The Bank of Canada’s April 13 interest rate hike of 0.5%—the biggest one-time rate jump in decades—caught many variable-rate mortgage holders off guard. Some are likely thinking about running to their local bank branch or mortgage specialist to lock into a standard five-year fixed rate. Those who do so will likely be welcomed into the lion’s…
Still want to buy a home? You’ve got a friend in us! A study found Canada has one of the highest rates of home ownership in the world, with 67% of residents owning their own home. As an aspiring homeowner, you’ll need to learn about down payments, mortgages, and mortgage insurance. Understanding what these terms mean can…
Most big mortgage lenders, including all of the Big 6 banks, have hiked fixed rates once again over the past several weeks. In many cases, they’ve also reduced their variable-rate discounts, making variable-rate mortgages slightly pricier for new borrowers. Most of the fixed-rate increases were in the range of 15 to 20 bps, although Scotiabank…
Homebuying is always a stressful time. No couple or family wants a mishap with their hard earned monies before seeking an approval for the loan they desire so much. New mortgage rules meant to protect consumers from bad lending practices may have another impact – forcing home buyers to get their financial house in order. Borrowers’ income,…
Canada plans to increase credit access for the country’s riskiest borrowers in the years to come. A re-elected government may not seem like change, but they promised a big one — larger insured mortgages. High-ratio borrowers will see an increase of up to 25% of their maximum mortgage size. Expansion of credit during a low…
When shopping for a mortgage, many homebuyers enlist the services of a mortgage broker to find them the best terms and rates. After the real estate market crash in 2008, however, the business practices of brokers came under scrutiny, and the question of whether they act in customers’ best interests was raised. Working with an experienced, competent…
Last week, it was announced again that both insured and uninsured mortgage borrowers will be subject to a stricter stress test when qualifying for their mortgage. The Office of the Superintendent of Financial Institutions (OSFI) confirmed that it will move ahead with its stress test changes first announced last month, which will apply to uninsured mortgages…
The mortgage deferral rate is on the decline according to the CMHC. In their quarterly financial report released November 27, the CMHC reported it had deferrals on 5% of its entire portfolio of insured mortgages since September 30. That’s a decline from approximately 8% in August. The active mortgage deferral rates as of September 30 was 4%…
There may be uncertainty in the future for our country’s real estate market, but young Canadians are undeterred and remain optimistic about the prospect of buying a home. Nearly 1 in 5 Canadians aged 18-34 say the pandemic has accelerated their plans to purchase a home or investment property, according to a recent Scotiabank survey. The…
Almost 1 million existing loans have been deferred; more loans are still being taken out. More than 3/4 of a million Canadian homeowners have either deferred or skipped a mortgage payment during the COVID-19 pandemic began, to the tune of about $1 billion a month, Canada’s national housing agency says. In a report on Thursday,…
