OSFI mulls mortgage rules changes – Vancouver Sun

The Office of the Superintendent of Financial Institutions Canada (OSFI) is considering new regulations that would restrict banks from offering any mortgages in Canada with an amortization period greater than 25 years. OSFI is doing preliminary consultation with banks to determine the desirability of the proposed changes. Mortgages insured by the Canada Mortgage and Housing Corporation (CMHC) were already capped at 25 years last July. But individuals who have a strong credit rating and make a large down payment can get amortization periods of up to 35 years. As the housing market slows, there is increasing pressure on OSFI and banks to ensure that underwriting standards are concrete. In addition, the Department of Finance and OSFI have taken steps since the financial crisis began in 2008 to tighten mortgage regulations. These steps are being taken to try and prevent what some analysts predict as an upcoming housing bubble.

Canadian house prices edge higher in April – Yahoo! Finance Canada

Home prices rose 0.2 percent in April, compared to March of this year. However, this April was the second weakest April gain in 15 years. The housing market has regained some strength after a slow winter, but has further stabilized after the rapid growth experienced over the last several years. The tightening of mortgage rules has contributed to a slow winter. Prices rose primarily in Winnipeg, Edmonton and Calgary, but remained relatively stable in other cities. Price declines were most significant in Vancouver and Quebec City. Year-to-year price gains are slowing down but are still positive in most Canadian cities. Over the last year, the largest price declines have been in Vancouver and Victoria, where prices dropped 2.9 per cent and 3.3 per cent respectively. British Columbia has low mortgage rates and was one of the hottest housing markets but is now experiencing the most significant declines.

Toronto condo rents rise 10% in 2 years as rental demand outpaces sales - CBC News

The Toronto condo rental market is experiencing strong growth as rents went up 4.4 per cent in the first quarter of 2013. Rent prices are rising faster than selling prices, forcing investors who bought condos to rent them out instead of selling them. The average rent has risen to $1,856 – or $2.33 per square foot. A major reason for the increase in rentals is the rise in completed condo projects. In the first quarter of 2013, 4,859 new units were finished, compared to 2,127 in the first quarter of 2012. Additionally, the tightening of mortgage regulations that occurred last summer has taken some people out of the market, adding to the rise in rentals. These changes include reductions in the maximum amortization period for government-backed insured mortgages and the maximum size for a home equity line of credit (HELOC).

CANADIAN MORTGAGE RATES TODAY

A look at current mortgage rates and 5-year mortgage rate history.

The average discounted mortgage rates in Canada in 2013:

A history of weekly 5-year fixed mortgage rates and 5-year variable mortgage rates.

mortgage rates by:

Flickr: Thunder

After looking at mortgage broker brands in Ontario, the next province up in this RateHub.ca blog series is Québec. In the series, we provide overviews of the major mortgage brokerages in your province. Whether you’re a first-time homebuyer or an experienced homeowner, this blog post will help you find the Québec mortgage broker and brand that offers the best mortgage rates.

Centum

Centum has established a large network of independently owned mortgage brokerages that span across Canada. They leverage this scale to develop relationships with many lenders and offer more options to consumers. Centum negotiates with multiple lenders at a time, while utilizing volume bonuses, to help provide clients the lowest rates.

Dominion Lending Centres

Dominion Lending Centres (DLC) has more than 2,200 mortgage professionals nationwide. The brokerage is currently growing its Québec operations, where there is a franchised DLC location under the name Dominion Lending Center – Centre Quest. DLC has access to over 90 lending institutions, which allows them to offer innovative products such as interest-only loans, self-employment programs, and rental purchase programs. With their broad offerings, DLC services both experienced and first-time homebuyers.

Invis

Invis has grown to more than 800 mortgage professionals across Canada. With access to over 50 lenders, the brokerage offers a variety of mortgage products to its consumers. Invis’ goal is to make the mortgage process stress-free for first-time homebuyers, by providing timely and accurate advice. Invis also works with consumers who have bad credit, to find an equitable mortgage rate.

TNM Hypothèque True North Mortgage

True North Mortgage opened in Alberta in 1999 and today has offices in many cities throughout Canada – including a new office (TNM Hypothèque True North Mortgage) in Montreal. At True North, anyone looking for a mortgage can walk in and speak with a mortgage broker without an appointment. True North hires specialized mortgage brokers who are paid by salary and not commission; this ensures True North mortgage brokers are working in the customer’s best interest.

When looking for a Québec mortgage broker, there are many different brokerages to choose from. Compare the different mortgage brokerages listed here to find the right broker for you.

BuzzBuzzHome (BBH) recently pieced together an infographic showcasing the heights new condo projects are reaching all over North America. With Toronto’s tallest project (88 storeys) only 8 storey’s behind New York’s (96 storeys), it’s easy to see that the city is moving up. But how long would it take to walk from the bottom to the top? BBH timed their President making an attempt – check it out.

Flickr: Victor1558

Do you want to work flexible hours and like the idea of being your own boss? Do you have any interest in finance and/or real estate? If so, you could consider becoming a mortgage broker. As a Québec mortgage broker, your job would be to negotiate the best mortgage rates and terms for your client – the buyer. While you don’t need any specific work experience to enter the field, mortgage brokers should have an interest in mortgage rates and finances, as well as Québec’s real estate market.

To start your new career as a Québec mortgage broker, you should first become familiar with Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ). The OACIQ is Québec’s mortgage governing body and was created as a result of the new Real Estate Brokerage Act put in place on May 1, 2010. The OACIQ Certification Department manages Québec’s mortgage sector and is in charge of issuing, revoking and suspending mortgage broker licences. The Certification Department also administers Québec’s mortgage broker examinations, which you will have to take as part of this process.

Québec Mortgage Broker License

The Government of Québec states that anyone interested in becoming a mortgage broker must:

• be a minimum age of 18 years or older­­,
• be a Canadian citizen, permanent resident or have obtained a Canadian work permit,
• have completed the necessary training,
• have successfully passed an OACIQ examination no more than 12 months before applying for a mortgage broker license,
• demonstrate a working knowledge of the French language, and
• pay all the fees required.

Québec Mortgage Broker Education and Licensing

If you’re interested in becoming a mortgage broker in Québec, you can enroll in the Mortgage Broker Program ($3,495) at Collège de l’immobilier du Québec. The Mortgage Broker Program includes 270 hours of coursework, which can be completed online or in-person, and is designed to help students successfully complete the Mortgage Broker Examination given by the OACIQ. The Mortgage Broker Examination itself is a competency test designed to see how you would handle real-life situations. Once you have successfully passed your exam, you can then apply for your mortgage broker license (and you must do so within 12 months of your exam date).

It’s important to note that completing a program, such as the Mortgage Broker Program, was not a requirement in the past. As of September 1, 2013 anyone wanting to become a mortgage broker in Québec must pass a training program recognized by the OACIQ, in order to get licensed.

Your Career as a Québec Mortgage Broker           

If you still want to become a mortgage broker in Québec, you need to complete the training program, pass your exam and start working with a mortgage brokerage. After three years at a brokerage, you then have the ability to open your own brokerage and work for yourself. Owning a mortgage brokerage will help you gain more managerial skills, by giving you the opportunity to lead and supervise other brokers. But, in general, your career will always be spent helping clients with the financial transaction involved in taking on a mortgage.

Flickr: Lone Primate

If you’re looking for a mortgage broker to work with, but are overwhelmed by all the different options of brokerages to consider, look no further. In a new blog series, we want to provide an overview of the major mortgage brokerages in Canada. This series should be especially helpful for first-time homebuyers, who may be unsure of which brokerage and specific Ontario mortgage broker to work with. First, we’re going to look at the top mortgage brokerages in Ontario.

Centum

Established in 2002, Centum has grown into a large network of independently owned mortgage brokerage firms with over 2,700 mortgage professionals. As a result of their size, Centum has developed a vast network of lenders and can leverage this network to find you the best rate. When you work with Centum, they will negotiate with multiple lenders at one time, to ensure that they find you the best mortgage rate for your specific situation.

Dominion Lending Centres

Dominion Lending Centres (DLC) is a national mortgage brokerage that was launched in 2006 and has grown to have more than 2,200 mortgage professionals nationwide. DLC’s primary market is in Ontario, as 38 per cent of their brokers service the province. DLC offers a variety of mortgage rate options to buyers and has access to over 90 lending institutions. Because of their size and access too many lenders, DLC can offer innovative products such as interest-only loans, self-employment programs, rental purchase programs and vacation property programs. With their broad offerings, DLC has the capability to service many different types of consumers.

Invis

Invis was incorporated in 2000, through the amalgamation of four large national brokerages, and has more than 800 mortgage professionals working for them today. Invis is partnered with over 50 lenders, helping the brokerage offer diverse mortgage products to their customers. The brokerage provides timely and accurate advice to help ease the process for first-time homebuyers. They can also help guide you through the renewal process and can assist with a strategic refinancing plan.

Mortgage Alliance

Mortgage Alliance is licensed in every province and has corporate offices in many major Canadian cities. Mortgage Alliance professionals help walk first-time homebuyers through the mortgage process and will also help you throughout the life of your mortgage, especially when it comes time to renew or refinance. Before taking on a mortgage, Mortgage Alliance will help you review your credit score and guide you through ways to improve it.

Safebridge

Safebridge was founded in 2005 and offers mortgage, insurance and investment services. Safebridge provides ongoing management of your mortgage through its mortgage tracking program, which informs you of changes in the market that could reduce rates or improve cash flow. In addition to mortgage services, Safebridge provides financial planning services which are centered around your residential home mortgage.

The Mortgage Centre – Tridac Corp Ltd.

The Mortgage Centre is a national mortgage brokerage that goes beyond just finding you the lowest rates – they will also do a free, thorough analysis of your specific financial situation and goals. The Mortgage Centre will search the market to find you a good rate that also has terms and features that fit your specific needs. They also offer a mortgage monitor that allows you to track and manage your mortgage every day.

True North Mortgage

True North Mortgage opened in Alberta in 1999 and today serves many different cities across Canada. True North Mortgage charges no fees and also covers your appraisal cost. They’ll deal with the banks for you and promise to get all of your questions answered within 48 hours. True North Mortgage also has access to many lenders and uses volume discounts to pass on their lower mortgage rates to you.

Beyond these major mortgage brokerages, there are other options in Ontario. The Mortgage Emporium and The Mortgage Teacher also offer low rates in the province. There are many good options when looking for a mortgage broker in Ontario, making it important to research different brands and find the right one for you.

Flickr: Scott*eric

Does working from home, being your own boss and working flexible hours sound appealing to you? If so, you could consider becoming a mortgage broker. As an Ontario mortgage broker, you act as a liaison between homebuyers and the mortgage market, by negotiating the best mortgage rates and terms for the buyer. While you don’t need any specific work experience to enter the field, mortgage brokers should have an interest in how mortgage rates and finances work, as well as Ontario’s real estate market.

According to the Financial Services Commission of Ontario (FSCO), anyone interested in becoming a mortgage broker must be a mortgage agent for at least 24 months during the 36-month period before applying for their mortgage broker license. Also, the education portion needed to become a licensed mortgage broker will provide you with new skills to ensure the brokerage you work for complies with: all applicable policies and regulations, a standard code of ethics, and best practices.

Ontario Mortgage Broker License Requirements

If you reside in Ontario, FSCO states that individuals who want to become a mortgage broker must:

• be 18 years of age or older,
• be a Canadian resident,
• have a mailing address in Ontario that can receive registered mail (this cannot be a post office box),
• be authorized by a mortgage brokerage to deal or trade mortgages on its behalf,
• work for only one mortgage brokerage,
• have successfully completed an approved education program for mortgage agents,
• have been licensed as a mortgage agent for at least 24 months, during the 36-month period before applying for the mortgage broker license, and
• successfully complete the approved educational course and exam for mortgage brokers, up to three years before applying for a mortgage broker license.

Ontario Mortgage Broker Education and Licensing

If you’re interested in pursuing a career as an Ontario mortgage broker, you can enroll in courses through mortgagecampus.org, a mortgage education website managed by the Canadian Association of Accredited Mortgage Professionals (CAAMP). The tuition for CAAMP’s Ontario Mortgage Broker Education Program is $345 and the program is completed in two phases. Phase I is completed online; you can do this on your own time but must complete Phase 1 within 6 months from the day you register. When you’re done, you can register for Phase II. Phase II is a 5-day in-class portion where attendance is mandatory.

After completing both Phase I and Phase II, and passing each of the examinations with a minimum grade of 60%, you may then apply for your mortgage broker license. It’s important to remember that you must apply for your license within three years of completing CAAMP’s Ontario Mortgage Broker Education Program. If you exceed the three years, you must re-enroll and successfully complete the program again.

While many mortgage brokers take the educational route, to fulfill the licensing requirements, there are unique cases where you can become a licensed mortgage broker without completing the approved educational program. If you have a combination of education and experience that is equivalent to the requirements matching what is outlined in FSCO’s Mortgage Broker Qualifying Standards (MBQS) and Mortgage Agent Qualifying Standards (MAQS), you may submit a Request for Equivalency. In your submission package, you will have to include clear and compelling evidence to showcase that your education and experience are equivalent to the applicable standard.

Your Career as an Ontario Mortgage Broker           

Becoming a mortgage broker is a great career move for existing mortgage agents who want to challenge their current skills and potentially become a principal broker at a brokerage. As an Ontario mortgage broker, you will gain more management skills and be eligible to supervise registered associates within your brokerage. You will also be responsible for ensuring and adhering to new standards and procedures. Taking on new responsibilities, with this position, will help you grow as a professional within Ontario’s mortgage industry.

Housing construction slows in April, but no crash yet – CBC

Housing starts are beginning to slow to a more sustainable rate, as the seasonally adjusted annual rate of urban starts was down 2.5 per cent in April. The decline occurred primarily in the condo markets of Ontario, British Columbia and Atlantic Canada. This trend could signal an end to the housing boom and ease economic stability concerns from the International Monetary Fund and the Bank of Canada. Overall, housing indicators such as starts, resales, building permits, and prices have lowered since July 2012, when Jim Flaherty placed tighter regulations on mortgages and lending practices. Departing Bank of Canada Governor Mark Carney told a parliamentary committee last month that all housing indicators were going in the right direction and that household debt accumulation had stabilized. The April housing starts figures were in line with economist expectations and were below the first quarter average, as housing starts did rise in Quebec and the Prairies, partially offsetting the decreases from other provinces.

Changes coming fast atop shrinking CMHC – Financial Post

There are fundamental changes playing out privately at the Canadian Mortgage and Housing Corporation (CMHC), as a new chairman of the board has been chosen and a replacement for CEO Karen Kinsley will soon be announced. Robert P. Kelly, a former Wall Street banker and a veteran Canadian financial services executive, has been named chairman of the board. In addition, stricter regulatory changes began in March, when Flaherty placed the CMHC under the auspices of the Office of the Superintendent of Financial Institutions (OSFI) which regulates Canadian banks and insurance companies. Sources indicate that the OSFI will initiate an extensive risk management review of the CMHC. These regulations are part of governmental efforts to ensure that the CMHC’s commercial activities are undertaken in a way that will promote overall stability of the financial system. Flaherty has criticized several commercial functions of the CMHC, specifically their willingness to provide default insurance on mortgage loans with more than a 20% down payment, which is not required by law.

Negotiating your first mortgage? Check out these tips – The Globe and Mail 

Mortgage competition in Canada is fierce right now, allowing consumers to negotiate low rates if they walk into their lender’s offices prepared. Rates posted at banks are just starting points for buyers and can be negotiated down to something more favourable, if buyers know where to start. This article says that consumers should plan early and ensure they have the documents required for a mortgage, such as their current personal credit score, tax assessments from the last two years, and a thorough accounting of income. It’s also important to prepare for closing costs, which require extra cash on hand. In addition, consumers should read up on mortgage basics and not automatically look for a 5-year fixed mortgage rate. Another tip is to probe lenders on the penalty fees involved in breaking a mortgage, to ensure that they properly explain these often vaguely described terms. With the competitive nature of the mortgage lending market, consumers hold significant leverage to negotiate favourable rates and should utilize their position to obtain the best mortgage rate.

CANADIAN MORTGAGE RATES TODAY

A look at current mortgage rates and 5-year mortgage rate history.

The average discounted mortgage rates in Canada in 2013:

A history of weekly 5-year fixed mortgage rates and 5-year variable mortgage rates.

mortgage rates by:

Our friends at BuzzBuzzHome (BBH) have, once again, produced another fun and informative infographic! The BBH team took a look at new condo developments in 5 of Canada’s top markets and compared what $380,000 could buy you in each city. Take a look at what they found.

How Low Can Mortgage Rates Go?

Despite the public scolding from Federal Finance Minister Jim Flaherty in March, mortgage rates continue to fall to historic lows. Although most lenders aren’t as brazen as BMO and Manulife – who advertised posted rates below 3 per cent on 5-year fixed rates – if you’re in the market for a mortgage in Canada, you don’t have to look hard to find a mortgage rate below 3 per cent. Whether you’re shopping for a new mortgage, renewing your existing mortgage, or refinancing, there’s never been a better time to lock into a 5-year fixed rate. Any homeowner who receives a mortgage renewal letter with a mortgage rate above 3 per cent should think twice about signing and talk to a mortgage broker first.

So why do mortgage rates keep getting lower? It’s no secret the housing market has been slowing, ever since the most recent changes were made to the mortgage rules last year. Year-over-year sales have been falling in housing markets, with Canada’s biggest cities – Toronto and Vancouver – hit the hardest. Meanwhile, prices are down in Vancouver, and Toronto’s once robust double-digit price appreciation is long gone. By offering ultra-low mortgage rates, lenders are hoping to entice homebuyers who are sitting on the sidelines to get into the market.

And let’s face it – lenders have very little to lose by offering these low rates. High-ratio mortgages are backed by mortgage default insurance, making them a low-risk investment. Despite Flaherty’s best attempts to stop “a race to the bottom”, with 5-year Canadian Government Bonds at a paltry 1.16 per cent as of May 2, 2013, lenders still have wiggle room to drop rates even lower. As of today, 5-year fixed rates are only 2.69 per cent on our site – that’s the lowest we’ve seen all year!

There’s a New Governor of the Bank of Canada

With Mark Carney getting ready to bid his farewell to Canada and start his new post as the head of the Bank of England, the media has been waiting for his successor to be named – and now he has been. Despite speculation that Carney’s right-hand man, Senior Deputy Governor Tiff Macklem, would take over the reigns, to the surprise of many, Stephen Poloz was appointed the new Governor of the Bank of Canada. Who is Stephen Poloz? you might be wondering. Poloz actually has 14 years of experience under his belt at the Bank of Canada, working his way up to Chief of the Bank’s Research Department. Most recently, however, Poloz has spent the last 14 years at Export Development Canada, starting as its Chief Economist and finishing as the President and Chief Executive Officer.

“Stephen Poloz has a long and distinguished career in the public and private sectors, with 30 years’ experience in financial markets, forecasting and economic policy,” Federal Finance Minister Jim Flaherty said in a statement last Thursday. “I am confident he has the skills and experience required to lead the Bank of Canada at a time of global economic uncertainty.”

But Poloz has a tough job ahead of him. With Canada’s GDP growth stalling, it remains to be seen if he will stay the course and leave the overnight lending rate at 1.00 per cent. If you’re a homeowner with a variable rate mortgage, you’ll want to pay special attention to the direction Poloz takes the Canadian economy over the coming months. While you may be saving money today with a variable rate, a couple 25-basis point rises in the overnight lending rate could quickly negate those savings.

Stephen Poloz named Canada’s next central bank chief – Financial Post

After months of anticipation, Finance Minister Jim Flaherty shocked many by announcing that Stephen Poloz would be taking over Mark Carney’s position as Governor of the Bank of Canada. Most news sources had predicted Flaherty would appoint Tiff Macklem, the bank’s senior deputy governor, as his current position leaves him as the most obvious choice. However, Flaherty believes Poloz is the strongest candidate, as he brings a previous 14-year stretch at the Bank of Canada as well as years working abroad – including stints at the International Monetary Fund in Washington and the Economic Planning Agency in Tokyo. “Mr. Poloz has significant knowledge of financial markets and monetary policy issues and extensive management experience. We are confident Mr. Poloz will make an outstanding contribution to the work of the Bank and uphold its reputation as a leading central bank,” said David Laidley, Chair of the Special Committee of the Board of Directors.

Stuck in traffic: How mortgages could ease congestion – CBC News

A recent Pembina Study found that 80 per cent of residents in the Greater Toronto Area would give up the suburban lifestyle (big house, big car), in order to live in one of the walkable and transit-friendly neighbourhoods in the downtown core. Unfortunately, this tends to be more of a dream than a reality for most people, especially first-time buyers, as downtown property comes at a high cost. But one idea that’s been floating around could make downtown living a reality for more people: the location efficient mortgage (LEM) would allow individuals who do not own a vehicle to be approved for a slightly larger mortgage loan amount. Traditionally, mortgage loan risk is determined by the amount of income and personal debt an applicant has, including car payments. If an applicant has no vehicle debt, and therefore no monthly maintenance fees on said vehicle, their risk level decreases when all other variables remain the same. The LEM project was tested on a short-term basis in the United States and found that buyers could add anywhere from $12,000 to $50,000 to the mortgage loan amount they could apply for.

Analysis: CIBC’s Canada focus raises concerns as growth slows – Reuters

Canadian Imperial Bank of Commerce (CIBC) recently positioned itself as a low-risk, Canada-focused player, which has stabilized its earnings, but some shareholders worry that the record levels of debt and slowdown of the housing market may put CIBC at risk, as their international exposure is so minimal. In 2011, CIBC acquired 41 per cent of American Century Investments, but this acquisition pales in comparison to the large foreign investments recently made by competitors TD Bank and Scotiabank. CIBC Chief Executive Gerry McCaughey believes that, while consumer debt is high, Canadians are acting rationally as they appear to be paying down their high interest debts. CIBC is currently outperforming its competition, with a 7.2 per cent return, and is paying the highest dividend yields amongst the big five in Canada. Still, investors are skeptical about CIBC’s growth prospects as, among the big banks, CIBC’s shares have the lowest price/earnings ratio.

CANADIAN MORTGAGE RATES TODAY

A look at current mortgage rates and 5-year mortgage rate history.

The average discounted mortgage rates in Canada in 2013:

A history of weekly 5-year fixed mortgage rates and 5-year variable mortgage rates.

mortgage rates by: