2021 – Year in Review

General Beata Wojtalik 4 Jan

2021 – Year in Review As we turn the page on yet another tumultuous year headlined by Covid and its emerging variants, we wanted to take a look back at some of the top mortgage-related stories of 2021 and how mortgage rates fared. Consumers grappled with rising prices in all aspects of the economy, including, […]

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Minimum Qualifying Rate for Both Mortgage Stress Tests Left at 5.25%

General Beata Wojtalik 4 Jan

Minimum Qualifying Rate for Both Mortgage Stress Tests Left at 5.25% As part of its annual review of the stress test for uninsured mortgages, the Office of the Superintendent of Financial Institutions today confirmed the minimum qualifying rate will remain at 5.25%. That means borrowers making a down payment of 20% or more will need […]

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The Bank of Canada’s Big Pivot on Inflation

General Beata Wojtalik 4 Jan

The Bank of Canada’s Big Pivot on Inflation The Bank of Canada is finally coming around to the view that the rising cost of goods and services is perhaps not so transitory after all. The following is the key line from the Bank’s most recent Monetary Policy Report: “The recent increase in CPI inflation was […]

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Home Prices Rose to a Record High in November

General Beata Wojtalik 17 Dec

Home Prices Rose to a Record High in November The average price of a home in Canada reached a new all-time high in November as inventory levels remain near record lows. The average selling price in November was $720,854, up 19.6% year-over-year on an unadjusted basis, according to the Canadian Real Estate Association’s latest monthly report. […]

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Bank of Canada Leaves Expectations For 2022 Rate Hikes Intact

General Beata Wojtalik 8 Dec

Bank of Canada Leaves Expectations For 2022 Rate Hikes Intact The Bank of Canada decided to keep its target for the overnight rate at 0.25%, in line with forecasts and to maintain its forward guidance, which sees a rise in the overnight rate sometime in the middle quarters of 2022. Until then, policymakers vowed to […]

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Housing Demand Surges as Buyers Take Advantage of Low Rates While They Last

General Beata Wojtalik 8 Dec

Housing Demand Surges as Buyers Take Advantage of Low Rates While They Last Canada’s largest markets saw a surge in homebuying demand in November, driven in part by buyers trying to secure mortgages before next year’s expected interest rate hikes. That’s keeping upward pressure on home prices, according to the latest monthly reports from some […]

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The Sea Change in Canadian Mortgage Insurance

General Beata Wojtalik 30 Nov

The Sea Change in Canadian Mortgage Insurance Few realize how dramatically Canada’s mortgage insurance market has changed. As any mortgage broker with a decade-plus of experience can tell you, borrowers are feeling this change in all too many ways. Consider the numbers. As of the first quarter of 2021, “only 35% of outstanding residential mortgages […]

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Real Estate’s Double-Edged Sword

General Beata Wojtalik 29 Nov

Real Estate’s Double-Edged Sword It’s easy to forget the power of leverage. With $100,000 of income, a creditworthy borrower can now qualify for almost three times the mortgage they did in the early 1980s. Decades of falling interest rates and expanding credit availability have made that possible, while acting as a giant lever for home […]

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How a Mortgage Pre-Approval Can Protect You from Rising Rates

General Beata Wojtalik 15 Nov

How a Mortgage Pre-Approval Can Protect You from Rising Rates Over the past month, we have seen several fixed mortgage rate hikes from the banks and other lenders. Whereas rates below 2% were readily available one month ago for most uninsured 5-year fixed mortgages, the average is now around 2.79% at most banks. We all suspected rates […]

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