Canadian Mortgages

News on Canadian mortgage rates, mortgage brokers in Canada, banks, and fresh new mortgages.


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> I.D.E.A.S. for Choosing Fixed or Variable
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> Beacon Score Basics
> Smith Manoeuvre Maintenance
> Getting the Best Mortgage Rate





March 27, 2014

CMT Teams with CAAMP

CAAMPOver seven years ago my wife and I started this site. We had no idea where it would go, or if anyone would even read it.

Fast forward 2,721 days, 2.6 million visitors and 10 million page views later, and here we are.

If you love what you do and people find value in it, you want to do it better. With that in mind, we’ve come to realize that it takes more than a three-person operation to build a truly robust news product.

Continue reading "CMT Teams with CAAMP" »

Flaherty’s Out. BMO’s Back at 2.99%

BMO apparently no longer dreads “the phone call.”

BMO-2.99-mortgage-rate

That, of course, refers to the infamous calls from the Department of Finance discouraging banks from pricing below 3 per cent. Former Minister of Finance Jim Flaherty seemingly took pride in those calls, publicizing them in the media.

But the Flaherty era is now over and, coincidence or not, BMO is back in the 2.99% business.

Continue reading "Flaherty’s Out. BMO’s Back at 2.99%" »

March 26, 2014

Future Rate Hikes <> Housing Doom

Canada’s housing market is like that car in the movie Christine. You can smash it, run it off the road, blow it up and it keeps coming back.

Crash predictors have cried wolf so many times that folks are becoming progressively immune to bubble chatter. Interest in terms like “housing bubble” has steadily waned in recent quarters, as depicted below by Google Trends.

Housing-Bubble

But make no mistake, a sizable minority of Canadian real estate is overvalued based on multiple objective measures. If you consider the Conference Board to be a reputable source, however, it’s not quite as bubbly as some would argue.

Continue reading "Future Rate Hikes <> Housing Doom" »

March 23, 2014

MBRCC’s New Tool for Interprovincial Brokering

Interprovincial-BrokeringFor mortgage brokers without face-to-face business models, the Internet makes it easy to close mortgages in another province. And a lot of brokers are doing just that, but not always legally.

That’s partly why the Mortgage Broker Regulator’s Council of Canada (MBRCC) put out this new tool.

They call it the Multijurisdictional Licensing Information Tool. It’s meant to help brokers know when they need to be licensed to work with a borrower in another province. CMT spoke with Martin Boyle, Policy Manager at the MBRCC for more details.

Continue reading "MBRCC’s New Tool for Interprovincial Brokering" »

March 21, 2014

Flaherty in Closing

Jim-Flaherty-Mortgage-RulesSince 2008 Finance MinisterJim Flaherty has dealt the mortgage business plenty of pain for promised long-term gain. So when news broke Tuesday that he quit, a wave of relief spread throughout the industry.

That relief was quickly replaced by concern about what his replacement Joe Oliver might have planned. (Our guess: probably not too much at this point.)

Speculation aside, this week’s Globe column reviews some of Flaherty’s impact on Canada’s mortgage landscape.

Continue reading "Flaherty in Closing" »

March 18, 2014

BMO: FTBs Are Paying More

Daydream houseFirst-time homebuyers are spending more, an average of $316,100 (+5.4% vs. 2013), says BMO. And with the national average home price smashing records and hitting $406,372 last month, that’s to be expected.

First-timers in Canada’s priciest cities pay a hefty premium for their shelter: Vancouver (a whopping 60% more than the national average), Toronto (29% more) and Calgary (15% more).

Probably the most important stat, however, is this one:

Continue reading "BMO: FTBs Are Paying More" »

March 16, 2014

Analyzing BMO’s Go-Fixed Advice

BMOFixed rates are now “superior,” said BMO in this report released Thursday.

“While we have in the past supported going variable,” circumstances now “favour…locking in...”

That’s been BMO’s rally cry since 2010 when it proclaimed “Time to Say Goodbye…to Variable.” In retrospect, that advice would have cost mortgagors handsomely. But BMO was far from alone in that call.

Few anticipated the economy would drag along the bottom, depressing rates for five years after the great recession. People are now becoming desensitized to statements like “We may not see such low fixed rates again any time soon” (BMO’s latest prognostication).

Sooner or later, economists will be right on fixed rates, partly for the reasons BMO mentions (including higher inflation). But there are things about BMO's report that people need to know about.

Continue reading "Analyzing BMO’s Go-Fixed Advice" »

March 15, 2014

Mortgage Careers of the Week


Equitable_Bank
Company: Equitable Bank
Position: Regional Business Manager
Years of Experience Required: Minimum 3-5 years
Licences or Registrations Required: AMP designation is an asset
Location of Positions: Vancouver, B.C.
Applicants may contact: Resumes should be submitted to careers@eqbank.ca


   Dominion_lending

Company: Dominion Lending Centres - The Angela Calla Mortgage Team
Position Title: Account Manager
Years of Experience Required: 2 years
Licences or Registrations Required: Yes, must obtain licence within four months of hiring
Location of Position: Port Coquitlam, B.C.
Applicants may contact: acalla@dominionlending.ca


Compass Mortgage Group  

Company: Verico Compass Mortgage Group
Position Titles: Submortgage Broker, Manager, 'B' Specialist
Years of Experience Required: 2 years
Licences or Registrations Required: FICOM mortgage brokerage licence
Location of Position: Lower mainland/GVA, B.C.
Applicants may contact: deanlarson@compassmortgagegroup.com


Click on the position title above for more information. Advertise your mortgage job opening today! Click here to post. Or browse CMT's Mortgage Jobs Database.

March 12, 2014

A New Option for Rental Financing: Street Capital

Street-CapitalFinancing a rental property has become tougher and tougher in recent years. So any time a new rental lender comes along it’s a positive for investors.

The latest option comes from Street Capital, one of Canada’s largest non-bank lenders. Its new “Small Rental Program" launched today.

The best part: It comes with no rate surcharges and no insurance premiums up to 75% loan-to-value (unlike many other rental lenders).

Continue reading "A New Option for Rental Financing: Street Capital" »

March 11, 2014

Mortgage Career of the Week

 

Freedomlending.ca

 

Company: Freedom Lending
Position Title: Mortgage Agent
Years of Experience Required: N/A
Licences or Registrations Required: FSCO licence 
Location of Position: GTA and surrounding area
Applicants may contact: joinus@freedomlending.ca


Click on the position title above for more information. Advertise your mortgage job opening today! Click here to post. Or browse CMT's Mortgage Jobs Database.

Mortgage Terms: Stars & Dogs

champion dogAfter “What is your best rate?” the next most popular mortgage question is probably “Which term do you recommend?” — or a variation thereof.

But it’s tough to generalize about the best mortgage because borrowers have unique needs. To get around that, we have to use limiting assumptions and make a best guess at the risk/reward of each term. And that’s how we’ve picked the stars and dogs in this week’s Globe column.

Continue reading "Mortgage Terms: Stars & Dogs" »

March 09, 2014

Increases Now Require STEPs at Scotiabank

Scotiabank-MortgagesScotiabank is eliminating blends and increases on regular mortgages.

From this point forward, Scotia customers who want to add new money (without breaking their mortgage) will need to have, or convert to, a Scotia Total Equity Plan (STEP) mortgage.

Continue reading "Increases Now Require STEPs at Scotiabank" »

March 06, 2014

Q1 2014 Bank Earnings - Mortgage Morsels

Bank-roundupSlowing consumer lending and margin pressure from low rates didn't kill the earnings party for Canada's banks. As they seem to do more often than not, the "Big 6" pulled off another solid quarter.

From a mortgage perspective, all major banks saw their residential mortgage portfolios continue to rise or at least hold steady.

Below we've extracted additional mortgage tidbits from the Big 6 Banks’ quarterly earnings reports, presentations and conference calls. We have to be honest though, this quarter was kind of dull from an industry insights perspective. Unless you're a mortgage data geek, you'll find the most notable stuff to be highlighted.

Continue reading "Q1 2014 Bank Earnings - Mortgage Morsels" »

March 05, 2014

BoC Update: Rates Stay Level

Macro of a yellow spirit level on whiteLike most of its last 29 rate announcements, today’s Bank of Canada rate statement was a snoozer. But for those with debt, dull is good. It keeps a lid on variable-rate borrowing costs.

For most, the only meaningful line in the BoC’s statement was:

With inflation expected to be well below target for some time, the downside risks to inflation remain important.

In other words, there’s no danger of variable rate hikes for as far as the eye can see. So, if you’re like most financially secure borrowers in a discounted adjustable-rate mortgage, there remains little reason to lock in.

Continue reading "BoC Update: Rates Stay Level" »

March 02, 2014

Equitable Bank to Enter “A” Lending

Equitable-BankA new player will be entering the intensely competitive prime mortgage market. Equitable Bank, the country’s second-biggest non-prime lender, plans to distribute insured single-family mortgages through brokers as early as third quarter 2014.

The company says it will fund a “majority” of its prime mortgages through securitization, taking advantage of interest-only strips. (Lenders sell I/O strips to investors. This lets the lender earn a profit on a mortgage while keeping that mortgage off its balance sheet, which is necessary due to regulatory capital constraints.)

Continue reading "Equitable Bank to Enter “A” Lending" »

March 01, 2014

Mortgage Career of the Week

Firm Capital

Company: Firm Capital
Position Title: Mortgage Portfolio Accountant
Previous Experience Required: Knowledge of the mortgage industry
Licences or Registrations Required: No
Location of Position: Toronto, Ontario
Applicants may contact: careers@firmcapital.com


Click on the position title above for more information. Advertise your mortgage job opening today! Click here to post. Or browse CMT's Mortgage Jobs Database.

February 28, 2014

Genworth Follows CMHC’s Lead

That didn’t take long.

Following CMHC’s 11 a.m. EST announcement that it is raising insurance premiums, Genworth Canada (the biggest private default insurer) is announcing its own price hikes. (See here)

Genworth’s new premiums also take effect May 1, 2014, and they match CMHC’s increases to standard default insurance.

“While regulatory capital requirements have increased significantly since the 2009 economic downturn, pricing has not kept pace,” said Genworth Canada Chairman/CEO Brian Hurley.

Continue reading "Genworth Follows CMHC’s Lead" »

CMHC Raises Mortgage Premiums

mortgage-insurance-premiumsPeople without a 20% down payment will be paying more to buy a house. Come May 1, the nation’s largest default insurer is bumping up its standard premiums by 0.10 to 0.40 percentage points. It's the first hike to homeowner insurance premiums since 1998.

Stated income applications will be charged even more. (See the new premium tables here.)

For the average borrower with 5% down, that makes home buying $992 more expensive (plus interest if the premium is rolled into the mortgage, which it usually is).

The average CMHC insured mortgage at 95% loan-to-value was $248,000 in 2013. CMHC says this will raise that homeowner’s monthly payments by about $5. Not too agonizing.

Continue reading "CMHC Raises Mortgage Premiums" »

February 26, 2014

CMHC Announces an Announcement

CMHCCMHC will be making an announcement Friday at 11 a.m. EST. They’ve notified reporters well in advance, which is somewhat unusual.

Twitter is abuzz with speculation on what the announcement might entail. And everyone will have two more days to stew over it.

CMHC has done a banner job at preventing leaks, as no executives I’ve talked with have any clue what it might be. The only thing we know is that it’s not about CMHC being privatized.


Rob McLister, CMT  (email)

February 25, 2014

Mortgage Career of the Week

Mbt-logo

Company: MBT (mortgagebrokerteam.ca Inc.)
Position Title: Mortgage Broker / Agent
Years of Experience Required: Preferably 2+ (not required)
Licences or Registrations Required: Yes
Location of Position: British Columbia & Alberta
Applicants may contact: hr@mortgagebrokerteam.ca


Click on the position title above for more information. Advertise your mortgage job opening today! Click here to post. Or browse CMT's Mortgage Jobs Database.

My Photo
Melanie & Rob McLister

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Canadian Mortgage Trends (CMT) delivers the latest mortgage news in Canada for homeowners, online mortgage brokers, and real estate professionals. Legal Information: Consult a qualified mortgage advisor before making any mortgage decision based on information you read here. Similarly, if you see a financial or tax strategy discussed here, always consult a licensed and qualified investment or tax advisor to ensure the strategy is right for you. Mortgages, investment, and tax strategies mentioned on this website are not appropriate for everyone. In many cases, they may not be feasible at all and/or entail serious risks. While reasonable effort is made to ensure the accuracy of information and data contained herein, accuracy, facts, completeness, and suitability can not be guaranteed. Past performance is not a good predictor of future performance. Results, rates, strategies, and terms are not guaranteed and CMT and its affiliates assume no liability for any losses that may occur from your reliance on such information. The information on this site reflects purely our opinions, and not necessarily the opinions of any other party. Readers are welcome and encouraged to leave comments. Please note, however, that CMT endeavours to keep all forums factual and civil for the benefit of readers. Comments that are off-topic, quarrelsome, accusatory without evidence, factually incorrect by objective standards, racially insensitive, profane, slanderous, misleading, unreasonably repetitive, made with false email addresses, made under multiple pseudonyms or different names from the same IP address, or otherwise rude or deemed inappropriate by CMT, may be removed without notice. To reduce incidences of SPAM, linking to or promoting individual brokers is not permitted. In addition, multiple comments submitted within a short timeframe may be considered SPAM. To keep comments on point, all questions regarding CMT policies should be sent to the below email address and not posted in forums. CMT is a news site, and not affiliated with most of the people or companies mentioned. Company logos and trade-marks displayed herein are the property of their respective owners, are displayed for commentary purposes only, are not intended to be used in a competitive manner with said owner, and should not imply an association or affiliation between CMT and said trade-mark owner or its products or services. Information herein is not intended to be, nor does it constitute, mortgage advice, investment advice, tax advise, financial advice, recommendations, or solicitations to buy or sell securities. CMT personnel and related parties may have an interest in the mortgages, services, companies, products, or securities mentioned on this site. Please contact us if you require clarifications of the above. CMT's website is owned and operated by McLister Media Inc. CMT's trademark and copyrights are used by McLister Media Inc. under license. For questions about the news you see here, mortgages, copyright, or republishing CMT content, please contact us at (800) 280-2460 or info@canadianmortgagetrends.com. Thank you for reading CMT. ISSN# 1927-8772. Copyright 2014. All rights reserved.