January 2018‍‍‍

A simple place for writing

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

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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.

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 12th, 2018, the Bank of Canada posted rate was 4.99 per cent.  (click the link above to see 'Interest Rates' and look at the 'Conventional mortgage - 5-year') and the prime rate was at 3.20%.

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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!"

Posted Rate

Welcome to the January 2018 update.

I can't even begin to describe where the entire 2017 year has gone, because there has been so much change, that it's hard to describe right here all at once.  So, in order from you reading forever and a day worth of content, let me sum it up by:

 - Yup: rates have increased.  Easiest thing here... check the rates on our mortgagetree.ca website!

 - Federal government has created "The new B-20 guidelines for qualifying conventional mortgages" and it came into effect on January 1, 2018.    Will these new rules affect you?  If you're putting down 20% and were looking for a conventional mortgage; then yes... yes these new changes apply to you.  So what are they?

Office of the Superintendent of Financial Institutions Canada (OSFI) is setting a new minimum qualifying rate, or “stress test,” for uninsured mortgages.

  • Guideline B-20 now requires the minimum qualifying rate for uninsured mortgages to be the greater of the five-year benchmark rate published by the Bank of Canada or the contractual mortgage rate +2%.

OSFI is requiring lenders to enhance their loan-to-value (LTV) measurement and limits so they will be dynamic and responsive to risk.

  • Under the final Guideline, federally regulated financial institutions must establish and adhere to appropriate LTV ratio limits that are reflective of risk and are updated as housing markets and the economic environment evolve.

OSFI is placing restrictions on certain lending arrangements that are designed, or appear designed to circumvent LTV limits.

  • A federally regulated financial institution is prohibited from arranging with another lender a mortgage, or a combination of a mortgage and other lending products, in any form that circumvents the institution’s maximum LTV ratio or other limits in its residential mortgage underwriting policy, or any requirements established by law.‍‍‍
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Mortgage ‍‍‍Tree Dave -

My first VLOG!! Lets get this started, and I'll be able to update anyone in 90 seconds about whats happening in the mortgage industry.  Not just locally or provincially (in Alberta), but Federally for all of Canada!