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Tontine: Retirement plan of the future? + MORE May 31st
(Andy Roberts/Getty Images)
Advances in life expectancy coupled with the decline of employer-sponsored defined benefit pension plans has greatly raised anxiety levels about seniors outliving their money.
Life annuities have long been touted as one possible remedy for prolonged longevity, which is wh.... More »
How to Save for a Home Down Payment by Investing + MORE Jul 13th
It’s something you have likely heard dozens of times before if you’re planning to buy a home: You must have enough saved up for a down payment! While it’s recommended you put down 20% of your new property’s value, you can technically go as low as 5% on the first $500,000 of the home price o.... More »
Is An Insured Annuity For You? + MORE Mar 15th
GICs are typically the investment of choice for retirees who want guaranteed income. However, with interest rates still so low, they just don’t provide much income these days.
One frequently overlooked alternative for improving returns while still guaranteeing your money is something called an .... More »
Future of Car Insurance: How the PC Win Will Affect Rates in Ontario Jun 20th
Now that the election is over, it’s unclear how newly-appointed Premier Doug Ford will tackle rising auto insurance rates in Ontario.
Over the course of the 2018 provincial elections, both the Liberal and NDP party touched on plans to tackle rising auto insurance rates in Ontario – a hot topic .... More »
Divorce and life insurance: How to make sure your family stays protected Feb 9th
Jay and Susan (not their real names) spent 15 years building a life together. They bought a house, adopted a dog and started a family—their two kids are the light of their lives. But due to a variety of reasons, they decided that they’d be better people, and better parents, separately rather tha.... 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.
