Is the Mortgage market collapsing in Canada? This is the question on everyone’s mind this week. If you have been following our blogs you will know that in Early October of 2016 I ran a blog called The Day After . In that blog post, I looked at the major implications that would be caused by…
CMHC raises premiums again. Effective March 17th The Canadian Mortgage and Housing Corporation will be significantly raising rates. The media and CMHC can sugar coat it all they want. The increase will hit Canadians and Monoline lenders hard. The new rates will see premiums jump to unprecedented values. that will have a long-lasting impact on the average…
This morning, the Canadian Real Estate Association (CREA) released its December national real estate statistics showing home sales rose 2.2% month-over-month in the final month of last year. This rebound retraced less than half of the decline in November, when it posted the largest monthly decline in more than four years in response to…
The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 percent. The Bank Rate is correspondingly 3/4 percent and the deposit rate is 1/4 percent. Economic data suggest that global economic conditions have strengthened, as the Bank anticipated in its October Monetary Policy Report (MPR). However, uncertainty,…
CMHC Report: A new report was published today confirming that foreign ownership in Canada remains low. This confirms what we have been talking about over the last couple of months and shows the federal government holding a smoking gun pointed directly at the Canadian Real Estate Market and the heads of first time homeowners. It is…
CMHC recommended this week that the minimum down payment is increased. Evan Siddall CEO of CMHC gave a speech last week at the Bank of England’s offices. He recommended that the government take further action and increase the minimum down payment required for someone to buy a home. This recommendation was made on the heels of recent policy…
On the heels of the new mortgage policy changes and a recent announcement by the Bank of Canada to keep the key overnight rate at .50%. The TD bank will increase its spread over the overnight rate by raising the prime rate to 2.85% This means that TD is now at 2.35% above the Overnight rate that…
Lender stock prices plunge as investors pull money out of monoline lending channels. In the early 1900’s miners, when they would descend into a mine. Would bring with them a small caged bird such as a Canary. The technology did not exist back then to tell them if dangerous gases such as carbon monoxide were present…
Over the last few days, we have been covering news stories pertaining to the new mortgage rule changes that are being put in place. I am not one to run screaming that the sky is falling, but if you live long enough you get to see history repeat its self. In a recent interview with…
Written by VERICO Economist Michael Campbell: The Ghost of the Sub Prime Mortgage Crisis Haunts the Finance Minister By now you will have seen the details of the significant changes to the mortgage market announced by the Finance Minister but how will they impact the market? In a nutshell – it will be big. The…