By Tess Kalinowski Real Estate Reporter Wed., Jan. 23, 2019 The federal government should tweak Canada’s year-old mortgage stress test now, rather than waiting for the heat of the October election when housing affordability will almost certainly be a leading issue, says the author of a report released Wednesday by Mortgage Professionals Canada. There is nothing wrong with stress testing mortgages, said Will Dunning, chief economist with the industry association, but the rules implemented by the Office of the Superintendent of Financial Institutions in January 2018, are “too fierce,” and fail to take into account that a borrower’s income is likely to increase by about 2 per cent annually over the period of the five-year loan. By the time most homeowners renew their mortgages, he said, “most will have 10 per cent more income so you can afford a larger payment,” he said. “That’s not taken into account because the … [Read more...] about Ottawa should tweak mortgage stress test before election: Report
2011 mortgage rates
By Prashant Gopal Bloomberg Wed., Dec. 12, 2018 The era of bidding wars may be winding down in some of the most-competitive U.S. housing markets. In November, 32 per cent of home-purchase offers with a Redfin agent involved had multiple bidders, the lowest share since the brokerage began tracking such deals in January 2011. A year earlier, 45 per cent of offers had at least one competitor, Seattle-based Redfin said in a report released Wednesday. Some of the hottest property markets are cooling the fastest as higher mortgage rates add to affordability concerns after years of rapid price gains. In the Seattle metro area, the share of offers with multiple bids fell to 25 per cent in November from 58 per cent a year earlier, Redfin said. For Los Angeles, the rate dropped to 38 per cent from 68 per cent. In Raleigh, North Carolina, the share was 20 per cent, down from 40 per cent. Report an error Journalistic Standards About The Star TOP STORIES, … [Read more...] about Homebuyers get a break as bidding wars fall to lowest since 2011
Business U.S. consumers filed the fewest requests for a mortgage since late 2014 last week as most home borrowing costs reached their highest levels in more than seven years, the Mortgage Bankers Association said on Wednesday. 17 Oct 2018 09:15PM Bookmark REUTERS: U.S. consumers filed the fewest requests for a mortgage since late 2014 last week as most home borrowing costs reached their highest levels in more than seven years, the Mortgage Bankers Association said on Wednesday.Loan applications for home refinancing tumbled to their lowest level since late 2000, while mortgage requests to buy a home dropped to their weakest level in 20 months, MBA data showed.The Washington-based group's seasonally adjusted index on mortgage applications fell 7.1 percent to 322.1 in the week ended Oct. 12. This was the lowest reading since 296.9 set in the Dec. 26, 2014 week. It also marked the steepest weekly decline in about 13 months.The latest figures did not include adjustments for the … [Read more...] about Rising rates knock US mortgage activity to lowest since 2014: MBA
Business Weak inflation, sluggish wage growth and high levels of household debt saw Australia's central bank keep interest rates on hold at a record low on Tuesday. 04 Sep 2018 01:59PM Bookmark SYDNEY: Weak inflation, sluggish wage growth and high levels of household debt saw Australia's central bank keep interest rates on hold at a record low on Tuesday (Sep 4). The Reserve Bank of Australia slashed the cash rate from November 2011 to August 2016 to 1.50 percent to boost the economy as it transitioned away from a mining investment boom and it has not moved since.Most economists are not expecting the bank to lift them until late next year, or even 2020, given household debt and slow wages growth continues to affect consumer spending.And with one of Australia's big four lenders - Westpac - pushing up its mortgage borrowing costs out-of-cycle since the central bank last met in August, the chances of an official rate hike appear to have receded even further.Other major … [Read more...] about Australia keeps rates on hold at record low
By Robb Engen Special to the Star Tues., Aug. 14, 2018 When my wife and I bought our home in 2011 we chose a five-year variable rate mortgage that came with a deep discount of prime minus 0.80 per cent. The same deal wasn’t available when it came time to renew in 2016, so we went with a two-year, fixed-rate mortgage at 2.19 per cent. Our mortgage is up for renewal again this September and, in the face of rising interest rates, we must decide whether to go with a fixed- or variable-rate mortgage. We’re not alone with this mortgage decision. A CIBC report estimated that nearly half of all existing mortgages in Canada needed to be refinanced in 2018. Adding weight to this decision is a new stress test for both insured and uninsured mortgages where homeowners must prove they can handle payments at the greater of the Bank of Canada’s five-year benchmark rate (currently 5.34 per cent) or their contractual mortgage rate plus two percentage … [Read more...] about My mortgage is up for renewal: Should I go fixed or variable?