The Federal govt controls hi-ratio mortgage lending…. (mortgages that are greater than 80% loan to value)…  There is a $600 billion limit for Canada Mortgage and Housing Corporation (CMHC… a federal corp).   And a $250 billion limit for Genworth Financial Canada (a private corp).   Last year, the govt reported CMHC was fast approaching it’s […]

When the forerunner of the Canada Mortgage and Housing Corporation opened shop in 1946, its job was to help war veterans find housing. From those humble beginnings, CMHC has emerged as a financial market giant. As this baby-boom behemoth contemplates life after 65, it, like many of us, should consider a more modest public role. […]

The 12-month change in the Teranet-National Bank House Price Index has decelerated in recent months to 3.4%, led by declines in Vancouver (-1.4%) and Victoria (-1.7%). Some people interpret this weakness as a sign that a housing crash has started – see, for example, the Canadian Business article “Canada’s housing crash begins.” I don’t see […]

The crash crowd says Canadian houses are overvalued on the basis of the price-to-income ratio. But with so much monetary stimulus in the system, the price-to-income ratio should also be normalized by income increases. (Ross D. Franklin/AP /Ross D. Franklin/AP) Trading Shots Why the housing market won’t crash in 2013 LARRY MACDONALD Special to The […]

While I’ve been busy sinking money into mortgage payments, daycare costs, RESPs, RRSPs, utilities, groceries, vehicle maintenance and the occasional vacation, I’ve somehow failed to notice that many Canadians seem to be doing all this – and stepping up their mortgage repayments, too. According to the Canadian Association of Accredited Mortgage Professionals, over the past 20 […]

As a result of prudent mortgage lending practices, the number of mortgages in arrears in Canada was trending down in 2011 and the first half of 2012, according to the Canadian Housing Observer, released yesterday by CMHC.   “The Canadian Housing Observer is an indispensable source of information about housing’s role in the economy, and […]

OTTAWA — Canadians are more in hock today than ever before, Statistics Canada said Thursday in releasing fresh data on household debt. The new report shows household debt to annual disposable income reached a new high at 164.6%, from 163.3% the previous quarter. Bank of Canada governor Mark Carney has named rising household debt a […]

On Thursday, Amanda Lang—co-host of The Lang and O’Leary Exchange—made a comment worth exploring. While talking with Kevin O’Leary about the risks of variable mortgage rates, she stated: “Some people can forecast [rates] and arrange their affairs accordingly. Rates won’t…gap up. They will climb in some orderly fashion. …It’s very rare to see a multi-move […]

Julia Thomson hasn’t won the lottery. She hasn’t been reunited with a long lost, fabulously wealthy, and remarkably generous uncle. And she hasn’t discovered oil in her backyard. All of which is surprising, considering this declaration: “We paid off our mortgage in four and a half years.” When Thomson and her husband were approved for […]

Canada’s financial regulator will release new guidelines for mortgage insurers early next year, including the government’s Canada Mortgage and Housing Corp. – but they won’t drag down the housing market as much as the guidelines for banks have, says the country’s banking watchdog.   The Office of the Superintendent of Financial Institutions will outline what […]