Tag Archives: governement policy

Proud to Be Canadian!

I’m proud to be Canadian but even prouder to be a Canadian mortgage broker.  Our great country fared better then any other industrialized nation through the great real estate recession of 2008 that continues to linger today.  Foreign mortgage financing practices caused the massive economic downturn, but Canadian mortgage financing practices have kept our country stronger than others. What makes our mortgage system so strong is not individual rules, regulations … Read More

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The Rich are Getting Richer

The rich are getting richer according to the World Wealth Report, a study co-authored by RBC Wealth Management and Capgemini.  The number of Canadians with investable assets of $1 million or more grew by 6.5% to a record of 298,000 Canadians.  Even more shocking is that the really rich, the number of Canadians with investable assets of $30 million or more, grew by 11% to a record 4,500 Canadians. Now … Read More

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CMHC’s Volume Cut in Half

Stricter mortgage rules on CMHC insured mortgages have had a profound impact on the housing market as well as the insurer itself.  CMHC reports that in the first quarter of this year the number of housing units insured dropped to 52,078 from 114,045 over the same period last year.  This translates to a drop of underwritten insurance to $8.2 billion down by 56.8% from $19 billion last year. The good … Read More

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Canadians Comfortable with Their Mortgages

A survey of more than 2,000 Canadians conducted and compiled by Maritz Research Canada concludes that Canadians are comfortable with the amount of their mortgage debt.  The key findings are: ·         80% of mortgages have an original amortization of no more than 25 years ·         18% of mortgage holders increased their monthly payments in the past year. ·         16% of mortgage holders made lump sum payments on their mortgages during … Read More

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Toronto Residents Forced to Rent

The Department of Finance seems to be getting its wish of reducing the amount of mortgage debt, but is it in the best interest of Canadians?  MLS data revealed that the number of Toronto condos leased in the first quarter of this year soared by over 31 per cent compared to the same period last year.  Alternatively, the number of new Toronto condos sold in the first quarter of this … Read More

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The Problem with Low Mortgage Rates

Anyone with a mortgage is happy to hear that mortgage rates are dropping. With today’s ultra low mortgage rates we’re even happy to hear that they’re just staying the same. Low mortgage rates mean low monthly payments and we’re all happy to have a little extra money each month. The problem with low mortgage rates is that they’re the result of an anemic economy with a weak outlook. An anemic … Read More

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Variable Mortgage Rate Forecast – April 2013

The Bank of Canada (BOC) maintained it’s target for the overnight rate at 1% this morning.  The net result is that there is no change to the prime rate of interest until their next announcement date which is scheduled for May 29th.  This is good news for variable mortgage rate holders and for those with home equity lines of credit.  Equally important as today’s interest rate decision is the language … Read More

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Housing Market Beginning to Thaw

Recent indicators point to a thawing of the Canadian housing market.  The government induced deep freeze is beginning to lift as evidenced by month over month activity increase and a year over year average price increase. National sales activity rose in March by 2.40% compared to the previous month.  Although activity declined by 15.3% from the same month last year, the 2.40% reveals a positive trend that’s expected to continue … Read More

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RBC Blunder Benefits Competition

The Royal Bank of Canada (RBC) was recently exposed outsourcing jobs to foreign workers at the expense of Canadian employees. What was especially abhorrent was the fact that they were prepared to lay off existing long term employees in favor of the cheap labour.  The images and tears of the affected employees on national television attracted government attention and called for an immediate response from RBC.  Other than decrying the … Read More

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TD Understands Ottawa’s Position – Give Me A Break!

Ed Clark, the CEO of Canada’s second largest bank supports Jim Flaherty’s recent move to prevent banks from competing on low mortgage rates.  In a statement after yesterday’s annual shareholder meeting Mr. Clark remarked “I think we understand his concern, we’ve been an advocate all along”. In March Mr. Flaherty took the controversial step of contacting 2 of Canada’s banks, warning them against offering low mortgage rates.  Mr. Flaherty was … Read More

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