Canadian Mortgage Trends
- Why Is My Credit Score Different From What Lenders See? (Part I) 3 July 2020It’s pretty easy to track your credit score these days—perhaps through a paid subscription to Equifax Canada or Trans Union Canada, or through free offerings from your bank, or other entities such as Borrowell, Credit Karma, Mopolo or Mogo. But there is no consistency among these various sources. In fact, there can be dramatic differences. […]
- Mortgage Rates Keep Setting New Record Lows 30 June 2020While mortgage rates have been tumbling steadily over the last couple of months, many are now in record-setting territory, with certain 1- to 5-year fixed rates now available for under 2.00% from discount brokers. Concerns over a second wave of COVID-19 have caused Canada’s 5-year bond yield to fall to its own record-low, which in […]
- Latest in Mortgage News: Newton to Provide Free TransUnion Access to its 6,000+ Velocity Users 26 June 2020Starting today, the more than 6,000 mortgage brokers who use the Velocity mortgage operating system will gain free access to TransUnion credit reports for the remainder of the year. The offer is part of a campaign by Newton Connectivity Systems, which operates Velocity, to encourage greater diversification in the use of credit bureaus. With Equifax […]
- Home Sales & Prices Won’t Fully Recover Until 2022, Says CMHC 24 June 2020Significant drops in employment in Canada’s major cities will keep downward pressure on housing demand, with sales and home prices not expected to rebound to pre-COVID levels until 2022, according to CMHC’s latest Housing Market Outlook. “Short-term uncertainty will lead to severe declines in sales activity and in new construction, “said CMHC’s deputy chief economist […]
- Economic Recovery to be “Prolonged and Bumpy,” Says BoC’s Macklem 23 June 2020Adopting a more pessimistic tone than his predecessor, new Bank of Canada Governor Tiff Macklem said the country faces a challenging path to economic recovery, despite a quick bounce-back so far. “The recovery will likely be prolonged and bumpy, with the potential for setbacks along the way,” Macklem said in his first speech as BoC […]
Rate Spy
- Rates to Stay Low as Jobs Won’t Recover for a Decade: CBO 3 July 2020—The Mortgage Report: July 3— Long Road Back for Jobs: Avid rate watchers all want to know the same thing: how long will unemployment stay elevated? The answer to that is essential to knowing how long rates could remain in a trough. On Thursday, we got a sobering projection from a reputable source. The non-partisan...
- It’s Time for a Fixed Rate 1 July 2020—The Happy Canada Day Report: July 1— Fixed or Bust: Canada’s lowest nationally available conventional variable rate is just nine basis points cheaper than a comparable 5-year fixed rate. That minuscule “fixed-variable” spread is now 80% narrower than its 10-year average. In other words, the market is no longer compensating new borrowers for the risk...
- Industry Leader Calls for Stress Test Fixes Now 30 June 2020—The Mortgage Report: June 29— Stress Test Fix Overdue: Ottawa was sensible to pause the mortgage stress test changes “given the marketplace uncertainty in March,” says Paul Taylor, President and CEO, Mortgage Professionals Canada (MPC). “However, as we begin to open businesses again, and as economists are generally expecting a housing price downturn, now is...
- People Get Squeezed on Mortgage Renewals 27 June 2020—The Mortgage Report: Weekend Edition— Renewal Tax: Borrowers get worse deals on mortgage renewals than on brand new mortgages. And it’s been that way for decades. Interest rates on renewals have historically been about nine basis-points (0.09%) higher than rates on new mortgages. That’s based on a survey of five-year uninsured mortgages from 19 of...
- Internal Emails From OSFI Document its Stress Test Tweaks 25 June 2020—The Mortgage Report: June 25— OSFI Unplugged: Alberta MP Tom Kmiec has obtained internal emails from OSFI that chronicle the regulator’s efforts to improve the mortgage stress test—in particular its efforts to “fix” the minimum qualifying rate (a.k.a., “MQR” or benchmark rate). The emails show that OSFI’s PR staff wanted the public to know it...
The Mortgage Reports
- How to buy a house with low income in 2020 3 July 2020You can buy a house with low income if you meet the guidelines for one or more of these mortgage programs. Here's how to do it.
- Physician mortgage loans: Avoid doctor-specific hurdles 2 July 2020Physician mortgage loan programs can provide great deals for doctors. But they might not always be the best option. Learn more here.
- Mortgage rates today, July 2, 2020, plus lock recommendations 2 July 2020Mortgage rates today are driven by movements in financial markets worldwide. When the economy heats up, bond price drop, and rates increase. When the economy pulls back, interest rates tend to fall.
- States reopen 2010 mortgage relief program during COVID-19 1 July 2020Some states are reopening a 2010 mortgage relief program, the Hardest Hit Fund, to help homeowners during COVID-19. Find out if your state is participating and what it means for you.
- Mortgage rates today, July 1, 2020, plus lock recommendations 1 July 2020Mortgage rates today are driven by movements in financial markets worldwide. When the economy heats up, bond price drop, and rates increase. When the economy pulls back, interest rates tend to fall.