More rule changes mean more reasons to use a mortgage broker

More rule changes mean more reasons to use a mortgage broker

The next new mortgage regulation, which comes into effect 1 January 2018, will require borrowers to qualify based on a rate that is 2 percentage points above the contract rate or the Bank of Canada posted 5-year rate (currently 4.89%), whichever is higher. The “stress...
New mortgage rules coming in 2018

New mortgage rules coming in 2018

Earlier this week, the Office of the Superintendent of Financial Institutions released details of mortgage changes that will take effect 1 January 2018. The most significant change is a new stress test for homebuyers with uninsured mortgages (typically mortgages with...
So why did interest rates go up again?

So why did interest rates go up again?

Stephen Poloz, the governor of the Bank of Canada, seemed to surprise a few with the decision to raise the benchmark rate again. The .25 point increase last month pushed the rate to 1% and is the second increase since the start of the summer. The bank prime benchmark...
Bank of Canada raises interest rate again

Bank of Canada raises interest rate again

The Bank of Canada announced this week that they were increasing their overnight rate by 25 percentage points, the second such raise in as many months. The bank cited economic growth for their position change.  Recent economic data have been stronger than expected,...
Higher interest rates. Now what?

Higher interest rates. Now what?

The Bank of Canada finally increased its bench mark rate to 0.75% (up 0.25 percentage points) after 7 years of leaving the key interest steady and even reducing it a couple of times.  Typically, any change in the Bank of Canada rate directly impacts the banks’ prime...
Bank of Canada finally raises interest rate

Bank of Canada finally raises interest rate

For the first time in 7 years, the Bank of Canada didn’t announce that they were keeping their overnight rate at 0.5%. Instead, they announced this week a rate increase: to 0.75%. The bank cited economic growth—both domestic and international—for their position...