• July - The Month Interest Rates Turned Upward

    Jencor Mortgage    |   

    Categories: calgary real estate , cmhc , Commercial Mortgage , Debt Consolidation , First Time Home Buyer Mortgage , Home Construction Loans , Mortgage Broker , Mortgage Companies , mortgage insurer , Mortgage Refinancing , Mortgage Renewal , New Construction Mortgage , real estate news , Spousal Buyouts


    After 7+ years of ultra low rates

    This is something that has been a long time coming.  There is a huge overhang of central bank debt around the world that now must be unwound. It will not be without pain. The following are a few articles on the subject that we hope will hep shed some light on what is happening and on what you can expect.

    How The Bank of Canada rate hike will affect borrowers

    Bank of Canada raisers interest rate for first time in 7 years


  • Rebuilding homes in Fort McMurray - Going faster than expected, CMHC says

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    Categories: calgary real estate , cmhc , Jencor News , Mortgage Broker , Mortgage Companies , mortgage insurer , Mortgage Renewal , New Construction Mortgage , real estate news , recreational properties

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    Rebuilding efforts in Fort McMurray, Alta., are running ahead of expectations, with reconstruction underway on one-third of the homes destroyed in last year’s wildfire, according to Canada Mortgage and Housing Corp. In a report Thursday, the federal agency said the rebuilding of 844 housing units has started and that number is expected to rise to about 1,000 this year. It said 122 of the projects were started last year and 722 in the first half of this year. CHMC market analyst Tim Gensey said the agency underestimated how many construction workers would come to Fort McMurray when it suggested last December only…


  • Mobile Homes Impacted by Mortgage Changes

    Jencor Mortgage    |   

    Categories: cmhc , First Time Home Buyer Mortgage , Mortgage Companies , mortgage insurer , Mortgage Refinancing , Mortgage Renewal

    New mortgage rules prohibit insured property from being refinanced and the fact that most lenders require mobile homes located in a mobile park to be insured, regardless of the amount of equity the owner has.

    A number of brokers are already reporting cases where their clients have tried to refinance only to find it wasn't possible, or having to use private lenders with a higher interest rate and fees from the lender and the broker.

    It has been noted that the restrictions aren't unique to mobiles homes, but can also include small condos under 550 square feet, homes on leased land, homes built using alternative building methods.

    "To be very fair to a private lender, they realize that the ability for them to resell that home in the case of default is now very small and so their risk increases quite a lot as well."  "They have a higher default on mobile homes and it cuts their losses that way, but that's still a very small number." (quote from Joel Olson, DLC Mortgage Expert in Kamloops)

    "Article - Steve Huebel June 12, 2017 - Canadian Mortgage Trends"


  • CMHC First Quarter Results

    Jencor Mortgage    |   

    Categories: cmhc , Debt Consolidation , First Time Home Buyer Mortgage , Mortgage Broker , Mortgage Companies , mortgage insurer

    Last week CMHC announced their first quarter results, and the Globe and Mail reported:

    "Steven Mennill, CMHC's senior vice president of insurance, said most of the drop in demand for portfolio insurance in the first quarter was the result of a premium hike CMHC introduced January 1 because of new capital requirements for mortgage insurers that were introduced by Canada's financial regulator.

    Mr. Mennill said CMHC doesn't know yet whether the drop in portfolio insurance signals a permanent shift in its business model or whether demand for the insurance product will swing back again.

    "It's not clear at this point whether either of these changes will be sustained over the long term," he said. "Portfolio insurance (demand) is largely a function of the overall sources of capital and liquidity and funding available to lenders in the system, which is affected by a wide range of factors. The cost of portfolio insurance is just one of them."

    The declining insurance volumes led to an 8.1% drop in premiums and fees earned by CMHC on new mortgage insurance written in the first quarter.

    We are just wondering, perhaps CMHC's premium volume drop, is because of not accepting application for single unit rentals, not accepting applications of refinances, not accepting applications for properties valued at over $1 million rather than a premium hike.

    CMHC used to promote itself as "helping house Canadians". CMHC now is in the business of preventing Canadians from achieving home ownership. Have all the changes CMHC instituted been in the best interests of the home buyer and mortgage consumer?

    It would be very nice to see a dialogues about the role of CMHC in Canadian Housing. The House of Commons Standing committee did received testimony on the subject. The role of CMHC in our economy and in the housing market needs to be openly discussed and understood. Top down dictates from such an important institution do not serve Canadian well.

    We all need to make ourselves aware of the government and CMHC's unintended consequences from mortgage rule changes. IF the VP of Insurance at CMHC is quoted as thinking the premium hike is responsible for the drop in revenue and not the restricted product offerings, perhaps more awareness is needed.

    Croft Axsen

    Broker Owner / President

    Jencor Mortgage Corporation