Flaherty Tightens Mortgage Rules

This morning, Finance Minister Jim Flaherty announced new adjustments to the rules for government-backed (CMHC) insured mortgages.  The adjustments include: The maximum amortization period has been reduced to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent. This will significantly reduce the total interest payments […]

Budget 2010 – Standardized Pre-Payment Penalties

The 2010 Federal budget was released yesterday, and we found this one interesting item. We’ve been actively telling clients to not rely on calculations made by us to estimate their Pre-Payment penalties when considering a mortgage refinance, and to instead explicitly ask their current mortgage holder what the penalty will be.  Well, it seems that […]

Mortgage Arrears – The Canadian Perspective

A recent report from the Vanier Institute noted that the average Canadian’s debt-to-income ratio is now an all time high 145%.  This debt ration is based on home prices which are now five times the average after-tax income, while the long-term average has been only 3x.   The report also indicates that mortgage arrears (defined […]

Government Announces New Mortgage Rules

As expected, Jim Flaherty today announced adjustments to the rules for government-backed insured mortgages. “Canada’s housing market is healthy, stable and supported by our country’s solid economic fundamentals,” said Minister Flaherty. “However, a key lesson of the global financial crisis is that early policy action can help prevent negative trends from developing.” Effective April 19, 2010, the rules […]

New Mortgage rules coming tomorrow…

Stay tuned here tomorrow when we will review the changes that finance minister Jim Flaherty is set to announce according to news reports. While the rumoured changes to minimum down payments and shorter maximum amortization periods that we have discussed before are apparently not in the mix, there is now speculation that the government will introduce […]

Comments from Mark Carney – Inflation Outlook

Remarks made by Mark Carney, Governor of the Bank of Canada to the Winnipeg Chamber of Commerce on February  4th included some interesting statements regarding factors effecting the mortgage market…. As we know, the Bank of Canada has committed to keeping the Prime interest rate low through the first half of 2010, Conditional on the outlook for […]

Bank Renewal Notices – Be careful!

Banks typically provide clients with a simple mortgage renewal option months before their actual mortgage renewal date.   These notices are attractive to clients since they enable a simple, painless renewal option. That’s where the painless part of the process may end.  We see these renewal notices on a regular basis and are constantly surprised […]

Flaherty considering measures to cool housing market

Finance Minister Jim Flaherty faces the difficult task of cooling the housing market to avoid the effects of a bursting housing market bubble, without throwing a wet blanket on the entire economy.  The other day he commented (watch the video on CTV National News) that he may take actions to cool the housing market that are unrelated […]