Consumers with less than 20% down must get mortgage default insurance in Canada if they are borrowing from a federally regulated bank. It doesn’t make much sense, but a skimpy down payment on a home might actually get you a better mortgage rate in today’s market. Blame the government subsidy known as mortgage default insurance, […]

 I suspect everyone in our industry is familiar or has some basic understanding of OSFI’s responsibilities. The Office of the Superintendent of Financial Institutions is an independent agency of the Government of Canada, and the agency reports directly to the Minister of Finance. OSFI’S mandate? Simply stated OSFI’S role is to ensure that Canadians have […]

Support for banks ‘more substantial than Canadians were led to believe’: CCPA report Canada’s biggest banks accepted tens of billions in government funds during the recession, according to a report released today by the Canadian Centre for Policy Alternatives. Canada’s banking system is often lauded for being one of the world’s safest. But an analysis […]

Finance Minister Jim Flaherty would consider taking Canada Mortgage Housing Corp. out of the mortgage default insurance business he told the National Post’s editorial board. ‘I don’t think it’s essential that a government financial institution provide mortgage insurance in Canada’ “Over time, I don’t think it’s essential that a government financial institution provide mortgage insurance […]

The Bank of Canada sounded the alarm on growing household debt on Wednesday, taking aim in particular at the growing tendency of Canadians to take out lines of credit using home equity. While the Bank has repeatedly warned on household debt levels in the past, on Wednesday it provided more detail about the type of […]

When our mortgage came up for renewal about a year ago, my husband and I did what many couples do and debated whether to go variable or fixed. What we never seriously considered was locking in to a fixed rate for a decade – that option wasn’t even on the table. What a difference a […]

OTTAWA – Bank of Canada governor Mark Carney often talks about the danger of too much household debt — but he’s unlikely to do anything about it when he has a chance this week. Economists are unanimous that Carney will hold back from raising borrowing costs on Tuesday when he and his policy council announce […]

Canada’s finance minister said on Wednesday he would rather not tighten mortgage rules again to curb high household debt and that banks themselves are taking on that job by becoming more strict with their lending criteria. Jim Flaherty said he has seen signs of moderation in the Toronto condominium market and expects to see a […]

For three years, the word on the street has been that interest rates have nowhere to go but up. But few Canadian commentators – other than David Rosenberg – got the call on rates right. Although the prime rate has risen since dropping to an all-time low of 2.25% in April 2009, the increase to […]

Despite soaring mortgage lending, Canadian banks are strong enough to absorb any hit that might result from a potential real estate correction, said Ed Clark, chief executive of Toronto-Dominion Bank. Unlike U.S. banks, lenders on this side of the border did not get involved in the kind of risky practices that helped drive the U.S. […]