The Economy
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Understanding Bond Sector Consideration Premium
Learn how The Bond Sector Consideration Premium accounts for sector-specific risks or other unique factors affecting particular bonds.
Where Does Mortgage Money Really Come From?
Ever sit across from a lender or mortgage broker and wonder, “Where are they getting all this money they’re handing out?” It’s a fair question. Most people think banks have vaults full of cash or some magical, bottomless pit of money. Not quite. The truth is, lenders have to “buy” money before they can lend it out.
Why Mortgages Aren’t Free
Have you ever wondered why mortgage rates aren’t just pulled out of a hat? Or why some lenders offer lower rates while others seem to tack on a premium? Behind every rate sheet is something called the cost of money, and if you’re in real estate or looking to buy a home, understanding this concept can give you a serious leg up. Not just for bragging rights at the next open house, but for helping you (or your clients) make sharper decisions, ask smarter questions, and understand why lenders price things the way they do.
Why Investors Aren’t Always Reliable
When you think of mortgage lenders, you probably picture big banks or trust companies with vaults full of cash just waiting to hand out. But there’s another side of the mortgage world—one that relies heavily on investors to fund deals. I’m talking about private lenders and Mortgage Investment Corporations (MICs). These lenders don’t use deposits or bonds to fund mortgages.
Mortgage in Retirement
There’s a common assumption floating around out there — maybe you’ve heard it. It goes something like this: “Once I retire, I shouldn’t have a mortgage.” Sure, in a perfect world, that’s a nice goal. But life isn’t perfect. Sometimes you downsize and still need financing. Sometimes you refinance for renovations or debt consolidation. Sometimes you’re helping the next generation with a down payment.
Non-Permanent Residents Can Buy Homes
If you’re living in Canada on a work permit or study permit and wondering if homeownership is even on the table, I’ve got good news: yes, you absolutely can buy a home. You don’t have to wait until you’ve got your Permanent Resident (PR) card in hand. But — and this is a big but — there are a few important things you need to understand about how lenders look at non-permanent residents (NPRs), how mortgages work for you, and what’s required to make it happen.
Why Some Lenders Borrow to Lend
You probably don’t sit around wondering how your lender pays for the mortgage they’re offering you. That’s fair—most people don’t. But if you’re a realtor or a savvy homebuyer, knowing a little about how non-bank lenders fund mortgages can help you understand why things don’t always go as planned when rates change or approvals get pulled.
Get Ready for Open Banking
Open Banking: If you’ve ever felt like getting a mortgage meant running an obstacle course—chasing down pay stubs, digging through old bank statements, sending documents back and forth—you’re not alone. The process can feel outdated, clunky, and stressful. But here’s the good news: change is on the horizon. It’s called Open Banking, and it’s going to flip the script on how we verify income, assets, and financial history.
Why Your Mortgage Rate is Tied to Bay Street
Ever wonder why mortgage rates seem to jump overnight even though you’ve done everything right? It can feel like the lender’s just making it up as they go along—but trust me, they’re not. What’s really happening behind the scenes is tied to something you might not think about: bonds and the capital markets.
The Panic of Falling Home Prices
Build more houses, prices drop, everyone wins. But here’s the kicker—prices are now dropping in many markets, and instead of celebration, there’s panic. Builders are pausing projects, policymakers are scrambling, realtors have no business, and homeowners are worrying about their equity.
American Financial Crisis in Canada?
What happened during the American financial crisis and could the stress test in Canada prevent the same crisis in Canada? The American financial crisis, commonly referred to as the Global Financial Crisis (GFC) of 2007-2008, was a severe worldwide economic crisis that...
Why Banks Can’t Just Lend Forever
You’ve probably heard people say, “Banks have all the money, what’s the problem?” It’s a common thought. After all, we trust banks to be solid, stable, and loaded with cash. But here’s something most homebuyers—and even some realtors—don’t fully understand: banks don’t have endless piles of money to hand out. Even the big guys are working within limits.
Rolling Out the Red Carpet for Foreign Buyers
There’s a new conversation heating up in real estate circles: What if we just opened the doors wide and invited foreign investors to buy up Canadian homes? For some in the home building industry, this is being pitched as a solution to sluggish sales—especially in the condo sector.
Who is the Working Poor… It’s Probably You!
You’re doing everything right—working full-time, paying your bills, maybe even picking up a side hustle. But despite the long hours and steady income, you still feel like you’re barely treading water. Sound familiar? You’re not alone. Across Canada, more and more hardworking people are realizing that a decent income no longer guarantees financial stability—especially when it comes to owning a home.
The Depreciating Canadian Dollar
Depreciating Dollar. Let’s talk about something that’s been quietly eating away at Canadians’ financial future — purchasing power. Sure, your income might rise over time, and the news might say inflation’s “under control.” But if you’ve ever wondered why your parents could buy a house on one income while you’re grinding just to save a down payment, the answer isn’t as simple as the Consumer Price Index (CPI).
How Canada’s Prime Rate Impacts You
Explore how Canada’s Prime Rate affects your mortgage, investments, and savings. Stay informed and manage your finances with confidence.
Featured Publications
Articles
- Extended Amortizations and Hypothetical Calculations
Office of the Superintendent of Financial Institutions (OSFI) - Minimum Qualifying Rate for Uninsured Mortgages
Office of the Superintendent of Financial Institutions (OSFI) - Residential Mortgage Underwriting Practices and Procedures
Office of the Superintendent of Financial Institutions (OSFI) - Guideline on Existing Consumer Mortgage Loans in Exceptional Circumstances Financial Consumer Agency of Canada
Book: “The Program”
- Part 1 – Building Your Down Payment
- Part 2 – Mortgage Payoff Strategies
- Part 3 – Building Wealth Through Real Estate