Fix in for mortgages?
Filed Under Main Content · Tagged: Bank Of Canada, Canadian Mortgage, Canadians, Commentators, Cost Of Borrowing, Government Rules, Mortgage Market, Mortgage Payments, Mortgages, Next Five Years, Variable Rate
Financial Post- The fix is in, when it comes to the Canadian mortgage market.
New government rules, which kicked in this week, have taken away choice from many Canadians and will force them to lock into a longterm mortgage.
You’ll hear a chorus from commentators who will say this is a good thing because Canadians can be assured of their mortgage payments over the next five years — especially important as the Bank of Canada looks set to raise its key lending rate in June or July. An increase in prime will immediately follow and that will raise the cost of borrowing for anybody with a variable rate product…
Summary of Flaherty’s mortgage changes
Filed Under Main Content · Tagged: Borrowers, Canadians, Debt Service, Department Of Finance, Fixed Mortgage, Fixed Rate Mortgage, Flexibility, Gross Debt, Interest Rates, Mortgage Insurers, Mortgage Payments, Mortgages, Service Ratios, Year Fixed Rate Mortgage
Financial Post- On Tuesday, the Department of Finance announced three changes to the standards governing government-backed mortgages, that come into force April 19. Here are a summary of the changes…
QUALIFYING FOR A FIVE-YEAR RATE
The adjustments to the mortgage framework will require mortgage insurers to ensure that new borrowers qualify for a five-year fixed rate mortgage when calculating the gross debt service and total debt service ratios. The measure is intended to protect Canadians by providing them with additional flexibility to support mortgage payments at higher interest rates in the future… (Summary cont’d)…
Summary of Flaherty’s mortgage changes
Comment: Flaherty bombs on housing bomb
Filed Under Main Content · Tagged: Bomb, Bombs, Canadian Real Estate, Canadian Real Estate Association, Homebuyer, Hot Real Estate, Interest Rates, Mortgage Payments, Real Estate Association, Real Estate Market, Recession, Resale Price
Financial Post-The Canadian Real Estate Association reported the resale price of an average Canadian home hit $337,231 in November, up a stunning 19% from a year earlier.
If a red-hot real estate market during the brutal recession of the past year doesn’t meet Flaherty’s definition of an "irrational" market, it’s difficult to know what would.
Yes, interest rates are historically low, but any rational homebuyer has to realize interest rates will inevitably rise. When that happens, many homeowners will face much larger mortgage payments…
Comment: Flaherty bombs on housing bomb
Canada’s Walkaway thrives by easing risk of buying car
Filed Under Main Content · Tagged: Buying Car, Canada, Free Car, Mortgage Payments, Reuters, Risk, Walkaway
Reuters – USA – Say your mortgage payments have ballooned and you are in danger of defaulting. Simply turn in your keys and, well, walk away scot-free from your car obligations. No strings attached…
Canada’s Walkaway thrives by easing risk of buying car | Reuters
