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Posted by: Dean Kimoto
There was little fanfare earlier this year as financial institutions started making the new First Home Savings Account (FHSA) available to their clients. But now that the product is better understood, it’s being hailed by some as “the greatest deal in the history of Canadian savings.” At least that’s according to David Chilton, the bestselling […]
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Canada’s banking regulator confirmed it will leave the mortgage stress test for uninsured mortgages unchanged. In its annual review, the Office of the Superintendent of Financial Institutions (OSFI) said the minimum qualifying rate (MQR) used by federally regulated lenders will remain the greater of 5.25% or the mortgage contract rate plus 200 basis points (2%). […]
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In its third-quarter earnings call, Scotiabank said it was undertaking a strategy of “customer de-selection at renewal” as part of its efforts to slow its mortgage growth and be more selective of its client base. “I think this is a good time to drive that standard higher here because it’s a softer, slower housing market,” said Dan […]
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Alternative lender Equitable Bank revealed today that a majority of its residential mortgage clients have already renewed at higher interest rates and have largely absorbed the increases. In the bank’s fourth-quarter earnings call, President and CEO Andrew Moor said over 80% of its uninsured single-family mortgage customers have either originated or renewed their loans at […]
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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 continues to slow and inflation has eased further. In the United States, growth has been stronger than […]
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Two key guide posts for the Canadian economy are pointing in the same direction. Both the third quarter GDP numbers and November jobs figures suggest the Bank of Canada is unlikely to make any changes to its trendsetting interest rate in the coming days. Canada’s economy shrank at an annualized rate of 1.1% through July, […]
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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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