Good news regarding OSFI rule changes

This is just a quick note to let viewers know that IF you are one of the people with 20% or more down-payment and are in a position that the new OSFI rule changes affect your pre-qualification, that I can extend the current guidelines into the new year by up to 120 days provided that I have an application and am able to get a pre-approval in place with a lender for you before January 1. (more…)

OSFI B20 mortgage guideline changes 2017 – Part 1

B20?  Is that some kind of vitamin?

It certainly sounds like a vitamin, but unfortunately, it is something else altogether.  The Office of the Superintendent of Financial Institutions is the regulator for all federal mortgage lending institutions.  They set the regulations for mortgage companies like banks to follow (or ignore).

The latest updates to the B20 mortgage regulations could bring some potentially very disrupting changes to the real estate market, especially if you are wanting to get a mortgage in Vancouver, or you are a mortgage broker in Vancouver. In summary: (more…)

Cash in on your property values with a refinance!

If you have followed my blog for a while, I think you would understand me saying that I find it difficult

mortgage refinance
By: Damian Morys

to come up with interesting original material to provide.  I mean…I am selling getting into the biggest DEBT that most people will ever likely incur, and I talk about a local housing market that appears out of control but actually is NOT.

The product I offer is intangible, and is the “nasty” part of a transaction that people otherwise enjoy.  No one goes out shopping to purchase that hot sexy mortgage, there is no Gucci or Prada branded mortgages I can put in the window that anyone will be interested in buying.  There’s an idea to justify a higher interest rate! “Yeah, I paid double what everyone else is paying, but it’s so worth it, the paper that I signed was so soft and smooth, and the quality of the printer was amazing!”

Anyways, rather than just write my grievances with the current situation, I tried to think differently.   (more…)

Watch out for the wolves!

I was meeting with my business development manager for Canadian Home Income Plan (CHIP) about their reverse mortgage product today, and he shared with me an experience with a client of his bank that is at once shocking but also, unfortunately, not uncommon.

There is a private mortgage lender who advertises on the radio that did a mortgage for a client who was terminal with cancer.  The mortgage amount was $500,000.  Do you know how much the fees were?  $65,000!  That is insane!  CHIP was able to take care of him in a way that he could enjoy his remaining days with his family in comfort, and provided a much more fair solution, but that is not really the point of the story.  It is technically legal to charge those kinds of fees, but it does not make it fair, equitable or correct. (more…)

Advice on breaking your mortgage to get a lower rate – CBC

Here is a good article on the CBC website that talks about breaking your mortgage to refinance with a better interest rate.

I would generally agree with the points made in the article, except that the last point regarding splitting up the mortgage into multiple components I would not necessarily agree with. One reason for this is that the mortgages are typically collateral charges and makes it more difficult to switch the mortgage at the end of a term.

It can be a good time to refinance your mortgage if your penalty is small. If you would like to discuss further your circumstances to determine if it would make sense for you, call me and I can better advise you on your individual needs.

 

 

Watchdog tweaks mortgage rules for insurers, banks – Globe and Mail

There is a new article in the Globe and Mail regarding the newest mortgage regulation changes being implemented by OSFI. From the article:

One of the most notable changes is that the regulator is now spelling out criteria banks must meet to verify the income of borrowers, especially those who are self-employed.

OSFI has waded into the country’s mortgage market in recent years as part of a global effort to prevent another crisis like the one that occurred in the U.S. with subprime lending. Global bodies like the Financial Stability Board, which gets its mandate from the G20, recommended that all countries review their mortgage rules.

The good news is that there is no substantial changes to policies that would restrict borrowers in a way that they weren’t before. The significant difference from before appears to be that mortgage insurers will need to start vetting income confirmation documentation for insured mortgages, where previously they counted on the lender’s word exclusively.

I do not anticipate this change having a significant impact on the market., but may serve to even the playing field between lenders who do follow regulations and those who may not.

Steady housing market in 2015, some moderation in 2016 – CTV News

I find the title slightly misleading, but the article on CTV News talks about a steady new housing market in 2015 and a slightly decreased one in 2016.

Some of those expected causes include: a slowdown in the pace of construction, the shrinking poll of young, first-time buyers due to slower population growth, rising housing prices in some markets and the anticipated interest-rate increase in late 2015.

The agency predicts housing starts to come in at 189,000 units for 2014, followed by 189,500 in 2015, before moving downward to 187,100 in 2016.

The difference in the new housing construction rate forecast appears to me to be minimal almost to the point of a rounding error. I do not believe it will have a significant impact on housing supply and demand, housing prices or mortgage policies. I guess writers need to write about something (looks in the mirror…).

The US housing market recovery – what it means to you

I came across an article on the Mortgage Broker News website today briefly covering the US housing market conditions.

“Sales of new single-family homes in the US surged by 18.0 per cent to 504,000 annualized units in August 2014 to mark the highest level since May 2008,” a report from RBC Economics, published Wednesday, states. “The robust monthly gain, which handily surpassed expectations for a 4.4 per cent rise to 430,000, built on a 1.9 per cent increase in July (to 427,000) that was initially reported as a 2.4 per cent drop (to 412,000).”

(more…)