Ariana Leroux Mortgage Blog

Cash Back for Down Payment to go the way of the DODO Bird A source at the bank confirms that it is scrapping the offer in light of banking regulator OSFI ’s B-20 Underwriting Guidelines . OSFI has decreed that “Cashback should not be considered part of the down payment.” Most Federally regulated lenders must therefore eliminate these offerings no later than October 31, 2012 . Cashback mortgages - essentially 100% financing - are a niche product that are seldom appropriate for owner-occupied purchases (sometimes they make sense for rentals). There are exceptions, but most of the folks who want them are simply a bit too eager to buy. The Canadian Association of Accredited Mortgage Professionals (CAAMP) supports OSFI ’s call to end cash back products in lieu of 5% down payments. “Borrowers should have ‘skin in the game’,” it says . There aren’t many federally-regulated lenders with 5% cashback down payment mortgages left, Scotiabank stopped there's September 15th, 2...

  The Bank of Canada is leaving its key lending rate unchanged at one per cent.  The announcement came Tuesday morning, in a statement that notes the U.S. economy is expanding at a "gradual pace," indicators point to a "continued contraction" in Europe, and growth has slowed "more than expected" in China and other emerging economies. For Canada, the statement paints a modestly optimistic outlook that singles out the rising price of commodities produced here, including oil, in recent months. The statement notes that exports remain weak, however, and housing activity is expected to pull back from historic highs. While the performance of the global economy has also constrained Canadian economic activity, the Bank nevertheless projects a "moderate expansion." "Following the recent period of below-potential growth, the economy is expected to pick up and return to full capacity by the end of 2013," the BoC said, pointi...