,” quotes the document addressed to Stephen Harper. The letter was put forth by the Federation of Canadian Municipalities, who represent over 90% of … Read More

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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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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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The Rich are Getting Richer

The rich are getting richer according to the World Wealth Report, a study co-authored by RBC Wealth Management and Capgemini.  The number of Canadians with investable assets of $1 million or more grew by 6.5% to a record of 298,000 Canadians.  Even more shocking is that the really rich, the number of Canadians with investable assets of $30 million or more, grew by 11% to a record 4,500 Canadians. Now … 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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