Mortgage Bytes

  • Self-Employed-Mortgages Self-employed? CMHC’s Self-Employed Simplified program lets you buy a new home with only 5% down.  If your credit is good, you’ll get fully discounted rates and up to a 40-year amortization.  Very little documentation is required but you’ll need at least 2-years of the same type of employment. E-mail us or your favorite mortgage planner for details.
  • Reliant Home Mortgage has suspended it’s 55-year amortized mortgage due to financing challenges brought on by the subprime lending crisis.
  • Mortgage interest costs have jumped 6.1% in the past year.
  • “The really good thing about Canada is we still grant credit based on the person’s capacity to pay, which was one of the problems in the U.S.” – Catherine Adams, VP, RBC Financial Group via the Globe & Mail
  1. That’s an interesting quote you have there on the last point. Kind of exactly the opposite of the link the other day you had a link to MyNext with options like:
    “A mortgage that doesn’t require you to verify your income; just tell us what you earn. A much simpler process, especially if your taxable income is not an indicator of your ability to carry a mortgage.” . . .
    It seems that the good thing about Canada will be whittled away by companies like this.

  2. Hi Traciatim,
    You make an interesting point. I think the link you’re talking about is:
    http://www.mynext.com/myAccessible.shtml
    It should be noted that lenders offering these types of products generally verify a variety of other information during their underwriting process. Remember, they have to satisfy investors that the alternative mortgages they’re selling have adequate risk profiles. It’s also sometimes suprising to learn that many products that seem “alternative” are actually insured by CMHC and other insurers.
    Long story short, Canada is still very prudent in its underwriting. Mortgage innovations come down the pipeline every week and, while many products are subprime and carry higher risk, they can and do serve valid purposes.
    Have a good weekend,
    Rob, Co-Ed., CMT

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