The Newest in Mortgage Information: TD, CIBC Hike Mortgage Charges
TD Bank and CIBC were the first of the Big 6 banks to reverse their recent mortgage rate cuts last week.
Exactly two weeks after TD Bank cut its special offer mortgage rates by a whopping 45 basis points, the bank reversed course and raised its 5-year fixed rate by 30 basis points. The bank also increased its 3-year fixed rate by 10 basis points.
This was followed by rate hikes by CIBC, which on Friday reversed previous 5-year fixed rate cuts by increasing their insured product by 20 basis points. She also increased her 7-year fixed-rate mortgage rate.
Changes to the CIBC special offer tariff:
- Fixed 5 years (high rate): 1.99% to 2.19%
- 5 years fixed: 2.24% to 2.36%
- 7 years fixed: 2.94% to 3.09%
TD Special Offer Price Changes:
- 3 years fixed: 2.14% to 2.24%
- Fixed 5 years (high rate): 1.89% to 2.19%
- 5 years fixed: 1.99% to 2.29%
The big banks aren’t the only ones starting to raise mortgage rates. Other mortgage lenders like First National and Equitable Bank have hiked rates since last Wednesday.
And on Monday, HSBC raised a number of their fixed rates, including the 5-year fixed rate (high rate) that rose from 1.89% to 2.19%. The uninsured 5-year fixed interest rate rose by 30 basis points to 2.29%.
It was triggered by an increase in mortgage financing costs with the sharp rise in bond yields over the past week. The yield on Canada’s 5-year government bond, which usually tops 5-year fixed mortgage rates, closed at 1.07% on Friday – up 34% in the last month alone.
New e-signature provider now available for mortgage deals
Syngrafii is now a recognized provider of electronic signature integrated technology tools for brokers and lenders.
The company’s technologies are currently used by lenders, law firms and property transfer companies in Canada, and its electronic signatures are biometrically secured, one-off electronic signatures that “meet or exceed legal, governance and compliance standards in numerous jurisdictions worldwide.” said the company.
“We look forward to the partnership with the [Canadian Lenders Association] by offering lenders our suite of integrated tools that help simplify, accelerate, and improve the entire credit and mortgage lifecycle – from origination to closing – for both their new and existing clients, ”Matthew Gibson, Chief Executive Officer and Co-Founder said in a prepared statement.
The company said that unlike other platforms that use reusable images and typed proxy signatures, Syngrafii is the only platform “designed to ensure identity, compliance and non-repudiation”.
Syngrafii recently introduced Remote Online Notarization (RON), which enables lawyers and notaries to electronically seal documents on a video platform in real time. The company tells CMT that it has no other competitors video signing in the Canadian mortgage space.
“RON – a growing trend in numerous countries and sectors in line with evolving electronic signature laws – is helping ensure business continuity by facilitating compliant closures for financial services, automotive leasing, legal and real estate firms, among others”, the Company called. “With remote deals now legal, lenders can use Syngrafii’s eSignature tools at less than the cost of a courier service, with better compliance and better time management for both the lender and the customer.”
Remote closures are currently only allowed in Ontario, Saskatchewan, and New Brunswick and are accepted in British Columbia
The Financial Services Regulatory Authority of Ontario (FSRA) met or exceeded 86% of its targets in the first quarter despite a “significant increase” in applications.
The results have been published in the organization’s latest service standards scorecard, which shows progress on the priorities of the 2020-2023 annual business plan.
For example, the regulator exceeded its target for licensing credit unions, where 100% of applications were processed within 30 days of receiving all the required information, above its 90% target. And 92.8% of mortgage broker complaints were resolved within 120 days, which is above the 80% target.
Despite its successes in the face of the COVID-19 pandemic, the FSRA still hasn’t stuck to certain metrics, namely processing license applications from potential brokers.
Only 24.3% of individual mortgage broker licenses were issued within the promised 10 days, which is well below the 80% targeted by FSRA.
Likewise, only 49.5% of individual mortgage broker licenses – identified with an eligibility problem – were contacted or their licenses issued within 10 days, which is below the 80% target.
“The performance below the target is a The result of the annual license renewals and a significantly higher volume of new applications, ”says the report. “FSRA will be the Resource capacity and carry out a completeness check of all applications. FSRA is also working with the sectors to improve the Quality of the applications to enable efficient approval processes. “
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