OSFI urges lenders to be vigilant amid “heightened risk” in the mortgage market

In response to increased risks in the mortgage market, Canada’s banking regulator has issued a reminder to lenders about their risk management responsibilities.

The Office of the Superintendent of Financial Institutions (OSFI) this week released a regulatory notice reminding federally regulated lenders of their obligations pertaining to mortgage risk management and underwriting guidelines.

The measures range from being proactive with vulnerable accounts, including “early and proactive engagement with vulnerable borrowers,” to credit loss provisioning and “sound” mortgage underwriting.

“None of the measures outlined in our latest regulatory notice are new,” a spokesperson from OSFI told CMT.

OSFI says the notice is meant to complement its Guideline B-20, while specifically drawing attention to and reinforcing the regulator’s expectations for lenders in the current economic and interest rate environment.

“The notice responds to the heightened risk environment related to existing mortgage accounts and lender portfolios,” OSFI said. “These risks include potential payment shocks and renewal and refinancing risks, particularly for borrowers with higher-risk mortgage products like variable-rate mortgages with fixed payments.”

OSFI confirmed that the notice isn’t in response to a particular lender or their mortgage risk management practices, but instead “reinforces to all lenders the importance of sound mortgage risk management practices through the full lifecycle of the loan.”

As a principles-based regulator, OSFI said it communicates its expectations and tries to avoid being “prescriptive” as much as possible. “…we assess risks to ensure alignment with our expectations and take corrective action when necessary.”

SOURCE: CMT

Making Your Home Workspace More Productive.

Fall in love with your home and your workspace again with these tips to help you make your home office space more productive!

1. Establish Boundaries: A key component of being more productive at home is to establish proper boundaries between work and personal life. While not all of us at home have space for a dedicated home office, it helps to create a dedicated area in your house such as your kitchen table. In addition to having a dedicated physical space to create boundaries, establishing when it is time to focus on work versus switching off for the day is key. Establishing norms such as time and location can make a big difference in ensuring productivity, but ensure you have discussed with your manager and/or team about when communication is expected.
2. Create a Routine: This is especially important for individuals who are used to an office setting and whose mornings would consist of showering, breakfast and commuting. When the commute is off the table, it is just as important to maintain a good morning routine – even if you have the option of more flexible hours. Determine what works best for you to keep you focused and engaged and maintain that routine throughout the week.

3. Declutter: When working at home, you no longer have to account for just your immediate space but the general environment as well. It can be distracting to try and work at the kitchen table when your sink is a mess or the carpet needs vacuuming. Be sure to keep your house as decluttered and tidy as possible to prevent mid-day distractions and to clear your mind to better focus on work-related tasks.

4. Take Breaks: When working in an office, you’ll often be reminded to take your lunch break when the rest of your colleagues are headed out for theirs. At home, it can be a little more difficult to maintain your lunch hour – or take breaks at all! And when we do, often these breaks are little more than scrolling through social media. While taking breaks is vital, a productive break is even more so. Consider reading relevant articles to give you some inspiration, making a home cooked meal or even taking a walk around your block for a more restful break.
5. Upgrade Your Equipment: Whether you’re currently working in an old wooden kitchen chair or lack proper wrist support, a big step towards being more productive at home is upgrading your equipment. If you’re going to be sitting all day, investing in a comfortable, supportive desk chair that won’t leave you feeling achy will make a huge difference! Also, make sure you have enough desk space to be able to work comfortably and include ergonomic support where applicable for an even more comfortable (and productive!) work-at-home experience

Mortgage Renewal Benefits.

Is your mortgage coming up for renewal? Do you know about all the incredible options renewing your mortgage can afford you? If not, we have all the details here on how to make your mortgage renewal work for you as we start to think about 2024.

Get a Better Rate

Are you aware that when you receive notice that your mortgage is coming up for renewal, this is the best time to shop around for a more favourable interest rate? At renewal time, it is easy to shop around or switch lenders for a preferable interest rate as it doesn’t break your mortgage. With interest rates expected to come down as we move into the New Year, taking some time to reach out to me and shopping the market could help save you money!

Consolidate Debt

Renewal time is also a great time to take a look at your existing debt and determine whether or not you want to consolidate it onto your mortgage. For some, this means consolidating your holiday credit card debt into your mortgage, for others it could be car loans, education, etc. Regardless of the type of debt, consolidating into your mortgage allows for one easy payment instead of juggling multiple loans. Plus, in most cases, the interest rate on your mortgage is less than you would be charged with credit card companies.

Start on that Reno

Do you have projects around the house you’ve been dying to get started on? Renewal time is a great opportunity for you to look at utilizing some of your home equity to help with home renovations so you can finally have that dream kitchen, updated bathroom, OR you can even utilize it to purchase a vacation property!

Change Your Mortgage Product

Are you not happy with your existing mortgage product? Perhaps you’re finding that your variable-rate or adjustable-rate mortgages are fluctuating too much and you want to lock in! Alternatively, maybe you want to switch to variable as interest rates start to level out. You can also utilize your renewal time to take advantage of a different payment or amortization schedule to help pay off your mortgage faster!

Change Your Lender

Not happy with your current lender? Perhaps a different bank has a lower rate or a mortgage product with terms that better suit your needs. A mortgage renewal is a great time to switch to a different bank or credit union to ensure that you are getting the value you want out of your mortgage if you are finding that your needs are not currently being met.

Regardless of how you feel about your current mortgage and what changes you may want to make, if your mortgage is coming up for renewal or is ready for renewal, please don’t hesitate to reach out to a DLC Mortgage Expert today! We’d be happy to discuss your situation and review any changes that would be beneficial for you to reach your goals; from shopping for new rates or utilizing that equity! Plus, we can help you find the best option for where you are at in your life now and help you to ensure future financial success.

Published by the DLC Marketing Team.

Estate Planning: Are You Covered?.

“New Year, new you” may be a cliché but it is for a reason! The New Year always has us thinking about where we are now, and where we want to end up. When it comes to your personal goals, a review of your finances and estate should be at the top of your list. Proper estate planning can ensure that you have a stress-free year knowing you are covered!

Is your will up-to-date?

The purpose of a will is to outline your assets and determine how they will be distributed, as well as who will be in charge of managing affairs. Some key components to include in this document are:

• Up-to-date list of your significant assets; note the location if outside your province or outside Canada.
• Who will inherit your assets? And which?
• Outline of where you want assets to pass outside your estate to avoid probate fees (e.g., an insurance policy, an RRSP)? Do this via beneficiary designation.
  • If they are minors, do you have a trust or other provisions in place?
• Is the list of beneficiaries in your will up to date? Have there been recent births, deaths or marriages in your family?
• Have you included alternates in case your named beneficiaries predecease you?
• Do you want to give to charities or other organizations?
• If you have children, have you indicated a guardian and spoken to them?
  • Did you include an alternate in case the guardian you chose is unable to commit?
  • Have you reviewed your choice of guardian as your child grows older?
• Your executor who will carry out your wishes after you die. You can name one executor or two or more co-executors. Be sure to name one or more alternates as well.

Have you assigned a power of attorney?

Another important (and often overlooked!) aspect of estate planning involves naming a power of attorney. This individual is someone you trust to make decisions for you should you become unable to do so due to injury or illness, whether temporary or otherwise.  Power of attorney documents are created for you by a wills and estates lawyer (or notary in Quebec) as part of your estate plan.

Do you have mortgage protection insurance?

Through Manulife Mortgage Protection Plan (MPP), you have the opportunity to add a portableinsurance policy to your mortgage that helps protect your loved ones and your home should something unexpected happen to you.  Unlike bank insurance, MPP is a portable life and disability product that you can take with you, from lender to lender and property to property.  This gives you the utmost future flexibility and is unlike bank insurance products which tie you down exclusively to them.  To ensure you get the best rate at renewal, you must have invested in an insurance product like MPP that will give you the freedom to move!

Mortgage life insurance will protect your family’s future by paying out your mortgage should the mortgage holder pass away. Manulife will also make your mortgage payments while your claim is being adjudicated, so there is no added stress for a loved one at an already difficult time.  Mortgage disability insurance will take care of your mortgage payments plus property taxes if you become disabled.  Disabilities from sickness and accidents are relatively common and will affect 1 in 3 borrowers throughout their mortgage amortization.  Manulife provides budget-friendly payment options, the ability to top-up your coverage and so much more.

These are all important aspects to consider to ensure your estate and family will be provided for should something happen. While never a fun topic, it is an important one and the better prepared you are, the better off your loved ones will be.

Written by the DLC Marketing Team.

Unlocking a Year of Possibilities: Achieve Your 2024 Resolutions with the CHIP Reverse Mortgage.

It’s a brand-new year, and if you’re up for it, a chance for a brand-new version of you. No matter how you plan to start 2024, you might have a few ideas about changing things up in the months ahead. Whether you dream of fixing up your home, going on exciting trips, or getting rid of some debts, there’s a helpful option – the CHIP Reverse Mortgage! The CHIP Reverse Mortgage is designed exclusively for Canadian homeowners aged 55 and better. It enables you to convert up to 55% of your home’s value into tax-free cash, while staying in the home you love and without worrying about monthly mortgage payments. Let’s explore how the CHIP Reverse Mortgage can help you accomplish your goals in the coming year and beyond.

Debt-Free Living and Financial Freedom

One of the primary concerns for many individuals entering the new year is the burden of existing debts. The CHIP Reverse Mortgage by HomeEquity Bank presents an opportunity to take control of your financial situation by providing tax-free cash that can be used to settle outstanding debts. Imagine starting the year with a clean slate and embracing a lifestyle free from the constraints of debt.

Pursue Your Passions and Hobbies

One advantage of the CHIP Reverse Mortgage lies in its versatility, allowing you to use the unlocked home equity for activities that bring you joy. Whether you’re investing in a hobby you’ve always been passionate about, or even joining a gym to stay active and healthy, the CHIP Reverse Mortgage offers the financial flexibility to pursue your interests without compromise.

Support Loved Ones’ Aspirations

If you have family-oriented resolutions, the CHIP Reverse Mortgage provides an avenue to support your loved ones’. Whether it’s helping a child or grandchild with tuition fees or contributing to a family member’s entrepreneurial endeavours, the tax-free cash from the CHIP Reverse Mortgage can empower you and your family.

Age In Place with Home Retrofitting

As the new year prompts reflections on long-term well-being, the CHIP Reverse Mortgage offers a practical solution for retrofitting your home to age-in-place comfortably. Use the funds to make necessary modifications, ensuring that your living space evolves with your changing needs while maintaining the independence and security of your home.

The CHIP Reverse Mortgage by HomeEquity Bank is a sound financial solution that provides means to accomplish your New Year’s resolutions by tapping into the wealth you’ve built in your home. Contact your Dominion Lending Centres mortgage expert to discover how the CHIP Reverse Mortgage can unlock a year filled with possibilities and turn your dreams into­­ reality.

Published by the DLC Marketing Team.