Home Capital shareholders reject new investment from Berkshire Hathaway + MORE Sep 13th

If you’re renewing a mortgage this month, chances are you will do so at the five-year fixed rate. At least, that’s what the numbers by LowestRates.ca show. Consumers are rushing in droves to lock in five-year fixed mortgage rates ahead of future Bank of Canada rate hikes.
“Historically, the majority of Canadians who shop for mortgage rates have taken a variable rate the majority of the time,” says Dan Eisner, CEO of True North Mortgage in Calgary. “But not these days.”
Since January 2014, 56% of Canadian borrowers who applied for a mortgage through LowestRates.ca have gone variable, compared with 43% of those who got a five-year fixed. But this past August, there was a shift, where the five-year-fixed rate mortgage saw a sharp increase in applicants, with 59% of users on the LowestRates.ca site opting for this option versus only 39% opting for the variable mortgage.
“The spread between the variable and fixed rate mortgages has shrunk substantially since the Bank of Canada rate hike earlier this month,” says Eisner…

Shareholders of Home Capital Group Inc. voted against taking a second life line from Warren Buffett’s Berkshire Hathaway, which keeps the billionaire’s stake in the alternative mortgage lender at just under 20 per cent.

Last year, it was common to read about bidding wars over properties in Ontario that would ultimately go for more than double the asking price – especially in Toronto. This year, however, things have changed.
Recent data now shows that while prices are up five per cent year-over-year, the sales price for all homes in the Toronto area dropped from an average of $919,449 in April to $746,218 in July — a decrease of 18.8 per cent. The number of sales also continues to take a tumble in the GTA, where 40 per cent less transactions were completed in July when compared to last year. And on a national scale, July saw the first decline in Canadian home prices year-over-year since 2013.
Following the announcement of the Ontario Fair Housing Plan this past April, and two key interest rate hikes by the Bank of Canada there after, property prices have definitely decreased, and demand has slowed, making many people wonder are these now the conditions to buy a property? Or rent?
We looked at the costs associated with buying versus renting, and we’ve done the math based on the latest stats from The Canadian Real Estate Association (CREA) and Canada Mortgage and Housing Corportion Rental Market reports…

TORONTO _ Shareholders of Home Capital Group Inc. (TSX:HCG) overwhelmingly voted against Warren Buffett upping his stake in the mortgage lender, with some citing a fear of losing control of a Canadian firm to U.S. hands.
At a special meeting on Tuesday, 88.79 per cent of shareholders rejected a plan that would have seen Buffett’s Berkshire Hathaway acquire 23.9 million more shares for $246.7 million, at $10.30 per share.
That would have been on top of Buffett’s initial Home Capital investment of $153 million in June.
Home Capital chairwoman Brenda Eprile said the board was “grateful” to have Berkshire as a major shareholder but it respects the decision made by other shareholders.
“To me, this decision on the second tranche is a clear message that the majority of our shareholders believe that Home Capital’s improved deposit inflows and liquidity position diminish the need for additional capital.”
Home Capital shares were up 5 cents, or 0.36 per cent, to $14…