Bank of Canada lowers overnight rate to ¼ percent

With the Bank of Canada dropping its overnight rate again in response to the COVID-19 pandemic, it would seem to be a great time to shop for a new mortgage or mortgage refinancing. This is not the case however as advertised interest rates for new mortgage applications climbed significantly last week.

  • Rate Announcement: 50 basis point emergency cut by Bank of Canada
  • Overnight rate: Now 0.25%
  • Prime Rate: Currently 2.95%; pending change to potentially 2.45%

The Bank of Canada today lowered its target for the overnight rate by 50 basis points to ¼ percent. The Bank Rate is correspondingly ½ percent and the deposit rate is ¼ percent. This unscheduled rate decision brings the policy rate to its effective lower bound and is intended to provide support to the Canadian financial system and the economy during the COVID-19 pandemic.

The spread of COVID-19 is having serious consequences for Canadians and for the economy, as is the abrupt decline in world oil prices. The pandemic-driven contraction has prompted decisive fiscal policy action in Canada to support individuals and businesses and to minimize any permanent damage to the structure of the economy.

The Bank is playing an important complementary role in this effort. Its interest rate-setting cushions the impact of the shocks by easing the cost of borrowing. Its efforts to maintain the functioning of the financial system are helping keep credit available to people and companies. The intent of our decision today is to support the financial system in its central role of providing credit in the economy and to lay the foundation for the economy’s return to normalcy.

The Bank’s efforts have been primarily focused on ensuring the availability of credit by providing liquidity to help markets continue to function.  To promote credit availability, the Bank has expanded its various term repo facilities. To preserve market function, the Bank is conducting the Government of Canada bond buybacks and switches, purchases of Canada Mortgage Bonds and banker’s acceptances, and purchases of provincial money market instruments. All these additional measures have been detailed on the Bank’s website and will be extended or augmented as needed.

Today, the Bank is launching two new programs.

First, the Commercial Paper Purchase Program (CPPP) will help to alleviate strains in short-term funding markets and thereby preserve a key source of funding for businesses. Details of the program will be available on the Bank’s web site.

Second, to address strains in the Government of Canada debt market and to enhance the effectiveness of all other actions taken so far, the Bank will begin acquiring the Government of Canada securities in the secondary market. Purchases will begin with a minimum of $5 billion per week, across the yield curve. The program will be adjusted as conditions warrant but will continue until the economic recovery is well underway. The Bank’s balance sheet will expand as a result of these purchases.

The Bank is closely monitoring economic and financial conditions, in coordination with other G7 central banks and fiscal authorities, and will update its outlook in mid-April. As the situation evolves, the Governing Council stands ready to take further action as required to support the Canadian economy and financial system and to keep inflation on target.

The next scheduled date for announcing the overnight rate target is April 15, 2020. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR at the same time.

Source: Bank of Canada



Canada’s Newest Bank – Haventree Bank

Equity Financial Trust continues operations as a federally regulated Schedule 1 Bank and is changing its name to Haventree Bank. The name Haventree Bank represents a distinct new positioning in the Canadian lending market where customers can plan their financial future with confidence.

“Over the last twelve months, we have invested in research to identify not just how others saw us but how we saw our future selves,” said Michael Jones, President and CEO of Haventree Bank. “Focus groups were conducted with our brokers, borrowers and employees. The product of that exercise has led us on a new strategic path that begins with the rebranding of our company.”

“Operating as a bank will provide us with a significant competitive advantage. Haventree Bank will continue to innovate new products and deliver a digital presence to clearly identify our company to its customers, the deposit broker channel and the mortgage brokerage community.”

Haventree Bank continues to be a member of the Canada Deposit Insurance Corporation (“CDIC”).

About Haventree Bank

Haventree Bank is a federally regulated Schedule 1 Bank that provides residential mortgage solutions and GIC investment options. Haventree Bank originates mortgages through the mortgage broker channel and is a member of the Canada Deposit Insurance Corporation (“CDIC”). Our goal is to become Canada’s alternative mortgage lender of choice. We truly believe our current and future success is based on one factor – our people.

SOURCE Haventree Bank

Termination of the First National Mortgage Investment Fund

Stone Asset Management Limited (the “Manager”), the manager of First National Mortgage Investment Fund (the “Fund”) (TSX: FNM.UN), in consultation with the Fund’s promoter and mortgage advisor, First National Financial LP, has determined, in accordance with the terms of the Fund’s declaration of trust, to terminate the Fund on or about December 19, 2017. Unitholders are not required to take any action.

The Fund was initially created to provide unitholders with exposure to an actively managed, diversified portfolio (the “Portfolio”) of mortgages. The Fund obtains exposure to the Portfolio through the use of a forward purchase and sale agreement (the “Forward Agreement”) which is to expire pursuant to its terms on December 19, 2017 (the “Forward Termination Date”).

Under the transitional provisions of tax rules enacted by the Canadian federal government in December 2013, the favourable tax treatment for the Forward Agreement will expire no later than the Forward Termination Date. Following the Forward Termination Date, it will no longer be possible for the Fund to provide its unitholders with exposure to the Portfolio on the originally intended tax-advantaged basis. The Forward Agreement is integral to the structure of the Fund and its investment objectives.

As a result of the upcoming Forward Termination Date, loss of the intended favourable tax treatment and reduction in the size of the Fund’s assets as a result of redemptions over the past number of years, the Manager has determined to terminate the Fund on or about the Forward Termination Date. Pursuant to the terms of the Fund’s declaration of trust, the Manager, as trustee of the Fund, has the right to terminate the Fund without unitholder approval in circumstances in which continued operation is no longer economically practical.

As part of the termination, First National Financial LP has agreed in principle to purchase the portfolio of mortgages held by FN Mortgage Investment Trust (the “Trust”) prior to the Forward Termination Date at fair market value, allowing the Trust to liquidate the Portfolio and to allow the Fund to distribute cash to the unitholders of the Fund on its termination. The Fund`s independent review committee assessed the transactions and provided a recommendation that, in the committee’s opinion after reasonable inquiry, the proposed transactions achieve a fair and reasonable result for the Trust , the Fund and its unitholders.

Unitholder Distributions

Prior to the termination of the Fund, the Fund will pay to its unitholders a special distribution in an amount necessary to eliminate the Fund’s liability for non-refundable income tax under Part I of the Income Tax Act (Canada), if any. The distribution will be paid in units which will be automatically consolidated immediately after the distribution. Thereafter, after paying, or providing for, all liabilities and obligations of the Fund, all Fund property, being cash, will be distributed to the unitholders of the Fund on a pro rata basis. Following such distribution, the Fund will terminate.

The Fund intends to distribute one final monthly cash distribution in the amount of $.05 per unit on or about December 15 to unitholders of record November 30, 2017 for the period from November 1 to November 30.

The Manager will apply to delist the units of the Fund from the Toronto Stock Exchange. It is expected that the units will be delisted at the close of trading on or about December 15, 2017.

Following the settlement of the Forward Agreement, the Manager will also terminate FN Mortgage Investment Trust.

About First National Mortgage Investment Fund
The Fund was designed to provide unitholders with tax-advantaged monthly distributions by investing in Canadian mortgage loans originated by First National Financial LP. For more information, visit the Fund’s website at:

About First National Financial Corporation
First National Financial Corporation (TSX: FN, TSX: FN.PR.A, TSX: FN.PR.B) is the parent company of First National Financial LP, a Canadian-based originator, underwriter and servicer of predominantly prime residential (single-family and multi-unit) and commercial mortgages. With more than $100 billion in mortgages under administration, First National is Canada’s largest non-bank originator and underwriter of mortgages and is among the top three in market share in the mortgage broker distribution channel.  For more information, please visit

About Stone Asset Management Limited
Stone Asset Management Limited (“SAM”) manages the Fund.  Established in 1999, SAM is an independent, Canadian-owned asset management company that specializes in structuring and managing high quality investment products. Its professionals are well regarded in the Canadian investment community for their disciplined investment process. The Fund’s daily unit price can be found at:

Unitholder Information
For further information, unitholders may contact their Financial Advisors or Stone Client Services at 1 800 795 1142 or As noted, unitholders are not required to take any action.

SOURCE First National Mortgage Investment Fund

New Mortgage Rules Jan 1 2018

For anyone looking to buy or refinance this may greatly impact your ability to borrow. For more information please contact me.

OSFI is reinforcing a strong and prudent regulatory regime for residential mortgage underwriting

OTTAWA – October 17, 2017 – Office of the Superintendent of Financial Institutions Canada

Today the Office of the Superintendent of Financial Institutions Canada (OSFI) published the final version of Guideline B-20 − Residential Mortgage Underwriting Practices and Procedures. The revised Guideline, which comes into effect on January 1, 2018, applies to all federally regulated financial institutions.

The changes to Guideline B-20 reinforce OSFI’s expectation that federally regulated mortgage lenders remain vigilant in their mortgage underwriting practices. The final Guideline focuses on the minimum qualifying rate for uninsured mortgages, expectations around loan-to-value (LTV) frameworks and limits, and restrictions to transactions designed to circumvent those LTV limits.

OSFI is setting a new minimum qualifying rate, or “stress test,” for uninsured mortgages.

  • Guideline B-20 now requires the minimum qualifying rate for uninsured mortgages to be the greater of the five-year benchmark rate published by the Bank of Canada or the contractual mortgage rate +2%.

OSFI is requiring lenders to enhance their loan-to-value (LTV) measurement and limits so they will be dynamic and responsive to risk.

  • Under the final Guideline, federally regulated financial institutions must establish and adhere to appropriate LTV ratio limits that are reflective of risk and are updated as housing markets and the economic environment evolve.

OSFI is placing restrictions on certain lending arrangements that are designed, or appear designed to circumvent LTV limits.

  • A federally regulated financial institution is prohibited from arranging with another lender a mortgage, or a combination of a mortgage and other lending products, in any form that circumvents the institution’s maximum LTV ratio or other limits in its residential mortgage underwriting policy, or any requirements established by law.


“These revisions to Guideline B-20 reinforce a strong and prudent regulatory regime for residential mortgage underwriting in Canada,” said Superintendent Jeremy Rudin.

Quick Facts

  • On July 7, 2017, OSFI published draft revisions to Guideline B-20 – Residential Mortgage Underwriting Practices and Procedures. The consultation period ended on August 17, 2017.
  • OSFI received more than 200 submissions from federally regulated financial institutions, financial industry associations, other organizations active in the mortgage market, as well as the general public.
  • The cover letter includes an unattributed summary of the comments and an explanation of how these issues were dealt with in the final Guideline B-20.
  • Following publication of Guideline B-20 OSFI plans to assess Guideline B-21 − Residential Mortgage Insurance Underwriting Practices and Procedures for consequential amendments.

Associated Links

About OSFI

The Office of the Superintendent of Financial Institutions Canada (OSFI) is an independent agency of the Government of Canada, established in 1987 to protect depositors, policyholders, financial institution creditors and pension plan members, while allowing financial institutions to compete and take reasonable risks.

Media Contact:
Annik Faucher
OSFI – Public Affairs 

M3 Mortgage Group acquires Verico and becomes the largest mortgage brokerage in Canada

M3 Mortgage Group, the parent company of Multi-Prêts Mortgages, Mortgage Alliance, Invis and Mortgage Intelligence announced today that it has acquired Verico, one of the most storied independent mortgage brokers in Canada.

The addition further enhances the company’s standing as the largest, fastest growing non-bank mortgage originator across the country. In today’s new environment, scale matters. With more than 6,000 brokers now serving Canadians from coast to coast, the acquisition uniquely positions the group for accelerated investment in those critical success levers like branding, technology and marketing in support of brokers across the country.

“Today’s announcement is a game changer for us and the families we seek to serve because it gives us the scale and scope to truly transform the home financing space by offering a diverse range of solutions to all brokers,” said Luc Bernard, President & CEO, M3 Mortgage Group. “To have a great organization like Verico decide to join forces with us, affirms that our appetite for innovation and long-term growth is a winning strategy that will thrive in the attractive mortgage landscape for decades to come.”

Some notable facts on the exciting acquisition:

  • Increases the broker network to 6,000 across Canada (the largest in Canada)
  • Exceeds ambitious 3-year business plan to double loan volumes, loan growth and brokers by the end of fiscal 2017
  • Grows the group’s annual loan volumes from $25 billion to $44 billion
  • M3 Mortgage Group becomes the undisputed #1 non-bank mortgage originator in the country

“When I first met the group’s leadership team, it felt like I was looking in a mirror. Their technology driven, consumer obsessed DNA not only reflects our philosophy, but their values as an organization builds on our existing origination capabilities. That’s a win win for our brokers and their customers,” said Colin Dreyer, CEO, Verico.

“Simply put, it’s a great fit for us. It provides our folks with a unique opportunity to differentiate themselves in the competitive marketplace by joining forces with the largest, fastest growing non-bank mortgage originator in Canada, while maintaining the inherent principals that makes us successful… your business, your brand, your way,” said Albert Collu, President, Verico.

The M3 Mortgage Group is proud to welcome Colin DreyerAlbert Collu, the senior management team, and Verico’s independent mortgage brokers and their employees to our family.

As the #1 ranked mortgage brokerage in Canada, the M3 Mortgage Group will continue to leverage their industry leading position as the premiere brand in home financing to diversify, and expand into new financial service categories through the remainder of 2017 and beyond.

About The M3 Mortgage Group
The M3 Mortgage Group is the #1 non-bank mortgage originator and undisputed leader in mortgage brokerage across Canada. With more than 6,000 brokers and $44 billion in annual loan volumes, the technology driven, consumer obsessed group and its subsidiaries, Multi-Prêts Mortgages, Mortgage Alliance, Invis, Mortgage Intelligence and Verico have a single goal: be the best consumer ally when it comes to home financing for the many families it serves every year across the country.

About Verico Financial Group Inc.
VERICO was founded in 2005 with a single idea: to unite top mortgage originators in Canada and create additional opportunities for this group of highly driven professionals. Together, we knew we could make a mark on the Canadian mortgage industry. In 2010, we reached $10 billion in collective loan volume, a number that rivaled the mortgage business of the big 5 banks in Canada. Operating at the highest degree of professionalism, excellence and ethical standards, we originate over $13 billion by helping 45,000+ families annually with their mortgage needs.

Online Database Protects Canadians Getting Mortgages

Mortgage Broker Regulators' Council of Canada logo

Disciplinary records from provincial mortgage regulators now in one, convenient place

A new online database helps consumers find out if mortgage brokers have broken the rules that govern their profession.

Consumers can enter a mortgage broker’s name or company into the search-friendly database and see disciplinary actions (e.g., licence suspensions, administrative penalties, cease and desist orders) that have been taken against a broker by their provincial mortgage regulator and other Canadian regulators.

The database, developed by the Mortgage Broker Regulators’ Council of Canada (MBRCC), integrates disciplinary records from most provincial regulators into a single, convenient place. It helps consumers save time and provides additional peace of mind when choosing a mortgage broker.

In addition, mortgage brokerages and regulators across Canada now have easier access to disciplinary information. Brokerages can use the new tool to look up potential brokers, and provincial regulators can use it to assess the suitability of brokers who want to be licensed in other provinces.

Developing the database supports the MBRCC’s mandate to improve and promote harmonization of mortgage broker regulatory practices across Canada.

“Mortgages are often the biggest financial commitment Canadians make. Mortgage brokers are regulated professionals who can help you find the right mortgage to finance your home. This new, easy-to-use database gives consumers a way to help check a broker’s background before entrusting them with such an important financial transaction.”

Cory Peters, Chair, MBRCC

Quick Facts

  • More than 23,000 mortgage brokers are currently licensed across Canada.
  • Disciplinary actions will be posted on the database for varying amounts of time, matching how long each regulator posts records in their own province.
  • Consumers should still visit their provincial regulator’s website to get licence status information for mortgage brokers authorized to operate in that province.

Additional Resources


The MBRCC is an inter-jurisdictional association of mortgage broker regulators that seeks to improve and promote harmonization of mortgage broker regulatory practices to serve the public interest. Its members work together and with stakeholders to identify trends and address common regulatory issues through national solutions that support consumer protection and an open and fair marketplace.

MBRCC members represent the nine provinces that currently have legislative and regulatory frameworks governing mortgage brokers or have an interest in developing one; British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia and Newfoundland & Labrador.

SOURCE Mortgage Broker Regulators’ Council of Canada

For further information: Shani Ratnapala, Mortgage Broker Regulators’ Council of Canada,, 416-590-2036

Mortgage Professionals Canada’s update on impact of recent mortgage changes

Mortgage Professionals Canada

Members of Mortgage Professionals Canada were pleased to have the opportunity to meet with dozens of Members of Parliament and senior government officials over the past two days. We discussed issues of housing affordability, availability and accessibility and the negative impacts that the recent mortgage insurance and eligibility are having on first-time homebuyers in Canada.

“I am extremely pleased that there is a real sense that Members of Parliament are listening to the concerns from our industry.” said Paul Taylor, President of Mortgage Professionals Canada. “This weeks advocacy efforts have gone a long way in educating Members of Parliament on the positive role that mortgage brokers play in the Canadian housing market and the negative impacts that recent changes are having on first-time homebuyers”.

Our membership is very concerned with the negative economic impacts that these changes are having on housing activity in Canada and the additional costs that are being placed on the Canadian middle class through higher rates and reduced purchasing power. Middle class Canadians are already paying thousands more over their mortgage term in interest payments and many first-time homebuyers are unable to qualify for a mortgage. This is hurting Canadian consumers and slowing the Canadian economy. This is why we are calling for some common-sense adjustments to the new rules that will help soften the impact of these changes on middle class Canadians. We are also asking the government to refrain from any further changes to the housing market for at least 18 months.

Mortgage Professionals Canada is the national voice of the mortgage industry, an association whose members include mortgage brokers, mortgage lenders, mortgage insurers and industry service providers. We represent over 11,500 individual members and over 1,000 businesses across Canada.


Who We Are:

Mortgage Professionals Canada is an industry association whose members include mortgage brokers, mortgage lenders, mortgage insurers and industry service providers. We have over 11,500 individual members and over 1,000 businesses across Canada.

The mortgage broker channel originates approximately 33% of all mortgages in Canada and approximately 50% of mortgages for first time home buyers. This represents approximately $80 billion dollars in economic activity.

What the Changes Are:

  • All insured mortgages now need to be qualified at either the Bank of Canada benchmark rate (currently 4.64%) or the contract rate offered on the homebuyer’s commitment, whichever is greater.
  • Portfolio (‘bulk’) insurance must now meet the same criteria as those that are high-ratio insured. This means that amortizations greater than 25 years, rental and investment properties, refinances, and homes with values greater than $1M can no longer be portfolio-insured.
  • The proposed ‘risk-sharing’ model for lenders to share in losses of insured mortgage claims.
  • New capital requirements as of January 1, 2017 that require mortgage insurers to increase the amount of capital they need to hold in reserve.
  • The increase announced by CMHC for insurance premiums that consumers pay on unconventional mortgages. In some loan-to-value categories, premiums will be increasing by more than a whole percentage point of the value of the mortgage, effective March 17, 2017. This is the third increase in three years.


Canadians elected the government on a mandate to grow the economy for the middle class. Support for middle class home ownership is an important way for to achieve middle class growth. In fact, the 2015 Liberal platform recognized this in committing to “considering all policy tools that could keep home ownership within reach for more Canadians” (Liberal Platform, 2015, page 7,8). We would like you to call on the government to honour that commitment instead of making home ownership more difficult and further out of reach for more middle class Canadians.

We are concerned with the negative economic impact that these changes are having on housing activity in Canada. We are also very concerned with the additional costs that these changes will place on the Canadian middle class by way of higher interest rates and reduced purchasing power. We have already seen banks increase their mortgage prime rates in part because of these changes, which will cost Canadians thousands more over the course of their mortgage term.

The reduction of portfolio mortgage insurance eligibility, in addition to the increase in premiums for this insurance due to OSFI’s recent increased requirements for capital adequacy is disproportionately affecting the competitive positioning of small and mid-sized lenders. These changes are reducing mortgage competition and affordability for Canadian homeowners and would-be homeowners.

Our membership has been vocal with their displeasure regarding the impacts that these changes are having, especially outside of the Toronto and Vancouver markets. There is a real and growing resentment that the activity in Toronto and Vancouver is negatively and unfairly impacting those in the rest of the country. We believe moving ahead with a risk sharing provision would be additional burden on the market and will further the divide between rural and urban Canada.

The Canadian economy has seen only modest growth in 2016, especially for the middle class, and the housing sector is one of the few strong performers that has been driving this growth. We are concerned that these changes will hurt the economy as the Bank of Canada noted that the new rules that are being imposed will reduce growth in the Canadian economy, which will hurt the middle class.

What We Are Asking the Government to Consider:

  1. That in light of all of the changes that have been made recently and the uncertainty that the American election has brought that the government slow down and hit pause on the measures yet to be implemented, most specifically its proposed risk sharing provision. We believe it prudent for the government to take 12-18 months to examine and assess the impact of these changes.
  2. That the government adjust the November 30th change to allow for refinances to be included in portfolio insurance. If 80% LTV is unpalatable, please consider reducing the threshold to 75% or 70% rather than removing these products eligibility altogether
  3. That the government decouple the stress test rate from the posted Bank of Canada rate. Instead, set the stress test based on a market rate, either by looking at the Canadian ten-year bond yields or having the Bank of Canada set a rate that is independent of the average of the banks posted rates.
  4. For the sake of ensuring competition is maintained in as fair a manner as possible, OSFI should require all mortgages to qualify at the stress test rate, not just insured mortgages.


SOURCE Mortgage Professionals Canada

For further information: Paul Taylor, President and CEO, Mortgage Professionals Canada, O: 416-644-5465 / C: 905-334-1165,

First National Announces January Distribution

first national logo

first national logoFirst National Mortgage Investment Fund today announced its monthly cash distribution of $0.05 per unit for the period January 1 to January 31, 2017. The distribution will be payable on February 15, 2017 to unitholders of record at the close of business on January 31, 2017.

The Fund also announced its intention to continue to pay $0.05 per unit per month for the remainder of 2017, subject to continued performance of the underlying mortgage assets.

About First National Mortgage Investment Fund
The Fund provides unitholders with tax-advantaged monthly distributions by investing in Canadian mortgage loans originated by First National Financial LP. Today, the Fund is fully invested in a diversified portfolio of mortgages on multi-unit residential, industrial, and retail properties as well as land. To deliver an attractive yield, the Fund invests primarily in short-term bridge mortgages, which typically bear higher rates of interest than traditional debt financing, and the Fund’s manager applies leverage. To achieve its objective of preserving capital, the portfolio’s weighted average loan-to-value ratio will not exceed 75%. For more information, visit the Fund’s website at:

About First National Financial Corporation
First National Financial Corporation (TSX: FN, TSX: FN.PR.A, TSX: FN.PR.B) is the parent company of First National Financial LP, a Canadian-based originator, underwriter and servicer of predominantly prime residential (single-family and multi-unit) and commercial mortgages. With over $98 billion in mortgages under administration, First National is Canada’s largest non-bank originator and underwriter of mortgages and is among the top three in market share in the mortgage broker distribution channel. For more information, please visit

About Stone Asset Management Limited
Stone Asset Management Limited (“SAM”) manages the Fund.  Established in 1999, SAM is an independent, Canadian-owned asset management company that specializes in structuring and managing high quality investment products. Its professionals are well regarded in the Canadian investment community for their disciplined investment process. The Fund’s daily unit price can be found at:

SOURCE First National Mortgage Investment Fund

For further information: Robert Inglis, Chief Financial Officer, First National Financial Corporation, Tel: 416-593-1100, Email:; Ernie Stapleton, President, Fundamental Creative Inc., Tel: 905-648-9354, Email:

Police request assistance with Fraud Over $5000 investigation

mortgage fraud investigation

mortgage fraud investigationWarden Avenue and Sheppard Avenue East area,
Photographs of two suspects released

Broadcast time: 11:26
Friday, December 30, 2016

Financial Crimes

Case #: 2016-326674

Toronto Police Service Financial Crimes is requesting the public’s assistance identifying two suspects in a mortgage fraud investigation.

It is alleged that:

– during September 2015, a man and a woman attended a mortgage broker’s office in the Warden Avenue and Sheppard Avenue East area

– they applied for a second mortgage on a property in the amount of $200,000

– the mortgage broker was able to find financing through a mortgage lender and a second mortgage was registered on the home

– they received $200,000 through their real estate lawyer

– several months after the mortgage was registered, the real homeowner was served court documents advising him that he was being sued by the mortgage lender for non-payment of the mortgage

The real homeowner called the police and reported the mortgage fraud.

It is further alleged that:

– the man and woman in this investigation used fake identification to personate the real homeowners.

Police are requesting the public’s assistance identifying them. Their photographs have been released.

Anyone with information is asked to contact police at 416-808-7310, Crime Stoppers anonymously at 416-222-TIPS (8477), online at, or text TOR and your message to CRIMES (274637). Download the free Crime Stoppers Mobile App on iTunes, Google Play or Blackberry App World.

Please download the Toronto Police Service Mobile App for iOS or Android.

For more news, visit

Constable Caroline de Kloet, Corporate Communications, for Detective Adkin Holder, Financial Crimes Unit.
Photographs of the two suspects:
Woman and man to be identified in Fraud Over $5000 investigation

OSFI releases for public consultation revisions to its CAR Guideline

Office of the Superintendent of Financial Institutions

Office of the Superintendent of Financial InstitutionsThe Office of the Superintendent of Financial Institutions (OSFI) today released for public consultation revisions to its Capital Adequacy Requirements Guideline (CAR).

OSFI’s CAR Guideline provides a framework for assessing the capital adequacy of federally regulated deposit-taking institutions and is updated periodically to ensure that capital requirements continue to reflect underlying risks and developments in the financial industry.

The CAR Guideline is based on requirements agreed by the Basel Committee on Banking Supervision. As a member of the Basel Committee, OSFI supports and applies the global risk-based framework to its regulated institutions through a measured and tailored approach that is suited to the Canadian context.

Captured in this set of revisions are OSFI’s expectations on the domestic implementation of two global capital adequacy standards issued by the Basel Committee in recent years. In this draft, OSFI outlines its discretionary approach to the implementation of the Basel III countercyclical buffer regime in Canada as well as provides guidance on the application of Basel’s equity investment in funds rules, which require institutions to hold adequate capital against equity investments in funds.

To reflect the changing risks in the Canadian mortgage market, the draft CAR Guideline has also been updated to include planned revisions to the treatment of insured residential mortgages (see OSFI’s December 2015 letter to industry). Through the capital framework, OSFI is clarifying the conditions under which risk mitigation benefits of mortgage insurance are recognized for regulatory capital purposes. These changes aim to reinforce the need for banks to exercise prudent underwriting and proper due diligence when originating insured mortgages.

Finally, the revisions to the draft guideline provide clarification on how OSFI’s capital framework will apply to federal credit unions.

Quick Facts

The implementation date for these changes is set for November 1, 2016 for institutions with an October 31 year end, and January 1, 2017 for institutions with a December 31 year end. OSFI is inviting comments on the proposed updates, which it will consider during the development of the final version of the guideline. The deadline for submitting comments is October 18, 2016. A non-attributed summary of industry comments received along with OSFI’s responses will be posted on OSFI’s website when the final version of the guideline is released.


Associated Links

About OSFI

The Office of the Superintendent of Financial Institutions (OSFI) is an independent agency of the Government of Canada, established in 1987, to protect depositors, policyholders, financial institution creditors and pension plan members, while allowing financial institutions to compete and take reasonable risks.

Media Contact Annik Faucher OSFI

Public Affairs annik.faucher@osfi-­ 613-949-8401

Mortgage Professionals Canada 2016 Spring Survey

Mortgage Professionals Canada logoNext generation of homeowners cautiously optimistic about economy and housing market, economic confidence main driver for purchasing decision

Mortgage Professionals Canada releases Spring Survey that provides a unique portrait of Canadians under the age of 40 who don’t currently own a home but expect to own in the future

Little has been reported about the group of Canadians just outside the housing market, sitting on the sidelines, thinking about buying or remaining renters. In this new Spring Survey, The Next Generation of Homebuyers, Mortgage Professionals Canada steps into the future to look at what these perspective homebuyers are thinking when it comes to investing in a home.

The report segments Next Gens into three categories based on their purchase time horizon: Distant Buyers looking to purchase beyond the next five years who may be less informed about the housing market conditions and the process involved in purchasing and financing a property; Mid-term Buyers looking to purchase in one to five years; and Imminent Buyers who are looking to purchase in the next year.

The majority of Next Gens feel that Canadian real estate is a good long-term investment and 72 per cent view having a mortgage as good debt. They have other debt to consider, however, before they’re ready to purchase. Young Canadians today are carrying heavier student loans than any previous generation. They also want to continue saving for a down payment or are waiting for important milestones in their lives like a promotion or marriage. These factors together with the high costs of homeownership are causing a majority of Next Gens to delay their purchase to sometime in the next five years.

“We found that there is a strong interest in homeownership among Next Generation Homebuyers but they are waiting until they feel financially secure,” said Paul Taylor, President and CEO of Mortgage Professionals Canada. “They are cautious as they save for the future. In the next few years, we expect to see an influx of first-time buyers who know exactly what they want from their first home.”

With average household incomes of $75,000 and average savings of $27,000, 61 per cent of Next Gens expect to make a down payment of less than 20 per cent of the purchase price of their home. Increasingly more self-reliant, this group is also expecting to front their down payments themselves, with 73 per cent relying on their own personal savings and only 36 per cent relying on gifts or loans from family.

Despite the increased price, Next Gens are hoping their first homes will be a low-rise dwelling (80 per cent), over a condominium (18 per cent). The majority are looking for detached homes (59 per cent), while 13 per cent are pursuing a townhouse or eight per cent a semi-detached home. Next Gens living in Ontario and Western Canada are slightly more likely to opt for a condo (19 per cent and 21 per cent, respectively) compared to Atlantic Canada (10 per cent).

“The economy and the housing market interact strongly together. Future homebuying activity will be highly influenced by the economic conditions that exist, including the job situation and mortgage interest rates, as well as the rules associated with mortgage lending,” said Will Dunning, Chief Economist, Mortgage Professionals Canada. “Evolving personal situations will be paramount in those purchase decisions.”

Overall, when Next Gens do enter the housing market, 93 per cent will be looking for a mortgage. While Next Gens as a whole either aren’t too sure of the type of mortgage to expect (30 per cent) or are planning on a combination mortgage (30 per cent), those looking to purchase in the next year are planning for either a fixed-rate (32 per cent) or combination (33 per cent) mortgage, with a median interest rate expectation of 3%. Nearly two thirds of imminent buyers (61 per cent) expect an amortization of 25 years, while 71 per cent expect to pay off their mortgage in less than 25 years.

For a full copy of The Next Generation of Homebuyers, click here.

About Mortgage Professionals Canada
Mortgage Professionals Canada (formerly CAAMP) is Canada’s national mortgage broker channel association representing more than 11,000 members from coast to coast. We recognize that Canadians need and deserve more. We believe in competition as it produces better options and demands ever-improving service and products. We believe in choice as it benefits Canadians and delivers an environment of opportunity. We believe in professionalism as it demonstrates commitment, trust and excellence. The mortgage broker channel is a critical and valuable profession. It creates possibility, fuels the economy and provides Canadians with choice when making among the most important financial decisions of their lives.
SOURCE Mortgage Professionals Canada

For further information: Paul Taylor, President and CEO, Mortgage Professionals Canada, O: 416-644-5465 / C: 905-334-1165,; Karolina Olechnowicz, Senior Consultant, Media Profile, O: 416-342-1822,

Equifax Teranet Announce Partnership

Mortgage Credit Score

Mortgage Credit Score

Industry leaders team up to provide real estate insights on Canadian consumers

Equifax Canada Co. and Teranet Enterprises Inc. have entered into a strategic partnership in order to deliver property and RESL (Real Estate Secured Lending) insights on Canadian consumers. The two industry leaders will be working together to build a suite of solutions leveraging the analytical expertise, and the credit and property data assets held respectively by each company.

Through this partnership, Teranet and Equifax will be able to provide Financial Institutions with comprehensive Canadian real estate data and analytics needed to better evaluate and service their clients throughout the customer lifecycle.

“We know our clients have been looking for insights into Canadians’ mortgage and real estate status,” explains Bill Johnston, Vice President, Data and Analytics at Equifax Canada. “Partnering with Teranet enables us to shape data into solutions to help meet that need. Providing deeper insights can help our customers make more informed decisions, which ultimately benefits Canadian consumers seeking credit. We’re pleased to be part of that.”

Drew Doherty, Director of Marketing & Product Development, from Teranet echoes Johnston’s enthusiasm. “We are very excited to partner with Equifax and look forward to providing customers with even greater insights that will ultimately help strengthen lending decisions. These data-rich solutions can be used by financial institutions to inform and adjust their strategies and underwriting guidelines while aligning solutions to meet the evolving needs of the Canadian consumer.”

The first suite of solutions generated from this partnership is now commercially available.

About Equifax

Equifax powers the financial future of individuals and organizations around the world. Using the combined strength of unique trusted data, technology and innovative analytics, Equifax has grown from a consumer credit company into a leading provider of insights and knowledge that helps its customers make informed decisions. The company organizes, assimilates and analyzes data on more than 800 million consumers and more than 88 million businesses worldwide, and its databases include employee data contributed from more than 5,000 employers.

Headquartered in Atlanta, Ga., Equifax operates or has investments in 21 countries in North America, Central and South America, Europe and the Asia Pacific region. It is a member of Standard & Poor’s (S&P) 500® Index, and its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. Equifax employs approximately 9,200 employees worldwide.

Some noteworthy achievements for the company include: Ranked 13 on the American Banker FinTech Forward list (2015); named a Top Technology Provider on the FinTech 100 list (2004-2015); named an InformationWeek Elite 100 Winner (2014-2015); named a Top Workplace by Atlanta Journal Constitution (2013-2015); named one of Fortune’s World’s Most Admired Companies (2011-2015); named one of Forbes’ World’s 100 Most Innovative Companies (2015). For more information, visit

About Teranet

Teranet is an international leader and pioneer in electronic land registration systems and commerce.

In Ontario, Teranet is the exclusive provider of online property search and registration. Teranet developed, owns and operates the Ontario Electronic Land Registration System, enabling customers to perform searches, transfer title documents through our search and registration capabilities, and perform many other functions in what is widely recognized as one of the world’s most advanced, secure, and sophisticated land registry systems.

In Manitoba, Teranet owns and operates The Property Registry (TPR), offering land and personal property security registration and search services. TPR provides certification of titles to land, maintains land records, and offers reliable information of financial interests in personal property to the public.

A Teranet affiliated entity also holds an interest in Foster Moore International Limited, a New Zealand-based global market player in the government registry sector, including Occupational, Secured Transaction, and Corporate Business registries.

In addition, Teranet offers a complementary suite of innovative solutions for real estate, legal, financial services, government, utilities and local authorities through mapping, property valuation, tax collection and risk assessment products. Reaching a network of over 81,000 end users, 34 real estate boards and over 250 municipalities and institutions, Teranet’s Value Added Solutions create efficiencies for these industries.

Teranet is owned by Borealis, a leading global infrastructure investment manager and the infrastructure arm of the Ontario Municipal Employee Retirement System.

For more information about Teranet, visit


New Mortgage Down Payment Rules

Mortgage Down Payment Rules Changing
Mortgage Down Payment Rules Changing
Finance Minister Bill Morneau

Government of Canada Takes Action to Maintain a Healthy, Competitive and Stable Housing Market

December 11, 2015, Ottawa, Ontario, Department of Finance

Finance Minister Bill Morneau today announced changes to the rules for government-backed mortgage insurance to contain risks in the housing market, reduce taxpayer exposure and support long-term stability. Effective February 15, 2016, the minimum down payment for new insured mortgages will increase from 5 per cent to 10 per cent for the portion of the house price above $500,000. The 5 per cent minimum down payment for properties up to $500,000 remains unchanged.

Today’s announcement represents a graduated approach to increasing the down payment requirement proportionally to the cost of a home. Canadians who already hold mortgages will not be affected by this announcement.

The Government continuously monitors the housing market and is committed to implementing policy measures that maintain a healthy, competitive and stable housing market. Higher homeowner equity plays a key role in maintaining a stable and secure housing market.

In making this announcement, Minister Morneau also highlighted the increases in guarantee fees for Canada Mortgage and Housing Corporation (CMHC)-sponsored securitization programs, announced today by CMHC. The Office of the Superintendent of Financial Institutions has also announced today its plans to update regulatory capital requirements for residential mortgages to ensure that capital requirements keep pace with market developments and risks. Taken together, today’s actions will strengthen the resiliency of Canada’s housing finance system to promote long-term stability and balanced economic growth.

The Government’s role in housing is to set and maintain a framework that is equitable, stable and sustainable. The actions taken today prudently address emerging vulnerabilities in certain housing markets, while not overburdening other regions. They also rebalance government support for the housing sector to promote long-term stability and balanced economic growth.

This measure will increase homeowner equity, which plays a key role in maintaining a stable and secure housing market and economy over the long term. It also protects all homeowners, including many middle class Canadians whose greatest investment is in their homes.

Bill Morneau, Minister of Finance

Quick Facts

  • Federally regulated lenders are required to obtain mortgage insurance when the down payment is less than 20 per cent of the purchase price of a property.
  • Properties valued at $1 million and above require a minimum down payment of 20 per cent.
  • The average price of homes sold in October 2015 through the Canadian Real Estate Association’s Multiple Listing Service® (MLS) system was about $453,000.
  • Insured homebuyers typically purchase lower-priced properties than the overall average. In 2014, the average property price for new insured purchases with down payments of less than 20 per cent was about $293,000, compared to an average price of about $416,000 for properties sold through the MLS system.

Related Products

Additional Links

Media Contacts

Jack Aubry
Media Relations
Department of Finance

Stephanie Rubec
Office of the Minister of Finance

The original press release can be found at the Government of Canada’s website Here.