Rumours of Lunacy + MORE Jul 28th

Canadians expect to be debt-free by the time they are 56 years old although some Canadians see themselves carrying debt well into their sixties, a CIBC poll finds.
In addition, 29% say they have no debt while 13% say they will never be debt-free.
“While Canadians expect to be debt free by age 56 on average, not everyone will hit that goal, which means a significant number of Canadians will still be carrying debt during retirement,” says Christina Kramer, executive vice-president, retail and business banking with CIBC.
How to pay off debt and save for the future »
More than half of Canadians aged 65-plus say they still carry some form of debt today, with credit card debt and lines of credit as the most common types. This group also said they didn’t expect to have their debts paid off until they are 70 years old on average.
Younger Canadians are more optimistic about paying off debt. Those aged 25 to 34, on average, expect to be debt free by age 47.
However, a closer look at those currently carrying debt suggests this may be an optimistic goal, as more than 68% of Canadians 45 and over still carry debt, including 31% who still carry a mortgage…

As most readers here know, fixed mortgage rates follow bond yields over time. That’s why, with the 5-year fixed being Canada’s most popular term, mortgage originators keep close watch on the 5-year government bond yield. Last Thursday, however, the 5-year yield displayed what some deemed to be a concerning 11-basis-point spike. The Bank of Canada’s website noted the same 11 bps increase. To an untrained eye, this leap in yield might have been caused by ominous inflationary news (inflation expectations are the #1 factor influencing bond yields). In reality, Thursday’s jump in the 5-year yield was simply the result of a change in the benchmark bond. Many READ MORE

By Will Dunning, Economist Special to CMT Once again, there is speculation that the federal government will tighten mortgage insurance criteria — prompted by this article in the Financial Post. Let’s begin by saying that, in most of Canada, housing markets have been far from hot. Toronto and Vancouver are seeing rapid price growth, but that is mainly due to provincial and municipal policies that restrict the supply of building lots for new homes — in those two cases, lack of supply is the issue, not mortgage lending. Elsewhere, home sales and price growth have been moderate during the past READ MORE

A home is almost always going to be the most expensive purchase any of us will ever make. The cost is so high that, usually, we do it in partnership with our spouse or other loved one and, for all but a very few, housing prices today require two working incomes to pay the mortgage and all the other bills. When you make the commitment to buy a house or condo, you should also purchase the peace of mind that a life insurance policy provides so that your partner (and family) are protected in the event of the untimely death of a breadwinner.
Also read: Stuck in the Starter Home>
But, what are the best options for needing life coverage for their mortgages? And how much coverage do you need? There’s no one-size-fits-all answer, but there are some do’s and don’ts to abide. Here’s what you should know.
Decline the Bank’s Offer
First thing’s first: do not buy mortgage insurance from your bank. When you sign your mortgage documents your banker or broker will ask if you’d like to have mortgage insurance…

Resignation comes just days before company is expected to shed light on sudden drop in its new mortgage business in second quarter