Mortgage, Money and Dream – Our thoughts on Canadian Mortgage Market
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Do you really need a pre-approval?

For many home buyers out there, shopping in a tight market is a very stressful and difficult task. To add to that if the buyer does not know the limit of his or her borrowing ability then it is like a blind date. You may end up

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How are the broker lenders doing? CMT explains

Broker lenders market share - Q3 2013

As always CMT published the latest broker lenders market share stats. This chart does not show the mainstream banks or credit unions. It just provides a snapshot of the market share of the lenders who deal with brokers. Only the top tens are shown but there are

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How to deal with future higher rate – Lenders re-take on penalty (may be?)

A lender makes money from interest on the loan and/or early breakage penalties paid by a borrower. If a borrower is stubborn not to pre-pay the mortgage before its maturity then the banks only earning is from the interest and some fees. Not all the home owner

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Low rates have no effect on lenders profitability

The last quarter for MCAN and Equitable was good. The housing activity bloomed late in the summer but it helped to inflate the residential lending of the lenders. As a result net income grew compared to 2012. Equitable Bank saw a whopping 24% jump in the Single

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Why you may not like your bank

How a Canadian Identifies a Good Bank According to 4 in 5 Canadians – low or no fees is the definition of good banking.  6 in 10 Canadians – ready to leave their banks to save money.   Source:

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Quality not quantity – is more important now

National Bank has decided that it will pay equal attention to broker efficiency alongside business volume. Changes in bonus: It is introducing a change that will increase the existing Efficiency Bonus from next month. Existing Volume Bonus will take a ten basis point cut. National bank has

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What the brokers are thinking about lenders

Mortgage brokers deal with many lenders in their day to day business activities. Some they hold dear to their heart and some are just business partners. CMP runs this survey every year and the results are out. Interesting facts: 21% brokers think commission will go down in

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What is a Mortgage Servicing Company

There are number of parties involved in a mortgage transaction. In the mortgage industry there are lenders and the sales people like brokers or lenders representatives – you usually deal with while you are shopping for your mortgage. What happens when the deal closes and you move

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What you need to know about income verification

To be able to make regular mortgage payment, a source of income is required. Without an income, debt can not be serviced – very basic concept. Banks, therefore, take income verification very seriously. Nothing more important than the borrower having a legitimate source of steady income. (Don’t

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Banks Earnings – random thoughts

Why interest rate change will not hurt banks earnings: Obviously, bank’s main earning is not dependent on interest rate. It is the spread between cost of borrowing (or funding) and cost of lending – that earns bankers their breads. If you look at the spread then it

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Long Weekend Surprise from CMHC – Limiting the MBS ceiling at $350m for each bank

Somehow all the federal or federally regulated organizations like to let the rabbit loose from their hats before long weekends. CMHC followed the long venerated tradition this time too. On August 1st it sent a note to the lenders stating that it will be rationing its backstop

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Water damaged the basement? Should you let your Mortgagee (Bank or Lender) know?

Generally it is the borrower’s responsibility to let the lender (and If default insured then the default insurer as well e.g. CMHC or Genworth) know about any damage or modification in the property. Standard Charge Terms clearly define the responsibility of a borrower or mortgagor. A homeowner

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