Lending Rules Getting Tighter

As you may know, the lending rules have been getting increasingly tighter making it harder for people to qualify for mortgages but up until now, the rules have been predominantly geared to those with less than 20% equity in their homes.

Sadly there are new changes proposed which will affect those with more than 20% equity. This coupled with raising interest rates means those who are sitting on the fence on making a move with their financing may want to act quickly.

What You Need To Know

The Office of the Superintendent of Financial Institutions (OSFI) released draft changes to Guideline B-20 for public consultation. The B-20 Guideline establishes OSFI’s expectations for prudent residential mortgage underwriting and is applicable to all federally regulated financial institutions.
OSFI is proposing changes that align with their July 16 letter and strengthen the expectations they have in a number of specific areas including:
• Requiring a stress test for all uninsured mortgages of at least 2% above the contract rate
• Requiring that LTV measurements remain dynamic and adjust for local market conditions where they are used as a risk control, such as for qualifying borrowers
• Expressly prohibiting co-lending arrangements that are designed, or appear to be designed to circumvent regulatory requirements
• The deadline for a response from the Mortgage Professionals Canada association is August 17, 2017 therefore we hope that the above concerns are addressed and not implemented.

As always, if you have questions or concerns, feel free to contact me anytime!

Bank of Canada maintains overnight rate target at 1/2 per cent

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.
Inflation in Canada is evolving broadly as expected. Total CPI inflation remains near the bottom of the Bank’s target range as the disinflationary effects of economic slack and low consumer energy prices are only partially offset by the inflationary impact of the lower Canadian dollar on the prices of imported goods. As all of these factors dissipate, the Bank expects inflation will rise to about 2 per cent by early 2017. Measures of core inflation should remain close to 2 per cent.

The dynamics of the global economy are broadly as anticipated in the Bank’s October Monetary Policy Report (MPR), with diverging economic prospects and shifting terms of trade. China continues its transition to a more sustainable growth path and the expansion in the United States is on track, despite temporary weakness in the fourth quarter of 2015. The U.S. Federal Reserve has begun to gradually withdraw its exceptional monetary stimulus. While risks to the world outlook remain and have been reflected in sharp price movements in a range of asset classes, global growth is expected to trend upwards beginning in 2016.

Prices for oil and other commodities have declined further and this represents a setback for the Canadian economy. GDP growth likely stalled in the fourth quarter of 2015, pulled down by temporary softness in the U.S. economy, weaker business investment and several other temporary factors. The Bank now expects the economy’s return to above-potential growth to be delayed until the second quarter of 2016. The protracted process of reorientation towards non-resource activity is underway, helped by stronger U.S. demand, the lower Canadian dollar, and accommodative monetary and financial conditions. National employment remains resilient despite job losses in the resource sector and household spending continues to expand.

The Bank projects Canada’s economy will grow by about 1 1/2 per cent in 2016 and 2 1/2 per cent in 2017. The complex nature of the ongoing structural adjustment makes the outlook for demand and potential output highly uncertain. The Bank’s current base case projection shows the output gap closing later than was anticipated in October, around the end of 2017. However, the Bank has not yet incorporated the positive impact of fiscal measures expected in the next federal budget.

All things considered, therefore, the risks to the profile for inflation are roughly balanced. Meanwhile, financial vulnerabilities continue to edge higher, as expected. The Bank’s Governing Council judges that the current stance of monetary policy is appropriate, and the target for the overnight rate remains at 1/2 per cent.
Information note:

The next scheduled date for announcing the overnight rate target is 9 March 2016. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR on 13 April 2016.

Media Relations
613 782-8782
Ottawa, Ontario
20 January 2016
Available as: PDF

Bank of Canada Rate Update!!!

Bank of Canada maintains overnight rate.saving money

Yet again, the Bank of Canada has opted to keep the target for the overnight rate steady at ½ percent-meaning variable rate mortgages won’t be moving any time soon.

The Bank attributed it’s move (or lack thereof) to weaker-than-expected global economic growth and uncertainty surrounding China’s transition to a slower growth path (which is putting downward pressure on energy prices). The US economy, on the other hand, is continuing to pick up steam-which is good news for Canadian exports.

Canada’s economy has rebounded from the recession we were experiencing earlier this year. Non-resource sectors are benefiting from previous monetary policy actions and depreciation of the Canadian dollar, the Bank says. Households are continuing to spend at a moderate pace. Lower prices for oil and other commodities, however, are dampening business investments and exports in the resource sector.

It’s these lower oil and commodity prices that are causing the Bank to revise its economic growth forecast for 2016 and 2017. Now, the Bank projects real GDP will grow by just 1% in 2015 before firming to about 2% in 2016 and 2.5% in 2017. The Bank is now saying the Canadian economy will return to full capacity by mid-2017.

If you have any questions about your variable rate mortgage-or even your fixed-rate mortgage-please don’t hesitate to reach out to me.


Marla Daniels

Bank of Canada Rate Update

New HomeGood news for variable clients and those with lines of credit.

Bank of Canada maintains overnight rate!

Despite global economic uncertainty fuelled by the situation in China, the Bank of Canada is opting to maintain it’s target for the overnight rate at 0.5% this month-although some economists believe another rate cut may still be in the cards later this year.

With total CPI inflation within the target range (albeit near the bottom), and core inflation close to 2%, the Bank believes the current stance on monetary policy is appropriate to keep it in check. And while Canada’s resource sector is still adjusting to lower oil and commodity prices, spillover to the rest of the economy is minimal with household spending and a solid US recovery picking up the slack.

Many believe the Bank’s rate announcement was positive, overall, and while another rate cut this year was highly possible just a few short weeks ago, it’s by no means a certainty. But then again, when is a rate change ever a sure thing? As always, only time will tell. In the meantime, keep paying a little extra on your variable rate mortgage-and tune in on October 21 to find out the Bank’s next rate decision.


Marla Daniels
Broker Owner, Mortgage Consultant
Mortgage Insight – The Mortgage Centre
Phone 250-733-2201
Toll Free 877-733-2201
Fax 250-733-2205
Toll Fax 877-733-2205
Website www.marladaniels.com

Kids Selling Real Estate

Kids Selling Real Estate

This was too cute not to post and very accurate!

Choosing the right Mortgage Broker can save you $1,000's!

saving moneyFinding the best rate is a FREE service to our clients!  More lenders are competing for your business.  That’s why more than two out of five Canadian mortgages are now handled by a Mortgage Brokers.

Just as an Insurance Broker finds you the best deal on insurance, a Mortgage Broker finds you the best deal on a mortgage.  We have over 50 lenders to chose from which offers a wide variety of rates to ensure you get the type of loan you want, not the only loan your bank offers.

I provide easy-to-understand terms and explanations.  I know what GDS, PIT, ARM, etc mean and can explain these  and everything you need to know in terms you understand so you go into your contract feeling knowledgable.

I only get paid when your deal funds therefore it’s in my best interst to make sure you get the best mortgage I can find.  The best part is, in most cases, the bank pays my finders fee so you get the best service, the best rates and it won’t cost you a dime!

Want to know more?  Call me anytime and I would be happy to look at your details.

Marla Daniels


dreaming of a houseMany people look at purchasing a foreclosure because the price is right. If you are thinking of buying one, here are some things you should think about.

Once a property is listed as a foreclosure on the MLS, it has gone to a court ordered sale. The dealings will be through the realtor the bank has appointed therefore there is no way of dealing with the seller directly because the bank is now the seller.

If you are lucky enough to be the first accepted offer on a foreclosure, then you will usually have time to organize your financing like any other purchase. Your realtor will likely write in a financing clause in your favor which will give you a week or so to get your documents together before you have an unconditional offer. The things your bank will require are verification of income, down payment, appraisal etc. This is great because you will have time to remove your financing with confidence that you are in a position to close on the deal.

Most buyers looking at a foreclosure are not the first bid in and in this case there are more risks in trying to purchase the property. The way you will present you offer will be in court without the opportunity to remove a financing condition. The reason is because the bank will not begin to work on your application specific to the property until you have the right to finance it – meaning until you have an accepted offer. This means if you win the bid in court and don’t get your financing together you must be prepared to close the deal in cash.

Most people are not in the position to close the deal in cash so being preapproved is extremely important in this case. You should know how much you can afford in advance. You should also have your lender review your income, debts, down payment etc as well.

To the best of my knowledge, all lenders will require an appraisal and sometimes and home inspection on a foreclosure. If the property is not in decent condition, the bank may not want to finance the property regardless if you have been preapproved so it is a good idea to do the home inspection/appraisal before you go to court at your own expense. It is also a good idea to see if your lender will review these items in advance to ensure this would be a property they would consider financing.

Another tip would be to research the property to make sure it has never been deemed a grow-op.
Even if the property has been remunerated, many lenders will not touch the property meaning you will have to scramble to get another lender to look at the deal.

If you have questions or concerns about this subject or any other mortgage financing, don’t hesitate in giving me a call.

Marla Daniels
Mortgage Consultant
Prolink Mortgage (BC) Inc
Phone 250-733-2201
Toll Free 1-877-733-2201


In the past few years, the Minister of Finance has been imposing tougher lendering rules making it much harder for the average person to qualify for a mortgage. Even though interest rates are at an all time low, it’s a very good idea to have all of your ducks in a row before writing an offer to purchase, refinancing or renewing.

Getting preapproved could save you a big headache when it comes time to finalizing your mortgage. I recommend having all your documentation reviewed in advance because what you think was acceptable a few years ago, may require more paperwork and could leave you scrambling to meet your financing conditions.

Below is an article I found interesting yesterday. I encourage you to read it and let me know your thoughts!

Marla Daniels

BoC Hints at Mortgage Tightening
by Jamie Henry | 23 Sep 2014

The Bank of Canada believes regulation and supervision – not monetary policy – are the keys to aiding economic recovery. Is this a hint at further housing finance tightening?

“We have made it clear that household imbalances are at the top of our list of vulnerabilities. But monetary policy is not the primary tool to address these risks,” Carolyn Wilkins, senior deputy governor for the Bank of Canada said in a speech Monday. “Regulation and supervision, along with targeted macroprudential actions, are more effective lines of defense.”

While Wilkins doesn’t outright point to mortgage rule tightening, her footnotes following a statement that “defenses have been strengthened a number of times since 2008” point to exactly that sort of tinkering.

“The Minister of Finance has tightened mortgage insurance rules, the Superintendent of Financial Institutions has developed stronger mortgage underwriting principles and the Canada Mortgage and Housing Corporation has improved its programs,” the footnote and the end of the speech transcript reads.

This, however, follows Finance Minister Joe Oliver’s statement that the government will not make any rash decisions when it comes to reining in the housing market.

“We’re looking at things, but we’re not going to be doing anything dramatic,” Oliver said in an interview in Cairns, Australia on Friday, according to the Financial Post. “We don’t see the need for it.”

Wilkins’ speech was given about the underwhelming economic recovery seen since the 2008 recession.

“Our approach is to consider the main sources of uncertainty in our deliberations on how best to achieve our inflation target,” Wilkins said. “This helps us avoid making big errors that are difficult to correct.

Policy Updates: Mortgage Insurance Premiums

mortgage insuranceIn April 2014 the Office of the Superintendent of Financial institutions (OFSI) released a set of Mortgage Insurance Underwriting Guidelines.

In order to comply with OFSI’s new B-21 Insurance Guidelines, our partners at Genworth and CMHC recently announced new pricing for mortgage insurance premiums.

Download Policy Updates on Mortgage Insurance Premiums here.

The Hidden Costs of Home Ownership

Cost of Home ownershipThese costs can come as a shock to first time home buyers and must be taken into serious consideration.

In his three decades as a real-estate agent in North Vancouver, B.C., Kelly Gardiner has seen a lot of different reactions from people buying a house for the first time. Usually, they’re excited, nervous and overwhelmed. But there’s another feeling that sometimes pops up — utter shock — not from the purchase itself, but because of all the associated costs people never even thought of.

Taxes, Legal Fees, Home Inspection, Land Survey, Closing Adjustments and more.
Read the full article of “The hidden costs of home ownership” here.