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CPP payment dates in 2025, and more to know about the Canada Pension Plan + MORE Feb 24th
In Canada, no retirement plan is complete without considering the CPP. Whether you’re approaching retirement or still several years away from it, the Canada Pension Plan will likely play a role in your retirement income. How big a role depends on several factors. You may have other questions, too..... More »
4 Low Risk Alternatives to Chequing Accounts Jan 27th
Investments like stocks, mutual funds, or cryptocurrencies carry some level of risk which you might shy away from for a variety of reasons. Whether you’re saving for college, getting ready to buy a house, or nearing retirement, if you’re looking for safer investment options, here are some o.... More »
CMHC tightens mortgage rules in latest response to COVID-19 + MORE Jun 12th
On June 4, 2020, the Canadian Mortgage and Housing Corporation (CMHC) announced changes to the eligibility rules for mortgage insurance, in the agency’s latest response to the COVID-19 pandemic.
The new rules will lower the amount of debt an applicant for an insured mortgage can carry, set a hig.... More »
Laneway homes raise insurance concerns + MORE Sep 20th
(Joe Wolf/Creative Commons)
TORONTO – Soaring real estate costs are pushing some Canadian cities to embrace laneway housing, touted as the future of affordable living in urban centres.
But as the properties become more popular and balloon in value, questions are beginning to arise about whether cu.... More »
Trip Planning and Travel Insurance Dec 11th
Planning a trip can be a very exciting time. You have a destination picked out and you are looking forward to activities that you love to do. Hotel rooms are booked, and you cannot wait to get going.
But have you taken steps to protect yourself from medical emergencies? What about protecting yourse.... More »
CMHC Axes Second Home and Self Employed Mortgages
– ratesupermarket.ca
Late last Friday, April 25, the Canadian Mortgage and Housing Corporation rolled out the latest changes to impact home buyers – the discontinuation of Second Home and Self-Employed Without Third Party Validation mortgage insurance products. These insurance types will no longer be available to mortgage buyers as of May 30, though applications made before that cutoff will be accepted regardless of closing date.
Who is Affected?
While the CMCH states that these products account for only 3 per cent of its insured mortgage business, self-employed buyers and those looking to buy or co-sign on a second home will feel the squeeze.
If You Are Self Employed: Those who work for themselves have additional hoops to jump through when securing mortgage financing. They must present proof of their working situation, past income, and projected earnings to confirm their status as a qualified borrower, traditionally with the following documents:
- Notice of tax assessment
- Audited documentation proving income and business details, or
- Unaudited documentation prepped and validated by a third party
CMHC’s product allowed self-employed buyers to bypass this validation step if they had a credit score higher than 650, and made a minimum 10 per cent down payment…
Government of Canada considering 50-year bonds
– moneysense.ca
OTTAWA – Ottawa says it may soon issue a 50-year Government of Canada bond.
The Finance Department says it is considering issuing the long-term bond through a process of syndication in the near future, if market conditions are right.
It says given the current low yield environment issuing such bonds in the ultra-long sector would contribute to a reduction in future refinancing risk.
Currently the longest maturing federal bond is 30 years.
Bank of Montreal chief economist Doug Porter says there would be advantages for the government if it were able to borrow money for half a century at a cost not much higher than the 2.94 per cent currently on the 30-year bonds.
He says insurance companies and pension funds would be the natural customers for such long-term treasury bills.
The post Government of Canada considering 50-year bonds appeared first on MoneySense.
The Finance Department says it is considering issuing the long-term bond through a process of syndication in the near future, if market conditions are right.
It says given the current low yield environment issuing such bonds in the ultra-long sector would contribute to a reduction in future refinancing risk.
Currently the longest maturing federal bond is 30 years.
Bank of Montreal chief economist Doug Porter says there would be advantages for the government if it were able to borrow money for half a century at a cost not much higher than the 2.94 per cent currently on the 30-year bonds.
He says insurance companies and pension funds would be the natural customers for such long-term treasury bills.
The post Government of Canada considering 50-year bonds appeared first on MoneySense.
