Mortgage, Money and Dream – Our thoughts on Canadian Mortgage Market
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Interest rates may not wait for inflation to grow

Interest rate and inflation are generally like two sides of a coin. When one moves one way then the other side follows it. Although it seems to be a general norm but it may not hold ground for long. In 2008 during the financial meltdown Canadian government […]

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Provincial Regulators are considering stricter regulations for CU’s

Apart from banks there are many financial institutions that can provide a borrower with a mortgage. Credit Unions are non-bank lenders. Credit Unions are provincially regulated. A list of Credit Unions operating in Ontario can be obtained from here. Federal Government has been actively trying to bring […]

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Best Practices for a Mortgage Insurer – Introduced by OSFI

Almost two years ago, OSFI introduced the idea of Residential Mortgage Underwriting for the lenders. It promised that there will be one for the insurer too. Now it has delivered on that promise. In its new B-21 guideline it has outlined the expectations for prudent residential mortgage […]

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Mortgage Brokers in Ontario – don’t be tricked by renewal numbers

It is license renewal season for Ontario mortgage brokers and agents. This time of the year is also a busy season for the brokers. A lot of home buyers are searching for mortgage as they prepare to move into the new home coming spring and early summer. […]

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Regulators are watching Canadian housing and mortgage market

OSFI does not try to forecast about current state of Canadian residential mortgage market nor its future. It observes the market closely and is ready to take corrective action, if necessary to protect the interest of consumers, depositors and the lenders. This was told by Superintendent Julie […]

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OSFI explains Balance Sheet Exposure on Capital Adequacy Requirements – Good for banks

Canadian banks – at present do not have a fixed capital ratio requirement. What they have is a mixed bag of guidelines imposed by OSFI. Since the last balance sheet meltdown, various BASEL committees were set up and they came up with ideas to regulate financial institutions […]

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

Cmhc-is-moving-again

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?

basement-flood-mortgage-lender

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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First timers are taking it easy

Mortgage rules effect on First Time Buyers Intentions

A latest BMO poll shows that the home buying intentions among the First Time home buyers are in decline in short term future. First time buyers are a very important part of the Eco-system. The initial target range for them may not be as big but they […]

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Mortgage rule tightening on its way again

OSFI-Tightening

Extended amortizations like 30 and 35 years will soon be on the chopping block of the policy makers. These mortgages are not insured by the government but the regulators are still worrying about them. All the recent actions taken by the government are generally targeted for the […]

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Stagnant credit growth – Money is dead. Mortgage, HELOC growth will slow further

It is only about 10% of the money – that is created by the government. Rest of it come from various credit products offered by the banks or financial institutions. The industry grows the money by lending-deposit-lending cycle. Money is required to pump up nominal GDP. In […]

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Another Overhaul in Lenders Reporting System by OSFI

OSFI has updated its requirements how the Canadian deposit taking institutions report their new loan to the regulator via A4. It has also included several new entities to submit the “Report on New Lending” According to its letter sent to the Trust and Loan Companies including Retail […]

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