CIBC Changes Its Mortgage Switch Special

CIBCCIBC has cut some sizzle from its popular “Mortgage Switch” campaign.

It has reduced the variable-rate discount to prime – 0.40% (from prime – 0.50%) and eliminated the promotional 3% cash back option on variable mortgages over $400,000.

These changes apply in all of CIBC’s distribution channels (i.e., Mortgage Centre brokers, CIBC branches, and CIBC/Home Loans Canada mortgage professionals).


Mortgage Renewal Wars

mortgage-renewal-warsAlmost 9 in 10 people stay married to their existing lender when their mortgage comes up for renewal. This is a war that banks are winning hands down.

Garry Marr did a piece that touched on client retention in the Post today. Further to his story, banks have been doing an incredible job of retaining customers. The fact that retention rates remain so high in the most competitive mortgage market of all time says something about the effectiveness of bank strategy.


Spectrum Canada Mortgage Services – Mortgage Advisors

Spectrum logo




Compant: Spectrum Canada Mortgage Services Inc.
Position Title:
  Mortgage Advisors
Years of Experience: 1-2 minimum
Licenses: BC Sub-Mortgage Brokers License
Location of Positions: Burnaby, B.C.
Applicants may contact: [email protected]

Mortgage Broker

Spectrum needs good brokers and we’re willing to pay to get them!

Are you an experienced BC mortgage broker? Are you frustrated and would like a change but nervous of making a move?

Spectrum has spent the last 12 years developing unique expertise to drive lead generation and increase closing efficiencies. We provide full training, a full coordinating and admin support team to handle the paperwork AND ALL LEADS ARE PROVIDED.

We have dramatically increased inquiries and need experienced brokers to join our Burnaby based sales team and we are offering A MINIMUM GUARANTEED BASE INCOME for 3 months to allow you to make the transition without taking the financial risk of a move.

If you have a proven track record of success in the industry we would love to talk to you. Please contact:

Derek Matthews – Senior VP, Marketing & Sales
Spectrum-Canada Mortgage Services Inc.
135-4400 Dominion Street
Burnaby, BC, V5G 4G3

Tel: (604) 676-2065
Email: [email protected]

TDS Ratio (Total Debt Service Ratio)

Lenders have long relied on two standard measures of one’s “ability to pay” their mortgage: 

Gross Debt Service (GDS): The percentage of the borrower’s income that is needed to pay all required monthly housing costs (mortgage payments, property taxes, heat and 50% of condo fees).

Total Debt Service (TDS):  The percentage of the borrower’s income that is needed to cover housing costs (GDS) plus any other monthly obligations that an individual has, such as credit card payments and car payments.

The acceptable ratios for both have generally been 32% and 40% respectively.

For people with very high credit scores, GDS requirements are often waived and the TDS maximum is slightly higher (44% as of January 2011).

2011 CMHC Mortgage Consumer Survey

2011-CMHC-Mortgage-Consumer-Survey More first-time buyers are arranging mortgages through brokers than ever before (48%). That will surprise some, given all the discounting and sales hiring going on at banks and credit unions.

That statistic and many others are in the just-released 2011 CMHC Mortgage Consumer Survey.

Among other things, the report also highlights emerging trends in online mortgage research. CMHC reports that over one in five consumers are now using the Internet as their sole source of mortgage information. That trend is still unfolding but as we’ve written before, the ratio of people who feel they can go it alone will grow—just as it’s grown in the online investing market.

Here’s a sampling of other key findings (italics ours):


Concentra Financial Closes Broker Arm

Concentra-Financial-MortgageYesterday the broker channel lost two prime lenders in one day: Concentra Financial and Macquarie Financial. Both announced they were terminating broker originations.

In Concentra’s case, EVP Don Hansen said the move was prompted by a “decision to use an alternate source for originating mortgages.” He referred to that source as “wholesale operations.” (We weren’t able to get more details on that in time for this story.)


Macquarie Transfers Broker Ops to Paradigm Quest & Canadiana

Macquarie-Paradigm-Canadiana Macquarie Financial Ltd., the 8th largest broker lender by volume, is removing its brand from the Canadian broker channel.

Paradigm Quest Inc. will now service all of Macquarie’s $8.5 billion mortgage book and 35,000 customers. Canadiana Financial, a partner company with Paradigm, will assume Macquarie’s broker origination functions.

Macquarie Financial’s current CEO, Grant MacKenzie, will join Canadiana Financial as CEO on July 1, 2011. Pamella Mulek will be Canadiana’s President & COO.