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…)
Mortgage insurers keep self-employed mortgage product
Canada’s two private mortgage insurance companies, Genworth Canada and Canada Guaranty have informed Canadian mortgage lenders that they will continue to offer self-employed insured mortgages as well as second home mortgages, and not follow in the steps of CMHC which last week announced that they would be continuing their similar programs.
I stated a few days ago that I was not particularly worried about the CMHC decision from a professional standpoint as the programs they were eliminating were not used very much and would not impact my ability much as a mortgage broker to get mortgages approved. I was more concerned about Genworth and/or Canada Guaranty discontinuing their programs, as particularly the Genworth self-employed mortgage offering is a better product and is more popular than the CMHC product was.
Self-employed mortgage insurance good for real estate market
Thankfully for the market and for self-employed mortgage borrowers, we can continue to obtain mortgage approvals for self employed borrowers with less than 35 percent down-payment, and with as little as 10 percent down-payment. It would have created a significant void in mortgage lending if none of the insurers had continued with the program.
I also think it is beneficial for the insurers to keep this program, as the premiums charged for it are higher than fully qualified insured mortgages, and with Genworth reporting lower claims and improved revenues recently, it seems that their operations are strong just as they are. The main protection they will need is strong adjudication of individual loan applications to make sure that they minimalize riskier mortgages within their insured portfolio.
Overall, it is also worth noting that lending options are starting to open up a little more over the past year, which is a positive sign that confidence is being restored to the economy and the housing market for the first time since the 2008 U.S. housing collapse. It can only serve as positive news to homeowners that the market will continue to stay strong and home prices will continue to increase steadily.
Vancouver Home Prices – Its Not About You
The Canadian Real Estate Association Recently provided updated statistics for the average MLS price in Vancouver, showing selling prices decreased from an average of $778,000 to $725,000 from August of 2011 to August 0f 2012. There is a general feeling that has been around that this is doom and gloom time and that there is a housing bubble that is bursting and soon there will be mass foreclosures and horror will spread across the land. The feeling that its a bad time to sell your house from people who own one, and for those who are considering buying, the feeling is fear of buying because prices might go down even more. (more…)
5 Steps to Managing Debt
There’s been a lot of media attention on the Canadian economy and the high volume of consumer debt. With all the hype, it seems like a good time to remind you of some strategies for minimizing debt and making sure the interest that you pay seems appropriate. (more…)
An Unusual Day As A Mortgage Broker
The Bankers Strike Back!
Those who may read a fair bit of my website would tend to know I don’t tend to hold a whole lot back to be diplomatic about my thoughts and feelings. Well, a few weeks ago I wrote an article titled “Do You Trust Your Banker?” Now, it seems someone in a bank read the headline and took offense to it, apparently without reading the whole article. I believe that anyone who DID read the article would understand that the point that I was making was that just because the bank is a large institution that you should not just trust every word they say without questioning or thinking about it. (more…)
Variable mortgage rates to stay low until next year
According to the FINANCIAL POST, on Thursday, the chief economist of CIBC, Avery Shenfeld, has estimated that the Bank of Canada prime rate will continue to remain low into 2011 due to lower productivity and a strong Canadian dollar. This has been in line with my previous thoughts on what will happen with low variable mortgage rates going forward. (more…)
More CMHC Mortgage Policy Changes
The government today announced a couple more changes that impact homebuyers beyond the announcements made several weeks ago. These changes will be likely adopted by the other two mortgage insurers in Canada, AIG and Genworth. (more…)