Tag Archive: cmhc


Get Yer Affordable Housing Here!

—The Mortgage Report: Aug. 5— Is This a Joke?: “The CMHC defines housing as affordable when ‘it costs less than 30% of a household’s before-tax income,’ which includes rent or mortgage (principal and interest) payments, property taxes and other home bills,” reports the Financial Post. The punchline is, you have to move to a remote fishing village in Newfoundland to...

Did the BoC Just Unleash the Bulls?

—The Mortgage Report: Weekend Edition— It Might as Well Have: On Wednesday, the Bank of Canada threw caution to the wind and changed its playbook. It pledged not to hike rates until “the 2 percent inflation target is sustainably achieved.” The significance of that statement is now sinking in and here’s why. Normally, the Bank of Canada doesn’t wait for...

CMHC Bearish on Home Prices, But…

—The Mortgage Report: June 23— Prices Will Fall, Unless They Don’t: “Short-term uncertainty will lead to severe declines in sales activity and in new construction,” CMHC reported Tuesday. “House prices will fall as well and are unlikely to recover over the horizon of this report (through 2022).” But that statement is a tad general. It would be a mistake to...

The Mortgage Report – June 8

A Recovery for the Ages: Against all odds, and despite the biggest unemployment surge in a 3-month span ever, stocks have erased 2020 losses. ICYMI: Private default insurer Genworth Canada saw no need to follow CMHC and tighten its mortgage rules. Canada Guaranty, which has the lowest loss ratio in the mortgage insurance industry, made the same determination, saying, “Given...

Genworth Doesn’t Follow CMHC Changes

The Mortgage Report – June 8 2:35 p.m. Update CMHC on Its Own: If you’re buying with less than 20% down and can’t qualify under CMHC’s stricter insured mortgage rules, you still have options. Effective July 1, CMHC is lowering the maximum debt you can carry, raising its minimum credit score to 680 and banning certain borrowed down payments. But...

BREAKING: CMHC Mortgage Rules Get Tighter, Impacting First-time Buyers

Normally, you don’t rock the boat when you’re already taking on water, but that’s what CMHC has done. Despite a weakened housing market, the nation’s largest default insurer is making it tougher for people to get a mortgage. That is, for borrowers with higher debt loads, lower credit scores and borrowed down payments. Here’s CMHC’s official announcement. Its changes take...

One of Three Things Must Occur for Record Low Mortgage Rates

The Mortgage Report – May 31 And One of Them’s Bad: If you’re rooting for lower mortgage rates, one of the following must happen: Bond yields must drop to record lows Bond yields steer fixed mortgage rates and are largely a reflection of Canada’s economic (inflation) outlook Rooting for economic pain—so mortgage rates fall—isn’t exactly a patriotic sentiment, so we’d...

Compare & Save: BoC

The Mortgage Report – May 27 Shop Rates, Says Bank of Canada: “The price of a mortgage can vary a lot among lenders…You’ll most likely find a lower interest rate if you do your homework and are willing to negotiate.”—Bank of Canada The BoC Does Move Fixed Rates: It’s a misconception that the Bank of Canada only influences variable mortgage...

Ominous Data From CMHC

The Mortgage Report – May 19 5% Down Payments at Risk? Canada’s housing agency says it must “avoid exposing young people” and “taxpayers” to “amplified losses that result from falling house prices.” CMHC CEO Evan Siddall said today, “Unless we act, a first-time homebuyer purchasing a $300,000 home with a 5% down payment stands to lose over $45,000 on their...

The “I Wish We Had Better News” Edition

Daily Mortgage Report – May 7 A Record 4 million: That’s how many jobs disappeared in April, predict economists surveyed by Bloomberg. That’s a stunning one-fifth of the labour force, and only a portion of those jobs will return soon. How many of these families own homes? A meaningful minority. But the bigger question is, how many will continue paying...