Bank of Canada to drop qualifying rate
https://www.mortgagebrokernews.ca/news/ ... 29853.aspx
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Centum Intouch Mortgage Solutions broker Anthony Venuto sees the lower qualifying rate as being primarily helpful to borrowers are on the verge of receiving funding who still need a slight boost.
“It’s not like a person was going to qualify for $500,000 and all of a sudden they can qualify for $550,000,” he says.
It's a small change to be sure, but in the current environment, says BMO chief economist Doug Porter, every bit helps.
“Any change can make a difference at the margin, even if tiny,” he says. “I believe the much bigger issue for the housing market will be the broader economic outlook and the extent to which activity and jobs can recover as the re-opening progresses. Rates still matter, but much less so than in the recent past.”
CMHC might trim mortgage underwriting arm
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You may be projecting the future by what you see in the rear view mirror. What prices do in the next 6 months is meaningless unless employment bounces back hard. People don't day trade real estate. RE investing seems like a pretty high risk low reward right now. I hope you're right and I'm wrong.oasis100 wrote: ↑ bears are going to disappear.
at first they thought prices will crash. now the bears are saying 6 months from now. 6 months from now they will say another 6 months.
fact is this. prices are actually up in a lot of areas. and certainly still above even nov 2019 pricing. how do I know? because I did like 6 condl deals in the month of Novemeber and each one of those properties are worth more today.
love to hear these prognostications by people who have no idea about the realities.
May 25th, 2020 7:50 am
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May 25th, 2020 8:45 am
in reality it means instead of a $410k mortgage you can get $420k now.... nothing to rave about, but every bit helps I guess
May 25th, 2020 8:49 am
https://www.cmhc-schl.gc.ca/en/finance- ... -newcomers
May 25th, 2020 9:03 am
What does any of that have to do with "CMHC does not insure investment properties"?alanbrenton wrote: ↑ https://www.cmhc-schl.gc.ca/en/finance- ... -newcomers
Newcomers to Canada are an important and growing segment of Canada’s population, creating new market opportunities. CMHC-insured financing is available to borrowers with permanent and non-permanent residency status.
Non-permanent residents must be legally authorized to work in Canada (with a work permit). Mortgage loan insurance is limited to the purchase of a 1-unit property, owner-occupied. The minimum down payment is 10% and must be from traditional sources only.
U.S. country of origin: In the absence of a sufficient credit report from a Canadian credit reporting agency, CMHC will obtain an international credit report.
For all other countries: Where the creditworthiness cannot be verified through an international credit record, mortgage professionals should ask the borrower to provide a letter of reference from their financial institution in their country of origin.
May 25th, 2020 9:04 am
What do your replies have to do with my original statement that I wished CMHC would not insure non-PR's? Non-PR's can buy non-investment properties, can't they?
May 25th, 2020 9:11 am
Places that have reopened are extremely busy. I think if anything we will have a period of higher demand/activity for all businesses. Not to mention there won't be international travel so a lot of CAD that was leaving the country before won't be now. And that is on top of $300 billion new CAD that will be floating around.Qrewpt wrote: ↑ You may be projecting the future by what you see in the rear view mirror. What prices do in the next 6 months is meaningless unless employment bounces back hard. People don't day trade real estate. RE investing seems like a pretty high risk low reward right now. I hope you're right and I'm wrong.