The decision has been made by the Office of Superintendent of Financial Institutions (OSFI) to proceed with the mortgage rules they proposed earlier this summer. OSFI is an independent agency of the Government of Canada that reports to the Minister of Finance. It was created to contribute to public confidence in the Canadian financial system. OSFI is the sole regulator of […]

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To qualify for a mortgage, a borrower needs to meet specific criteria known as the five C’s of credit. This process weighs five characteristics of a borrower and tries to evaluate the likelihood of default on a mortgage loan. The five C’s of credit are capacity, capital, collateral, credit history, and character.   Capacity measures a borrower’s ability to make […]

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Saving for a down payment is a challenge for many first-time home buyers. It can be the only hurdle standing in the way of homeownership. The Government of Canada acknowledged the difficulty first-time home buyers were facing and established the Home Buyers’ Plan (HBP).   The Home Buyers’ Plan allows first-time home buyers, people who […]

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The new mortgage “stress test” rule is now in effect. It impacts those purchasing a home with less than a 20 percent down payment, therefore requiring default insurance. Canadians applying for a default insured mortgage are required to qualify at the Bank of Canada’s five year posted interest rate (the benchmark qualifying rate) on all […]

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The Government of Canada announced new mortgage rules that will be coming into effect on October 17, 2016. The rules will directly impact those purchasing a home in Canada with less than a twenty percent down payment. Canadians applying for a default insured mortgage (high-ratio mortgage) will be required to qualify at the Bank of […]

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Why do banks require mortgage default insurance for home buyers purchasing homes with less than a twenty percent down payment?   Canadian banks are required by law to insure “high ratio” mortgages against default. “High ratio” refers to mortgages with less than a twenty percent down payment. Default insurance is provided by companies such as Canada […]

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There’s no better place to spend the hottest days of summer than by a cool lake making memories. The dream of owning a weekend getaway could be within your reach. Find out which type of vacation property will work with your financial situation and how to buy it.   Vacation properties come in all shapes and […]

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