Categories for Rate Regulation

Private Rates Still Elevated Amid Tight Funding

Private (non-prime) lenders are getting tapped out across the country. Fisgard Asset Management Corporation, one of Canada’s largest mortgage investment corporations (MICs), is no exception. “It’s a dynamic time right now,” says Hali Noble, SVP at Fisgard. She explains that Home Capitals’ near-failure,...

The New Stress Test: Still Scratching Our Heads

Canada’s banking overlord, OSFI, is proposing a new 2-percentage-point (200-bps) “stress test” for people getting uninsured mortgages. Unlike the current stress test, which is based on one rate (the Bank of Canada posted 5-year, currently 4.64%), this new one is a frequently...

This is One Beefy Rule Change

OK, how do I put this in a way that doesn’t sound over the top or like fear mongering? There was this mortgage rule proposal today, and it was a Whopper. No. Actually, it was larger than that. More like a BK...

Another Nail in Competition’s Coffin

As previously announced, CMHC is jacking up default insurance premiums on Canadian borrowers. Effective today, anyone purchasing a home with less than 20% down will fork over up to 1.00%-point more in fees. If you’re down payment is: Less than 10%: You’ll pay...

TD’s Mortgage Prime Hike. Just the “First Move…”

What a coincidence that TD boosted its mortgage prime rate and OSFI implemented its new bank capital requirements, both on the same day (November 1). Or not. RBC Capital Markets issued a report Tuesday suggesting the two may have been somewhat linked. It predicts...

Risk Sharing & Your Mortgage

Everything’s a risk these days. You can’t even kiss your dog for risk of contracting some zoonotic disease. Even prime insured mortgages—where the odds of a borrower defaulting are less than your odds of being on a plane with a drunken pilot—are...

Biggest Mortgage Change Since the ’70s

The new posted-rate qualification rule kicked in today on high-ratio insured mortgages. It could shut out more buyers from the housing market than any single mortgage change since the late ’70s, when rates soared into the teens. That’s according to one lender veteran...

Reprieve for Low-Ratio Borrowers

The policy dudes at the Department of Finance (DoF) have deferred the implementation date for their controversial new posted-rate “stress test.” The change applies to low-ratio insured mortgages and gives people more time to plan a purchase or refinance. When the new rules were first...

Prediction: Pain…

“Since 2007, the share of all banking assets controlled by the largest six banks grew from 90% to 93%.”—John Jason, C.D. Howe ******* Fine time to land a crushing regulatory uppercut on bank challengers. That’s what the good intentioned folks in Ottawa did...

Feds Nuke the Mortgage Market

The government dropped a bomb on the mortgage industry today, and disguised it as a firecracker. Policy-makers imposed a range of new measures with the stated goal of improving housing “stability.” Here’s a summary from the Department of Finance –> DoF Press Release....