Mortgage, Money and Dream – Our thoughts on Canadian Mortgage Market
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CMHC abandons mortgage loan insurance for condominium development.

Canada Mortgage and Housing Corporation announced that it is bringing in two changes in its mortgage insurance business. The Crown Corporation has been struggling in many fronts. While it is not exactly in a financial trouble but it has drawn critics from many areas. Some of them

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Canada Guaranty changes rental income formula

There are various ways how rental income can be included in debt service calculation. The major Canadian mortgage insurers generally adapt to two methods. Rental offset Rental income Rental offset: Rental offset calculation method takes care of the rental expense minus rental income before it gets added

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CMHC tightens its rules for second homes and BFS

Only a few weeks ago CMHC announced that it will be raising its mortgage insurance premium effective from May 1st 2014. What we did not anticipate that it is considering further restrictions. It was only a couple of days ago when we have learnt about its further

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CMHC and Genworth to raise mortgage default insurance premium

85% loan to value premium changes

Canada Housing and Mortgage Corporation (CMHC) has announced that it will raise the mortgage default insurance premium it charges the borrowers with small down payments (normally 5% to 20%). If you buy a home after May 1st and do not have more than 20% down payment then

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Will mortgage default insurance premium go up?

CMHC - Total Insurance In Force - Q3-2013 ($ billion)

CMHC covers the lenders at the expenses of the borrowers. If you are at the borrowing end of the stick then the pain is yours. In order to own a home -if you do not have enough money –  your mortgage has to be secured against any

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CMHC Q2, 2013 results – Insurance-In-Force went down

CMHC reported lower mortgage default rate for the last quarter. Arrears rate went down but there is no news if the premium will go down? Probably CMHC’s risk is not that closely associated with arrear rates. Following are some interesting stats from CMHC’s last quarterly results.

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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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Xceed – Giving Some Low Ratio Break

Xceed has recently came up with some interesting offers. On the Low ratio deals where the borrowers had to pay CMHC insurance premiums – the lender will now absorb the premiums in many cases.  Another point was also noted that there were some relaxations on the Beacon

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Debt Service Ratio – Recent changes by CMHC

Debt Service Ratio is one of the most important factors considered during a mortgage approval process. This ratio decides if a lender or a mortgage default insurer considers you worthy of the loan. As th name suggests this ratio is all about your income and your loan

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Genworth Canada announces lower First Quarter income

Compared to the last quarter (Q4-2012) most of the number are in red for Genworth. While comparing to Q1-2012 – that shows some happy signs but that was a year ago. Now things are not looking bright except lower default claims. Some interesting notes from its Quarterly

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Android application to calculate mortgage insurance premium

It took a while to finish the application. The calculator is now published in Android marketplace but we hope to add it in other places too, in future. It is a simple application. Based on purchase price and down payment it will calculate the premium. The application

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What happens when lenders collude with insurers?

If you thought that the house prices only go up due to low interest rate and high demand then it is time to revise that understanding.  In United Stated now they have another factor – known as Kickback Factor. “Illegal kickbacks distort markets and can inflate the

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