A run down of what's going on in the market and the company.

Sunday, February 26, 2017

New Mortgage Rules - Oct 17 2016

The new rules that took effect on Oct. 17 require buyers applying for an insured mortgage (less than 20% down) to show they can afford to pay it back at the Bank of Canada’s five-year fixed rate of 4.64 per cent. Canada’s biggest banks currently offer mortgages at rates about two percentage points below that.

To bypass that test, buyers can make a 20 per cent down payment that qualifies them to take out an uninsured mortgage. Brokers said many buyers will turn to unregulated private loans to enable them to make that payment.

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