Category Archives: Blog

Experts Warn of Housing Price Increases and Decreases

Am I the only one that’s confused?  I never bought into the “bubble mania” that the industry “experts” were selling, but now there’s talk of a housing shortage in the Toronto market driving prices up to Vancouver levels.  The Toronto Star‘s Sunday edition featured the front page warning. Developers aren’t stupid.  Along with the financiers that control them, they won’t break ground until they’ve sold the majority of their project.  … Read More

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Mortgaging Your Boat

You dream about her.  Maybe you even have a picture of her posted on your dream board.  Now, stop lusting after her and go buy your new boat!  The problem with two-foot-itis is that you can’t quite afford your next boat.  Or can you?  Make sure you consider all your financing options before you settle for less than you deserve. Boat loan, line of credit or mortgage?  These are your … Read More

Posted in Blog, Personal Finance | Tagged , | 1 Comment

Canadian Mortgage Debt Moderates

Two of Canada’s big banks (CIBC and TD Bank) report that consumer credit is rising at its slowest pace in nearly 20 years.  Total household debt which includes consumer and mortgage credit is now rising at only 5% per year, the slowest pace since 2002 according to CIBC.   Mortgage credit on its own rose by 6.3% on a year over year basis which is well below the 7.3% growth rates … Read More

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Time to Eliminate No-Money-Down Mortgages

Canadian household credit was rising at an alarming rate and has Ottawa looking for ways to stem the tide.  Given greater powers, OSFI is working to strengthen our banks’ balance sheet and limit mortgage lending.  Although their recent discussion paper includes many dramatic recommendations there are some proposals that could achieve its mandate without jeopardizing the housing market.  Their recommendation to eliminate no money down mortgages, for example, is likely … Read More

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Fixed Mortgage Rate Outlook – May 2012

As anticipated, the 5 year fixed mortgage rate has bounced around over the past month with little net movement.  Best discounted mortgage rates have recently returned to the 3.29% level after some modest 0.10% to 0.20% increases. These fluctuations are a direct result of pricing changes to 5 year Canadian bonds.  Government bond yields have recently climbed on Canada’s growth prospects relative to other Group of Seven countries.  The countries … Read More

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Variable Mortgage Rate Outlook – May 2012

Variable rate mortgages continue to offer great value, especially to those who locked in a discount to prime of 0.75% or more.  With our current prime rate of 3.0% these mortgages are at least 1% lower than current 5 year fixed mortgages rates.  Those who are shopping for a mortgage rate today however, have to contend with variable rate mortgages with no discount at all.  These new variable rate mortgages … Read More

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OSFI Recommends Age Discrimination for Mortgages

The Office of the Superintendent of Financial Institutions (OSFI) has recently been empowered with the oversight of Canada Mortgage and Housing Corp. (CMHC), and has proposed several new rules to make mortgages safer investments for banks.  It’s controversial to say the least, that Canada’s banks need to get safer or stronger, but nonetheless this is current government paranoia.  The most controversial of which is that a borrowers age should be … Read More

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Canadian Banks Dominate Top 10 List

Bloomberg Markets recently released its second annual ranking of the world’s strongest banks, and Canadian banks took 4 spots from the top 10.  CIBC ranked highest in the 3rd spot, followed closely by TD (at 4), National Bank (at 5), and Royal Bank (at 6).  Scotiabank ranked 18th and Bank of Montreal was 22nd.  Singapore’s OCBC was ranked number 1 and BOC Hong Kong Holding Ltd. was ranked number two.  … Read More

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OFSI Recommends Borrowers Qualify at Renewal

Now that the Office of the Superintendent of Financial Institutions (OSFI) has oversight over Canada Mortgage and Housing Corp (CMHC) it’s looking to leave its mark as a strict regulator of risk.  And holy 4 letter acronyms batman.  The most stringent of the recommendations is the proposal that mortgagors re-qualify for their mortgage every time it renews.  In OSFI’s words “as applicable for each subsequent renewal or refinancing of the … Read More

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Yoyo Mortgage Rate Predictions

There’s the long term mortgage rate outlook and then there’s short term yoyo economics.  The long term view is that Canadian mortgage rates will remain low for at least another year.  These predictions are widely held and based on the high currency, global economic uncertainty and high Canadian debt levels.  Then there’s a flurry of reactions to the latest job numbers, housing starts or whatever other tidbits Statistics Canada is … Read More

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