Archives: May, 2010

Canadian Home Prices Expected to Drop by 10%?

Last week, CIBC stated that Canadian homes would drop 5 – 10 percent within the next two years.  The main factor causing this decrease in the value of Canadian homes is rising mortgage rates.  It does make sense that increasing mortgage rates will slow down housing demand, but is a decrease in home prices by […]

Think Default Insurance is for High Ratio Mortgages?

The conventional thought is that default insurance is mainly for high ratio loans (mortgages with a LTV 80% or higher).  However, this is simply not true.  61.7% of insured mortgages with CMHC are for mortgages with a LTV under 80%. Source: (

Is the New Mortgage Qualifying Rate too high?

On April 19, 2010, new mortgage rules were introduced by the government.  One of the new mortgage rules involved changing the mortgage qualification rate.  The mortgage rate which homeowners must now use to qualify is the Bank of Canada posted 5-year fixed mortgage rate (or the mortgage contract rate if it is higher).  So if […]

New Mortgage Rules Re-Visited

On April 19th, 2010, new “mortgage rules” were introduced by the Canadian government. But what are these new “mortgage rules” and how do they affect homeowners? Here is a quick summary; New Mortgage Qualification Rate – For mortgage loans with a down payment less than 20%, mortgage lenders now have to qualify them at the […]