Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
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How to protect yourself from identity fraud in Canada + MORE Dec 15th
In 2024, Canadians lost a jaw-dropping $638 million to fraud, according to the Canadian Anti-Fraud Centre (CAFC). That’s already a hefty $60 million more than losses reported the previous year, but the true total is likely much, much higher—experts at the CAFC say that less than 5% of scams are .... More »
Top Performers: Collin Bruce + MORE May 27th
By Vanessa Chris, Special to CMT Collin Bruce attributes his success in the mortgage brokering industry to one simple element: necessity. When he first started out—following a career in commercial lending, two failed Subway franchises and a stint in house-flipping—he was up to his eyeballs in de.... More »
I need to lower my monthly mortgage payments. Is extending my amortization period a good idea? Nov 16th
An extra five years might not seem like much, but the difference can be startling, says one expert..... More »
Avoiding an Economic Deep Freeze + MORE Feb 21st
February has been a busy month for finance headlines, as global markets and governments rally against possible economic downturn. Oil prices have jumped slightly in response to news of an OPEC production freeze – will there be a positive impact for Canada? Meanwhile, all eyes are on the Liber.... More »
Unsure about buying a home? Why you should open an FHSA now anyway Dec 12th
Buying a home in Canada hasn’t been easy in recent years, but thanks to recent changes to mortgage rules, falling interest rates and more cuts expected in the months ahead, many prospective home owners are feeling freshly optimistic. It all starts with a down payment, though—and the bigger, the .... More »
BoC: Interest rate not the only tool for aiding economy
– moneysense.ca
OTTAWA – The Bank of Canada says its trend-setting interest rate should not be considered the primary tool responsible for shoring up the country’s financial system.
In prepared remarks of a speech today, deputy bank governor Timothy Lane says other regulatory measures are also needed to help maintain financial stability and address any emerging vulnerabilities.
He says some of those regulatory measures include tightened mortgage-financing regulations introduced in recent years — such as the increase to minimum down payments.
What the new 10% minimum down payment means for you »
Lane also says in some cases government spending — or fiscal stimulus — may be necessary, though he warns that excessively expanding public debt can have its own negative effects on the financial system.
The central bank says the most concerning vulnerability is the combination of climbing household debt and elevated house prices — a situation it predicts will continue to edge higher due to the prolonged period of low interest rates…
In prepared remarks of a speech today, deputy bank governor Timothy Lane says other regulatory measures are also needed to help maintain financial stability and address any emerging vulnerabilities.
He says some of those regulatory measures include tightened mortgage-financing regulations introduced in recent years — such as the increase to minimum down payments.
What the new 10% minimum down payment means for you »
Lane also says in some cases government spending — or fiscal stimulus — may be necessary, though he warns that excessively expanding public debt can have its own negative effects on the financial system.
The central bank says the most concerning vulnerability is the combination of climbing household debt and elevated house prices — a situation it predicts will continue to edge higher due to the prolonged period of low interest rates…
Should this single mom rent or buy a Toronto condo?
– moneysense.ca
Q: I am a 38-year-old, divorced single female with twins who are seven. I am currently renting a three-bedroom condo in downtown Toronto. But I constantly debate the renting vs. buying decision. I currently earn $48,000 per year (which will go up as soon as I finish my schooling for a CPA in a year or two). I have a retirement savings plan at work with matching contributions from my employer. Currently, I am focusing on paying down about $7,000 in debt (should be payed off by the middle of this year), but wonder if I should then concentrate on buying a home or putting the money away in an investment? — Competing priorities, Toronto Ont.
Answer No. 1: There are a lot of factors to consider before you take the jump from renting to home ownership. You don’t want to end up in a situation where you find it difficult to make ends meet. Once you take into consideration some of the expenses associated with home ownership such as property taxes, maintenance, insurance and mortgage interest, you may find that renting is the better solution for you…
Rates drop on 3-month and 6-month US Treasury bills
– canadianbusiness.com
WASHINGTON – Interest rates on short-term Treasury bills fell in Monday’s auction to the lowest levels in two weeks.
The Treasury Department auctioned $37 billion in three-month bills at a discount rate of 0.315 per cent, down from 0.350 per cent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.420 per cent, down from 0.465 per cent last week.
The three-month rate was the lowest since these bills averaged 0.305 per cent two weeks ago on Jan. 25. The six-month rate was the lowest since these bills averaged 0.415 per cent, also on Jan. 25.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,992.04 while a six-month bill sold for $9,978.77. That would equal an annualized rate of 0.321 per cent for the three-month bills and 0.428 per cent for the six-month bills.
Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, rose to 0…
The Treasury Department auctioned $37 billion in three-month bills at a discount rate of 0.315 per cent, down from 0.350 per cent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.420 per cent, down from 0.465 per cent last week.
The three-month rate was the lowest since these bills averaged 0.305 per cent two weeks ago on Jan. 25. The six-month rate was the lowest since these bills averaged 0.415 per cent, also on Jan. 25.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,992.04 while a six-month bill sold for $9,978.77. That would equal an annualized rate of 0.321 per cent for the three-month bills and 0.428 per cent for the six-month bills.
Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, rose to 0…
High debt, lost jobs, and Alberta-only rules are leading to worry about the return of jingle mail in the province.
Quicken Dropped a Bomb and the Mushroom Cloud is Big
– canadianmortgagetrends.com
Last November, U.S.-based Quicken Loans launched what may go down as one of the biggest mortgage innovations ever: The Rocket Mortgage. In a few words, Rocket Mortgage is a fully online system that lets people apply for a mortgage and be “unconditionally approved” in less than 10 minutes. Borrowers provide almost no documentation. Instead, Quicken validates income, employment, down payment, property valuation and existing mortgage status from an assortment of public and private databases. Here’s Quicken promoting it in Sunday’s Super Bowl ad (see if you notice any overstated macro-economic claims): The full bearing of Rocket Mortgage is READ MORE
