Risks of CMHC mortgage cover
The federal budget due March 29 almost certainly will unveil the government’s thinking on the future of the Canadian covered bond market. This may prove strangely important, because covered bonds lie at the heart of one of the most contentious public policy issues in the Canadian financial system. The bonds are “covered” because they are backed, normally, by high quality, or low...
Read MoreInteresting articles from Mike Homes on Green products
I’ve been hearing a lot of green talk bandied about lately. It’s the thing to do nowadays. I know we’re talking green, maybe even thinking green, but is what we’re doing really green? I won’t comment on other industries (I’ll leave that to their own pros) but I will talk about the industry I’ve been working in for the last 30 years. The trend is definitely swinging toward...
Read MoreMortgage news and update on mortgage discount rates for the week of March 12th.
If you were watching the news last week you would have seen the stories running on Bank Of Montreal’s new 5 year fixed rate offering of 2.99%. This was the second time in three months that BMO have come out with an aggressive marketing campaign to drive business to their doors. From a mortgage broker perspective this type of aggressive marketing from a lender is good because it gets allot...
Read MoreHome ownership becoming more affordable
Housing affordability is improving in Canada as home prices soften, while low interest rates through this year should continue to keep costs at bay. A national measure shows housing became more affordable in the fourth quarter of last year, the second improvement in a row, Royal Bank of Canada’s quarterly release showed Wednesday. It found all housing categories became more affordable, led by...
Read MoreSources of Down Payment
Typically sources of down payment have to come from the borrower’s own resources . These would include Bank accounts, investment accounts, funds from a business, the sale of a property, Based on a client’s credit score and loan to value gifted down payments are accepted where an immediate family member provides the down payment. A gift letter has to be signed. Some lenders will allow...
Read MoreFixed rates possibly moving upwards
It looks like fixed rates may be possibly moving upwards tomorrow or Friday. This is based on the an increase in yield on the 5 year Government bond. The 5 year government bond (which leads mortgage fixed rates) sprang up to 1.51% today. That is a 3 1/2 month high. If yield hold above 1.50% we could see an increase in mortgage fixed rates. Bond yields do move up and down all the time so...
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