June 16

Statement by Deputy Prime Minister and Minister of Finance

first_imgStatement by Deputy Prime Minister and Minister of Finance From: Department of Finance CanadaThe Office of the Superintendent of Financial Institutions (OSFI) announced today that it is restarting its consultation on the minimum qualifying rate for uninsured mortgages.Ottawa, OntarioDepartment of Finance CanadaThe Office of the Superintendent of Financial Institutions (OSFI) announced today that it is restarting its consultation on the minimum qualifying rate for uninsured mortgages. The Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland, today issued the following statement:“For many Canadians, the most important investment they will make in their lifetime is the purchase of their home. Maintaining the health and stability of Canada’s housing market is essential to protecting middle class families and to Canada’s broader economic recovery.“We will continue to monitor housing market conditions across the country. To inform potential steps the government may take, we will closely examine the results of the consultation announced by the Superintendent of Financial Institutions.“The federal government remains committed to helping all Canadians find an affordable place to call home.”Quick FactsWhen a borrower has less than a 20 per cent down payment, lenders are required to obtain government-backed mortgage insurance. The mortgages must comply with the insured mortgage rules set by the Minister of Finance, including the minimum qualifying rate. This is currently the greater of the borrower’s contract rate or the Bank of Canada 5-Year Benchmark Posted Mortgage Rate.When the borrower has more than a 20 per cent down payment, mortgage insurance is not required. Currently, the minimum qualifying rate applicable to uninsured mortgages, set by OSFI, is the greater of the borrower’s contract rate + 2.00 per cent; or the Bank of Canada 5-Year Benchmark Posted Mortgage Rate. /Public Release. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here. Why?Well, unlike many news organisations, we have no sponsors, no corporate or ideological interests. We don’t put up a paywall – we believe in free access to information of public interest. Media ownership in Australia is one of the most concentrated in the world (Learn more). Since the trend of consolidation is and has historically been upward, fewer and fewer individuals or organizations control increasing shares of the mass media in our country. According to independent assessment, about 98% of the media sector is held by three conglomerates. This tendency is not only totally unacceptable, but also to a degree frightening). Learn more hereWe endeavour to provide the community with real-time access to true unfiltered news firsthand from primary sources. It is a bumpy road with all sorties of difficulties. We can only achieve this goal together. Our website is open to any citizen journalists and organizations who want to contribute, publish high-quality insights or send media releases to improve public access to impartial information. You and we have the right to know, learn, read, hear what and how we deem appropriate.Your support is greatly appreciated. All donations are kept completely private and confidential.Thank you in advance!Tags:bank, Canada, Deputy Prime Minister, federal government, finance, Government, insurance, Investment, market, Minister, mortgage, Ottawa, Prime Minister, purchaselast_img read more