Tag Archive: renewals


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...

OSFI Dismisses Renewal Impact of B-20

We’ve said it many times over. OSFI’s imposition of a stress test on borrowers switching lenders is potentially the most short-sighted government mortgage policy in Canadian history. See: “Mortgage Renewals Now More Costly — For Those Least Able to Pay“ The policy keeps borrowers—who have proven their ability to handle their mortgage—from switching lenders to reduce their interest bill. These...

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...

Switch Tricks (For a Better Deal)

Big news here for people wanting to switch lenders with a mortgage that was previously refinanced. Until recently, it hasn’t been possible to move your mortgage to a new lender and get ultra-low default insured rates if you had previously refinanced that mortgage. That was due to an interpretation of the insurance rules implemented by the Department of Finance in 2016....

BoC Stands Pat. Prepare for B-20

Not much to see at today’s Bank of Canada meeting. It was another yawner as prime rate held at 3.20%. Among the few takeaways: The Bank stated: “While higher interest rates will likely be required over time, Governing Council will continue to be cautious…” Interpreted this means: Higher rates are on their way, between now and when we die. If...

Mortgage Rate Complacency

One of the worst things a mortgage shopper can do is assume that a lender’s rates are competitive. For evidence of that, look no further than the latest data from our nation’s largest default insurer, CMHC. It reports that borrowers who closed insured 5-year fixed mortgages in the third quarter of 2014 paid an average rate of 3.37%. That’s somewhat remarkable when you realize that the...