Category Archives: Blog

Credit Cards Can Boost Your Credit Score

Credit cards can boost your credit score.  Having a healthy credit score is an important asset and can help you buy or lease a vehicle, borrow for investments and RRSP’s and secure a mortgage to buy that dream home.  Boosting  your credit score is particularly important to: Young Canadians with no credit activity New Canadians with no Canadian credit history Applicants coming off of a bankruptcy Applicants working to repair … Read More

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Stephen Poloz Balances the BOC

As expected, the Bank of Canada (BOC) kept the prime lending rate at 3% yesterday.  This decision moves the clock to 3 years and 1 month with no change to the overnight lending rate and in turn the prime lending rate.  Currently set at 1% the overnight rate is well below its 10 year average of 2.07% and significantly below the high of 4.50% hit in July of 2007.  The … Read More

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Fixed Mortgage Rate Forecast – October 2013

The fixed mortgage rate forecast for October 2013 is for rates to decline in the near term.  Fixed mortgage rates, particularly the most popular 5 year fixed mortgage rates, are tied to 5 year benchmark bond yields.  Insight into the direction of bond yields provides us with a crystal ball with which to predict near term fixed mortgage rates. The price of bonds have been kept low by the US … Read More

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Time For A CMHC Price Cut

It’s time for CMHC to reduce it’s insurance premiums.  These premiums, charged to purchasers with less than 20% downpayment, insure lenders against default.  The 3 mortgage insurers in Canada have been reaping substantial profits on the backs of Canadian homeowners for a decade.  Canada Mortgage and Housing Corporation (CMHC) has held the lions-share of the market (typically 70%) and has reported an average annual net income in excess of $1.1 … Read More

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High Housing Costs Hurting Canadians

A letter from the Federation of Canadian Municipalities cites the high cost of housing as the most urgent financial issue facing Canadians today.  “Housing costs and, as the Bank of Canada notes, household debt, are undermining Canadians personal financial security, while putting our national economy at risk,” quotes the document addressed to Stephen Harper. The letter was put forth by the Federation of Canadian Municipalities, who represent over 90% of … Read More

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