Ariana Leroux Mortgage Blog

In a slowing market, it is that much more effective. It was a prudent move....  The real estate industry has ramped up its attack on rules making it harder to borrow but its challenges face one big obstacle — mortgage restrictions are working exactly the way the federal government wants them to. In the past week the Canadian Association of Accredited Mortgage Professionals weighed in with complaints that Ottawa’s restrictions were killing consumer confidence and even raised the stakes further by suggesting the entire Canadian economy was at stake. Toronto builders joined the fray, calling out the federal government for rules it maintains have a lot to do with the cooling market in the city that saw sales in October dip 14% below their long-term average. But Finance Minister Jim Flaherty has given no indication he is ready to reverse course on his tightened restrictions. There’s also the argument that it wasn’t the rules that have sabotaged the market, but rather an...

                                          Heads Up, In Regards to OSFIs B20 CHANGES While most of us already have felt the immediate changes of the 30 year amortization to 25 year, and the Home Equity Line of Credit change from 80% Loan to Value to 65% Loan to Value, some of you may not know some of the other changes as well for Underwriting Guidelines and there fore your immediate mortgage approval.  For Example financial institutions will be raising the Qualifying Rate on Variable, 1, 2, 3, and 4 year fixed terms to the Bank of Canada's current Benchmark rate (Currently at 5.24%). This comes into to play regardless of Loan to Value. Where as in the past with 3 years or under we could use the 3 year Qualifying Rate or sometimes best rate. Also the heat component of the ...

Smart Cookies Six questions to ask before you buy a home Angela Self The Globe and Mail Published Thursday, Oct. 14 2010, 5:00 AM EDT Last updated Thursday, Sep. 06 2012, 3:58 PM EDT Wondering if you should continue renting or take the plunge into home ownership? To help you clarify this debate, we've compiled a list of questions from various professionals associated with a real estate transaction. Answering the right questions about the early stages of the home ownership process will likely help you sit confidently with your decision to stay put, or leap with eyes wide open into the market. Why do you want to buy a house? This is an important question for first-time buyers, according to Sarah Wilson, a Calgary-based Certified Financial Planner and consultant with T.E. Wealth . First-time buyers have to ask themselves if they want a home because their friends are buying and they think it's the next step or because it actuall...

ROB CARRICK The Globe and Mail Published Sunday, Oct. 24 2010, 7:11 PM EDT Last updated Thursday, Sep. 06 2012, 3:58 PM EDT The debt threat facing this country begins at home. Mortgages are by far the biggest component of a national debt load that has recently prompted warnings from the Governor of the Bank of Canada and one of the country's largest banks. Their concerns raise questions about the way in which financial institutions ensure people can afford the mortgages they need to buy a home. Raising a family and maintaining a home require finesse and constant financial manoeuvring. And yet, the housing affordability measures used by bankers are strikingly simplistic. In essence, they provide a snapshot of a home buyer's ability to meet his or her basic housing costs and other debts based on gross monthly income. Bankers say these calculations serve them well, but others question how effectively they size up someone's ability to carry the c...

Great Article from National Post...  Garry Marr Monday, Nov. 19, 2012 The Canadian Association of Accredited Mortgage Professionals says since new rules went into effect in July, 2012, resale housing activity is 8% lower between August and October than a year earlier. Reuters New borrowing rules have hit homeowners so hard that it could undermine any economic recovery in Canada, says a new study from the country’s mortgage brokers. The Canadian Association of Accredited Mortgage Professionals says since new rules went into effect in July, 2012, resale housing activity is 8% lower between August and October than a year earlier. Among the changes instituted by the government was a lowering of allowable amortization from 30 years to 25 years for consumers borrowing with mortgage default insurance which is backed by the federal government. A longer amortization allows consumers to lower their monthly payment and qualify for a larger loan at the expense of pa...

From October 23, 2012, The Bank left its policy rate unchanged, which means that prime rate should exit 2012 at the same level it’s been for 25 months, 3.00%. Carney & co. said that, “Over time, some modest withdrawal of monetary policy stimulus will likely be required.” That’s vaguer than prior projections but still a signal that the next rate move should be up. Here’s more from the Bank’s statement from Oct 23, 2012: “Core inflation has been lower than expected in recent months…” “Total CPI inflation has fallen noticeably below the 2 per cent target…and is projected to return to target by the end of 2013, somewhat later than previously anticipated.” “Housing activity is expected to decline from historically high levels, while the household debt burden is expected to rise further before stabilizing by the end of the projection horizon.” “The timing and degree of any such withdrawal (in rate stimulus) will be weighed carefully against global and domestic de...

I got this from Canadian Mortgage Trends.com - Rob McLister ... it is a great article! In regards to payments etc, and I do like the thought, of since mortgage rates are low, why not make your payments like it is a normal rate, you will make life mortgage free quicker :) Just some food for thought.   I am kinda giggling as well, since BMO were the ones to really get this 2.99% rate going, the potential long term results are what really is being surveyed. ... read below and enjoy for Monday Morning!   October 28, 2012 The “Significance” of Rising Payments BMO published a survey last Tuesday that got a ton of media play. It stated that 72% of households: “ would feel a significant strain if they were to experience a modest increase in monthly mortgage payments... ” Yet, despite the fact that Canadians are highly leveraged, this finding seemed suspicious. So, we investigated. It turns out that mortgage payment sensitivity is not as dire as last week’s headline...