B-21. Here at Last There’s been so much speculation on whether OSFI’s long-awaited B-21 mortgage insurer guidelines will slow the housing market. Well, now that we’ve seen the draft, that seems unlikely. In fact, B-21 is simple, practical and sound policy, and most of the guidelines have already been adopted by lenders and insurers. Here’s […]
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An economists point of view
From a presentation a top economist in Canada I had the pleasure of seeing last week. Benjamin Tal Feb 2014 economic update (summarized bullet points):
CMHC Increases Premiums 2014
Following the annual review of its insurance products and capital requirements, CMHC will increase its mortgage loan insurance premiums for homeowner and 1-4 unit rental properties effective May 1, 2014. The increase applies to mortgage loan insurance premiums for owner occupied, self-employed and 1-to-4 unit rental properties, including low-ratio refinance premiums. This does not apply […]
More on mortgage penalties
I want to outline the pre-payment penalty difference and some competitive advantages of First National at 3.49%. The big banks (CIBC, Scotia, TD, RBC, BMO) are all the same with penalty calculations, whereas the mono-lines (MCAP, First National, Street Capital, ICICI) who deal exclusively through mortgage brokers are more competitive and calculate penalties in a […]
Transfer Tax Change
The government has announced, effective February 19, 2014, under the Property Transfer Tax (PTT) First-Time Home Buyers’ Exemption program, qualifying first-time buyers can buy a home worth up to $475,000. The previous threshold was $425,000. The partial exemption continues and will apply to homes valued between $475,000 and $500,000. With this change, the government estimates […]