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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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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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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 […]
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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 […]
Read MorePosted by: Aneta Zimnicki
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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