NHA MBS Levels are Dropping – What does that mean?
To really understand what it means when NHA MBS levels fall, you first need to know what the NHA is, and what its MBS are. And even though it might all sound like too much, it’s really very simple, and a concept that most of us are already familiar with. The NHA is the National Housing Act, an act implemented in 1983 and that is now regulated by the CMHC – the Canada Mortgage and Housing Corporation. The NHA’s MBS are mortgage-backed securities. In other words, these are the mortgages insured by the CMHC. And these insured mortgages have recently made news as the number of them dwindles. But what does that really mean?
Read moreThe One Time You Need a Credit Card
Generally, credit cards bring a kind of debt that you don’t want. They come with high interest rates and are considered ‘bad debt,’ since you’re not actually investing in anything for your future when using them. However, there is one time you need a credit card, and that’s if you run a home business.
Read moreClosing Costs, Part 1: Recurring and Non-Recurring Costs
The one term you’ll hear a lot when buying a home is “closing costs.” At first, it may appear that everyone’s getting all worked about them, but you. How bad can closing costs be after all? And why are your real estate agent and your mortgage broker talking about things like having the seller pay them? Closing costs can add up to a lot of money, and this is why every expert will advise you to take them seriously when thinking about your future mortgage. In this first part of our closing cost mini-series, we’ll take a look at the two different types: recurring and non-recurring.
Read moreBring on 2012, says Canadian Businesses
Prime Minister Stephen Harper made the announcement on Thursday that he’s expecting the world to go into a “full-blown global recession” by 2012. And while that news is usually enough to have any Canadian business owner running for their calculators, and trying to figure out how they can markup prices to account for the loss, Canadian business owners are doing the exact opposite. In fact, most Canadian business owners believe that the year 2012 will be a prosperous one, global recession or not.
Read moreDifferences Between Mortgage Brokers and Mortgage Bankers
When first applying for a mortgage, you might find that there are mortgage brokers and there are bankers. But what about when you merge the two, and get a mortgage banker? What is a mortgage banker, and how do they differ from mortgage brokers?
Read moreHow Does a Second Mortgage Differ from a First Mortgage?
Last week we covered the differences between second mortgages and home equity loans. We began that post by saying that a second mortgage is any mortgage taken out after, or in addition to, the original mortgage on the home. But aside from the fact that second mortgages are taken out in addition to the original mortgage, what are the differences between a first mortgage and a second mortgage?
Read moreMortgage Prepayment Fees Land CIBC in Court
It’s not uncommon for banks and mortgage lenders to charge prepayment fees on their mortgages. Even though you’re helping the bank by paying off more earlier, you’re also hurting them by taking away the money they would gain on the remaining interest of your loan. But even though most lenders have prepayment fees, they still need to adhere to rules and guidelines when setting those fees. Recently, CIBC has broken these rules and charged their customers far too much in prepayment fees and that’s how they’re now making mortgage news – by facing a class-action lawsuit.
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