Mortgage Bytes

• Correction:  Yesterday's story led to some confusion about N-Brook, for which we apologize. N-Brook is in a solid lending position and accepting new deals according to the company.
• Home prices in Canada's biggest cities are up 11.6% since November 2006.  Not coincidentally, Canadian mortgage credit is up a projected 11.7%.
• It's a record year for home sales in Toronto. Sales in 2007 are almost double what they were at the previous 1988 market peak. The average home costs $393,747.
• Edmonton's bull market in real estate is fizzling. Royal LePage says prices will increase 1% next year vs. 35% in 2006. Calgary and Vancouver are expected to rise 4%.
• There are reports that appraisers are getting more conservative in their valuations of Canadian homes due to the run-up in home prices and looming credit worries.
• 140 Ontario lawyers are being investigated for involvement in mortgage fraud.
• Laurentian Bank, like many lenders, had higher mortgage funding costs in the 4th quarter.
• Mortgage Alliance is now offering clients their credit reports and credit monitoring for a discounted fee.
• MortgageBrokers.com is now using Kendrik to help train it's mortgage agents.
• CIBC is promoting its cash-back mortgage in lieu of a rebate so Toronto buyers can pay their land transfer tax.  We'd rather have a rebate, other things being equal.
• TD now offers a "Green Mortgage" for the environmentally conscious. The rate is high at 1% below posted rates, however. You might be better off getting a loan somewhere else and donating the money you save to a "green" charity.

Comments

[JB]

Why would you rather have the rebate in lieu of the cashback? In the end they are virtually the same thing, you end up paying a higher rate for for some monetary value up front. The rates vs amount back are similar because both lenders have an equivelent premium they wish to earn off of each mortgage.

[Canadian Mortgage]

Hi JB,

Good question. The point was just that, with "other things being equal," it's nice to have a rebate you don't have to pay back. Other things being equal implies the same rate, etc. for each mortgage. That may or may not be the case, depending on what rate you negotiate with each bank.

The good news is that it's now easy to play all the banks against each other on this particular promotion. In the end, however, you still may find the best deal with a non-bank lender because of their interest rate advantage.

[Canadian Mortgage]

One more thing. Just for fun, we've asked BMO, TD, and CIBC for the details of their fine print. We'll post the terms that apply to each of their rebates/cash-back offers upon their reply.

[JB]

Thanks for the reply