Morgan Stanley’s CEO, John Mack, says the world’s credit crisis might be “in the final innings.”
“A clean credit history is your number one priority,” says Frank Napolitano of MortgageBrokers.com. “As far as lenders are concerned that’s what matters most. It used to be job history, but no more.” Napolotano also advises clients to hold their banks accountable: “When [banks] tell you ‘this is our best rate’, well it should be that and it shouldn’t depend on what a mortgage broker has offered.”
The Times Colonist writes that the “mortgage brokerage business is no longer Plan B. It’s booming as a one-stop shop with super-competitive rates that banks find hard to match.”
Ellen Roseman cites an example whereby it takes 16 years before one pays more principle than interest on a 25-year amortized mortgage. With a 40-year am. it takes 31 years she says. This is based on assumptions that will change, but she makes a point nonetheless.
Angus Reid says “27% of Ontarians would love to eliminate mortgage debt forever.” Mortgagors in that other 73% must make the banks quite happy.
Here are CMHC’s 2006 market share stats (the most recent available according to the Montreal Gazette):
CMHC issued insurance coverage for 631,191 properties
Coverage amounted to $291.4 million in premiums
CMHC had roughly 70% of the national mortgage insurance market
40% of the mortgage insurance market comes from eastern Canada, including Quebec
24% per cent comes from Ontario
36% comes from Manitoba westward.
64% of Canadian adults own a home.
This story has a good comparison of Canadian home price gains, by city.
Mortgage Industry News
CHIP is now offering reverse mortgages at prime + 1.5%. They call it “the lowest reverse mortgage lending rate in the country.” Seniors money, however, is quoted at prime + 1.25%. Seniors also lends up to 45% of a home’s value versus 40% at CHIP. To save interest, though, CHIP customers can choose to receive up to $1000 a month instead of getting a lump sum at closing.
FSCO has approvedIMBA’s Mortgage Agent Course and the IMBA Errors & Omissions Liability Insurance Policy. IMBA also has a nice new website.
CitiFinancial’s ex-bankrupt program is reportedly now being offered again.