2011 | MorCan Direct - Part 2
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Archive for 2011

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May 5
Newsletter

Are Mortgage Rate Discounts Slimming Down for the Summer?

In the last week we’ve seen a reduction in the discounts lenders are offering on their variable rate mortgages (VRM). While heavy discounts of 0.80-0.90% have been common place in the Canadian mortgage market for a while now it seems these discounts are slowly being eroded by the lenders. Lenders are citing the narrowing of spreads (i.e. the difference between the cost of lending and the rate charged) culminating in decreased profit margins on VRMs. Continue reading →

Apr 18
Newsletter

Bubble? Or Just a lot of Hot Air?

A casual spectator of the Canadian housing market could be forgiven for feeling slightly overwhelmed in the last couple of weeks. It seems everybody has an opinion on the state of the housing market… unless you’re the leader of one of the country’s embattled political parties, who seem to be trying their best not to address the elephant in the room. Two weeks ago we saw fixed rates rise by at least 25 basis points for lenders across Canada. This was followed by IMF’s World Economic Output Report, the Bank of Canada’s Monetary Policy Report and a controversial and somewhat apocalyptic report on the housing market in The Globe and Mail. With the degree of information being crammed down our throats of late it can seem a daunting task to decipher these reports and that is why we, at Morcan Direct, have taken it on ourselves to relay what all this information means for you and your mortgage. Continue reading →

Feb 9
Newsletter

TD, CIBC Raise Mortgage Rates – Should You Lock In Now?

Jim Flaherty’s announcement last month enforcing stricter mortgage regulations was a call to arms on Bay Street. The street, which plays host to Toronto’s financial almighty, would play scene to a duel more commonly associated with America’s Old West rather than Canada’s financial epicenter. The big banks of Canada waited anxiously, eyeballing their opponents, to see who would be the first to reach for the trigger. On Monday (February 7th) of this week they got their answer as TD Canada Trust shot their posted 5-year fixed closed rate up 25 basis points. As is usually the case in these matters of nerve, once the first shot rings out more will follow as was to prove the case as CIBC responded by increasing their 5 year closed fixed rate 25 basis points later on that day. So what will be left for the borrower when the dust clears and the banks finally holster their pistols? Continue reading →

Jan 17
Newsletter

Jim Flaherty Changes Canadian Mortgage Rules

Today (January 17th, 2011) Finance Minister Jim Flaherty announced three new changes to Canada’s mortgage rules. The three changes are as follows:

1) A reduction of maximum amortization from 30 to 35 years for insured mortgages, or in other words mortgages that normally exceed 80% of the properties value.
2) Lowering the maximum amount Canadians can borrow in refinancing their homes to 85% from 90% of the value.
3) Withdrawing the backing of government insurance on home equity lines of credit (HELOC’s). Continue reading →

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