January 2017

A simple place for writing

Mortgage tree • #205, 1680 40th ave sw. • Calgary, alberta • (403) 510-0455

Come see me for your next mortgage or renewal.

Whether you are buying your first home, refinancing, investing in a rental property, purchasing a second home, transferring your mortgage, or accessing private funds - I am here for help.

Well, we finished off 2016 with quite a change in the market.  Back in October we saw the Housing Insurance Rules and Income Tax Proposals change.  For full details, please see the Government of Canada's link:

What does that really mean though? I mean... really. In plain good 'ol english?  It means the banks are going to be a little more cautious when lending (as most lenders already are), but are now required to have the applicants be 'approved' at the current market posted rate.  This doesn't necessarily mean that's what you'll be paying.  That is precisely why you use a mortgage advisor.  We look for the best product, at the best rate, for the best application suited to your needs!

The Bank of Canada’s conventional five-year fixed posted mortgage rate is the mode (i.e., the most common occurring number) of the conventional five-year fixed mortgage rate advertised by Canada’s six largest banks. The rate is updated weekly and is available on the Bank of Canada’s website (CANSIM table 176-0043). The Bank of Canada’s posted rate is typically higher than the contract mortgage rate most buyers actually pay. As of January 11th, 2017, the Bank of Canada posted rate was 4.64 per cent.  (scroll down to see 'Interest Rates' and look at the 'Conventional mortgage - 5-year')

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"I like my coffee.... like most people like their mortgages. Knowing it's consistent, smooth and reliable no matter how it comes!"

Technical Backgrounder

Technical Backgrounder

Posted Rate

CMHC (Canada Mortgage & Housing Corporation) announced that borrowers will now need a few more dollars allocated to their insurance premiums if they do not have the 20% down payment (otherwise known as a conventional mortgage) starting in March.  Really, for the typical buyer in Alberta this is roughly about $5-10/month.  

Premiums that are charged by CMHC are calculated and based on the amount borrowers are getting finance for their home.  As read in the CBC business article (see the link to their story), "By law, anyone putting down less than 20 per cent of the purchase price of a home in Canada must pay mortgage insurance, even though the homeowners themselves don't benefit from that coverage. Rather, it's a fee borrowers pay so if they default on loans, their lenders aren't on the hook. Instead, an insurance payout would cover any defaulted loans".

January 18th 2017

CBC Business News Article