Posts from the ‘Mortgage Rule Changes’ Category

In today’s post, Part Three, I’ll explain why I support the view that more changes were necessary and I’ll offer my take on the longer-term impacts that these specific changes will have on our borrowers, lenders, and housing markets. Then I’ll close by offering my opinion on whether our policy makers got these changes right.

If the first mortgage rule change raised the qualifying bar for mortgage insurance, the second wave of rule changes completely eliminates mortgage insurance for certain categories of borrowers. To be clear, these changes don’t mean that affected borrowers won’t still have access to mortgages, but they do mean that these borrowers will have fewer options than before and should expect to pay rates that are higher than the lowest available.

The Office of the Superintendent of Financial Institutions (OSFI) recently launched a proposal that could push future Canadian mortgage rates higher.

The Next Mortgage-Rule Change That Our Government Should Make - Monday Morning Interest Rate Update (June 13, 2016)

What Last Week’s Changes To Our Mortgage Rules Mean for You - Monday Morning Interest Rate Update (December 14, 2015)

Last Friday Canada Mortgage and Housing Corporation (CMHC) announced that it will increase its mortgage-default insurance premiums, effective May 1, 2014. Current premiums will remain in effect on all mortgage applications that are submitted before this date, even in cases where the transaction closes well after the changeover deadline. Bluntly put, the impact on the average borrower will be negligible. To highlight what the typical impact of this change might look like with an example, let’s assume that a borrower is purchasing a $400,000 property with a $40,000 down payment, that the property will be used as his/her principal residence, and that he/she can qualify for financing using traditional underwriting guidelines: This deal has a loan-to-value of 90%, which means that our borrower’s high-ratio insurance premium will rise […]

Stay on top of where mortgage rates are headed with Dave's Monday Morning Interest Rate Update for the week of June 25, 2012.