History of Mortgage in Timeline

A mortgage is a loan secured by real property, enabling purchasers to finance real estate or existing owners to raise funds. The lender has a lien on the property, allowing them to seize and sell it if the borrower defaults. Derived from the term "death pledge," the mortgage ends upon fulfillment of the loan terms or foreclosure. Essentially, the borrower provides the property as collateral for the loan they receive.

2003: Removal of dual stamp duty application in the United Kingdom

In 2003, the dual application of stamp duty in Islamic mortgage transactions was removed in the United Kingdom through the Finance Act 2003.

2007: Covered bonds market volume at year-end

At the end of 2007, the covered bonds market volume in the European Union reached approximately €2 trillion.

2007: Fixed-rate mortgages become popular in the UK

From 2007 to the beginning of 2013 fixed-rate mortgages became popular in the UK.

2007: Subprime mortgage crisis

In 2007, the US subprime mortgage crisis occurred, contributing to major financial instability.

July 28, 2008: US Treasury attempts to kick start market for securities

On July 28, 2008, US Treasury Secretary Henry Paulson announced an attempt to kick start a market for mortgage-backed securities in the United States.

October 10, 2008: George Soros promotes the Danish mortgage market model

On October 10, 2008, George Soros promoted the Danish mortgage market model in The Wall Street Journal.

2008: Regulatory failings highlighted by the 2008 financial crisis

The 2008 financial crisis highlighted regulatory failings leading to the establishment of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in 2013.

2010: 2010 foreclosure crisis

In 2010, the US experienced a foreclosure crisis resulting from unsound lending practices.

2012: Government scrutiny over the CMHC

In 2012, the federal government, particularly Finance Minister Jim Flaherty, began publicly considering privatizing the Canada Mortgage and Housing Corporation (CMHC).

2013: Fixed-rate mortgages become popular in the UK

From 2007 to the beginning of 2013 fixed-rate mortgages became popular in the UK.

2013: Establishment of FCA and PRA

In 2013, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) were established in the UK to address regulatory failings highlighted by the 2008 financial crisis.

April 2014: OSFI releases mortgage insurance guidelines

In April 2014, the Office of the Superintendent of Financial Institutions (OSFI) issued guidelines to tighten standards for mortgage insurance providers concerning underwriting and risk management.

October 2016: Introduction of mortgage stress test in Canada

In October 2016, Canada introduced a mortgage stress test to cool down real estate prices. This requires borrowers to qualify at a rate higher than their contract rate.

May 2018: Stress-test rate peak

In May 2018, the stress-test rate reached its peak of 5.34%.

July 2019: Decrease in stress-test rate

In July 2019, the stress-test rate decreased to 5.19% for the first time in three years.

December 2019: Review of mortgage stress test ordered

In December 2019, Canada's finance minister Bill Morneau ordered a review of the mortgage stress test due to criticisms from the real estate industry.