Canadian Mortgages

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


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Popular Posts

> I.D.E.A.S. for Choosing Fixed or Variable
> The Fixed / Variable Mortgage Conundrum
> Smith Manouevre
> The Incredibly Shrinking Variable Discount
> Neglect Not Thy Cost of Borrowing
> 5- or 10-year Mortgage?
> Beacon Score Basics
> Smith Manoeuvre Maintenance
> Getting the Best Mortgage Rate





April 22, 2014

Pre-Approval Considerations

Pre-approvalPre-approvals are a funny animal. Home buyers sometimes rely on them too much and lenders sometimes offer them only reluctantly (due to their cost and tendency not to close).

This week’s Globe column covers 10 ins and outs of mortgage pre-approvals. Below are additional considerations that didn’t make that story…

Continue reading "Pre-Approval Considerations" »

April 18, 2014

B.C.’s New B-20-like Guideline

mortgage-rules-2012In June 2012 Canada’s banking regulator (OSFI) created guideline B-20 to tighten underwriting practices on conventional mortgages.

To date, provincially regulated lenders (like credit unions) haven’t been significantly impacted by B-20 because OSFI only supervises federally regulated lenders.

But now, for the first time (that we know of), a province has put forth its own underwriting standards along the lines of OSFI’s B-20. That province is B.C. and these are its proposed Residential Mortgage Underwriting Guidelines (PDF).

CMT asked Doug McLean, Deputy Superintendent of FICOM, for details on why these rules were needed and what effect they’ll have. Among other things, it looks like we might be saying goodbye to 80% loan-to-value revolving HELOCs in B.C.

Continue reading "B.C.’s New B-20-like Guideline" »

April 15, 2014

Rate Chatter

Market AnalyzeSome rate-related tidbits from across the market…

About Face in Yields: Two weeks ago the 5-year government yield (which leads fixed mortgage rates) was poised to break out to the upside. It has since made an abrupt U-turn and fallen 15 basis points. That suggests that widely available 2.99% five-year fixed rates will persist at least another week or two — maybe longer.

Continue reading "Rate Chatter" »

Mortgage Careers of the Week


Safebridge

Company: SAFEBRIDGE Financial Group
Position Title: SafeBridge Client Service Representative
Years of Experience Required: 5 years experience
Are licences or registrations required?  Preferred but not required
Location of Position: Toronto, Ontario
Applicants may contact: careers@safebridgefinancial.com


Magenta_pms_2col

Company: Magenta Mortgage
Position Title: Business Development Manager - Southwestern Ontario
Years of Experience Required: 5 years experience
Are licences or registrations required?  NA
Location of Position: Kitchener Waterloo, Guelph, London - Remote Role
Applicants may contact: jobs@magentainvestment.ca


Magenta_pms_2col

Company: Magenta Mortgage
Position Title: Mortgage Underwriter
Years of Experience Required: 5 years experience
Are licences or registrations required?  NA
Location of Position: Ottawa, Ontario or Perth, Ontario
Applicants may contact: jobs@magentainvestment.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.

April 14, 2014

B-21. Here at Last

B-21There’s been so much speculation on whether OSFI’s long-awaited B-21 mortgage insurer guidelines will slow the housing market.

Well, now that we’ve seen the draft, that seems unlikely. In fact, B-21 is simple, practical and sound policy, and most of the guidelines have already been adopted by lenders and insurers.

Here’s what’s new:

Continue reading "B-21. Here at Last" »

April 10, 2014

O’Leary Mortgages is No More

kevin_olearyCanada’s most outspoken capitalist has pulled the plug on brokering. After a little over a year in the business, Kevin O’Leary’s mortgage operation has closed.

Alex Kenjeev, President O'Leary Ventures, told CMT this:

Continue reading "O’Leary Mortgages is No More" »

April 09, 2014

The Down Payment Hurdle

canadian dollar houseNine out of ten Canadians would rather own than rent, according to a new Genworth Canada study.¹ But the down payment often stands in their way.

A recent Vancity poll found that 60% of first-time buyers in B.C., for example, find down payment requirements to be a barrier to home ownership.

Nationally, 53% of homebuyers are worried they might miss their dream home because they’re short on the down payment.

Continue reading "The Down Payment Hurdle" »

April 07, 2014

Alterna & Pace Wed: What it Means for Mortgagors

Alterna-Pace-MergeWe’ll see a number of credit unions merge this year. The latest is Alterna Savings and Pace Credit Union.

By combining, the two have leaped into the top 10 credit unions in the country, by both assets (now $4.1 billion) and members (now 140,000+). See the current rankings.

The deal should benefit mortgage consumers on multiple fronts.

Continue reading "Alterna & Pace Wed: What it Means for Mortgagors" »

April 04, 2014

MCAN & Xceed’s New X-Series Mortgage

Xceed_MCANXceed Mortgage has been reinventing itself ever since the financial crisis, when liquidity dried up and killed its bread-and-butter business: uninsured non-prime mortgages.

Since then, Xceed has offered mostly plain-Jane insured mortgages…until now. The company has launched a new X-Series mortgage. It's an uninsured product that competes with the likes of Home Trust, Equitable Bank and Optimum Mortgage.

The launch reflects both Xceed’s end goal (to be more than a run-of-the-mill insured lender) and the capabilities of its new owner, MCAN.

 

Continue reading "MCAN & Xceed’s New X-Series Mortgage" »

April 01, 2014

Home Trust Launches 90% LTV Bundle

Home-TrustHome Trust has taken bundle mortgages to the next level.

Bundle mortgages consist of an uninsured first mortgage to 80% loan-to-value (LTV) plus a second mortgage for additional funds. Since the financial crisis, they haven't generally exceeded 85% LTV total. Home Trust now offers one at 90%.

Continue reading "Home Trust Launches 90% LTV Bundle" »

March 30, 2014

Setting Sail for the Future

Yesterday Now Tomorrow Signpost Shows Schedule Diary Or PlanWe’ve spent the last seven years advocating for mortgage brokers. That’s on the public record.

Why? Because nothing has replaced a skilled mortgage professional who can deal with multiple lenders.

But it would be foolish and self-serving to suggest that other channels, be they retail — e.g., bank and credit union advisors, online discount brokers or direct-to-consumer lenders — cannot provide the value that many consumers seek.

So how does the editor of a mortgage news site balance those two realities when now being part of a broker-centric organization? That question came up Friday in an industry forum and it deserves an answer.

Continue reading "Setting Sail for the Future" »

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" »

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