Canadian Banks raise Concerns with Looser Lending Standards
Filed Under Main Content · Tagged: Canadian Banks, Equity Credit Lines, Home Equity Credit, Lenders, Mortgages, Vancouver Sun
The Vancouver Sun
Banks and other lenders are becoming "increasingly liberal" with mortgages and home-equity credit lines that don’t require individuals to prove their income See full story on this topic »
New rules cuff some mortgages to banks
Filed Under Main Content · Tagged: Canadian Banks, Canadian Financial Institutions, Consumers, Fixed Rate Mortgages, Gross Income, Headlock, Interest Property, Mortgage, Property Taxes, Variable Rate Mortgages, Wrestling
The Gazette- A headlock would be the wrestling term to describe the hold Canadian banks will have on some consumers because of new, more strict mortgage rules.
We are already seeing the impact of the changes that came into effect on April 19, but were put in place well in advance by Canadian financial institutions. Consumers are increasingly selecting fixed-rate mortgages of five years or more because it’s easier to qualify for them.
On mortgages for terms of four years or less, including variable-rate mortgages, consumers must be able to pay based on the five-year fixed posted rate, which is now 6.1%. Go longer and you can use the rate on your contract, as low as 4.6%. No more than 32% of your gross income can cover principal and interest, property taxes and heat…
New rules cuff some mortgages to banks
CIBC, National join list of banks raising rates
Filed Under Main Content · Tagged: Basis Point Increase, Basis Points, Canadian Banks, Cibc Bank, Fixed Rate Mortgage, List Of Banks, Match, Mortgage Rates, National Bank, National Banks, Variable Rate Mortgages, Year Fixed Mortgage, Year Fixed Rate Mortgage
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
Canadian banks boost mortgages
Filed Under Main Content · Tagged: Bank Of Canada, Canada Banks, Canadian Banks, Canadian Mortgages, Canadians, Fixed Rate Mortgage, Fixed Rate Mortgages, Globe And Mail, Interest Rate, Interest Rates, Monday Morning, Mortgage Rates, Percentage Points, Reminder, Royal Bank Of Canada, Ry, Signs, Variable Rate Mortgages
The Globe and Mail- Two of Canada’s largest banks are raising rates on some fixed-rate mortgages, a reminder that mortgage rates can go up before the central bank’s key interest rate does.
The move comes as many Canadians with variable-rate mortgages have been anxiously watching for signs of exactly when the Bank of Canada will begin hiking interest rates, in a bid to wait and lock into a fixed-rate mortgage at what they hope will be the ideal time.
Royal Bank of Canada (RY-T59.24-0.58-0.97%) , the country’s largest bank, said Monday morning that it is raising the rate on three-year closed fixed-rate mortgage by 0.20 percentage points to 4.35 per cent. The four-year closed rate will increase by 0.40 to 5.34 per cent, and the five-year closed rate will rise by 0.60 percentage points to 5.85 per cent.
