Canada Guaranty Mortgage Insurance Benefits

Archive for November, 2015

Housing Market Trends


Year-over-Year Percentage Changes (Oct. 2015)
To view additional monthly aggregate house price data for 13 of Canada’s major cities, please visit the Brookfield RPS House Price Index site.

Sales-New Listings (Oct. 2015)

Source: CREA (The Canadian Real Estate Association)

HOUSING MARKET SUMMARY

  • While overall house prices in Canada are up 8% from October 2014, virtually all of the appreciation can be attributed to three cities: Vancouver (+14%), Toronto (+11%) and Hamilton (+11%).
  • Beyond these three cities, house prices remain relatively flat in all other major markets across Canada.
  • Similar trends can be observed at a provincial level, where house price appreciation continues to be strong in BC (+12%) and Ontario (+9%), but relatively flat in all other provinces.
  • From a supply and demand perspective, British Columbia and Ontario are clearly identified as seller’s markets, while the rest of the country is much more balanced.

NOTE: Traditionally, a buyer’s, balanced or seller’s market is defined by the following ranges of sales-to-listings percentages:

< 35% Buyer’s Market (More homes are for sale than there are buyers)
= 36-54% Balanced Market
> 55% Seller’s Market (More buyers available than there are homes for sale)

NOTE: Click on the image of the map to download/print in PDF format.

The Homeownership Solutions Program


Not for Sale Sign

The Homeownership Solutions Program
Helping More Borrowers Stay Homeowners


Designed to help borrowers who are experiencing unforeseen short-term financial difficulty, the Canada Guaranty Homeownership Solutions Program provides lenders with greater flexibility to offer their borrowers assistance while satisfying the lending institution’s requirements and the borrower’s temporary challenges.

For certain situations, lenders have the ability to implement solutions immediately and without approval from Canada Guaranty, as long as the parameters defined are not exceeded. Should the lender desire input from Canada Guaranty, the Loss Management team is always available and ready to work with the lender to assist a borrower in need. When assistance is required on a lender approved workout, or should the solution exceed the lender’s parameters and need Canada Guaranty’s approval, it will be important to provide us with the necessary information so that we can complete our review and recommendations as efficiently as possible. A workout request form is available to our lenders to assist them in providing us with the necessary information and help expedite the process.

Below is an example of an actual borrower who received support and benefitted as a result of the collaborative efforts between their lender and Canada Guaranty.

Reason for Assistance
(Borrower Circumstance)
Lender’s and/or Borrower’s Request Implemented Workout Solution

ILLNESS

The mortgagor (homeowner) is married with five children and is the sole income earner. He had been awaiting a date for lifesaving surgery and was expected to miss six months of work during his recovery. He neither had benefits nor insurance coverage through his employer.

Looking for assistance with mortgage payments during his recovery.

CONCERNS

  • Canada Guaranty’s discussions with the lender and borrower revealed that the mortgage had only been funded a short time, but that the borrowers had done business with our lender partner for a long time and payments had never been an issue. To date, all of the mortgage payments were being maintained. It was also confirmed that once recovered, the borrower would resume his current full-time employment and be able to continue to manage his mortgage.
  • The concern of the borrower and lender was that, while the surgery would happen before year end, a definite surgery date was not yet known. The borrower would be provided seven days’ notice when a date was provided by the hospital.

THE SOLUTION

  • Canada Guaranty provided an exception to support the workout and a pre-approved capitalization for up to six months of mortgage payments. Once the surgery occurred, the lender applied this workout solution.
  • Providing a “pre-approved” workout eliminated the stress and worry of the borrower as he prepared for his upcoming surgery.





CANADA GUARANTY CAN HELP

The lender’s internal guidelines always supersede those offered by Canada Guaranty; however, in all cases, our Loss Management team is available to offer ongoing support, consultation and customized solutions to facilitate the successful implementation of a workout.

If your client or borrower is experiencing temporary financial hardship, please feel free to contact a member of our Loss Management team with any questions or to learn more about the Homeownership Solutions Program and the options available.

Contact the Loss Management Team:

Introduction from Andy Charles


Andy Charles

A Season of Change
Traditionally seen as a slower period following the busy spring and summer months in the mortgage industry, the fall season has supported an active housing market driven by the low rate environment and potential sellers listing their homes before the realities of winter set in across most of Canada. This time of year represents an important period of reflection and planning at Canada Guaranty. It’s an opportunity to review the distance travelled over the past 11 months, and consider what is required to maintain the highest level of service to support our partners’ continued success.

A new Federal Government assumed power in early November and the importance of Canada’s housing market to our economy will undoubtedly ensure it remains under close oversight by the new government. Canada Guaranty is a federally regulated company and is in regular communication with the Office of the Superintendent of Financial Institutions and the Department of Finance. We anticipate this process continuing under the new leadership.

No matter the season, our philosophy remains constant and that is to enhance each customer’s experience by listening and delivering exceptional service. On behalf of the Canada Guaranty team, thank you for giving us the opportunity to prove this commitment, every day.


Wishing you the very best for the Holiday Season!

Andy Charles
President and CEO
Canada Guaranty Mortgage Insurance Company

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