--- title: | Mortgage Basics description: Mortgage Basics | --- [![Richards-Mortgage-Group-LOGO](https://www.richardsmortgagegroup.ca/hs-fs/file-2071180059-png/RMG-img/RMG-HomePage/Richards-Mortgage-Group-LOGO.png?width=350&name=Richards-Mortgage-Group-LOGO.png)](https://115190.hs-sites.com/richards-mortgage-group-home) [![facebook](https://www.richardsmortgagegroup.ca/hs-fs/file-2070806601-png/RMG-img/RMG-HomePage/fb.png)](https://www.facebook.com/richardsmortgagegroup)[![twitter](https://www.richardsmortgagegroup.ca/hs-fs/file-2071180019-png/RMG-img/RMG-HomePage/tw.png)](https://twitter.com/MortgageIntell)[![google plus](https://www.richardsmortgagegroup.ca/hs-fs/file-2070806606-png/RMG-img/RMG-HomePage/gp.png)](https://plus.google.com/+RichardsMortgageGroupCanada/about)[![linkedin](https://www.richardsmortgagegroup.ca/hs-fs/hub/115190/file-2070806596-png/RMG-img/RMG-HomePage/li.png)](https://ca.linkedin.com/in/richardsmortgagegroup)[![LET’S TALK](https://no-cache.hubspot.com/cta/default/115190/e82b3a4f-447a-4c33-b6c9-d1f754bc1167.png)](https://cta-redirect.hubspot.com/cta/redirect/115190/e82b3a4f-447a-4c33-b6c9-d1f754bc1167) **"Mortgage Financing News" for Realtors Blog** ## [End of the Rural Mortgage Piggy Bank](https://www.richardsmortgagegroup.ca/realtor-blog/end-of-the-piggy-bank) Posted by [Chris Richards](https://www.richardsmortgagegroup.ca/realtor-blog/author/chris-richards) on Dec 5, 2016 10:10:38 AM [![](https://www.richardsmortgagegroup.ca/hs-fs/hub/115190/file-567431281-jpg/images/PiggyBankHouse.jpg) ](https://www.richardsmortgagegroup.ca/realtor-blog/end-of-the-piggy-bank) The [changes to the Canadian mortgage finance market](https://www.richardsmortgagegroup.ca/blog/a-changing-mortgage-lending-landscape) in the last 60 days have caught many by surprise and the future is blurry at the moment. Even the mortgage lenders/banks are confused with round two of the new CMHC rules, effective Nov 30, 2016. Some lenders have already left or restructured their role in the mortgage market, impaled by the combination of events and their inability to respond. **My biggest concern as a mortgage broker is loss of borrower options.**  Our industry has sent delegations to Ottawa, and we have written our MPs and their eyes glaze over.   I know a number of readers of this Realtor blog are from rural communities, and I wanted to touch on one of the changes that is going to rock owners in rural communities and no-one sees it yet. [Read More](https://www.richardsmortgagegroup.ca/realtor-blog/end-of-the-piggy-bank) ## [New Mortgage Market Landscape – effective immediately (Oct 17 2016)](https://www.richardsmortgagegroup.ca/realtor-blog/new-mortgage-market-landscape-effective-immediately-oct-17-2016) Posted by [Chris Richards](https://www.richardsmortgagegroup.ca/realtor-blog/author/chris-richards) on Oct 14, 2016 6:07:11 PM [![](https://www.richardsmortgagegroup.ca/default-image.png) ](https://www.richardsmortgagegroup.ca/realtor-blog/new-mortgage-market-landscape-effective-immediately-oct-17-2016) **New Mortgage Market Landscape – effective immediately** [Read More](https://www.richardsmortgagegroup.ca/realtor-blog/new-mortgage-market-landscape-effective-immediately-oct-17-2016) ## [Mortgage News December 2015](https://www.richardsmortgagegroup.ca/realtor-blog/mortgage-news-december-2015) Posted by [Chris Richards](https://www.richardsmortgagegroup.ca/realtor-blog/author/chris-richards) on Dec 11, 2015 4:02:32 PM ## [Some major developments this week in the Canadian mortgage market (17July15)](https://www.richardsmortgagegroup.ca/realtor-blog/some-major-developments-this-week-in-the-canadian-mortgage-market-17july15) Posted by [Chris Richards](https://www.richardsmortgagegroup.ca/realtor-blog/author/chris-richards) on Jul 18, 2015 8:00:00 AM [![](https://www.richardsmortgagegroup.ca/hubfs/images/interest_rates_down.jpg) ](https://www.richardsmortgagegroup.ca/realtor-blog/some-major-developments-this-week-in-the-canadian-mortgage-market-17july15) # Recap on some developments this week in the Canadian mortgage market. ### **Mortgage Interest Rate Decreasing** - On Wednesday, Bank of Canada Governor Stephen Poloz lowered the prime lending rate to 0.50%. - The move is designed to boost a sputtering economy with added spending ([read more](http://business.financialpost.com/investing/investing-pro/david-rosenberg-why-the-bank-of-canada-cut-now))  - Major banks responded by lowering their prime lending rate from 2.85% to 2.70% - Variable rate mortgages are now available at 2.00%, or about $425/mo per $100K borrowed (25 year AM) - Fixed rate mortgages for 5 years have dropped to 2.59% with some lenders, or about ~$450/month per $100K borrowed amortized over 25 years. ### **CMHC Rumored to be Discussing Tightening Mortgage Lending Rules (again)** - The rumor mill is churning again that CMHC may tweak (tighten) mortgage lending criteria further as certain real estate markets are very overheated, specifically Toronto and Vancouver. - Discussion points rumored are increasing minimum down payment from 5% and decreasing maximum amortization to 20 years.   - Personally, I see blanket Canada-wide changes to rules to address certain market conditions as the wrong tool, hence unlikely. - These changes would have impact of cutting out certain borrowers (likely first time buyers) from the market. - A more surgical approach would be to increase down payments in certain overheated market areas. ### **Another Mortgage Lender for Mobile Homes Tightens Criteria** - National Bank has changed their lending policy for mobile/modular homes on titled land from permanent foundation to more specifically a cement foundation (hence has removed steel pillings) - drat :/   - Very few lenders will lend on mobile homes on wooden blocks - Very few lenders will lend on mobiles older than 20 years - Even fewer lenders will lend on mobiles in trailer parks (rented lots), especially old homes on blocks! - CMHC very tight on providing insurance for lenders on mobiles these days. Any questions, deals to discuss, please [contact me](https://www.richardsmortgagegroup.ca/contact). [Read More](https://www.richardsmortgagegroup.ca/realtor-blog/some-major-developments-this-week-in-the-canadian-mortgage-market-17july15) ## [CMHC insurance rates up on June 1, 2015](https://www.richardsmortgagegroup.ca/realtor-blog/cmhc-insurance-rates-up-on-june-1-2015) Posted by [Chris Richards](https://www.richardsmortgagegroup.ca/realtor-blog/author/chris-richards) on May 19, 2015 12:36:00 PM [![](https://www.richardsmortgagegroup.ca/hs-fs/hub/115190/file-16451986-jpg/images/cmhc_logo-resized-600.jpg) ](https://www.richardsmortgagegroup.ca/realtor-blog/cmhc-insurance-rates-up-on-june-1-2015) ## Reminder to Realtors Insurers' premiums increasing June 1, 2015 - deadline fast approaching.  Get your clients' offers accepted by May 27th. [Read More](https://www.richardsmortgagegroup.ca/realtor-blog/cmhc-insurance-rates-up-on-june-1-2015) ## [Acceptable Down Payment Sources](https://www.richardsmortgagegroup.ca/realtor-blog/acceptable-down-payment-sources) Posted by [Chris Richards](https://www.richardsmortgagegroup.ca/realtor-blog/author/chris-richards) on May 5, 2015 2:38:00 PM [![](http://wallerrealestate.ca/wp-content/uploads/2013/02/iStock_000017195934XSmall.jpg) ](https://www.richardsmortgagegroup.ca/realtor-blog/acceptable-down-payment-sources) Last updated: May 2019 ## What are permitted Down Payment Sources for a Mortgage in Canada? A question that often comes up with Realtors and clients is about permitted sources of down payment and how long the money has to be sitting in the client's account. Here's the list I send to my mortgage customers: [Read More](https://www.richardsmortgagegroup.ca/realtor-blog/acceptable-down-payment-sources) ## [Purchase Plus Improvements - Tip Sheet](https://www.richardsmortgagegroup.ca/realtor-blog/purchase-plus-improvements) Posted by [Chris Richards](https://www.richardsmortgagegroup.ca/realtor-blog/author/chris-richards) on Jan 6, 2015 5:16:00 PM [![](https://www.richardsmortgagegroup.ca/hubfs/FramingNewGarage-723399.jpg) ](https://www.richardsmortgagegroup.ca/realtor-blog/purchase-plus-improvements) # How to finance home improvements ## Yeah, but the house needs some work... A common objection when a buyer prospect is looking at purchasing a home is that the property needs some sort of improvement, such as new carpets, new windows, new fence, new roof, garage, etc. ### Solution A number of mortgage lenders participate in a program called Purchase + Improvements, which means qualified home buyers can get reimbursement for pre-approved renovations made to their new home, which need to be completed immediately after taking possession of the purchased property.   All this can be done with one mortgage and with as little as 5% down.  [Read More](https://www.richardsmortgagegroup.ca/realtor-blog/purchase-plus-improvements) [All posts](https://www.richardsmortgagegroup.ca/realtor-blog/all) ![](https://www.richardsmortgagegroup.ca/hs-fs/hub/115190/file-2201574406-jpg/RMG-img/Guide-images/9.jpg?width=320&name=9.jpg) **About this Realtor Blog** Published specifically for Realtors to keep you abreast of Canadian interest rate trends, economic news, lender programs, and tips to "Help Realtors Sell More Real Estate." **Subscribers will get the inside track on what mortgage brokers are seeing on the front lines trying to finance your deals.** Please feel free to invite your collegues to sign up and **call with any mortgage questions whatsoever 1.888.540.1715 ext 2.** Search this site on Google Search Google ### Subscribe to Email Updates ### Recent Posts ### Posts by Topic - [Mortgage News & Updates (11)](https://www.richardsmortgagegroup.ca/realtor-blog/topic/mortgage-news-updates) - [Mortgage Basics (7)](https://www.richardsmortgagegroup.ca/realtor-blog/topic/mortgage-basics) - [Home Buying Tips (2)](https://www.richardsmortgagegroup.ca/realtor-blog/topic/home-buying-tips) - [Mortgage Approval Process (2)](https://www.richardsmortgagegroup.ca/realtor-blog/topic/mortgage-approval-process) - [Property Type Insights (2)](https://www.richardsmortgagegroup.ca/realtor-blog/topic/property-type-insights) - [Debt Management (1)](https://www.richardsmortgagegroup.ca/realtor-blog/topic/debt-management) - [Income Verification (1)](https://www.richardsmortgagegroup.ca/realtor-blog/topic/income-verification) Contact Us Richards Mortgage Group 73 Riverview Circle Cochrane, AB T4C1K3 T: 587.774.6290 TF: 1.888.540.1715 Fax: 587.315.6117 [Contact Us](https://www.richardsmortgagegroup.ca/contact) Connect With Us [![facebook](https://www.richardsmortgagegroup.ca/hs-fs/file-2079671164-png/RMG-img/RMG-HomePage/footer-fb.png)](https://www.facebook.com/richardsmortgagegroup)[![twitter](https://www.richardsmortgagegroup.ca/hs-fs/file-2079671174-png/RMG-img/RMG-HomePage/footer-tw.png)](https://twitter.com/mortgageintell)[![google plus](https://www.richardsmortgagegroup.ca/hs-fs/file-2079165796-png/RMG-img/RMG-HomePage/footer-gp.png)](https://plus.google.com/+RichardsMortgageGroupCanada/about)[![linkedin](https://www.richardsmortgagegroup.ca/hs-fs/hub/115190/file-2079671169-png/RMG-img/RMG-HomePage/footer-li.png)](https://ca.linkedin.com/in/richardsmortgagegroup) Recent Blog Posts ### Recent Posts Brokerage Head Office [![Quantus Mortgage Solutions](https://www.richardsmortgagegroup.ca/hs-fs/file-2188912383-png/RMG-img/RMG-HomePage/Quantus-transparent-2.png?width=169&name=Quantus-transparent-2.png "Quantus Mortgage Solutions")](http://www.qmortgage.ca/) 6025 12 St SE, Suite 235 Calgary, AB  T2H2K1 403.238.3111 Canada [Privacy Policy](https://115190.hs-sites.com/privacy-policy)