Articles
Mortgage Term: Recourse Loan
Discover what a recourse loan is, it’s key characteristics, and how it applies to mortgages, particularly in Ontario (as opposed to Alberta).
Porting Your Mortgage
Navigating the complexities of mortgage management can be daunting, especially when life's changes necessitate a move. One valuable feature offered by many mortgage lenders in Canada is the ability to port a mortgage. This article delves into what it means to port a...
What is Canada’s Mortgage Default Risk?
If a large number of Canadians default on their mortgage, what could happen? The Trump administration has introduced a great deal of economic uncertainty to Canada, the United States, and the world at large. Tariffs introduced by the Trump administration are likely to...
Canadian REITs Need Capital
Canadian REITs have faced challenges in the past year, but there is hope for a rebound. In this blog post, we dive deeper into the factors influencing the performance of Canadian REITs and explore why the sector needs more capital. From leasing spreads to market valuations, we’ll analyze the key drivers shaping the future of Canadian REITs.
What’s So Special About 2% Inflation?
What's so special about achieving a 2% level of inflation that has central banks around the world so fixated on this level of inflation? Let's delve deeper into the topic of inflation targeting and why central banks often aim for a 2% inflation rate, expanding on the...
How Does the Stress Test Work?
The mortgage stress test in Canada is applied to determine whether homebuyers can afford their mortgage payments under higher interest rates than the actual rate being offered by the lender. This test is a key requirement for both insured and uninsured mortgages....
Agricultural Land Reserve
The Agricultural Land Reserve (ALR) is a provincial zone in British Columbia, Canada, where agriculture is recognized as the priority use. Farming is encouraged, and non-agricultural uses are restricted. The ALR covers approximately 4.7 million hectares of the...
The Impact of Mortgage Rates on Residential Property Values
The potential consequences of escalating mortgage rates on the valuation of residential properties are leading to a projected decline of 5% in home prices. By analyzing the impact of rising interest rates on the housing market, my research seeks to shed light on the...
Who Are Canada’s Mortgage Finance Corporations?
Mortgage Finance Companies (MFCs) in Canada are financial institutions that specialize in providing mortgage lending and related services. MFCs offer an alternative to traditional bank mortgages (prime lenders) and cater to a variety of borrowers, including those who...
40 Year Canadian Mortgages: What You Need to Know
Discover the implications of 40-year mortgages in the Canadian real estate market. Explore the impact on homeowners, developers, and government policies. Find out the pros and cons of extended mortgage terms and seek professional advice before making a decision. Stay informed about interest rate changes and government initiatives for affordable housing.
Canada’s Mortgage Stress Test
The implementation of the mortgage stress test in Canada has been a significant regulatory measure with far-reaching implications for the mortgage industry, housing market, social dynamics, financial stability, and the broader Canadian economy. This article provides...
Does the Stress Test Apply to Private Mortgages?
The mortgage stress test, as mandated by the Office of the Superintendent of Financial Institutions (OSFI), primarily applies to federally regulated financial institutions, such as banks. However, private mortgage lenders, which are not federally regulated, are not...
Are You Prepared? Homeowners Brace for Mortgage Renewals
Discover the challenges and potential impacts of mortgage renewals on Canadian homeowners and the banking industry. Prepare yourself for potential payment shocks and find out how banks are gearing up.
Understanding Cash Back Mortgages
Cash Back Mortgages. Home buying is a naturally expensive thing to be doing. You not only have to pay for the house, but you have substantial closing costs as well. You might want to make your new house ‘home ready’ by getting a few new pieces of furniture and don’t forget new window coverings like blinds, drapes, and curtains (never cheap). Wouldn’t it be nice to get a few thousand dollars back when you fund your mortgage to cover these costs?
Canada’s Non-Federally Regulated Mortgage Providers
Mortgage providers in Canada are either federally or provincially regulated. Canada's chartered banks are federally regulated while many other lenders (see below) are not. Getting a mortgage from a non-federally regulated mortgage provider in Canada has both...
How the Trigger Point Impacts Canadians
With interest rate hikes, homeowners are facing the potential detonation of a financial bomb tied to their mortgages, the trigger rate. Let's get into how a trigger point on a fixed-payment, variable mortgage can have such a strong impact on Canadians: Impact of...
How Much is AirBnB Driving Up Rent Prices?
How much is AirBnb driving up Rent Prices?
Rent prices continue to surge across the country begging the question, “what effect and how much are temporary rentals like AirBnB driving up the cost of rent, and even driving up the cost of housing?
Alternative vs Prime Lenders
Alternative vs Prime Lenders
12 Reasons for Breaking Your Mortgage
Breaking Your Mortgage: Explore the implications and potential penalties for terminating your mortgage before maturity, and learn about options like portability and refinancing.
Insured, Insurable, Uninsurable Mortgages Explained
Understand the differences between Insured, Insurable, and Uninsurable Mortgages for making informed decisions on your home purchase in Canada.
(RRSP) Home Buyers’ Plan: Saving for Your Home
RRSP Home Buyers Plan or Home Buyer Plan. Unlock your RRSP savings to buy your first home with the Home Buyers’ Plan. Learn how to make a tax-free withdrawal for your down payment.
Calculating Debt Service Ratios (GDS/TDS)
Discover how to calculate Debt Service Ration for mortgage affordability in Canada.
Will AI Address Labour Shortages?
Learn how AI will impact the labour market and whether it can address labour shortages in many sectors of the economy.
Bank of Canada’s Economic Outlook
The Bank of Canada has published its economic outlook based on questionnaires to Canadian businesses and consumers.
2024 CMHC Mortgage Rules
Unlock the latest 2024 CMHC Mortgage Rules essential for Canadian homebuyers. Stay informed on down payment, insurance, and qualification criteria.
Posted Mortgage Rate ‘Bait ‘n Switch’?
Discover the truth behind advertised mortgage rates, what is really going on behind these ads, and can you really trust those rates?
Canada’s New 30 Year Mortgages
Unlock the secrets of Canada’s 30 Year Mortgages for long-term financial planning and stability. Find your best rate today.
First Time Home Buyer Incentive Program Cancelled
Discover the factors leading to the cancellation of Canada’s First Time Home Buyer Incentive Program and what this means for you.
Interest Rates and the Canadian Dollar
Ever wondered how interest rates affect the value of a country's currency? Buckle up and let's dive into the intriguing world of currency and interest rates! The Relationship Between Interest Rates and Currency Value Central banks often increase interest rates to...
Record Wildfires Impact Lumber Pricing
Learn about the significant surge in lumber prices caused by record wildfires in Canada. Discover the key factors driving price escalation and the implications for various sectors such as construction and housing.
Why Immigrants are Crucial for Canada’s Economy
Discover the important role immigrants play in filling job vacancies, supporting retirement funds, and contributing to Canada’s economic growth.
Why a 3-Year Fixed Mortgage May be a Bad Choice in 2024
Thinking of getting a three-year fixed mortgage in 2024? Read this blog post to find out why basing your decision on future interest rate expectations may not be a good idea.
Navigating Changing Interest Rates and Debt in Canada
Learn about the impact of rising interest rates on Canadian households and small businesses. Discover strategies to protect your financial stability and navigate the changing landscape.
Small Business Debt: A Growing Concern for Canada’s Economy
Discover the growing concerns surrounding small business debt in Canada. Learn about the struggles faced by these businesses, the importance of supporting them, and the government’s role in preventing economic failure.
Why America Thrives and Canada Struggles
Explore the reasons behind America’s economic success and Canada’s struggles. Discover why high household debt, job losses, government spending, productivity, and high interest rates have shaped the outcomes. Find hope in upcoming interest rate reductions and the Canadian government’s efforts to address the deficit.
Why Canadian Interest Rates Remain High?
Despite indicators indicating a decline, the Bank of Canada is not reducing interest rates. Due to a mismatch between money and goods, inflation and interest rates remain elevated. This blog investigates the causes and effects of this phenomenon on the Canadian...
How Alberta Leaving CPP Impact You
Recent consideration by the Alberta government to withdraw from the Canada Pension Plan has ignited a heated debate. Numerous Canadians are concerned about this proposal's potential drawbacks and effect on retirement security. In response, Alberta has launched an...
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
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