22 Dec

Bank of Canada’s confidence grows that rates are now high enough, but says inflation risks remain

General

Posted by: Dean Kimoto

The Bank of Canada’s six-member Governing Council believes the odds have increased that interest rates are now high enough to bring inflation back to target. That’s according to a summary of the council’s deliberations from its December 6 monetary policy meeting. “Members agreed that the likelihood that monetary policy was sufficiently restrictive to achieve the inflation target […]

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19 Dec

Here’s why prospective first-time buyers should open a First Home Savings Account before Dec. 31

Latest News

Posted by: Dean Kimoto

There was little fanfare earlier this year as financial institutions started making the new First Home Savings Account (FHSA) available to their clients. But now that the product is better understood, it’s being hailed by some as “the greatest deal in the history of Canadian savings.” At least that’s according to David Chilton, the bestselling […]

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18 Dec

Latest in Mortgage News: OSFI leaves stress test rate unchanged

Latest News

Posted by: Dean Kimoto

Canada’s banking regulator confirmed it will leave the mortgage stress test for uninsured mortgages unchanged. In its annual review, the Office of the Superintendent of Financial Institutions (OSFI) said the minimum qualifying rate (MQR) used by federally regulated lenders will remain the greater of 5.25% or the mortgage contract rate plus 200 basis points (2%). […]

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15 Dec

Mortgage de-selection: Can your lender choose not to renew your mortgage?

General

Posted by: Dean Kimoto

In its third-quarter earnings call, Scotiabank said it was undertaking a strategy of “customer de-selection at renewal” as part of its efforts to slow its mortgage growth and be more selective of its client base. “I think this is a good time to drive that standard higher here because it’s a softer, slower housing market,” said Dan […]

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11 Dec

Equitable Bank says majority of its mortgage borrowers have already renewed at higher rates

Latest News

Posted by: Dean Kimoto

Alternative lender Equitable Bank revealed today that a majority of its residential mortgage clients have already renewed at higher interest rates and have largely absorbed the increases. In the bank’s fourth-quarter earnings call, President and CEO Andrew Moor said over 80% of its uninsured single-family mortgage customers have either originated or renewed their loans at […]

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5 Dec

Residential Mortgage Commentary – BoC likely to hold the line

General

Posted by: Dean Kimoto

Two key guide posts for the Canadian economy are pointing in the same direction.  Both the third quarter GDP numbers and November jobs figures suggest the Bank of Canada is unlikely to make any changes to its trendsetting interest rate in the coming days. Canada’s economy shrank at an annualized rate of 1.1% through July, […]

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1 Dec

Not quite a recession, but Canada sees third-quarter growth turn negative

General

Posted by: Dean Kimoto

There was growing talk of the “R-word” (recession) leading up to today’s GDP data release, given the third quarter could have marked the second straight month of negative growth. Instead, markets received another R-word…revision. While Statistics Canada revealed that real gross domestic product (GDP) fell 0.3% quarter-over-quarter in Q3, it also revised up its previous negative reading […]

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