MLN NewsStream

Canadian fixed mortgage rates are so tied to U.S. monetary policy, they should probably ask for a green card.

Most borrowers don’t realize how important this cross-border relationship is, so a touch of Fed history offers enlightenment.

Looking at the six easing cycles prior to the pandemic, what we learn is that once the Fed makes its initial rate cut:

Effective November 21, people with uninsured mortgages will be able to switch lenders without passing the federal mortgage stress test.

That follows a similar move last October when the government clarified that people with transactionally insured mortgages can also switch lenders without a stress test.

As for folks getting low-risk bulk-insured mortgages, so sorry. Your government says you don't get the same treatment. As it stands, the Department of Finance has refused to let insurable borrowers switch lenders without a stress test.

That makes about as much sense as an inflatable dartboard. But let's not give up hope just yet.

There's now one less direct-to-consumer (DTC) mortgage provider in Canada. Questrade's online mortgage division has officially gone offline.

It lasted a whole 30 months—shorter than most car leases.
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In a significant win for consumers, the Office of the Superintendent of Financial Institutions (OSFI) has kicked the stress test to the curb for straight switches of uninsured mortgages.

Here's what Finance Minister Chrystia Freeland just said about the minimum default-insured down payment on $1,000,000 to $1,499,999.99 homes starting December 15, 2024: