Bank of Canada warns mortgage renewal rates will rise over 60% by 2026. Households with mortgages from 2021-2022 face highest financial pressure due to low initial rates.Read more
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Borrowell's new initiative in Ontario allows renters to include past rental payments in their credit scores, aiding in homeownership. The program aims to help Canadians build credit earlier in life, especially immigrants looking to apply for mortgages. Borrowell's CEO states the program recognizes responsible financial behavior and aims to make the credit system fairer forRead more
Canada's banking regulator acknowledged an "imbalance" in the application of the mortgage stress test for certain homeowners renewing their terms. The stress test requires borrowers to qualify at a rate of 5.25% or two percent above the contract rate. Homeowners renewing with the same lender are exempt from re-passing the test, but those changing lendersRead more
BOC states a limit on diverging from US monetary policy, but currently, they're not close to that limit. Differential between BOC and Fed rates expected to pressure Canadian dollar, influencing inflation and policy decisions.Read more
Bank of Canada Governor suggests interest rate cuts due to declining inflation. Home demand slows with cooling labor market.Read more
ON's total mortgage balance in "severe delinquency" exceeded $1B for the first time. Mortgages in severe delinquency are double the pre-pandemic levels.Read more
Canadian households are facing difficulties in repaying their growing debt, with delinquencies on the rise, particularly in costly regions such as Ontario and British Columbia. Household credit hit $2.46 trillion in Q1 2024, primarily due to mortgage debt. Over 1.26 million Canadians missed credit payments in the same quarter, with higher rates in pricier regions.Read more
The Bank of Canada is expected to cut rates by 0.25%, leading to lower rates on variable mortgages and HELOCs. Three rate simulations are discussed, with one scenario predicting multiple rate cuts by the Bank. Another scenario suggests a slower rate cut path, while a third scenario predicts a breakeven situation with inflation forces balancingRead more
Buyers assume sellers' mortgages for affordability amidst high rates, benefiting from lower rates. The seller's 2% mortgage was assumed, contrasting sharply with typical rates of 5-6%.Read more
The Canadian Mortgage Charter outlines principles for mortgage lending by federally regulated financial institutions (FRFIs).FRFIs must provide tailored mortgage relief to Canadians facing financial challenges with their primary residence.Read more
