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

Jeff Evans

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

Jeff Evans

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 countryโ€™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

Jeff Evans

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…).