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July 29, 2021

Majority of Canadian Buyers Borrowing Their Maximum Approved Mortgage

Majority of Canadian Buyers Borrowing Their Maximum Approved Mortgage

Soaring home prices over the past year have forced a majority of today’s homebuyers to use the maximum mortgage amounts they’ve been approved for.

More than 65% of recent buyers bought the maximum amount of house they could afford, according to the Canada Mortgage and Housing Corporation’s (CMHC…

BREAKING NEWS

Why You Should Get a Home Inspection

Why You Should Get a Home Inspection

Why You Should Get a Home Inspection When you see a home, and you like it, it can be tempting to skip the home inspection, especially if other people are interested in the home. However, that can prove to be a costly mistake. Here are some reasons why you should get a home inspection. For… Read M…

Variable Rate vs. Adjustable Rate Mortgages

Variable Rate vs. Adjustable Rate Mortgages

Variable Rate vs. Adjustable Rate Mortgages When considering mortgage options, the debate is usually fixed versus variable. However, did you know that all variable-rate mortgages aren’t created equal? There are actually two types of floating-rate mortgages in Canada: variable rate and adjustable …

Why You Should Get a Home Inspection

Why You Should Get a Home Inspection

Why You Should Get a Home Inspection When you see a home, and you like it, it can be tempting to skip the home inspection, especially if other people are interested in the home. However, that can prove to be a costly mistake. Here are some reasons why you should get a home inspection. For… Read M…

Variable Rate vs. Adjustable Rate Mortgages

Variable Rate vs. Adjustable Rate Mortgages

Variable Rate vs. Adjustable Rate Mortgages When considering mortgage options, the debate is usually fixed versus variable. However, did you know that all variable-rate mortgages aren’t created equal? There are actually two types of floating-rate mortgages in Canada: variable rate and adjustable …

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Homebuyers Shun CMHC’s First-Time Home Buyer Incentive

Homebuyers Shun CMHC’s First-Time Home Buyer Incentive

The federal government’s First-Time Home Buyer Incentive (FTHBI) was meant to offer a path to homeownership for those unable to tap the “Bank of Mom and Dad” for down payment assistance.

But first-time buyers have largely rejected the equity-sharing program that was first unveiled in September 2…

Low Rates Helping Borrowers Pay Off Mortgages at Record Pace

Low Rates Helping Borrowers Pay Off Mortgages at Record Pace

Home prices may be astronomical in certain parts of the country, but historically low mortgage rates are allowing borrowers to pay off their mortgages faster than ever.

At today’s average rates, 61% of a new homebuyer’s very first mortgage payment is going towards principal repayment, according …

Mortgages and Divorce

Mortgages and Divorce

Mortgages and Divorce Are you recently separated or divorced, or are you considering getting separated or divorced? You’re not alone. The sad reality is that couples have been splitting up in record numbers during Covid times. Spending all that extra time together has been good for some couples, …

Housing Market Moderates in May, but Prices Forecast to Rise 19.3% this Year

Housing Market Moderates in May, but Prices Forecast to Rise 19.3% this Year

Home sales and prices continued to moderate in May, easing from March’s peak. But with ongoing tight supply and high demand, prices are expected to remain elevated through the year.

That’s according to the Canadian Real Estate Association (CREA), which released its updated outlook for average pr…

How are Mortgages Priced?

How are Mortgages Priced?

How are Mortgages Priced? Have you ever taken out a mortgage with a lender, only to see a low rate advertised, and wonder why you didn’t qualify for this rate? Mortgage pricing most likely has a lot to do with it. Let’s look at some of the big factors that affect the mortgage rate you’ll… Read Mo…

Bank of Canada Holds Rates, Says High Inflation Will be Temporary

Bank of Canada Holds Rates, Says High Inflation Will be Temporary

The Bank of Canada’s Wednesday rate announcement was “steady as she goes,” as it maintained its Quantitative Easing program and reiterated that rates should stay where they are until the second half of next year.

The overnight lending rate remains at 0.25%, where it’s been since last March. But …

Q&A With M3 Group on its Acquisition of Pinch Financial

Q&A With M3 Group on its Acquisition of Pinch Financial

M3 Group announced last week that it had completed the acquisition of Fintech company Pinch Financial.

The Toronto-based company made waves in the mortgage space when it launched in 2017 for its platform’s ability to provide full mortgage qualifications in as little as 10 minutes. Its fully auto…

The Latest in Mortgage News: Have Home Prices Peaked?

The Latest in Mortgage News: Have Home Prices Peaked?

The seemingly endless run-up in home prices seems to have reached a peak, at least for now.

May home sales data from some of the country’s real estate boards showed sales and prices still growing in some regions, but down for their second consecutive month in others following the peak in March.

Home Inspection vs. Appraisal

Home Inspection vs. Appraisal

Home Inspection vs. Appraisal Do you know the difference between a home inspection and a home appraisal? Many home buyers use these terms interchangeably. While a home inspection and appraisal are very similar, there are some key differences to be aware of. Home Inspection A home inspection of a …

More Seniors to Rely on Home Equity as Part of Retirement Planning

More Seniors to Rely on Home Equity as Part of Retirement Planning

Almost 8 in 10 Canadians over the age of 55 believe they can’t rely on registered savings and pension plans alone to support a comfortable retirement.

Roughly half say that home equity is a vital part of retirement planning, yet many don’t want to downsize from their current home, according to a…

Pre-Qualified vs. Pre-Approved vs. Approved

Pre-Qualified vs. Pre-Approved vs. Approved

Pre-Qualified vs. Pre-Approved vs. Approved If you’re considering buying a home, you may have heard the terms “pre-qualified,” “pre-approved,” and “approval” used interchangeably. While all three terms are related to home buying, there are some subtle differences to be aware of. Let’s go through …

Best Practices to Verify Your Clients’ Down Payments

Best Practices to Verify Your Clients’ Down Payments

Proving the source of your clients’ down payments can sometimes be the most time-consuming part of arranging a mortgage. Even when handled well, the process may sour the buyer experience.

Your client will need to provide a comprehensive history of all the money earmarked for their down payment a…

Insured and Uninsured Mortgage Stress Test Changes Confirmed for June 1

Insured and Uninsured Mortgage Stress Test Changes Confirmed for June 1

Starting June 1, 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 on Thursday that it will move ahead with its stress test changes first announce…

Q1 Lender Earnings: The Recovery is Underway

Q1 Lender Earnings: The Recovery is Underway

Some of the country’s key mortgage lenders unveiled their first-quarter results, which were positive across the board.

The lenders were able to take advantage of a hot housing market, alongside improving economic conditions and reduced loss provisions.

One highlight was Home Capital addressing …

Canadian Home Prices Take a Breather in April. Will it Last?

Canadian Home Prices Take a Breather in April. Will it Last?

After months of record-setting gains, home sales and prices took a breather in April compared to March’s results. Annual gains, meanwhile, were skewed due to last year’s historic decline in real estate activity, in which home sales fell to their lowest level ever.

Canada’s average home price (no…

Latest in Mortgage News: House Prices to Moderate This Year, Says CMHC

Latest in Mortgage News: House Prices to Moderate This Year, Says CMHC

Home prices are expected to finally level off from the “unsustainable” increases that have been seen over the past year, says the Canada Mortgage and Housing Corporation (CMHC).

“Low mortgage rates, high savings rates and persistent, uneven impacts of the pandemic and low immigration are forecas…

Sagen Overtakes CMHC as Canada’s Largest Mortgage Default Insurer

Sagen Overtakes CMHC as Canada’s Largest Mortgage Default Insurer

The Canada Mortgage and Housing Corporation (CMHC) has reportedly lost its title as Canada’s largest provider of mortgage default insurance.

The national housing agency’s total market share has slipped to just under 30%, according to a report by RATESDOTCA. That marks a steep decline from CMHC’s…

First-Time Home Buyer Incentive 2.0 Now Available

First-Time Home Buyer Incentive 2.0 Now Available

Long-awaited tweaks to the government’s First-Time Home Buyer Incentive came into effect on Monday.

Nearly five months after the changes were first proposed , the Department of Finance and Canada Mortgage and Housing Corporation (CMHC) have enhanced the eligibility criteria for buyers in Toronto…

Latest in Mortgage News: House Price Growth to Cool by End of Year: TD

Latest in Mortgage News: House Price Growth to Cool by End of Year: TD

TD Bank is forecasting that home prices have further to rise yet before finally starting to lose steam by the end of the year.

“…with markets remaining historically tight, more near-term gains are in the cards,” wrote TD economist Rishi Sondhi in a recent report.

But, with home prices already u…

A Pre-Approval Does Not Guarantee a Mortgage Approval

A Pre-Approval Does Not Guarantee a Mortgage Approval

Many Canadians are under the assumption their mortgage is as good as done once they have a mortgage pre-approval.

But the truth is a buyer cannot expect a mortgage pre-approval will automatically translate into a mortgage. The lender now needs to consider the property itself, approve all the ter…

Federal Budget Doesn’t Rock the Canadian Housing Boat

Federal Budget Doesn’t Rock the Canadian Housing Boat

Homeowners fearing sweeping measures that could have over-corrected the housing market likely breathed a sigh of relief on Monday after hearing the details of the federal budget.

Despite growing calls from numerous bank analysts in recent weeks for the need to tax the sale of principal residence…

High Home Prices a Growing Obstacle for First-Time Buyers

High Home Prices a Growing Obstacle for First-Time Buyers

The ongoing surge in home prices across the country is discouraging a large number of young non-homeowners, many of whom say they’re giving up on the dream of homeownership altogether.

More than a third (36%) of non-homeowners under 40 believe they will never own a home, while 62% of Canadians b…

Average Home Price Hits a Record $716,828. Is Another Policy Response Coming?

Average Home Price Hits a Record $716,828. Is Another Policy Response Coming?

Canada’s average home price rose 31.6%— or $172,361— over the last 12 months, to yet another record-setting high in March.

The average national price now stands at $716,828, according to data from the Canadian Real Estate Association (CREA). Even without the high-priced markets of the Greater To…

FOMO-Tight-Housing-Supply-Drive-Home-Prices-to-a-New-Record

FOMO & Tight Housing Supply Drive Home Prices to a New Record

For the eighth straight month, Canadian home prices set yet a new record high in February, the Canadian Real Estate Association reported on Monday.

The average house price surged 25% from last year to a new high of $678,091, CREA’s figures show. At the same time, housing inventories continue to …

Bank-of-Canada-Still-Sees-Low-Rates-Until-2023-Financial-Markets-Disagree

Bank of Canada Still Sees Low Rates Until 2023; Financial Markets Disagree

The Bank of Canada delivered welcome news for variable-rate mortgage holders today when it stood by its expectation of no rate hikes until early 2023.

“We remain committed to holding the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent infl…

Mortgages-Lead-Credit-Growth-as-Delinquency-Rates-Decline

Mortgages Lead Credit Growth as Delinquency Rates Decline

Mortgage credit grew in the fourth quarter of 2020 as Canadian consumers took steps to reduce all other forms of debt, according to new data from TransUnion.

The credit agency’s Q4 Industry Insights Report showed mortgage credit grew 5.6% year-over-year, while the average balance of mortgage loa…

Bond-Yields-Surge-Mortgage-Rates-Rising-in-Response

Bond Yields Surge, Mortgage Rates Rising in Response

Canadian bond yields hit their highest level since April in recent days, and a number of lenders have responded by starting to raise some of their mortgage rates.

CMLS, MCAP and First National were among the non-bank lenders to increase at least some of their rates, with their broker rates risin…

Could-Mortgage-Rates-Start-to-Rise-Sooner-than-Expected

Could Mortgage Rates Start to Rise Sooner than Expected?

While Canada’s economy recorded its largest-ever annual GDP drop of 5.1% last year, it’s also on track to post a comeback in Q4, which could force the Bank of Canada’s hand in reining inflation in sooner than anticipated.

“That carries potentiall…

December Caps off Blockbuster Year for Canadian Housing

December Caps off Blockbuster Year for Canadian Housing

Despite a global pandemic that ravaged the Canadian economy early in the year, the housing market came back with a roar and ended the year by shattering records in December.

The average home sale price in the month rose to $607,280, up 17.1% comp…

Q4-2020-Bank-Earnings-The-End-of-Mortgage-Deferrals

Q4 2020 Bank Earnings – The End of Mortgage Deferrals

When 2020 came to an end, so too did the vast majority of mortgage deferral programs offered by the Big 6 banks and other Canadian lenders.

And, despite forecasts from early last year that arrears could skyrocket as a result of the pandemic, all …

2020-–-Year-in-Review

2020 – Year in Review

Now that the page has finally been turned on 2020, we wanted to take a look back at how mortgage rates fared over the course of what was a tumultuous year.

It’s safe to say that COVID-19 stole the show in terms of the year’s biggest newsmaker. On…

How-Canadas-Mortgage-Lenders-Adapted-to-the-‘New-Normal

How Canada’s Mortgage Lenders Adapted to the ‘New Normal’

The COVID-19 pandemic and the resulting nationwide lockdown forced the country’s mortgage lenders—like many businesses across the country—to adjust their operations in this unprecedented and brave new world of conducting business.

They were faced…

Q3-Lender-Earnings-The-Unexpected-Recovery

Q3 Lender Earnings: The Unexpected Recovery

The country’s key mortgage lenders recently released their third-quarter earnings, and it’s safe to say results were better-than-expected all around.

Equitable Bank had its best-ever third quarter, while First National had its own record quarter….

Latest-in-Mortgage-News-–-Industry-Announcements

Latest in Mortgage News – Industry Announcements

There’s been a number of big mortgage industry announcements in recent weeks, ranging from reverse mortgage offerings to a new broker tech partnership and a key appointment at one of the country’s top brokerages.

Here’s a look at each…

Equitable…