Learn more about Canada’s top banks rates, rules and the latest news – read on!
Latest News
Moody's upgrades credit rating outlook for Canada's major banks Jul 17th
Rating agency Moody's raised its credit ratings outlook on Canada's major banks on Tuesday, just over 14 months after it lowered the ratings citing high debt levels and soaring house prices..... More »
Debt loads and soaring house prices a growing concern: Bank of Canada Jun 8th
THE CANADIAN PRESS/Sean Kilpatrick
The Bank of Canada says elevated home prices in Toronto and Vancouver and record levels of household debt have become bigger worries over the past six months. The central bank’s latest biannual review of the Canadian financial system says those two “vulnerabili.... More »
Is Your Credit Score Mortgage Ready? + MORE Mar 28th
May and June are the busiest months for real estate in Canada – and that means home buyers will soon be out in full force. It also means many prospective buyers are visiting their lenders, and asking for mortgage financing for their new dream home purchase. However, a new BMO study finds the.... More »
CPPIB, Onex exploring potential $7-billion Tomkins sale: sources Nov 22nd
Onex and CPP pension board said to be interviewing investment banks to advise on sale of auto-parts company
.... More »
Making sense of the markets this week: January 23 Jan 22nd
Each week, Cut the Crap Investing founder Dale Roberts shares financial headlines and offers context for Canadian investors.
U.S. earnings season is in full swing
Earnings season is off and running. As always, the financials were battling to be the lead-off batter, as we look .... More »
Tighter Lending Rules Mean Better Credit Card Options for Consumers
– ratesupermarket.ca
Consumers look to cash in over the next several months, as a softening housing market spurs banks to shift their focus to credit cards as a larger source of lender income.
Mortgage lending is traditionally the largest source of banks’ funding – and while it continues to be the main breadwinner, recent restrictions to cool the markets are now being felt in bank coffers.
These market changes include a recently imposed monthly cap on mortgage guarantees at $350 million for each mortgage lender. As the spread of mortgages narrows and becomes less attractive, banks look to make up the lost profit through credit cards.
Credit Cards Mean Easier, Faster Profits
Although credit cards have a higher default rate, they offer the opportunity for a higher profit margin. As the saying goes – the higher the risk, the higher the reward. Consumer debt has skyrocketed over past several quarters, fueled by ultra-low interest rates. The debt-to-income ratio hit a record 163 per cent in the third quarter of 2012, before falling slightly to 162 per cent in the most recent quarter, according to Statistics Canada…
Tighter Lending Rules Mean Better Credit Card Options for Consumers
– ratesupermarket.ca
Consumers look to cash in over the next several months, as a softening housing market spurs banks to shift their focus to credit cards as a larger source of lender income.
Mortgage lending is traditionally the largest source of banks’ funding – and while it continues to be the main breadwinner, recent restrictions to cool the markets are now being felt in bank coffers.
These market changes include a recently imposed monthly cap on mortgage guarantees at $350 million for each mortgage lender. As the spread of mortgages narrows and becomes less attractive, banks look to make up the lost profit through credit cards.
Credit Cards Mean Easier, Faster Profits
Although credit cards have a higher default rate, they offer the opportunity for a higher profit margin. As the saying goes – the higher the risk, the higher the reward. Consumer debt has skyrocketed over past several quarters, fueled by ultra-low interest rates. The debt-to-income ratio hit a record 163 per cent in the third quarter of 2012, before falling slightly to 162 per cent in the most recent quarter, according to Statistics Canada…
John H. Cochrane: The Danger of an All-Powerful Federal Reserve
– online.wsj.com
‘Macroprudential’ policy thinkers want central banks to micromanage the entire financial system.
