New rules cuff some mortgages to banks

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

Should you be concerned about new mortgage rules?

The Gazette- As of April 19, home-buyers will have to meet tougher standards to get a mortgage. Among the new rules is a requirement that borrowers be able to afford a five-year, fixed-rate mortgage,

even if they plan to stay short and variable. It will also be tougher for speculators to jump into the market as they’ll now have to make a 20% down payment on any property they don’t live in.

For those of us who simply own a home as principal residence the new rules don’t mean much. The real question is whether today’s tempting variable-rate mortgages offer a good value. The short answer is, they aren’t. After the U.S. Federal Reserve raised its discount rate a quarter point in mid-February, the writing is on the wall: Interest rates are about to rise, so you better lock in to a fixed term quickly, ideally before July…

Should you be concerned about new mortgage rules?

Should I be concerned about Ottawa’s new mortgage rules?

Financial Post- As of April 19, home-buyers will have to meet tougher standards to get a mortgage. Among the new rules is a requirement that borrowers be able to afford a five-year, fixed-rate mortgage,

even if they plan to stay short and variable. It will also be tougher for speculators to jump into the market as they’ll now have to make a 20% down payment on any property they don’t live in.

For those of us who simply own a home as principal residence the new rules don’t mean much. The real question is whether today’s tempting variable-rate mortgages offer a good value. The short answer is, they aren’t. After the U.S. Federal Reserve raised its discount rate a quarter point in mid-February, the writing is on the wall: Interest rates are about to rise, so you better lock in to a fixed term quickly, ideally before July…

Should I be concerned about Ottawa’s new mortgage rules?

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

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