Mortgage Rules Tighten

Insured Mortgage Rules Change

Mortgage rules are changing, effective July 1, 2020, making it harder to qualify for a CMHC insured mortgage. CMHC just announced that they’re tightening the qualifying rules substantially, reducing buying power once again on mortgages with less than 20% down payment. -Limiting the Gross/Total Debt Servicing (GDS/TDS) ratios to the standard 35/42 (currently 39/44) -A […]

Mortgages and COVID-19

Mortgages and COVID-19

It’s a confusing time for everyone and starting to feel a bit like the twilight zone. Here’s an update on the impact COVID-19 is having on mortgage rates, qualification guidelines and mortgage payment difficulties. We saw mortgage rates at the lowest they had ever been last week. Now banks are starting to increase their rates […]

Benchmark Rate More Dynamic

Benchmark Rate

Finance Minister, Bill Morneau, announced changes to the benchmark rate that will come into effect on April 6, 2020. This is the rate a consumer has to qualify at for an insured mortgage, also known as the “Mortgage Stress Test.” The new benchmark rate will be the weekly median 5-year fixed insured mortgage rate from […]

Shared Equity Mortgage Pros and Cons

Shared Equity Mortgage

The First-Time Home Buyer Incentive will be ready to receive applications on September 2, 2019 (barring any unforeseen circumstances). The first closing will take effect on November 1, 2019. If you are considering using this program, make sure you learn the pros and cons that come with the shared equity mortgage. PROS OF FIRST-TIME HOME […]

First-Time Home Buyer Incentive

First-Time Home Buyers Incentive

The First-Time Home Buyer Incentive allows first-time home buyers (FTHB) to reduce their monthly mortgage payment through a shared equity mortgage. A shared equity mortgage is where the government shares in the upside and downside of the property value. The incentive is an interest-free loan that does not require ongoing repayments. Buyers must repay it […]

First-Time Home Buyers Incentive Plan

First-Time Home Buyers Incentive Plan

The Liberal government announced legislation for a new Canada Mortgage and Housing Corporation (CMHC) First-Time Home Buyers Incentive Plan. It’s a shared equity mortgage program that would give eligible first-time home buyers the ability to lower their borrowing costs by sharing the cost of buying a home with CMHC. If the legislation passes, it will […]

New Conventional Mortgage “Stress Test” Rules

New "Stress Test" Mortgage Rules

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 […]

New Mortgage “Stress Test” Proposal

2017 Mortgage Stress Test Proposal

Many home buyers with less than a twenty percent down payment have been affected by the mortgage “stress test” rule that the government of Canada enforced October 2016. The “stress test” requires homebuyers who take a default insured mortgage to qualify at the Bank of Canada’s five-year post interest rate, reducing buying power by approximately […]

CMHC Increasing Mortgage Premiums

Mortgage Premium Increases

For the third time in three years, Canada Mortgage and Housing Corporation (CMHC) will be raising its default insurance premiums. Effective March 17, 2017 premiums are increasing anywhere from 11 percent on a minimal down payment mortgage to as much as 225 percent on lower loan to value mortgages. The announcement was released on January […]

Mortgage “Stress Test” Tips

New Mortgage Rule Tips

The mortgage “stress test” rule is now in effect. 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 mortgage terms. The qualifying mortgage payment is based on this higher rate. This directly results in lower mortgage amounts. […]