Alberta mortgage and land fees soar in budget
The housing market is going to suffer as Alberta bids to reduce its rising budget deficit. Land title and mortgage registration fees are set to soar after the government concluded there was “room to grow” in its fee structure. Service Alberta minister Stephen Khan said that, as a result of discussions with stakeholders including lawyers and real estate associations, he found a belief that Alberta’s fees are very low compared to other provinces. The changes will be introduced from July 1 2015 and will mean that the flat-fee for land title and mortgage registration documents will rise by 50 per cent; from $50 to $75. The other part of the fees is variable and in some cases will be six times higher than the current level. That means that to buy a $500,000 home in Alberta with a $400,000 mortgage, the fees will rise from $150 for land title and $140 for mortgage registration to $675 for land title and $555 for mortgage registration. This means the total payable will rise from $290 to $1,230. Read the full story.
Mortgage brokers removed from website for ‘too low’ rates
Two mortgage brokers have expressed their surprise at being removed from RateHub because their mortgage rates are too low. Jeff Mark and Steve Pipkey of Spin Mortgage, an online brokerage based in Vancouver
, posted a rate of just 2.44 per cent for a five-year fixed deal. The Globe and Mail
reports that RateHub believed that the conditions to qualify were beyond the reach of most consumers and concluded that the rate amounted to false advertising. The rate was the result of a deal from Industrial Alliance Insurance and reduced by Spin Mortgage foregoing some of its commission. Pipkey said that the rate is achievable, but RateHub’s Alyssa Richard argued that only 10 per cent of borrowers would qualify for extra conditions, including the mortgage being closed within 30 days. Read the full story.
Bank of Canada governor defends credibility
The governor of the Bank of Canada Stephen Poloz has defended the bank’s credibility. It has been called into question recently, especially after the announcement that it would no longer provide forward guidance on interest rates. Speaking at a Canadian-UK trade meeting in London yesterday, Poloz said: “Ultimately, our credibility will hinge on how well we meet our mandate.” That mandate includes keeping inflation within its set target. On the subject of whether low interest rates over the long term damages the bank’s credibility, he said it does not. He said the BoC and other central banks worldwide have had to work hard to deal with the impact of lower oil prices.
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