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Posted by: Dean Kimoto
Like most other financial institutions, BMO said the bulk of its mortgage portfolio will be up for renewal in the coming three years, with the payment increases averaging up to 40%. In its fourth-quarter earnings call, the bank said just 11% of its portfolio—or $16.2 billion worth—will renew in the next 12 months. The majority […]
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There was growing talk of the “R-word” (recession) leading up to today’s GDP data release, given the third quarter could have marked the second straight month of negative growth. Instead, markets received another R-word…revision. While Statistics Canada revealed that real gross domestic product (GDP) fell 0.3% quarter-over-quarter in Q3, it also revised up its previous negative reading […]
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A key factor in determining whether an individual is likely to become a homeowner is whether or not their parents were property owners, a new study shows. The adult children of homeowners were more than twice as likely to own a home compared to the children of non-owners, according to findings released by Statistics Canada last week. […]
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Canada’s banking regulator recently confirmed it will move ahead with new capital requirements for lenders and insurers with negatively amortizing mortgage portfolios. Starting in early 2024, the Office of the Superintendent of Financial Institutions (OSFI) will require lenders to hold more capital for negative amortization mortgage balances with loan-to-values (LTVs) above 65%. What’s a negative […]
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The average asking rent in Canada has increased by about $175 over the past six months, and is now nearly 10% higher compared to a year ago. As of October, the average rent price for all unit types reached $2,178, according to data from Rentals.ca‘s latest monthly data. That’s up 1.4% compared to September, but slower […]
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Equitable Bank has announced that, in partnership with a third-party lender, it is introducing a new 40-year amortization mortgage product. Equitable, Canada’s seventh-largest bank, which provides both prime and alternative lending options, made the exclusive announcement at the National Mortgage Conference that took place in Toronto. By extending the amortization period beyond the standard 25 […]
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Many in the mortgage industry reacted with surprise after learning about a little but very important nugget buried in an OSFI report released earlier this week. In its report on industry feedback concerning its proposed underwriting changes to B-20, Canada’s banking regulator said this: “Insured borrowers…are exempt from the re-application of the MQR (Minimum Qualifying Rate) when […]
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The Bank of Canada today held its target for the overnight rate at 5%, with the Bank Rate at 5¼% and the deposit rate at 5%. The Bank is continuing its policy of quantitative tightening. The global economy is slowing and growth is forecast to moderate further as past increases in policy rates and the […]
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Canada’s banking regulator confirmed today that it will no longer pursue at least several of the proposed mortgage regulations it had introduced earlier this year after they were met with widespread concern and criticism during its public consultation period. Nine months after the Office of the Superintendent of Financial Institutions (OSFI) unveiled its proposed measure related to […]
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While Canada’s main political Parties have been doing a lot of talking about getting people into homes, actual construction continues to lag. The latest figures from Canada Mortgage and Housing Corporation show housing construction, in the country’s six biggest metropolitan areas, increased by a mere 1.0% in the first half of 2023, compared to a […]
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