• The drop in bond yields has been stunning the past two weeks.  On Thursday the 5-year bond closed at 2.95%, the lowest yield in over 27 years!  Can bond yields go much lower before bouncing?  We’ve got no clue…but we’re glued to our monitors.  (Chart from Bank of Canada.)
• Is Canada’s economy really that doomed? 
  • “No,” says Laurentian. 
  • “Yes” says Garth Turner. (Worth a read just to see Jonathan Chevreau call 40-year amortizations “atrocities.”)
  • “No” says CIBC.
  • Don’t count out the U.S. for long says the Leader-Post.
• The Calgary Real Estate Market Blog writes about how mortgage spreads might help real estate timing.
• MoneySense reminds us that our real estate boom is not indefinite.  They note the average house would cost $10 million by 2037 if price gains maintained their pace of the last nine years.
• Lenders will tell Michael Jackson to “beat it” if he doesn’t start paying his mortgage.
• The average Vancouver detached house is now $921,000!
• CREA says “consumer confidence, employment and affordable interest rates” will keep Canada’s real estate market afloat in 2008.
• Canada’s ABCP debt restructuring is delayed again.  Does anyone believe the investor committee’s deadlines anymore?
• Canadians have record non-mortgage debt but they’re still paying their bills on time.  Equifax says Canada’s delinquency rate is now just 1.2%, versus 1.6% in 2005.
• As home prices keep falling, Americans now have more mortgage debt than home equity for the first time on record. 
• Million Dollar Journey has an excellent Smith Manoeuvre resource page.
• The Times Colonist reminds us not underestimate closing costs.
• There are record foreclosures in the U.S. but it’s not anywhere near as bad here. In Toronto there are approximately 315 power of sale homes–about the same as last year.
• RBC gained market share last quarter as its mortgage volume increased 15% year-over-year. The jump was driven largely by “strong demand for home equity lending,” among other things.
• Desjardins had record profits in 2007, along with 7.4% growth in their mortgage business. The company is the dominant mortgage lender in Quebec, with a 39.2% market share.
• IMBA is accepting nominations for its Ontario “Broker Recognition Awards.” Nomination form.

Mortgage Planner Notes

• Mortgage Architect’s Marg Green says lenders are making “fewer exceptions on borderline deals.”  She says, more and more, “They are sticking to their guidelines…”
• If you’re a mortgage planner, Abode Mortgage has a compelling “A” product suite. They pay appraisal costs up to $500, have solid rates, offer excellent compensation, and can underwrite deals as non-prime if they don’t fit “A” credit guidelines.
• Bridgewater Bank now does 2nd mortgages behind its first mortgages…to 95% loan-to-value and with 40-year amortizations.
• Did you know?  Gifted down payments and borrowed closing costs are both acceptable under AIG’s Equity Assist program.  Source: MyNext Mortgage
• Xceed’s self-insured Flex program is designed for self-employed borrowers.  Its highlights:
  • Gifted or borrowed downpayments are permitted
  • 2nd or vendor-take-back mortgages are allowed behind Xceed’s first
  • No NOA’s required
  • Only one month of down payment verification and no proof of closing costs
  • Registration can be in a company name (with a personal guarantee)

Last modified: April 25, 2014