Mortgage News

Mortgage News2016-10-12T09:40:44-06:00
1207, 2017

Bank of Canada Rate Change

The Bank of Canada (BoC) has raised its interest rate by 0.25% this morning – the first increase in more than seven years. Canadians have lived in a historically low-interest environment since the Global Financial Crisis of 2008, when the Bank of Canada overnight rate fell from 4.50% to an all-time low of 0.25%. Homeowners with variable/adjustable rate mortgages will likely see their rate and possibly payments increase. Home Equity Lines of Credit and Personal Lines of Credit will also be affected. Based on recent public statements made by the Bank of Canada, some economists are predicting that this may [...]

410, 2016

Department of Finance Housing Changes

Ottawa has announced new rules in response to concerns that some markets in Canada are overheated and that Canadian debt levels continue to increase. These changes are meant to alleviate risk in Canada’s housing market but may have a significant impact on the housing market, especially first time home buyers. Here are the highlights: Effective October 17th, all mortgages that require mortgage default insurance, which are typically those with less that 20% down payment, will now require borrowers prove they can qualify based on a higher mortgage rate set by the Bank of Canada called the "benchmark rate". This measure [...]

804, 2016

Understanding Mortgage Features

Real estate is a still a hot commodity in many parts of the country, and it's also a competitive market. Prices are rising and listings are in short supply. And everyone wants your business -- from Realtors to mortgage lenders. It's important to understand the features of a mortgage and make sure it fits with your goals. Take a look at some of the features you might consider: Blend and Extend. Many lenders offer this feature, which is simply a blend of your existing rate with the now current rate.  It may also mean extending your current maturity date as [...]

1702, 2016

New Down Payment Requirements

General Requirements to Qualify for Homeowner Mortgage Loan Insurance For insured mortgage loans, the maximum purchase price or as-improved property value must be below $1,000,000. You will typically have a minimum down payment starting at 5%. For a purchase price of $500,000 or less, the minimum down payment is 5%. When the purchase price is above $500,000, the minimum down payment is 5% for the first $500,000 and 10% for the remaining portion. Normally, the minimum down payment comes from your own resources. However, a gift of a down payment from an immediate relative is acceptable for dwellings of 1 [...]

1412, 2015

Mortgage Rules Tighten on Homes Over $500K

The federal government is changing mortgage rules by boosting the minimum down payment for higher-priced homes in Canada effective in the new year. Home buyers are currently required to put down a minimum of five per cent to qualify for Canada Mortgage and Housing Corporation insurance — protection that lenders insist on when providing a mortgage worth more than 80 per cent of the home's value. Starting in February, CMHC will require a 10 per cent down payment on the portion of any mortgage it insures over $500,000. The five per cent rule remains the same for the portion up [...]

3010, 2015

CMHC Housing Report Warns Canadian Market is Overvalued

The latest CMHC Housing Report indicates the situation is code red for four of the country’s housing markets. Canada Mortgage and Housing Corp., which colour-codes cities according to the degree of risk in the housing market, gave four cities — Toronto, Winnipeg, Saskatoon and Regina — the dubious distinction of red for what it called strong evidence of problematic conditions. But is that as dire as it sounds? CMHC, the Crown corporation responsible for advising the government on housing policy, won’t speculate on the possibility of a crash or exactly how much markets are overvalued, but it does paint a [...]

2110, 2015

The Liberal Party Affordable Housing Plan

Now that the Liberal Party has taken a majority government, we will wait to see how many election promises they follow through on. Below is a break down of the affordable housing plan they proposed... We will make it easier for Canadians to find an affordable place to call home. Today, one in four Canadian households is paying more than it can afford for housing, and one in eight cannot find affordable housing that is safe, suitable, and well maintained. When affordable housing is in short supply, Canadians feel less secure and our whole economy suffers. We will renew federal leadership in housing, [...]

2110, 2015

The Liberal Party Effect on Mortgages

The Liberals’ new majority gives them all the power they need to influence Canada’s mortgage market. Interest rates, mortgage policy and affordable housing initiatives will all be affected. Here’s some of what the mortgage market can expect from Mr. Trudeau’s new government: Higher bond yields: Balancing the budget is not a priority for the Liberals until 2019. Trudeau is expected to go on a spending spree and bond traders aren’t keen about it. It suggests a greater supply of government debt and potentially higher long-term yields to come. That, of course, could mean at least slightly higher fixed mortgage rates than [...]

1310, 2015

Mortgage Interest Rate Promotion | October 13, 2015

Mortgage rates have risen slightly over the past couple weeks but we still have a couple lenders offering incredible interest rate promotions including: 5 Year Fixed = 2.54% 5 Year Variable = 2.05% These rates will not last long so get pre-approved today to take advantage of these promotions. Apply Now to Get Pre-Approved!