Hi everyone,
The Bank of Canada 5 year posted has not moved yet but is expected to be reset at 5.85% soon. This will be the qualifying rate for high ratio mortgages with less than 5 year terms or with variable rates after April 19.
On another note, I’m proud to say that once again MI and Invis have been ranked first overall in production volume in the Canadian mortgage brokerage industry by Filogix.
Our brokers stand out among their industry peers – our average volume per broker is at it’s highest level ever. This, I believe, confirms our status as the preferred brokerages for Canada’s most professional, dedicated mortgage brokers.
All the best,
Wednesday, March 31, 2010
Monday, March 29, 2010
Fixed Interest Rates on the Rise!
Good Morning.
The Royal Bank just has increased rates on 3, 4 & 5 year fixed mortgage rates by 20, 40 and 60 basis points respectively. Since all mortgage lenders base spreads on the same bond market it is likely other lenders will follow shortly.
If you are considering a purchase, renewal or refinance, there is still time to beat this rate increase. Call us to get a free, no obligation quote.
Have a great week everyone.
The Royal Bank just has increased rates on 3, 4 & 5 year fixed mortgage rates by 20, 40 and 60 basis points respectively. Since all mortgage lenders base spreads on the same bond market it is likely other lenders will follow shortly.
If you are considering a purchase, renewal or refinance, there is still time to beat this rate increase. Call us to get a free, no obligation quote.
Have a great week everyone.
Friday, March 26, 2010
The New Mortgage Rules
Hello everyone,
We have been tracking the recent mortgage rule changes announced by the Finance Ministry, as well as the new underwriting guidelines being put into practice by CMHC and Genworth (and anticipated to be the case with AIG). We are watching closely to see the final outcome of these new practices.
While these changes will serve to uphold the overall integrity of our financial system in Canada, we are concerned that they could be intrusive and unnecessarily impact on certain mortgage transactions.
Here is a brief rundown of the changes:
What’s changed in terms of qualifying for a mortgage?
As of April 19, borrowers applying for a variable-rate mortgage or a fixed-rate mortgage with a term of less than 5 years must qualify based on the Bank of Canada’s five-year fixed posted mortgage rate. Note that 5 year terms can be qualified at the contract rate.
What do rental property owners need to know about the recent changes?
A minimum down payment of 20 per cent will be needed for government-backed mortgage insurance on non-owner-occupied properties such as rental properties.
There are also changes in how much of rental income can be used when qualifying for financing – CMHC and Genworth have indicated that now 50 per cent of the rental income will be added to the borrower’s income, down from 80 per cent rental offset from the payment that will be used when calculating the borrower’s TDS.
What about the self-employed?
CMHC has stated that as of April 9, self-employed individuals who are applying for a stated-income mortgage will now have to put down at least 10 per cent, up from 5 per cent today (those self-employed with verifiable income can still do 10 per cent down payment).
CMHC has also tightened some of the rules around who can qualify for their stated income self employed product. Borrowers that have been self employed for more than 3 years will now have to qualify based on income declared to CRA and will have to provide adequate income confirmation. The same applies for those earning income through commissions. CMHC’s stated income self employed product is now aimed more at those who have recently become self employed and have difficulty providing documentation.
If you have questions about any of what was discussed, please feel free to contact me for any clarifications, free of charge.
Stay tuned for some exciting spring promotions we are doing. Have a great weekend!
Donna
We have been tracking the recent mortgage rule changes announced by the Finance Ministry, as well as the new underwriting guidelines being put into practice by CMHC and Genworth (and anticipated to be the case with AIG). We are watching closely to see the final outcome of these new practices.
While these changes will serve to uphold the overall integrity of our financial system in Canada, we are concerned that they could be intrusive and unnecessarily impact on certain mortgage transactions.
Here is a brief rundown of the changes:
What’s changed in terms of qualifying for a mortgage?
As of April 19, borrowers applying for a variable-rate mortgage or a fixed-rate mortgage with a term of less than 5 years must qualify based on the Bank of Canada’s five-year fixed posted mortgage rate. Note that 5 year terms can be qualified at the contract rate.
What do rental property owners need to know about the recent changes?
A minimum down payment of 20 per cent will be needed for government-backed mortgage insurance on non-owner-occupied properties such as rental properties.
There are also changes in how much of rental income can be used when qualifying for financing – CMHC and Genworth have indicated that now 50 per cent of the rental income will be added to the borrower’s income, down from 80 per cent rental offset from the payment that will be used when calculating the borrower’s TDS.
What about the self-employed?
CMHC has stated that as of April 9, self-employed individuals who are applying for a stated-income mortgage will now have to put down at least 10 per cent, up from 5 per cent today (those self-employed with verifiable income can still do 10 per cent down payment).
CMHC has also tightened some of the rules around who can qualify for their stated income self employed product. Borrowers that have been self employed for more than 3 years will now have to qualify based on income declared to CRA and will have to provide adequate income confirmation. The same applies for those earning income through commissions. CMHC’s stated income self employed product is now aimed more at those who have recently become self employed and have difficulty providing documentation.
If you have questions about any of what was discussed, please feel free to contact me for any clarifications, free of charge.
Stay tuned for some exciting spring promotions we are doing. Have a great weekend!
Donna
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