Tag Archive: mortgage deferrals


Refi Ahead of Condo Trouble?

—The Mortgage Report: Oct. 7— Toronto condo listings have exploded 215% to a record high, reports Bloomberg. And they’re projected to be even higher in October, according to HouseSigma. Driving that surprising number: skittish investors (many with negative cash flow given surging rental listings and a 14% y/y drop in rents) “elevator phobia” people coming off mortgage deferrals relatively higher...

Mortgage Deferrers are Weaker Borrowers: But How Much Weaker?

Six hundred thousand Canadians weren’t paying their mortgages on July 31. They were getting by with the help of lenders who agreed to postpone their payments. Not long from now, lenders are going to cut off most of those payment deferrals. The housing risk this poses was the topic of my latest Globe column, which estimated that up to 61,000...

How Some People Still Beat the Mortgage Stress Test

Grandfathering Remains in Effect Okay, you really shouldn’t be as happy as these people if you have to do an end-around to pass the stress test, but nonetheless… If you’re switching lenders to get a better deal, the best 5-year mortgage rates are usually available only on insured or insurable mortgages. And that’s a problem if your property value has...

Could 5-Year Fixed Rates Sink to 1.49%?

—The Mortgage Report: Aug. 25— Yes. The Question is: When? Most readers know that fixed mortgage rates follow bond yields. But it’s bond yields south of the border that are particularly influential for Canadian mortgage rates — given U.S. influence on our economy. To get to 1.49% on discounted 5-year fixed rates, we need a Canadian 5-year bond yield near...

iBuyers Are Changing the Game…Slowly

—The Mortgage Report: Aug. 19— Properly’s “Backup Offer” for Home Sellers Someday, the majority of Canadian home sellers will get a quote from an iBuyer. What’s an iBuyer? It’s a company that offers you roughly 7% less than fair market value to buy your home…fast. Why would someone take 7% less? Because some people place a high value on speed,...

People Are Locking in Till 2030 at Record Low Rates

—The Mortgage Report: July 29— Decade Rates at All-time Lows: In Ontario, folks can now enjoy borrowing cost certainty for a tenth of a century, at effective rates as low as 2.59% through brokers. 10-year fixed rates have literally never been lower. Most borrowers wouldn’t think of paying 50+ basis points more (on top of a 5-year fixed) to get...

Invest or Prepay Your Mortgage?

—The Mortgage Report: July 9— Play Stocks or Play it Safe?: That’s a common question for otherwise debt-free mortgagors with nothing else to do with their money. It’s not a question we can answer for everyone, given all the personal variables to consider. But here’s an interesting look at what might have happened had you got a standard mortgage 10...

Will Mortgage Deferrals be Extended?

—The Mortgage Report: July 8— Avoiding the Cliff: If six-month payment deferrals end as planned in September, tens of thousands of homeowners will default on their mortgages—no question about it. CMHC calls this the looming “deferral cliff,” and analysts want to know what the government will do about it. If Australia is any guide, deferrals could very well be extended....

No Price Crash. Quite the Opposite in Some Cities.

—The Mortgage Report: July 7— Price Expectations vs. Reality: “…Consumer expectations for house price growth in Canada dropped to zero,” according to a BoC survey released yesterday. But the data is about a month and a half old. Since then, home prices in the Greater Toronto Area have broken their 2017 record high. Imagine where prices would be if employment...

Mortgage Deferral Warnings

The Mortgage Report – June 12 Deferrals Appearing on Credit Reports: Credit bureaus are alerting lenders when you’ve requested a payment deferral. If you’ve deferred your mortgage, Equifax says you should see one or both of these statements in the comments section of your credit report: Deferred Payment Affected by Natural or Declared Disaster Mortgage deferrals aren’t supposed to hurt...