Ottawa’s latest round of mortgage policies could have quite the impact on current homeowners, especially those shouldering a large amount of debt. If you have a mortgage and are planning to refinance or renew in the coming months, you could be in for a bumpy ride. The two factors that will most impact your experience? Whether or not you plan to change your mortgage and your mortgage qualifications. Continue reading
Tag Archives: Mortgage
Buyers Showing Caution, Bank Keeps Rates Low
The Bank of Canada held its ground today, leaving the overnight lending rate unchanged at 1 percent. While the move was expected (the rate has been locked at this near-historic rate since September of 2010), the tone of the announcement was far less confident than previous press conferences.
The Bank’s release explained how a global economic slowdown is impacting Canada’s growth potential. While domestic factors remain strong, the Bank has trimmed back its outlook, suggeting that the economy will grow “at a pace roughly in line with its production potential in the near term.” Consumption and business investment are expected to be the main source of growth. However, the effect of lower commodity prices on Canadian incomes, combined with increasing household-debt, could cause some serious setbacks. Continue reading
Deciding on Debt: How the New Rules Will Impact Your Mortgage Hunt
Two things are clear about the current Canadian housing market. First, interest rates are going to go up. The Bank of Canada governor, Mark Carney, Finance Minister Jim Flaherty, and pretty much anyone involved in the banking industry has been warning of a hike, if not several, potentially before the end of the year. Second, the nation’s major banks have been offering absolutely amazing deals on long term fixed rate mortgages.
Which leads us to the million dollar question – is now the time to lock in a fixed rate or is a variable rate the way to go? Continue reading
New Mortgage Rules Will Dampen Economic Growth?
Finance Minister Jim Flaherty stated last week that he realizes tightening mortgage rules could slow economic growth by force-cooling the housing market, and also that he was prepared to take this risk. Since then, TD Bank Mortgage professionals have estimated that Ottawa’s move to reduce the maximum amortization period to 25 years could curtail growth by as much as 0.2 percentage points in 2013. Continue reading
Tick Tock – Mortgage Changes Come Into Effect July 9
Three months ago, Finance Minister Jim Flaherty told banks to step up and firm up their lending requirements. When that didn’t work, he took matters into his own hands, releasing a laundry list of mortgage rules last week. The roughly eight major rules released by the DoF and the OSFI last week will likely influence the Canadian real estate market for years to come, but their impact on the current situation will be most evident in the next week as the due date for implementation, July 9, draws near.
If you’re in the market for a home and are worried about how the new mortgage rules could impact your purchase, now’s the time to act. Here’s a look at what’s been happening, and what will likely happen over the next few days. Continue reading