Fitch Ratings stated that Canada's mortgage market remains resilient despite challenges from inflation and high interest rates, leading to increased mortgage payments for half of homeowners. Factors like employment stability, wage growth, and personal savings play a crucial role in managing mortgage debt. The majority of mortgage borrowers in Canada have maintained satisfactory payment records,Read more
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Homebuyers' increasing reliance on private mortgage lenders is a concern in the review of Ontario's Mortgage Brokerages, Lenders, and Administrators Act. The government is seeking public input on potential regulations or amendments. The discussion paper addresses consumer protection, professional conduct, new technologies, and oversight measures for mortgage administrators. Feedback is accepted until June 24. ContinueRead more
Canadian banks are set to report second-quarter results following a stable economic period. The quarter showed improvement compared to the previous year, with positive economic data and low mortgage delinquencies. Analysts are concerned about credit quality and the impact of upcoming mortgage renewals. The Bank of Canada noted potential payment increases for some borrowers butRead more
Canada's banking regulator, OSFI, is imposing a cap on residential mortgages for highly indebted borrowers in anticipation of BOC rate cuts.Effective in Q1 2025, the new rule limits the number of mortgages a bank can issue exceeding 4.5X a borrower’s annual income.Read more
Canada's banking regulator has introduced a cap on mortgages for highly indebted borrowers. The new rule is intended to prevent Canadians from accumulating too much debt.Read more
Rising interest rates pushed amortization periods beyond 35-yr, posing risks to borrowers. Canadian lenders reduced mortgages exceeding 35-yr by 27% to $220B.Read more
Halal mortgages in the budget enhance housing for Muslim Canadians and diverse communities. Strategies to back the initiative: Changing tax rules for these products Setting up a financial regulatory spaceRead more
Focus on cash flow: Invest based on today's rental income, not future appreciation of the property value. Mitigate risk of missed rent: Consider rent default insurance or require tenants to buy it.Read more
Increase for high earners: After June 25, 2024, capital gains tax increases for profits exceeding $250,000.The $250,000 threshold applies to individuals, including gains through partnerships or trusts.Read more
Nearly 40% of Canadian households are renters, while just over 60% are homeowners. Since the Bank of Canada started raising rates in 2022, about half of mortgage holders have refinanced at higher rates. Mortgage interest costs have increased by over 20% annually, contributing significantly to Canadian inflation. The Bank of Canada may soon begin cuttingRead more
