Tag Archives: mortgage rules

Bank Profits Jump Despite Negative Rhetoric

Scotiabank’s profits skyrocket 57% while Bank of Montreal’s profits launch 37% higher in the third quarter.  If anyone was concerned about our Canadian banks’ well-being, they should be consoled by these numbers.  With net income increasing to $2.05 billion and $970 million respectively these solid performing institutions are well positioned to weather the worst of storms regardless of what the doomsayers preach. These results are one more reason why Canadians … Read More

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Less Affordable Housing

Canadian housing became a little less affordable last quarter according to a report released today by RBC.  “This represented the second consecutive quarter during which the costs of owning a home at market prices grew as a share of household income” read the report authored by RBC economists Craig Wright and Robert Hogue. The main factors affecting affordability are rising home prices, higher mortgage rates and tighter lending rules, and … Read More

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The Fastest Way to Improve Your Credit

A good credit score can open many doors, while a bad score will shut them tight.  A poor credit score will not only prevent you from getting the best mortgage rate, it may prevent you from getting approved at all. Credit scores are controlled by Equifax and Trans Union.  These 2 firms each maintain your credit record itemizing your payment history on each credit card, loan and line of credit.  … Read More

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Porting Your Mortgage

The ability to port your mortgage is a common mortgage feature that has come to be expected by most Canadians.  On the face of it, the concept seems straightforward, but the details may prevent you from keeping your rate or eliminating your mortgage penalty.  Make sure you understand your lender’s policies. The main benefits of porting your mortgage are the elimination of pre-payment penalties and the ability to keep your … Read More

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Hot Summer Mortgage Rates

The summer of 2012 is shaping up to be one of the hottest on record, and I’m not just talking about the weather.  Record low mortgage rates continue across the country make this the ideal time to buy a home or refinance your existing mortgage.  And you don’t need to worry about over-extending yourself; the government is making sure nobody does. Homeowners can lock in now with a 5 year … Read More

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Higher Mortgage Rates for Rentals

Buying a rental property may not be as good an investment as you think.  When calculating the benefits of owning a rental property many Canadians will assume that the mortgage financing is the same as if you were buying a residence.  This is not the case.  Mortgages on rentals require bigger downpayments, higher incomes and they often come with a higher mortgage rate. It wasn’t that long ago that you … Read More

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Home Prices Hit Ceiling – For Now

You know we’ve hit the ceiling when one of Canada’s leading real estate companies becomes pessimistic on home value appreciation.  Phil Soper, president and CEO of Royal LePage Real Estate Services is concerned over the recent mortgage rule changes.  “The most recent set of mortgage changes, the fourth in four years, is also the most aggressive.  The cumulative impact of these new regulations has created a significantly higher hurdle for … Read More

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15 Years to Mortgage Freedom

On average Canadians have 15 years left to pay off their mortgage.  This is the findings of a survey released yesterday, conducted by Leger Marketing, for BMO Bank of Montreal.  It’s difficult to distil any meaning from an average of the entire Canadian population, but thankfully the survey breaks down its findings by province and by 5 year amortization increments.  Here are a summary of the results. Years Left on                                                   … Read More

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Banks Concerned over Mortgage Rules

Canada’s big banks have been in favor of tighter mortgage rules.  Now that they’re here, there’s concern that the department of finance has gone too far.  David McKay, head of Canadian banking at RBC points out “This is not like turning a Ferrari, this is a big ship and it takes a while to turn, and sometimes if you over steer, you can’t re-steer the other way.”  This is the … Read More

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Flaherty Admits Mortgage Rules May Slow Growth

There’s no doubt about it.  The Canadian government is determined to head off a housing bubble – no matter what the cost.  After all, we do have an international reputation to protect.  When the governor of the bank of Canada was named chairman of the international Financial Stability Board, Mark Carney credited his appointment to “the strong reputation of Canada’s financial system and the leading role that Canada has played … Read More

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