DLC BlueTree Mortgages West -Vancouver Island

04/13/2022

"Bank of Canada hikes rate by biggest amount in 20 years in push to tame red hot inflation".

The Bank of Canada hiked its benchmark interest rate by half a percentage point to one per cent on Wednesday, a sign the bank is making good on its pledge to battle runaway inflation.

12/09/2020

BOC holding steady as expected!

The Bank of Canada today maintained its target for the overnight rate at the effective lower bound of ¼ percent, with the Bank Rate at ½ percent and the deposit rate at ¼ percent.

06/22/2020

First Formal Remarks By Tiff Macklem, Bank of Canada Governor

https://mailchi.mp/dominionlending/sherry-cooper-governor-macklem-affirms-no-negative-interest-rates?e=5e4343e29f

06/08/2020

Great news today - we have an Mortgage default insurer who will remain status quo in underwriting guidelines. Whew! Home buyers rejoice!

** Important Genworth Update **

Genworth MI Canada Inc. Confirms that It Does Not Plan to Change Its Underwriting Policy

Toronto, ON (June 8, 2020) – Genworth MI Canada Inc. (the “Company”) (TSX: MIC) confirms that it has no plans to change its underwriting policy related to debt service ratio limits, minimum credit score and down
payment requirements. One of the Company’s competitors announced changes to their internal underwriting guidelines with respect to the aforementioned underwriting criteria on June 4, 2020.

“Genworth Canada believes that its risk management framework, its dynamic underwriting policies and processes and its ongoing monitoring of conditions and market developments allow it to prudently adjudicate
and manage its mortgage insurance exposure, including its exposure to this segment of borrowers with lower credit scores or higher debt service ratios,” said Stuart Levings, President and CEO.

06/04/2020

Sorry to report we have very disappointing news from CMHC today. Effective July 1 they will be:

--Reducing the shelter ratio we use from 39% to 35%
--Reducing the Liabilities ratio we use from 44% to 42%
--Disallowing borrowed / non-traditional down payments
--Increasing Credit Score requirement from 600 to 680

Attn all Home Buyers! Even if you have 20% down, this could affect your existing pre approval - please contact your Broker or Lender to re-run your numbers. Firm Approvals in place prior to July 1 will not be affected. More to follow as we all learn the impact of these new guidelines.

Meanwhile, in the wise words of the economist Sherry Cooper:

"Suffice it to say that this batters buyer and seller confidence and, all other things equal, has a net negative impact on the near-term housing outlook. Most importantly, in my view, these changes are unnecessary to protect the prudence of Canada's home lending practices. Mortgage delinquency rates are meager, and even the Bank of Canada's forecast is for delinquencies to remain less than 1% of all outstanding mortgages. Moreover, home buyers with jobs who meet former qualifications would undoubtedly have a longer than two-year time horizon when buying their first homes. They were already qualifying at the posted rate that is more than 250 basis points above the contract rate. If anything, the pandemic recession assures that interest rates will remain very low over the next two years."

https://mailchi.mp/57d7fc52ffd3/cmhc-makes-it-harder-to-qualify-for-an-insured-mortgage?e=f091e3193e

05/26/2020

04/05/2020

Interest Rates are plunging ...so why aren't mortgage rates?

Central banks around the world have slashed their benchmark interest rates to pretty much zero in an attempt to stimulate the economy by making it as easy as possible to borrow, spend and invest. But a curious thing is happening in Canada's mortgage market: rates aren't going down by as much as they...