MLN NewsStream

Changes to CMHC's MLI Select program in the last year have "reduced the attractiveness" of the agency's multi-unit financing, relative to conventional construction financing. So says Versabank President David Taylor, who's seen applications for the product "dry up" at his institution.

"Until earlier this year, there was enough demand for CMHC multi-unit financing," Taylor told MLN in a recent interview. "[Since] CMHC changed the rules...our real estate developers don't find it attractive anymore to pay CMHC fees."

He points to four CMHC rule shifts in particular:

On April 8, stock market anxiety hit an extreme that's seldom been equalled.

Wall Street's VIX (a.k.a. "fear index") spiked above 52, the highest on record apart from the #GFC# (2008-09) and pandemic (2020).

Yet here we are, a mere 12 weeks later, watching the S&P 500 smash record highs. It's like nothing happened. But, in fact, it's one of the fastest recoveries from a 20% drop in S&P 500 history.

Ok, but what does this have to do with mortgages?

Glad you asked.

What happened this spring is a textbook example of how qualified, savvy, well-prepared investors use credit to manufacture wealth.

Credit is liquidity, and liquidity is power. Pre-arranged financing (e.g., a HELOC) gives Canadians the option to leverage a dead asset, home equity, to boost net worth the instant that opportunity strikes.

Now, what you're about to read is not a playbook for the masses (check the disclaimer), but for a rare breed with a long time horizon, strong financials and market conviction, it deserves serious thought.

The Federal Reserve’s go-to inflation tracker—core PCE—topped estimates by one tick as U.S. price increases accelerated.

Spending and income both underwhelmed, hinting that the average American wallet is starting to feel like it’s on a student budget.

All in all, today's BEA report served up a platter of economic confusion and stagflation-esque vibes, giving rays of hope to both hawks and doves.

Here's a full breakdown and what it spells for Canadian mortgage rates...

Why would Canada's largest mortgage originator, which has access to almost every lender in the land, decide to bankroll a brand new alternative lender?

That's what we asked DLC Group after it took a 40% stake in the upstart Heartwood Financial Group (HFG). The business strategy behind it then became quickly apparent.