Learn more about Canadian mortgage rates, rules and the latest news – read on!
Latest News
New rules of saving + MORE Nov 9th
Rainy day savings accounts are a bad idea
In this new age of low interest rates, rainy day savings make a lot less sense. It’s hard to justify keeping six months’ salary in a plain-vanilla account. “If you have a mortgage, money in a savings account is better spent putting it towards the mort.... More »
Big Bank Mortgage Rates Rising: What it Means for You May 3rd
Four of Canada’s Big Six banks have now raised their posted mortgage rates since last week, sparking concern by homebuyers and existing homeowners about the implications. TD kicked off this round of rate increases last week by raising its various mortgage terms, including an astounding 45-bps .... More »
Retired? No mortgage for you: How the stress test is making it tougher to borrow later in life Nov 6th
Many people are shocked to discover that the amount they can borrow decreases drastically when they retire because the stress test looks at your income..... More »
How much total ‘credit’ should a couple have? + MORE Aug 1st
Q: I’m wondering how much total ‘credit’ I should have? My husband and I have a few credit cards and two Line of Credit (LOCs) between us totalling about $50,000. We don’t have a habit of maxing it out and we pay it off fairly regularly. I’m being offered another LOC f.... More »
The First Key to Financial Success: Becoming Financially Literate + MORE Jan 26th
A new year provides the perfect opportunity to mentally give yourself a clean slate and get a handle on your finances. Are you planning on saving more this year? Investing? Paying off debt? No matter your resolution, you first need to gain a clear understanding of where you stand financially.
And i.... More »
Q2 2016 Bank Earnings – Mortgage Morsels
– canadianmortgagetrends.com
Canada’s Big 6 banks have wrapped up another earnings season, raking in more than $8.5 billion in the second quarter. Among the highlights: Most of the banks anticipated losses from the Fort McMurray wildfire, but nothing headline-making. Scotia and TD both reported small declines in their residential mortgage portfolios. Net interest margins dropped almost across the board. In keeping with CMT’s quarterly ritual, we’ve sifted through the Big Banks’ quarterly earnings reports, presentations and conference calls, and compiled all the mortgage-related goodies. We have to admit though, this quarter was really kind of dull. Whatever was notable is in blue. ********* Bank of Montreal Q2 READ MORE
Business Highlights
– canadianbusiness.com
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10 years after housing peaked, US is more of a renter nation
MOUNT PLEASANT, South Carolina (AP) — It’s a troublesome story playing out across America in the 10 years since the housing bubble burst: homeowners are thriving while renters are struggling.
Longtime owners are enjoying the benefits of growing equity and reduced mortgage payments from ultra-low rates. But for America’s growing class of renters, surging costs, stagnant pay and rising home values have made it next to impossible to save enough to buy.
Ownership has become a more distant dream for the many Americans who still regard it as a route to prosperity and pride.
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US stocks rise as investors grow hopeful about British vote
NEW YORK (AP) — U.S. stocks rose sharply on Monday as investors grew more hopeful that Britain will remain in the European Union, letting go of fears that have pulled stocks down in the last two weeks.
Asian stocks traded higher and indexes in Europe soared as the latest opinion polls and betting markets suggest it’s more likely Britain will stay in the EU than leave it…
10 years after housing peaked, US is more of a renter nation
MOUNT PLEASANT, South Carolina (AP) — It’s a troublesome story playing out across America in the 10 years since the housing bubble burst: homeowners are thriving while renters are struggling.
Longtime owners are enjoying the benefits of growing equity and reduced mortgage payments from ultra-low rates. But for America’s growing class of renters, surging costs, stagnant pay and rising home values have made it next to impossible to save enough to buy.
Ownership has become a more distant dream for the many Americans who still regard it as a route to prosperity and pride.
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US stocks rise as investors grow hopeful about British vote
NEW YORK (AP) — U.S. stocks rose sharply on Monday as investors grew more hopeful that Britain will remain in the European Union, letting go of fears that have pulled stocks down in the last two weeks.
Asian stocks traded higher and indexes in Europe soared as the latest opinion polls and betting markets suggest it’s more likely Britain will stay in the EU than leave it…
Canadian banks could withstand severe housing crisis
– moneysense.ca
TORONTO – Ratings agency Moody’s says that despite soaring home prices and household debt levels, Canadian banks could weather the effects of a severe housing crisis.
Moody’s says it conducted stress tests to determine the impact on major Canadian banks in the event of a 25 per cent drop in home prices countrywide.
The analysis also included an additional 10 per cent decline in Ontario and British Columbia, where prices have skyrocketed in recent years.
Who’s to blame for high home prices »
In a report published Monday, the ratings agency says that under such a scenario total direct losses to the banking system would reach almost $18 billion. However, Moody’s says the banks would be able to generate internal capital to cover those losses within several quarters.
The ratings agency says the negative impacts of a housing downturn in Canada would be reduced by a number of factors that differentiate Canada from U.S. mortgage markets.
Those factors include government-guaranteed mortgage creditor and lender insurance, as well as lower rates of subprime lending and a lower prevalence of certain kinds of securitization practices…
Moody’s says it conducted stress tests to determine the impact on major Canadian banks in the event of a 25 per cent drop in home prices countrywide.
The analysis also included an additional 10 per cent decline in Ontario and British Columbia, where prices have skyrocketed in recent years.
Who’s to blame for high home prices »
In a report published Monday, the ratings agency says that under such a scenario total direct losses to the banking system would reach almost $18 billion. However, Moody’s says the banks would be able to generate internal capital to cover those losses within several quarters.
The ratings agency says the negative impacts of a housing downturn in Canada would be reduced by a number of factors that differentiate Canada from U.S. mortgage markets.
Those factors include government-guaranteed mortgage creditor and lender insurance, as well as lower rates of subprime lending and a lower prevalence of certain kinds of securitization practices…
Rates unchanged at weekly US Treasury bill auction
– canadianbusiness.com
WASHINGTON – Interest rates on short-term Treasury bills were unchanged in Monday’s auction.
The Treasury Department auctioned $31 billion in three-month bills at a discount rate of 0.270 per cent, the same as last week. Another $26 billion in six-month bills was auctioned at a discount rate of 0.400 per cent, also unchanged from last week.
The three-month rate over the past two weeks was the lowest since May 9. The six-month rate over the past two weeks was the lowest since May 16.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,993.18, while a six-month bill sold for $9,979.78. That would equal an annualized rate of 0.274 per cent for the three-month bills and 0.406 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, fell to 0.53 per cent last week from 0.59 per cent the previous week…
The Treasury Department auctioned $31 billion in three-month bills at a discount rate of 0.270 per cent, the same as last week. Another $26 billion in six-month bills was auctioned at a discount rate of 0.400 per cent, also unchanged from last week.
The three-month rate over the past two weeks was the lowest since May 9. The six-month rate over the past two weeks was the lowest since May 16.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,993.18, while a six-month bill sold for $9,979.78. That would equal an annualized rate of 0.274 per cent for the three-month bills and 0.406 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, fell to 0.53 per cent last week from 0.59 per cent the previous week…
