Canadian households sent another sign they’re getting comfortable borrowing—the return of home equity loans. Statistics Canada (Stat Can) data shows the balance of home equity line of credit (HELOC) accounts, continued to climb in September. The segment went through a lull as higher rates and stricter lending standards motivated deleveraging. However, with the return of cheaper credit…
Mortgage default insurance protects lenders against defaulting borrowers. Mortgage protection insurance pays your mortgage if you die or become disabled. Mortgage insurance, also called “mortgage default insurance” or “CMHC insurance,” is designed to protect lenders in the event homeowners stop making payments on their mortgages. Your lender arranges mortgage insurance and passes the cost onto…
The federal government has unveiled sweeping changes to Canada’s mortgage system, calling them the “boldest reforms in decades.” Key measures include raising the insured mortgage limit to $1.5 million, which will expand access for Canadians in high-priced housing markets. That’s an increase from the current insured mortgage cap of $1 million. Additionally, the government said…
Interest-only mortgages can offer homebuyers lower payments initially, but they could cost more than a traditional loan in the long run. If you’re planning to buy or refinance a home, researching different types of mortgages is an important step. One loan option you might consider is an interest-only mortgage. Interest-only mortgage loans allow you to…
Are you ready to read alot of numbers? Canadians continued to rein in borrowing for the second straight quarter, according to recent data from Statistics Canada. Household credit market borrowing slowed slightly to $25.1 billion. The slowdown was largely driven by a decline in consumer credit lending, which fell from $7.8 billion in the first…
Your gross debt service (GDS) ratio is your housing costs divided by pre-tax income. Your total debt service (TDS) ratio includes payments on any other debts you may owe. When determining how much you can afford when buying a home, lenders will look at two significant factors: your gross debt service (GDS) ratio and your total…
Despite recent interest rate cuts, the Canadian real estate market remained slow this summer. This has prompted some in the industry to call for an end to the stress test – a tool that determines whether a person can qualify for a mortgage. But would it be a good idea? Christopher Alexander, president of Re/Max Canada, is…
Porting a mortgage, also known as transferring a mortgage, is a process all homeowners should be familiar with. The porting process allows you to apply your current mortgage terms to a new home loan with the same lender — all without breaking your mortgage contract. Porting a mortgage allows you to sell your house in the middle of…
With many Canadian homeowners facing a sharp rise in mortgage payments, many of them have decided to bail, resulting in the highest number of Toronto housing units for sale in more than a decade and signaling a big drop in prices in the coming months. In Toronto, a city where two-thirds of the country’s condominiums…
Found a home you love? Ready to start the mortgage process? Awesome! What’s next? Paperwork! One of the first things lenders will ask of you is a list of documents – so having this organized beforehand is essential. These documents are intended to provide information about your financial stability and other key factors to help…
