Banks Offering More Candy - The Mortgage Minute
March 15, 2012 - The Finance Minister would like Canadians to go on a debt reduction diet but banks, led by BMO, keep giving us candy in the form of record low rates on long-term money. There is growing concern in Ottawa about the amount of debt Canadians are taking on, and specifically, the amount of the debt that is being insured by CMHC. It's suggested that a rate increase of only 1.5% could trigger 'significant' defaults for the crown corporation. That means the government is more likely to create another round of changes to the mortgage rules before they try to raise rates. In the meantime, the big mortgage news this week is the pending sale of Firstline Mortgages by CIBC. Stay tuned to see how this one plays out.