Tag Archive: mortgage renewals


People Get Squeezed on Mortgage Renewals

—The Mortgage Report: Weekend Edition— Renewal Tax: Borrowers get worse deals on mortgage renewals than on brand new mortgages. And it’s been that way for decades. Interest rates on renewals have historically been about nine basis-points (0.09%) higher than rates on new mortgages. That’s based on a survey of five-year uninsured mortgages from 19 of the largest federally regulated lenders...

10-Year Fixed Mortgage Rates Fall to Record Low

The Mortgage Report – May 25 Decade Discounts: With rates near perma-lows, according to some, people aren’t exactly lining up to lock in for 10 years. That’s especially true with penalties being so large on 10-year fixed terms, that is, until a mortgage passes its five-year anniversary—at which point the Interest Act limits penalties to three months’ interest. Nevertheless, effective...

Coronavirus Mortgage Update – March 30

11:53 p.m. Update Fleeting Deal: Canada Life’s stellar 5-year fixed deals (2.34% insured and 2.49% uninsured) could vamoose this week. If a fixed 5-year is suitable for your circumstances and if you’re closing in the next 90 days, it’s a hard deal to beat. Unfortunately, for those who like a long payback period, Canada Life only allows up to a...

The Price of Mortgage Convenience

More than 4 out of 5 borrowers stay with their bank when their mortgage renews. And of all the reasons to do so, the least valid is probably this: because they want to keep all their finances at one institution—for “convenience.” Some people like that their mortgage payment comes out of their bank account automatically each month — that they can...

Canadians Got Fewer New Mortgages Last Year

Mortgage activity fell more than many people thought last year. New data from CMHC shows a 9% drop in the number of consumers getting new mortgages in 2017, among the metro areas it surveyed. Stricter mortgage rules, higher mortgage rates and higher home prices were some of the likely causes. Of particular interest was the drop in refinances. The number of...

Mortgage Renewals Now More Costly — For Those Least Able to Pay

One in four borrowers will renew their mortgage this year, estimates the Bank of Canada. Some of them are about to find renewing a whole lot trickier and potentially more expensive — thanks to two important rule changes: #1.  The Much-Publicized Stress Test As most of you now know, on January 1 the government (OSFI) made it harder to get...

OSFI Rules to Cost Mortgage Renewers

Renewing a mortgage could soon get a lot more costly for 700,000+ Canadian families. And they’ll have OSFI to thank. The banking regulator’s new stress test will drive up debt ratio calculations for most conventional borrowers by 6 to 7 percentage points. That’s enough to push a minority of renewers right out of the qualification zone. Why this matters: Lenders use...