Canadian housing mortgage rates are all over the map. Don’t get trapped in an unnecessarily costly mortgage agreement.
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Mortgage rule changes are expanding insured market activity, insurers say Mar 4th
Mortgage insurers say recent federal policy changes are giving first-time buyers more purchasing power, even as broader housing market conditions remain uneven..... More »
How much you need to earn to afford a home in Toronto and the GTA + MORE Mar 22nd
Looking at the Toronto housing market through a lens of percentages, shifting sales numbers and interest rates may be the go-to method for industry insiders, but for many run-of-the-mill buyers, there’s really one thing that matters: “What kind of home can I afford?”
To help answer that que.... More »
Inside RBC’s acquisition of mortgage fintech Pinch Financial Mar 13th
The Toronto fintech will gain access to RBC’s infrastructure and 17 million clients, but says its platform will remain open to non-RBC partners..... More »
7 smart strategies for first-time home buyers + MORE Nov 19th
If you’ve been thinking about buying a house, you may be wondering how you’ll know when it’s “the right time.” If you don’t have a 20% down payment saved up, is it still OK to consider buying? If you can’t afford your forever home, should you still jump into ownership now? And does the.... More »
Debt to household income ratio rises in third quarter, household net worth + MORE Dec 15th
OTTAWA _ The amount Canadians owe relative to their income hit a new high in the third quarter.
Statistics Canada said Thursday that household credit market debt as a proportion of household disposable income increased to 171.1 per cent, up from 170.1 per cent in the second quarter.
That means there.... More »
Canadians Ill-Prepared for a Rate Hike; Unprecedented Debt Imminent
– ratesupermarket.ca
A new report finds Canadians are facing a future where an unprecedented amount of household income will go towards debt servicing.
The Household Indebtedness and Financial Vulnerability report by the Parliamentary Budget Officer is raising concerns on the level of household debt amongst Canadians. The report suggests that debt is increasing at such a sharp pace, many Canadians will be ill prepared for even a slight hike in interest rates.
In just the first quarter of 2017, household debt reached a record level of a 174 per cent of disposable income – meaning, on average, we owe $1.74 of every $1 we make.
Since interest rates have been at record lows for so long, the PBO warns that if rates were to soon rise, “The financial vulnerability of the average household would rise to levels beyond historical experience.”
The Debt Servicing Ratio (DSR) has remained stable at 14 per cent since 2009. This means that Canadians on average use 14 per cent of their after-tax income to make mortgage payments, and pay off credit card and line of credit debt…
Canada Mortgage and Housing Corp. said Thursday it will pay a $4-billion special dividend to the federal government in instalments within the next two years.
Warren Buffett Acquires $400 Million of Home Capital Shares
– ratesupermarket.ca
Warren Buffett, famed American investor and business guru, is coming to the rescue of Home Capital Group Inc., the Canadian alternative mortgage lender that has been in the news for months. Berkshire Hathaway, a subsidiary of Buffett’s company, has indicated it will buy $400 million worth of common shares in Home Capital.
The news is restoring some confidence in the company, which is Canada’s largest alternative mortgage lender for those who can’t or don’t want to get a mortgage through one of the big banks. Share prices in the company had previously tumbled below $10 per share after it came to light in April that former Home Capital employees were accused of breaking the law in their handling of mortgage applications. However, now that Buffett is throwing his support behind it, share prices are back up to $19 per share.
Resolving Home Capital’s legal issues and cash crunch
On April 19, the Ontario Securities Commission (OSC) claimed that brokers falsified information on mortgage applications submitted to Home Capital, and the company, its CEO, and its CFO misled shareholders…
