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Q2 2020 Bank Earnings – All About Provisions and Mortgage Deferrals + MORE Jun 19th
For the second-quarter earnings season, all eyes were on the Big 6 banks’ credit loss provisions and mortgage payment deferral programs. With the onslaught of COVID-19, the banks granted payment deferrals to more than 700,000 Canadians to help prevent a wave of defaults. In their second-quarte.... More »
A Pre-Approval Does Not Guarantee a Mortgage Approval + MORE Apr 28th
Many Canadians are under the assumption their mortgage is as good as done once they have a mortgage pre-approval. But the truth is a buyer cannot expect a mortgage pre-approval will automatically translate into a mortgage. The lender now needs to consider the property itself, approve all the terms a.... More »
Deferring Your Mortgage Could Cost You More Down the Road + MORE Jun 4th
Well over 700,000 Canadian homeowners have now taken advantage of various mortgage payment deferral programs offered by most mortgage lenders.
It’s no wonder there’s been so much demand, considering more than three million jobs have been lost across the country since the start of March when the.... More »
Understanding the Smith Manoeuvre: a Canadian mortgage strategy decoded Jan 6th
For nearly four decades, Canadians have turned to an investment strategy of writing off the interest from mortgage payments as tax-deductible. Known as the Smith Manoeuvre—after its creator, financial planner Fraser Smith—the strategy involves getting a readvanceable mortgage, which includes a l.... More »
M3 Group Expands National Bank Partnership to Ontario Jun 16th
Ontario mortgage brokers at M3 Group will soon have a new edge, the right to sell another Big 6 bank's mortgage products..... More »
Canadian non-mortgage debt rises 3.3%: Equifax
– moneysense.ca
TORONTO — Equifax Canada says non-mortgage consumer debt climbed 3.3 per cent year-over-year in the second quarter and warns that consumers’ ability to keep up with their debt payments could be affected as interest rates and borrowing costs rise.
The credit monitoring firm’s report comes out a day before the Bank of Canada announces its first interest rate decision since hiking its key lending rate by one-quarter of a point to 0.75 per cent in July.
Strong second-quarter economic growth figures last week has an increasing number of economists predicting the central bank will raise rates sooner rather than later, which could help to curb consumer borrowing at a time when Canadians have record debt loads.
Equifax says non-mortgage debt rose to the equivalent of $22,595 per person in the second quarter.
Alberta had the highest provincial average, at $28,240 of non-mortgage consumer debt per person — up 1.8 per cent from last year — followed by Saskatchewan ($24,690) and British Columbia ($24,026)…
The credit monitoring firm’s report comes out a day before the Bank of Canada announces its first interest rate decision since hiking its key lending rate by one-quarter of a point to 0.75 per cent in July.
Strong second-quarter economic growth figures last week has an increasing number of economists predicting the central bank will raise rates sooner rather than later, which could help to curb consumer borrowing at a time when Canadians have record debt loads.
Equifax says non-mortgage debt rose to the equivalent of $22,595 per person in the second quarter.
Alberta had the highest provincial average, at $28,240 of non-mortgage consumer debt per person — up 1.8 per cent from last year — followed by Saskatchewan ($24,690) and British Columbia ($24,026)…
What the latest BoC interest rate hike means for you
– moneysense.ca
The Bank of Canada is hiking its benchmark interest rate by a quarter point to one per cent. So, what does that mean for people with credit card debt or a mortgage?
Economist Bryan Yu with Central 1 Credit Union says if you’re carrying a lot of debt on your credit card, you’ll probably start to notice higher interest charges.
“They’re going to be facing the quarter-point increase on terms of that debt for their servicing… That’s a quarter point on an annual basis. So, it is going to be a bit of a pinch going forward.”
Read: I crushed our $320,000 mortgage in just six years
“Likely, we are going to see a couple more hikes going forward,” he speculates. “But I think at this point, it will be relatively stable for most individuals until about next year.”
So, it might be a good time to start chipping away at that balance.
“They should keep in mind that this is sort of the early stages of a longer-term rate cycle. So, they may want to be looking at paring back some of that debt over time,” says Yu…
Economist Bryan Yu with Central 1 Credit Union says if you’re carrying a lot of debt on your credit card, you’ll probably start to notice higher interest charges.
“They’re going to be facing the quarter-point increase on terms of that debt for their servicing… That’s a quarter point on an annual basis. So, it is going to be a bit of a pinch going forward.”
Read: I crushed our $320,000 mortgage in just six years
“Likely, we are going to see a couple more hikes going forward,” he speculates. “But I think at this point, it will be relatively stable for most individuals until about next year.”
So, it might be a good time to start chipping away at that balance.
“They should keep in mind that this is sort of the early stages of a longer-term rate cycle. So, they may want to be looking at paring back some of that debt over time,” says Yu…
47% of workers living paycheque to paycheque
– moneysense.ca
TORONTO — A new survey by the Canadian Payroll Association suggests nearly half of workers are living paycheque to paycheque due to soaring spending and debt levels.
The poll found that 47 per cent of respondents said it would be difficult to meet their financial obligations if their paycheque was delayed by even a single week.
The survey, which polled 4,766 Canadian employees between June 27 and Aug. 5, also found that 35 per cent said they feel overwhelmed by their level of debt.
For the first time in the survey’s nine-year history, more respondents found mortgages on principal residences the most difficult debt to pay down, with 32 per cent of respondents selecting this option compared to 23 per cent who cited credit card debt.
Results from the poll indicate that the primary reason for increased debt is higher overall spending. Of the major reasons for increased spending, 32 per cent of respondents pointed to higher living expenses while 25 per cent mentioned unexpected expenses…
The poll found that 47 per cent of respondents said it would be difficult to meet their financial obligations if their paycheque was delayed by even a single week.
The survey, which polled 4,766 Canadian employees between June 27 and Aug. 5, also found that 35 per cent said they feel overwhelmed by their level of debt.
For the first time in the survey’s nine-year history, more respondents found mortgages on principal residences the most difficult debt to pay down, with 32 per cent of respondents selecting this option compared to 23 per cent who cited credit card debt.
Results from the poll indicate that the primary reason for increased debt is higher overall spending. Of the major reasons for increased spending, 32 per cent of respondents pointed to higher living expenses while 25 per cent mentioned unexpected expenses…
About half of Canadian workers are living paycheque to paycheque: survey
– canadianbusiness.com
TORONTO — A new survey by the Canadian Payroll Association suggests nearly half of workers are living paycheque to paycheque due to soaring spending and debt levels.
The poll found that 47 per cent of respondents said it would be difficult to meet their financial obligations if their paycheque was delayed by even a single week.
The survey, which polled 4,766 Canadian employees between June 27 and Aug. 5, also found that 35 per cent said they feel overwhelmed by their level of debt.
For the first time in the survey’s nine-year history, more respondents found mortgages on principal residences the most difficult debt to pay down, with 32 per cent of respondents selecting this option compared to 23 per cent who cited credit card debt.
Results from the poll indicate that the primary reason for increased debt is higher overall spending. Of the major reasons for increased spending, 32 per cent of respondents pointed to higher living expenses while 25 per cent mentioned unexpected expenses…
The poll found that 47 per cent of respondents said it would be difficult to meet their financial obligations if their paycheque was delayed by even a single week.
The survey, which polled 4,766 Canadian employees between June 27 and Aug. 5, also found that 35 per cent said they feel overwhelmed by their level of debt.
For the first time in the survey’s nine-year history, more respondents found mortgages on principal residences the most difficult debt to pay down, with 32 per cent of respondents selecting this option compared to 23 per cent who cited credit card debt.
Results from the poll indicate that the primary reason for increased debt is higher overall spending. Of the major reasons for increased spending, 32 per cent of respondents pointed to higher living expenses while 25 per cent mentioned unexpected expenses…
The BoC has put every mortgage holder on alert. Ten things to ponder now
– theglobeandmail.com
Since the Bank of Canada couldn’t wait until October to raise rates, here are some facts and strategies for homeowners to ponder
