Laurie Furness
2904 South Sheridan Way, Suite 301 L6J 7L7 Oakville, ON, Canada

Great letter to the editor in Friday’s paper. It is a sobering reminder of how we are destroying our precious greenspace for housing and profit. Once it’s gone, it is never coming back. I would sincerely hope Bronte Park would never be on the radar but?? Central Park is on far more valuable land, but New Yorkers aren’t developing it.

The Office of the Superintendent of Financial Institutions (OSFI) issued a revision to Guideline B-20 on October 17, 2017. The changes will go into effect on January 1, 2018, and will require conventional mortgage applicants to qualify at the Bank of Canada's five-year benchmark rate or the customer's mortgage interest rate +2%, whichever is greater. OSFI is implementing these changes for all federally regulated financial institutions. As a result, some consumers looking to ...purchase a home or refinance may experience a reduction in the total principal amount they are qualified to borrow. What should consumers know? It is expected that the average Canadian's home purchasing power for a given income to be reduced 15-20%. Here's an example of the impact the new qualifying rate will have on the maximum mortgage proceeds and home purchase price. Amounts are based upon a combined Canadian family income of $75,000, 5-year fixed term mortgage at a contractual rate of 3.39%, 25-year amortization, $100,000 available for down payment and $700 in other monthly debt obligations: Up to After Dec. 31, 2017 Jan. 1, 2018 Target Rate 3.39% 3.39% Qualifying Rate 3.39% 5.39% Maximum Mortgage Amount $400,000 $325,000 Available Down Payment $100,000 $100,000 Home Purchase Price $500,000 $425,000 A consumer’s maximum mortgage amount will be influenced by other factors including product and term selected, amortization period, other debt obligations, and credit score. How will this affect purchases this year? Changes to Lender’s existing policies and procedures may impact applications initiated before or after January 1, 2018. We won’t know until they advise us. Some Lenders MAY consider a pre-approval to be a commitment and not use the new guidelines for qualification if there is a purchase within 120 days. However, if there is any ‘material’ change to the details, they may require re-adjudication with new guidelines. Most Lenders will only work with an accepted offer prior to the end of December. The closing can be up to 120 days after.

Anyone who owns a rental property in Oakville, plans to or have clients who plan to should clear their schedule for Monday night at 7:00 pm to attend the Council meeting. Notwithstanding the license cost, look at the list of what is required to be provided both initially and on renewal!! https://www.oakville.ca/tow/residential-rental-housing.html

As of Jan 1st it will be more difficult for buyers with 20% down to qualify for financing since we will need to add 2% to the client’s contract rate for qualification. The impact of this will be substantial and could force clients to take shorter terms to qualify at a lower rate. At this point we believe if an offer is entered into prior to Jan 1st the current qualification will be used. http://www.mortgagebrokernews.ca//osfi-releases-final-b20-

Proposed changes will impact conventional mortgages and if passed, will make it much harder to qualify. Stay tuned. http://www.vancouversun.com/mortgage+rule+chan//story.html

The bonds are still increasing and TD has notified us that rates will increase again tomorrow. If you are in the market to buy, be sure you have a rate held!! Date Yield 2017-07-25 1.64 2017-07-24 1.56... 2017-07-21 1.51 2017-07-20 1.51 2017-07-19 1.52 See more

Have questions on home buying? Perhaps Genworth’s publication can help then call me re: the financing! https://genworthassetlibrary.s3.amazonaws.com///index.html

The Bank of Canada has increased the benchmark rate to 4.84%. That will affect qualification for anyone with a hi ratio mortgage or a term shorter than 5 years if they are conventional. It will make it that much more difficult for individuals to qualify to buy.

First increase in 7 years. Stay tuned for what the Banks will do with prime. http://www.mortgagebrokernews.ca//boc-interest-rate-reveal

The BofC has increased the overnight rate and we expect the Banks to follow with an increase to prime which will affect variable mortgages and lines of credit. For different reasons, fixed rates are also on the rise. http://www.mortgagebrokernews.ca//bank-of-canada-raises-be

Prime has not increased since December 2010. We have been saying at some point it has to go up and it looks like that time has come. This will impact lines of credit and variable mortgages. Fixed rates have already moved due to increases in bonds. http://www.mortgagebrokernews.ca//latest-results-pave-way-

Snapshot of the 5 year bond which is what fixed rates are priced off. If it stays at this level we will see rates increase. Date Yield 2017-06-29 1.36 2017-06-28 1.28... 2017-06-27 1.21 2017-06-26 1.12 2017-06-23 1.12 2017-06-22 1.15 See more

Well, it’s official. The Foreign Buyers tax was passed. If you have any clients closing in the near future, be aware that there is a certificate required for closing and since the process is not yet in place, they need to pay both the tax and land transfer tax 2 weeks prior to closing to ensure the certificate is received in time. http://www.mortgagebrokernews.ca//ontario-passes-real-esta

This is so true. Due to the Government changes last year, more now than ever buyers and sellers need the expert advice of a Broker to ensure they choose the right mortgage option for their specific needs. http://www.mortgagebrokernews.ca//big-bank-report-points-t

Well, St Paddy’s Day is bringing more than green beer! It is the start of the higher Insurance Premiums. What is more concerning is not just the increased premiums, but the impact it will have on interest rates as per the attached article. Be sure to secure a rate asap if you’re looking for financing especially if you have 20% or more down. The premiums in the lower loan to values have jumped the most which increases costs to the Lenders who bulk insure their mortgages. At some LTV bands (particularly 80% LTV) this could translate into as much as a 60 bps difference according to one Lender. http://www.cbc.ca//busin/cmhc-mortgage-insurance-1.3938943

A reverse mortgage may be something to consider for seniors wanting to stay in their homes longer. Contact me with questions. http://www.mortgagebrokernews.ca//channel-lender-records-r

If you have or know of any teens looking for something different to do this summer check this out!

The Government’s new capital requirements that came into effect Jan 1/17 has resulted in increased premiums effective March 17th. Purchasers need to be aware of the increased amount and ensure they still qualify.

Updated hi ratio premiums. The Top Up is if the premium is being ported along with the mortgage and the client only pays on the additional funds. That may or may not be cheaper than paying the full premium again. It needs to be reviewed once we have both amounts.

Bonds are at 1.22 today. Some Lenders have already increased rates.

The beginning of Nov bonds were .66, today they are 1.11. Hence, the recent fixed rate hikes. 2016-11-25 0.99 2016-11-24 1.00 2016-11-23 0.98 ... 2016-11-22 0.96 2016-11-21 0.99 2016-11-18 0.98 2016-11-17 0.97 2016-11-16 0.94 2016-11-15 0.96 2016-11-14 0.96 2016-11-11 Bank holiday 2016-11-10 0.87 2016-11-09 0.82 2016-11-08 0.75 2016-11-07 0.71 2016-11-04 0.66 See more

Very wise words. There have been substantial changes in the last 30 days which are impacting all aspects of borrowing. It would be prudent to wait to see the results of the new policies before implementing more. http://www.mortgagebrokernews.ca//freeze-mortgage-rules-un

What a difference 6 months can make! http://www.mortgagebrokernews.ca//five-things-that-have-al

Some good news for first time buyers effective January 1, 2017, but not for those buying over 2m! http://www.mortgagebrokernews.ca//ontario-helping-firsttim

Time will tell what all these changes will do to rates and the market, but be prepared, The times they are a changing! http://www.mortgagebrokernews.ca//first-of-many-changes-to

TD has led the pack with increasing prime. Likely the rest will follow. Confirmation that the Banks will set prime where they want regardless of where the BofC rate is. Also, interesting thought on the reduction in the 5 year posted rate which is the rate used for the new stress test. If the Bank’s reduce it, that would make qualification a little easier. http://www.mortgagebrokernews.ca//big-bank-hikes-prime-rat

This week is the start of the new regulations after a busy weekend with buyers looking to get in prior to the changes. The next date is Nov 30th where this could apply to all mortgages. Ensure you know where your clients stand. http://www.theglobeandmail.com//cmhc-to-/article32386112/

The tighter regulations take effect in 2 weeks for hi ratio mortgages. Ensure your clients will still qualify for the properties they are looking at! https://www.thestar.com//ottawa-to-close-tax-loophole-for-

Recent changes by OFSI which will impact the Banks more than the monoline Lenders. Time will tell if this will translate into slightly higher rates with the Banks to offset the cost of maintaining additional capital, and adhering more strictly to documentation confirmation. http://www.bloomberg.com//canada-regulator-sets-out-strict

Effective today the rate we have to use to qualify clients who take any product other than a 5 year fixed term is increasing to 4.74% from 4.64%.

A somewhat startling statistic! Genworth confirmed that the hi ratio market is shrinking and this is one factor. If the average house is 1-million, that means that the mortgage on an average home cannot have hi ratio financing due to the cap. http://www.mortgagebrokernews.ca//91-per-cent-of-detached-

Credit utilization has always been a big piece of the beacon score, and by the tone of this article, it is potentially going to become a larger piece. Credit scores impact not only rates but the amount and type of financing clients will qualify for. http://www.mortgagebrokernews.ca//broker-equifax-has-chang

Even more reason to use a Mortgage Agent. When one Lender eases off, we have others to choose from! http://www.mortgagebrokernews.ca//leading-lender-curbs-mor

With rates so low a 5 year term makes sense currently, but can still result in very high penalties if the client is with one of the Major Banks and breaks it during the term, so the shorter term may be a better option. However, qualification will be at the benchmark rate of 4.64% so that needs to be taken into consideration. Be sure to speak with a Mortgage Professional to ensure the product you are getting is best for your needs. http://www.mortgagebrokernews.ca//shift-to-shorter-terms-f

IMPORTANT LENDER INFORMATION FOR FORT MCMURRAY RESIDENTS: Our thoughts are with those in Fort McMurray as they struggle with the devastation around them and not knowing if they will have a home to return to. If you know of anyone out there, the Lenders are offering assistance in various forms. Here are the contact numbers for some that I have put clients with, but all Banks will have something on their website. MCAP Homeowners Impacted by Wildfires in Fort McMurray, Alberta... Our thoughts are with those affected by the wildfires in Fort McMurray, Alberta and we recognize the immediate personal loss is immeasurable. If you are one of our customers affected by this tragedy, please contact us at 1 800 265 2624. SCOTIABANK Scotiabank supports customers affected by wildfires in Fort McMurray Scotiabank is committed to helping its customers impacted by the wildfires in Fort McMurray. As our customers and communities regroup, we are here to help. As our customers and communities regroup, we are here to help. We’re offering flexibility to affected customers in a number of ways to meet individual needs which can include payment deferrals on loans, mortgages and credit cards, and fee reimbursement for unplanned transactions. Customers are encouraged to speak to a Scotiabank representative to discuss individual circumstances and needs. Personal and Small Business customers who are affected by the wildfires can call 1-800-4SCOTIA to find information on local branch availability, to discuss their financial needs and to bank by phone. For Commercial Banking customers, please contact your Client Relationship Manager, or the Business Service Centre at 1-888-855-1234. For Creditor Insurance inquiries, please contact Insurance Canada Service Centre at 1-855-753-4272. FIRST NATIONAL Assistance for customers affected in Fort McMurray For our customers who are affected by the fires in Fort McMurray and area, please contact our toll-free number at 1.866.557.5509 and a representative will be able to advise you of available assistance options.

We are starting to see a frenzy of rate hikes. According to the latest tweet by Canadian mortgage trends, we haven’t seen the 5 year yield at levels like this since before Christmas. Ensure your clients are pre approved so their rate is held for 120 days. Click on the link below to see the trend. http://www.mortgagedashboard.ca/en/home

Interesting stats on the market for February. There is definitely pent up demand in Oakville, coupled with very low mortgage rates, makes for a brisk market! http://business.financialpost.com//toronto-housing-market-

Interesting summary of the Hamilton and Toronto markets. http://www.mortgagebrokernews.ca//winners-and-losers-in-cm

This is a reminder for the new down payment calculations that take effect next Monday. Note the applicable closing date for the old rules. It is past the typical 120 day rate hold, so for a closing July 1st the soonest the rate would be set is March 3rd.

Deposit accounts are no longer reserved for the Big Banks as with mortgages, there are other options providing very competitive rates and products worth consideration. http://www.mortgagebrokernews.ca//broker-channel-players-m

The Bank of Canada kept the overnight rate the same, so no change to variable mortgages or lines of credit. However, even though prime hasn’t moved, the discount off prime for variable mortgages has increased by as much as .65bp, only .10 and .30 off prime depending on the lender. We can’t predict where rates are going lately by simply watching prime or the bonds. http://www.mortgagebrokernews.ca//bank-of-canada-announcem

FAQ’s to the recent change to minimum down payments. Call us for any further clarification required. http://www.fin.gc.ca/afc/faq/hdpmeh-mfperpc-eng.asp

The Government hinted on an increase to down payment and they have followed through effective February 15, 2016. More will be required for homes over 500,000. http://www.mortgagebrokernews.ca//finance-minister-announc

Further Government changes to the Mortgage Industry may be forthcoming. Could make the price range near 1 million less attainable for hi ratio buyers. A sliding scale structured as follows may be recommended: Homes costing $0 to $500,000 would require at least 5% down Homes costing $501,000 to $700,000 would requires at least 7% down Homes over $700,000 would require 10% down http://www.mortgagebrokernews.ca//minimum-downpayment-coul

Determining factors for credit bureaus with helpful explanations easy for clients to understand. http://www.lauriefurness.com/credit_report.pdf

Ontario backs down on municipal land transfer taxes, as they would add thousands to the cost of homes. http://toronto.ctvnews.ca/land-transfer-tax-not-permitted-o

As a Broker, my role is not simply to get the best rate, but also advise on products and offer guidance on price range, affordability etc. Take some stress off your clients and have them call us. http://www.mortgagebrokernews.ca//canadians-stressed-but-b

It is to be expected that first time buyers wouldn’t be as confident and have more questions than a repeat buyer. However, don’t assume that your vendor doesn’t need help with their financing. They have more ‘parts’ to their transaction should they port their mortgage? Can they increase it? Should they pay the penalty and start over with their current Lender or elsewhere? Ensure all your clients get the best advice have them call us. http://www.mortgagebrokernews.ca//firsttime-buyer-habits-r

Good Afternoon. The 5 year bond has crept up rather quickly from .77 Oct 2 to 1.03 today. The majority of Lenders have increased their fixed rates by 10 20bp for the 5 year terms, but all terms have increased slightly. Although prime has not moved, the discount off prime has reduced for variable mortgages. There are still ‘specials’ out there, so be sure to get approved sooner than later.

Great insight into the ‘next’ generation of home buyer’s expectations. http://www.moneysense.ca//buying-a-house-the-dream-hasnt-/

More Canadians are becoming self employed either by choice or not! This is definitely a product where the Lenders have different policies. Ensure your client has availability to many options by having them call us. http://www.mortgagebrokernews.ca//brokers-prepare-to-serve

Let's go Jays!!

We can argue it is an increase in good debt vs. bad i.e. unsecured debt. However, we do need to realize that rates will not remain at this level forever, which could cause hardship for some. http://www.mortgagebrokernews.ca//mortgages-push-household

TD’s outlook on rates until 2019. If correct, variable mortgages will increase by 2.5% in the next 4 years virtually doubling payments. If the bonds increase to 3.3%, that would also equate to a potential increase of 2.5% to 5 year rates which is also almost double today’s rates. Let’s hope they’re wrong! However, it appears that we have another 1 1.5 years before there will be upward pressure on rates. http://www.mortgagebrokernews.ca//what-can-brokers-expect-

The early bird doesn't always get the worm! TD trumped by the other 5. Prime is now 2.70% making variable 2.05% and secured lines of credit at 3.20%. http://www.mortgagebrokernews.ca//td-cuts-rate-12-minutes-

TD has responded to the BOC .25 cut with a .10bp reduction in prime. This will affect variable mortgages and secured lines of credit only, not fixed products. New variable mortgages will be around 2.15% and lines of credit 3.25%. Question is, how long will it take for the rest to follow suit? http://www.theglobeandmail.com//td-cuts-p/article25515826/

Current volume of Mortgage Matters for your information.

Just a reminder that as of June 1st premiums for purchases with less than 10% down will increase. To qualify, purchases need to be submitted to the Lender by May 28th. Preapprovals do not apply. http://www.cmhc-schl.gc.ca/en/co/moloin/moloin_025.cfm

Stats confirming the swing from variable to fixed terms for clients to take advantage of these historically low rates. The spread isn’t there at this time to offset the risk of prime rising, especially if they have bought to the max of their ratios. As well, a great reminder, the mortgage is more than the rate. http://www.prnewswire.com//canadians-increasingly-opting-f

Risk based pricing has been adopted by the Insurers. Less down, greater risk = higher premiums. http://www.canadianmortgagetrends.com//behind-cmhcs-premiu

Another example of the downside to a collateral charge. TD will register for: the mortgage amount; the purchase price; or up to 125% of the purchase price. It is in their commitment and clients need to choose the amount being registered. http://www.mortgagebrokernews.ca//td-under-pressure-for-co

Genworth has followed CMHC’s lead and will be increasing their premiums for clients with less than 10% down effective June 1st. Please ensure any of your clients who are affected by this are aware. Remember, there is 8% PST on the premium which will slightly increase their closing costs as well. http://www.mortgagebrokernews.ca//higher-rates-on-the-hori

Interesting that BMO’s announcement received so much press when we have had rates lower than that for weeks. Further proof your Bank is not always looking out for your best interest. http://business.financialpost.com//spring-mortgage-market/

Interesting stats confirming how our industry is changing from face to face to online..... http://www.mortgagebrokernews.ca//insight-into-online-rate

This is an interesting way to market a condo project! And, quite the price! However.....316 sq ft?? http://www.mortgagebrokernews.ca//developer-buydowns-the-n

This is not great news for investors in Hamilton, especially those buying for students. http://www.mortgagebrokernews.ca//proposed-amendment-could

Definitely a tough market in TO with the million dollar price limit by Insurers and the sliding scale over 1.2 million with most Lenders. http://www.msn.com//that-dollar1-million-toront/ar-AA9TbhP

This is a good example of how Banks can change the terms of their product mid stream. Many clients think their line of credit rate won’t change because the commitment says prime +.50. At least one Bank registers for P+10, so they have a lot of room to increase if they want. http://www.mortgagebrokernews.ca//big-bank-makes-major-cha

Here is a blog from Pattie Lovett-Reid, Chief Financial Commentator, CTV News, commenting on how variable mortgage payments don’t change when prime does. While that is true for some Institutions, it isn’t for the majority. When the payment remains the same, it can have a negative impact when prime rises. To ensure your clients know what they’re getting, have them call us. http://canadaam.ctvnews.ca//fixed-vs-variable-rate-mortgag