The Daily Chase: OSFI maintains minimum qualifying rate; One-on-one with CIBC's Dodig
BNN Bloomberg
The Office of the Superintendent of Financial Institutions announced today it will maintain the minimum qualifying rate for uninsured homebuyers (ie, those who put down at least 20 per cent up front) at existing levels.
The Office of the Superintendent of Financial Institutions announced today it will maintain the minimum qualifying rate for uninsured homebuyers (ie, those who put down at least 20 per cent up front) at existing levels. As such, borrowers will still have to show they can service their obligations at the higher of 5.25 per cent or their contract rate plus two percentage points. Prominent Canadian mortgage Rob McLister told us yesterday OSFI runs the risk of “flack for being asleep at the wheel” if it delivered a status quo decision. We’ll speak with OSFI Superintendent Peter Routledge shortly after 1 p.m.
IN CONVERSATION WITH CIBC’S CEO
The prospect of higher interest rates is just one of many topics that Jon discussed with Canadian Imperial Bank of Commerce Chief Executive Victor Dodig in an interview that will air this morning in The Open. If you missed it, check out Dodig’s warning to the government about its plan to slap a surtax on the country’s most profitable banks and insurers.
POST-FED FADE CONTINUES
How many times have we said that it often only takes one sleep for investors to change their mind about major central bank decisions? Futures are pointing to more losses at the start of trading as the initial enthusiasm about the U.S. Federal Reserve’s ramped-up taper and rate-hike outlook wears off amid a broad push by major central banks to rein in inflation. Potentially further complicating how markets will fare today: it’s a so-called triple witching session as stock options, stock index futures and stock index options expire.
CONSUMERS TAKING STOCK OF SUPPLY CHAIN WOES
