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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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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. […]
Read MorePosted by: Aneta Zimnicki
Bank of Canada maintains the rate steady. 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. The Bank’s […]
Read MorePosted 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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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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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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Here are some updates at this time on the mortgage lending process. Banks and lenders have not shut down. Much of the industry was already operating remotely, or had the capacity to do so. They are just a little busier, understandably so. So, if you need mortgage financing, don’t get discouraged, just allow some additional […]
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Great economic insight on today’s Bank of Canada rate drop from Dominion Lending Centers Chief Economic, Dr. Sherry Cooper. My summary: Strains in the commercial paper and government securities markets triggered today’s action to engage in quantitative easing. These large-scale purchases will create the liquidity in the financial system. Risk has risen, which creates the […]
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Mortgage deferrals are on the table. But don’t assume guaranteed automatic approval. Details depend on lender. See DLC COVID-19 page https://dominionlending.ca/covid-19/ for contact info. Have patience, lender phone lines are jammed. Some lenders offering email request forms to streamline. Some lenders loosening up requests to extend to deferral on rental property as well. For the most part, some explanation […]
Read MorePosted by: Aneta Zimnicki
Bank of Canada lowers overnight rate by 0.5% again. This totals 1.5% drop in the last several weeks. Most lenders are matching this latest drop, prime rate for the most part is now 2.45% (updated). Your variable rate mortgage and secured lines of credit will benefit. Exact word from BoC: “The intent of our decision […]
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