Bond yields have risen fairly significantly over the last two weeks, giving some pressure to current mortgage rates and more notably, our 2.99% specials. Bank of Nova Scotia withdrew their 2.99% promotion this week and I wouldn’t be surprised to see more lenders do so.

There has also been more discussion this week about upcoming mortgage changes that the government may announce along with the upcoming budget on March 29th. There have been a whole range of recommendations from both the private sector (TD Chief Economist Don Drummond) and OSFI (Office of the Superintendent of Financial Institutions) that include:

  • Increasing minimum down payment from 5% to 7%
  • Reducing the maximum amortization to 25 years
  • Cash back should not be considered part of down payment (eliminates 100% financing)
  • CMHC premiums to be included in ratios
  • Increasing CMHC premiums
  • Reducing the amount of “exceptions” made to approve deals

This isn’t an exhaustive list but highlights some of the ideas on the table. Once Mark Carney announces his budget in a week’s time, we’re likely to see the final product of the discussions that have been taking place between the government and the country’s top economists.

Inflation numbers will also be released this Friday which may influence the final version of the mortgage changes that we see.









Lee Welbanks is a Mortgage Broker with The Mortgage Centre and trusted Spring Realty mortgage expert. To learn more about your funding options please Contact Lee today. Lee will be posting these informative “Market Minutes” each Wednesday for you to enjoy. Please remember to subscribe to the Spring Realty Insider list to receive new blog post notifications, featured properties and insider access to Toronto’s hottest new developments.