18 Aug

Benchmark ‘stress test’ qualifying rate drop

Latest News

Posted by: Aneta Zimnicki

Benchmark ‘stress test’ qualifying rate drops by 0.15% to 4.79%. Means you can qualify for about $5K more average mortgage. Small gesture move, but hopefully moving towards more realistic rate. “The tests are designed to ensure borrowers will be able to continue to afford their mortgage payments in the event of a future interest rate […]

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24 Jul

What may be coming

General

Posted by: Aneta Zimnicki

Here are some of my thoughts on what may be coming, within the context of the changing economic landscape. Of course, we really don’t know for sure what will happen, but let’s look at what we can take into consideration to be better prepared. Have we seen the true effect yet of loss of income? […]

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15 Jul

Bank of Canada maintains the rate steady

Latest News

Posted by: Aneta Zimnicki

Bank of Canada maintains the rate steady. This means your variable rate mortgage remains unchanged.  The announcement states clearly, this rate is the effective lower bound, will stay until inflation marker reached, and quantitative easing will continue. “As the economy moves from reopening to recuperation, it will continue to require extraordinary monetary policy support.   This […]

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8 Jun

Genworth and Canada Guaranty do not tighten rules

Latest News

Posted by: Aneta Zimnicki

Further the to CMHC announcement last week about insured mortgage criteria, Genworth confirms that it has no plans to change its underwriting policy related to debt service ratio limits, minimum credit score and down payment requirements. Shortly thereafter, Canada Guaranty also confirms that no changes to underwriting policy are contemplated as a result of recent […]

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5 Jun

CMHC tightens lending criteria

General

Posted by: Aneta Zimnicki

Boom. CMHC makes more announcements.  Here are the technical details, followed by what this all means and my commentary, how this may affect the market. Effective July 1, CMHC insured mortgages: The maximum gross debt service (GDS) ratio drops from 39 to 35 The maximum total debt service (TDS) ratio drops from 44 to 42 […]

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3 Jun

CMHC being controversial

General

Posted by: Aneta Zimnicki

Recently CMHC (Canada Mortgage and Housing Corporation) dropped a few bombshells during a parliamentary speech  The headlines implied: ‘Minimum down payment of 10%’, ‘18% drop in housing prices’, ‘One-fifth of mortgages to be in arrears’. Let’s peel this onion of misleading headlines. Firstly, remember that CMHC is a government entity and one of its goals […]

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3 Jun

Bank of Canada maintains the rate steady

Latest News

Posted by: Aneta Zimnicki

Bank of Canada maintains the rate steady. This means your variable rate mortgage remains unchanged.  Admits that the outlook remains ‘heavily clouded’, however, states that the current programs are improving market function. ‘Impact of the COVID-19 pandemic on the global economy appears to have peaked, although uncertainty about how the recovery will unfold remains high. […]

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22 May

Benchmark qualifying rate drop

Latest News

Posted by: Aneta Zimnicki

Not extraordinary, but good news nonetheless.  Since the last newsletter, the qualifying benchmark rate has dropped to 4.94%, down from 5.19% before COVID-19.  This means you can qualify for slightly higher mortgage, or for some folks, it actually means graduating from a B lender to an A lender.  If this trajectory continues, we should see […]

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15 Apr

Bank of Canada holds rate steady – Puts economy on life support

Latest News

Posted by: Aneta Zimnicki

Bank of Canada had their scheduled meeting today, and decided to hold the rate steady. It stated it considers its current rate the ‘effective lower bound’. Also announced new measures to provide additional support. “The Bank’s Governing Council stands ready to adjust the scale or duration of its programs if necessary. All the Bank’s actions […]

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30 Mar

So Why Are Mortgage Rates For New Loans Rising?

Latest News

Posted by: Aneta Zimnicki

So Why Are Mortgage Rates For New Loans Rising? From Dominion Lending Centres Chief Economist, Dr. Sherry Cooper, see link below to full article My Summary: The banks have reduced prime rates by 1.5%, but have hiked mortgage rates for new fixed- and variable-rate loans. These are extraordinary times. The good news is that people […]

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