Home Mortgage Rates

Term Rate
Prime 3.00%
Variable 2.90%
1 Year 2.89%
3 Year 2.69%
4 Year 2.95%
5 Year 3.09%
10 Year 3.89%

Qualifying Rate

Feb 3 5.29%

Current Inflation

Dec 2.3%

5 Year Bond Yield

Feb 3 1.36%

Next Bank of Canada Meeting
Mar 8th, 2012

Special conditions apply
Mortgage Rates subject to change.

start your mortgage

New mortgage rules

It’s not a huge surprise that the Canadian government who watches over the worlds most secure banks made changes to the mortgage qualifications. What is a big surprise is that the US government still hasn’t done anything and it’s their sloppy lending that caused this whole mess. Come to think of it, actually that is no surprise at all. Yes the NINJA (no income+ no job=approved) mortgages are down to a dull roar but their mortgage qualification guidelines need serious restructuring.

Enough of the states, let’s focus on the Canadian guidelines. Everyone will have a chance to obtain a mortgage commitment before April 19, 2010 to avoid the changes coming into play.

Here’s are the “non-detailed” changes:

  • All borrowers must meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate, shorter term or variable product. This initiative will help Canadians prepare for higher interest rates in the future. The confusion lies with what five year rate? Do they mean 5 year posted or Prime plus 2% (example)? Also, what exactly do they mean my “standards”.
  • The maximum amount Canadians can withdraw in refinancing their mortgages has been lower to 90 per cent from 95 per cent of the value of their homes. This will help ensure home ownership is a more effective way to save. This has realistically been in place since the recession start in early Spring of 2009 and  I strongly agree with this. This will help people from using their homes as proverbial ATM machines.
  • Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation. Ok, so what is their definition of “speculation”? My definition would be pre-sale and if that is the case I STRONGLY agree with this. However their are rumours out there that this will include rental (revenue properties).

You are probably thinking to yourself, well this posting doesn’t help me much and I agree with you. When we tried to dig further into more specific answers, we were told that a more details report was coming. Grrrrrr.

Your thoughts?

 

Comments currently closed!