Effect of Mortgage Stress Test
The Bank of Canada has released its latest data. The Mortgage stress test is diminishing the number of risky mortgages but it is also pushing borrowers towers unregulated lenders.
The Bank of Canada has released its latest data. The Mortgage stress test is diminishing the number of risky mortgages but it is also pushing borrowers towers unregulated lenders.
Mortgage Rates
The tide has started to turn and mortgage rates have started to rise. Those applying for a mortgage will be rated against the mortgage stress test. Those getting ready to renew should find out how these changes will affect them and be ready.
Bank of Canada governor
Year-End Speech
On Thursday Stephen Poloz delivered his year-end speech. He spoke about cyberthreats, high housing prices combined with soaring debt levels, and job prospects for young Canadians.
30-Year Mortgage Amortizations
Seems the typical 25 year amortization period is being replaced with the 30 year period. This reduces your payments but also slows down the accumulation of equity and increases the total interest paid. Though an option you should weigh the pros and cons and discuss with your mortgage broker to be sure to make an enlightened decision.
New Mortgage Rules
New Mortgage rules have been introduced by the Office of the Superintendent of Financial Institutions. Robert McLister addresses these changes. And finally the new rules explained in 10 points.
CMHC to Increase Mortgage Insurance Premiums
CMHC is increasing its homeowner mortgage loan insurance premiums effective March 17, 2017. According to the downpayment for a loan of $350,000 the monthly increase will range between $6.59 and $16.46. Details here!
In comparison to previous increases, these increases show a more even spread of increases regardless of the type of loan. The justification for the increase is to ensure long-term stability and protect against over purchasing.
How do homebuyers feel about the recent mortgage changes?
An interesting brief article from the REP Real Estate Professional site about how buyers with less than 20% vs those with more than 20% feel about the recent changes to Canada’s housing rules.
Royal Bank Hikes Mortage Rates
The Royal Bank has raised some of it’s mortgage rates. Their most important increase is for those who wish to take 25 years to pay. That rate has risen to 2.79 for three years, 2.89 for four years, and 3.04 for five years meaning that monthly payments of $2,274.85 would now be $2,376.51 representing $10,0000 more over the period of time.
Mortgage Rates
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