Loophole may help banks to lend to first-time buyers

Financial Post- There is a small loophole in the new federal mortgage rules that could make it easier for the banks to lend out money to first-time buyers.

The federal government announced last month new requirements for anyone borrowing money for a house and needing mortgage insurance. If you have less than a 20% down payment and are borrowing from a financial institution covered by the Bank Act, you have to take out mortgage default insurance, which ensures the banks are covered for any losses resulting from payment defaults.

For principal residences, the new rules force consumers to qualify for a loan based on being able to make payments on a five-year fixed-rate mortgage, which has a much higher interest rate than variable mortgages, now as low 1.85%…

Loophole may help banks to lend to first-time buyers

CIBC, National join list of banks raising rates

Financial Post- CIBC and National Bank announced Tuesday that they are raising some of their mortgage rates, following announcements the previous day from three other Canadian banks that their home-lending charges were increasing.

In a statement Tuesday, CIBC said it would raise its rate on the benchmark five-year fixed rate mortgage by 60 basis points to 5.85%. It also announced 20 basis point increase to its three-year fixed-rate mortgage, bringing it to 4.35%, as well as a 40 basis point increase to its four-year fixed mortgage, bringing it to 5.34%. The CIBC changes take effect Wednesday.

CIBC’s variable rate mortgages remain unchanged.

Meanwhile, National Bank, after lowering its five- and four-year fixed rates earlier this month, announced Tuesday that it would raise those rates to match the other banks’ increases. Its three-year fixed-rate mortgage will also rise 20 basis points to 4.35%…

CIBC, National join list of banks raising rates

Mortgage rates’ dream ride ‘almost over’

Financial Post- For Canadians now accustomed to rock-bottom mortgage rates, a harsh reality looms.

Rates are officially on the upswing, an indication that the country’s housing market is finally poised to cool off and the beginning of the end to historically low rates.

It’s a move being closely monitored by those with variable-rate mortgages trying to cling to minimal monthly payments for as long as possible.

Is now the time to lock in to a fixed rate?

"That’s the million-dollar question," mortgage broker Paula Roberts said Monday. "We’ve had a great ride for the longest time. And we know the ride’s almost over…"

Mortgage rates’ dream ride ‘almost over’

Canadian mortgage rates on the rise

Times Colonist- Mortgage rates are on the upswing in Canada, signaling an end to historically low rates and an indication that the country’s housing market is finally poised to cool off.

Royal Bank, TD Canada Trust and Laurentian Bank announced Monday they are raising rates they charge on certain fixed mortgages, including the benchmark five-year mortgage, which will jump 60 basis points to 5.85 per cent effective Tuesday.

"This is actually a fairly large increase reflecting what’s happening in the bond market lately," said Benjamin Tal, senior economist with CIBC World Markets.

Anticipation over the Bank of Canada raising its overnight lending rate, possibly ahead of schedule, is pushing up bond yields, Tal said. And rising yields puts pressure on fixed-rate mortgages…

Canadian mortgage rates on the rise

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