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Tag Archive: banks

Atrocious Renewal Offers

—The Mortgage Report: Nov. 2— Check out these hideous renewal offers from a Big 6 bank. Yes, that’s right, banks are still quoting loyal customers non-discounted posted rates—the rates virtually nobody is supposed to pay. This particular bank must really hate its customers. Fortunately, the borrower, who was extremely well-qualified, came to us for a second opinion. We told him...

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New Capital Requirements: The Rate Impact

It’s sort of counterintuitive that making banks safer often costs you more as a borrower, but that’s what may happen in this case. Canada’s banking regulator (OSFI) has raised the minimum capital that banks must maintain…again. And there’s a good chance banks could take it out on mortgage borrowers, eventually. Here’s What Happened Back in June, OSFI created the “Domestic...

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How the Lowest Rates Cause Banks Headaches

For years now, policy-makers have been reining in government backing of the mortgage market, ostensibly to “reduce taxpayer risk.” Meanwhile, the riskiest mortgages in the prime owner-occupied market get the best mortgage rates. A “high-ratio” default insured borrower with only 5% down, for example, can fetch5-year fixed ratesat 3.29% or less. Yet, an uninsured borrower with four times the equity...

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Waiting for a Rate Drop?

So are a lot of other people. So far, all we’ve gotten is a dozen large or mid-sized lenders hiking 5-year fixed rates over the past week or so. Meanwhile, the 5-year swap yield (one of the best leading indicators for fixed mortgage rates) is back down to levels it saw six months ago. Back then (in May), the best...

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National Bank’s New Online Mortgage Pre-approval

In the next few years you’re going to see press release after press release announcing new mortgage technology from big banks. And that’s a good thing. Big banks are finally innovating mortgage processes that have been materially unchanged for years. And it’s being inspired by countries that are well ahead of Canada in online mortgage innovation. Take the UK, for...

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Shady Mortgage Specialist Practices: FCAC Report

Let’s be clear on one thing. Most bank mortgage specialists are good people who do the right thing. Then, there are the other kind. Consumer watchog, the Financial Consumer Agency of Canada, is targeting those reps with a cautionary critique of mortgage sales practices at the big banks. The agency is worried that banks may be placing “sales ahead of...

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