My Mortgage Blog

Home Trust
The Home Capital controversy has been in the headlines for a few months now. While it shook the market somewhat, and the rumour mill was rife with talk of market collapse, etc. none of that has come to pass. 

Based in Toronto, Home Trust is one of Canada’s largest alternative lenders and is an important player in the country’s housing market.

Earlier this year, The Ontario Securities Commission (OSC) called out some of the company’s officials for misleading disclosure. Basically, the  OSC alleged that the company misled its shareholders by disclosing too late that an internal investigation found evidence of fraud and had cut ties with 45 brokers.

Account holders started to withdraw their money, which resulted in a small "run” on deposits. Shareholders started to sell, resulting in a drop in the price of shares.

Enter Warren Buffet. His company, Berkshire Hathaway, felt confident in Home Capital and invested $400 million dollars along with a $2 billion line of credit. He threw Home Trust a lifeline, while at the same time, created confidence in the Canadian housing and mortgage market.

Depositors are now returning, lured somewhat by an excellent interest rate on deposit accounts. And mortgage brokers are testing the Home Trust waters again.

Interest rates
Since the October 3, 2016 rule changes were announced, we knew that the market was headed for some challenges –  some housing markets have heated up and yet others have shown signs of weakness.  Since that time, interest rates have stayed low, and even gone lower. Two years ago, the Bank of Canada cut its overnight rate by 0.50% largely due to a rapid drop in oil prices.  There have been signals that as soon as the July meeting the Bank of Canada may raise the overnight rate (PRIME). In fact, the market has factored in a 70% chance of an increase by its October meeting.

Working with your Mortgage Professional
The real estate and mortgage industry is no doubt a competitive business. Changes in lender policies over the last few years have led to an altered mortgage landscape.  Yet, each year hundreds of thousands of properties trade hands. As a mortgage professional,  I have kept up-to-date on lender changes and can access banks, credit unions, trust companies, monoline lenders and private lenders on your behalf.

I take the time to first understand your needs, both short term and long term, then recommend the right mortgage and present options, whether it’s a straight home purchase, a refinance, a renewal, or an investment. 

Many clients are doing research online and I encourage that; however, there are many options and many scenarios.  It’s important to work with a professional who can help guide you through this new mortgage lending landscape.  

Simply, I am here to help.

Call me today!