Canadian Mortgage Broker News - Canadian homeowners comfortable with mortgage debt: CAAMP
Canadian homeowners comfortable with mortgage debt: CAAMP
Monday, 8 November 2010
Most Canadian homeowners are comfortable with their mortgage debt, according to the sixth annual State of the Residential Mortgage Market report from the Canadian Association of Accredited Mortgage Professionals (CAAMP). They also have significant home equity and can handle an increase in their mortgage interest rate.
“Canadians are being smart and responsible with their mortgages,” said Jim Murphy, CAAMP president and CEO. “They are building equity in their homes and making informed, long-term mortgage decisions. The survey results speak to the strength of our mortgage market, especially when compared to the United States.”
A few highlights from the report:
80 per cent of Canadian homeowners have more than 20 per cent equity in their homes
35 per cent of mortgage holders either increased their monthly payments or made a lump sum payment in the last year
84 per cent of mortgage holders said they could withstand an increase of $300 or more on their monthly payments
Canadian Mortgages, Insurance, Investment, Tax Planning
Wednesday, November 10, 2010
Canadian Mortgage Broker News - Mortgage market surpasses $1 trillion http://ping.fm/OgMcb
Canadian Mortgage Broker News - Mortgage market surpasses $1 trillion
Canadian Mortgage Broker News - Mortgage market surpasses $1 trillion
Mortgage market surpasses $1 trillion
Monday, 8 November 2010
The Canadian residential mortgage market has surpassed $1 trillion for the first time this year as higher prices forced many to borrow heavily for new homes, and low interest rates encouraged more refinancing.
At the end of August, there were $1.008 trillion in mortgages outstanding, according to the Canadian Association of Accredited Mortgage Professionals (CAAMP). This marked a 7.6 per cent gain from a year ago, and the volume of outstanding mortgages has increased by 194 per cent over the past 15 years.
Many Canadians have also been using their mortgages to free up extra money. Eighteen per cent of mortgage holders took equity out of their homes, with nearly half citing a need for “debt consolidation or repayment.” The average amount borrowed against home equity was $46,000.
CAAMP estimated total borrowing at $41 billion, about the same as last year. About $15 billion was taken out for renovations, $6 billion for education and other spending, $7.5 billion for investments and $4 billion for other purposes.
Mortgage market surpasses $1 trillion
Monday, 8 November 2010
The Canadian residential mortgage market has surpassed $1 trillion for the first time this year as higher prices forced many to borrow heavily for new homes, and low interest rates encouraged more refinancing.
At the end of August, there were $1.008 trillion in mortgages outstanding, according to the Canadian Association of Accredited Mortgage Professionals (CAAMP). This marked a 7.6 per cent gain from a year ago, and the volume of outstanding mortgages has increased by 194 per cent over the past 15 years.
Many Canadians have also been using their mortgages to free up extra money. Eighteen per cent of mortgage holders took equity out of their homes, with nearly half citing a need for “debt consolidation or repayment.” The average amount borrowed against home equity was $46,000.
CAAMP estimated total borrowing at $41 billion, about the same as last year. About $15 billion was taken out for renovations, $6 billion for education and other spending, $7.5 billion for investments and $4 billion for other purposes.
Monday, November 8, 2010
"The Week Ahead" - November 8-12th
CIBC Economic's "The Week Ahead".
Key Highlights
In his Washington Post op-ed, Bernanke listed all of the potential benefits of QE with one key exception – its impact on the US dollar exchange rate. In the market’s eye, the more QE, the weaker your currency. However, much of the dollar-selling has been on the misconception that world is going to be flooded with “printed money” which will debase the dollar. We will likely have to push back the timetable for a significant correction in the US dollar’s favour into early 2011, given the tendency to see QE and currency weakness as twins
Key Numbers to watch this week:
Canada – Merchandise Trade Balance – September (Wed, 8:30 AM) – For four straight months, Canada’s merchandise trade balance has been in the red and September’s poor performance will take 2010 Q3 trade to the worst quarterly balance in decades.
US – Goods and Services Trade Balance – September (Wed, 8:30AM) – The US trade balance may have seen some improvement in September as softer oil and as prices that month helped lower America’s energy bill. The combination of lower imports and flattening exports should allow for some improvements.
Equity Insights:
Canadian reporting season appears to be off to an appreciably better-than-average start. Last quarter, 53% of TSX composite members beat the street expectation. This quarter, nearly 70% of the 180 firsts have reported positively.
TSX finally reclaimed all of the ground lost since the financial crisis’ defining moment – Lehman Brother’s 2008 collapse. Market healing has been swifter this time around then after the 2000 crash, but still behind the double dip in the 80’s.
‘Producing more for less’ was corporate America’s motto earlier in the recovery. That’s good new for earnings while it lasts, but not employment.
Currency Currents:
US$ depreciation gained momentum this past week as the Fed announced a slightly larger than expected QE. QE2 won’t put a dent in the unemployment rate, don’t rule out further liquidity injections next year.
CDS spreads for Brazil continued to dip following the national elections, pointing to confidence in the President-elect will control budget spending as promised
The RBS surprise rate hike this week was done preemptively as improved trade and a continuing recovery in emerging markets may stoke economic activity and inflation.
http://research.cibcwm.com/economic_public/download/nov05_10.pdf
Key Highlights
In his Washington Post op-ed, Bernanke listed all of the potential benefits of QE with one key exception – its impact on the US dollar exchange rate. In the market’s eye, the more QE, the weaker your currency. However, much of the dollar-selling has been on the misconception that world is going to be flooded with “printed money” which will debase the dollar. We will likely have to push back the timetable for a significant correction in the US dollar’s favour into early 2011, given the tendency to see QE and currency weakness as twins
Key Numbers to watch this week:
Canada – Merchandise Trade Balance – September (Wed, 8:30 AM) – For four straight months, Canada’s merchandise trade balance has been in the red and September’s poor performance will take 2010 Q3 trade to the worst quarterly balance in decades.
US – Goods and Services Trade Balance – September (Wed, 8:30AM) – The US trade balance may have seen some improvement in September as softer oil and as prices that month helped lower America’s energy bill. The combination of lower imports and flattening exports should allow for some improvements.
Equity Insights:
Canadian reporting season appears to be off to an appreciably better-than-average start. Last quarter, 53% of TSX composite members beat the street expectation. This quarter, nearly 70% of the 180 firsts have reported positively.
TSX finally reclaimed all of the ground lost since the financial crisis’ defining moment – Lehman Brother’s 2008 collapse. Market healing has been swifter this time around then after the 2000 crash, but still behind the double dip in the 80’s.
‘Producing more for less’ was corporate America’s motto earlier in the recovery. That’s good new for earnings while it lasts, but not employment.
Currency Currents:
US$ depreciation gained momentum this past week as the Fed announced a slightly larger than expected QE. QE2 won’t put a dent in the unemployment rate, don’t rule out further liquidity injections next year.
CDS spreads for Brazil continued to dip following the national elections, pointing to confidence in the President-elect will control budget spending as promised
The RBS surprise rate hike this week was done preemptively as improved trade and a continuing recovery in emerging markets may stoke economic activity and inflation.
http://research.cibcwm.com/economic_public/download/nov05_10.pdf
Saturday, November 6, 2010
Canadian Mortgage Broker News - An Islamic mortgage, semantics to some http://ping.fm/jKV0V
Canadian Mortgage Broker News - An Islamic mortgage, semantics to some
Canadian Mortgage Broker News - An Islamic mortgage, semantics to some
An Islamic mortgage, semantics to some
Monday, 1 November 2010
An Islamic mortgage may just be about semantics.
Islam religion forbids followers from paying interest in financial matters, which restricts observers of the Muslim rule from taking out a mortgage.
In Manitoba, where an estimated 13,000 Muslims live, the provincial-based Assiniboine Credit Union consulted with Islamic scholars to introduce Canada’s first Islamic mortgage earlier this year. Under this financing, a Muslim home purchaser and the credit union each contribute to buying a house and each has ownership in the property. A contract is drafted where the family buys the credit union’s share over an agreed period of time.
The Muslim family has exclusive rights to live in the home, and during the contract term pays the credit union a “profit.” The amount is comparable to what a credit union member with a standard mortgage would pay in interest for a best rate mortgage.
Though the two sound similar, the difference is important to Islam religious observers.
“The main issue is that trade is permissible in Islam but usury or interest isn’t,” said Omar Kalair, founder of Toronto-based UM Financial, Canada’s premier Islamic financial institution. “So how we structure our mortgage is on a trade concept,” which is what Assiniboine Credit Union has done also.
An Islamic mortgage, semantics to some
Monday, 1 November 2010
An Islamic mortgage may just be about semantics.
Islam religion forbids followers from paying interest in financial matters, which restricts observers of the Muslim rule from taking out a mortgage.
In Manitoba, where an estimated 13,000 Muslims live, the provincial-based Assiniboine Credit Union consulted with Islamic scholars to introduce Canada’s first Islamic mortgage earlier this year. Under this financing, a Muslim home purchaser and the credit union each contribute to buying a house and each has ownership in the property. A contract is drafted where the family buys the credit union’s share over an agreed period of time.
The Muslim family has exclusive rights to live in the home, and during the contract term pays the credit union a “profit.” The amount is comparable to what a credit union member with a standard mortgage would pay in interest for a best rate mortgage.
Though the two sound similar, the difference is important to Islam religious observers.
“The main issue is that trade is permissible in Islam but usury or interest isn’t,” said Omar Kalair, founder of Toronto-based UM Financial, Canada’s premier Islamic financial institution. “So how we structure our mortgage is on a trade concept,” which is what Assiniboine Credit Union has done also.
Canadian Mortgage Broker News - Ontario boomers to downsize homes: TD buyer report http://ping.fm/wVBd8
Canadian Mortgage Broker News - Ontario boomers to downsize homes: TD buyer report
Canadian Mortgage Broker News - Ontario boomers to downsize homes: TD buyer report
Ontario boomers to downsize homes: TD buyer report
Thursday, 28 October 2010
Most Ontario boomers are planning to move to smaller homes, according to the TD Canada Trust Boomer Buyers Report. Eighty-six per cent are looking to downsize. Half said the smaller size will help them save money, while 36 per cent want to enjoy more luxurious features.
“Many boomers find that their needs and priorities have changed since they moved into their current home,” said Farhaneh Haque, regional sales manager for mobile mortgage specialists at TD Canada Trust. “If you find you have more room than you need, consider ‘right-sizing.’”
The report found these other provincial trends:
Sixty per cent of Atlantic Canadian boomers, versus 49 per cent nationally, plan to spend retirement in their current homes. But only 41 per cent of Atlantic homeowners will be retiring mortgage-free. Further, 22 per cent still need to pay off more than half their mortgage.
Alberta boomers are the most likely in the country to have paid off their mortgage in full with six-in-ten being mortgage-free, compared to 44 per cent nationally. Albertans are also the most likely to spend retirement at their vacation home (nine per cent versus five per cent nationally).
Meanwhile 56 per cent of boomers in Manitoba and Saskatchewan, compared to 36 per cent across the country, would consider buying a retirement property in the U.S.
Boomers in British Columbia are the least likely in the country to own a home and be mortgage-free, as nearly one-third of homeowners have more than 60 per cent of their mortgage left to pay off.
Ontario boomers to downsize homes: TD buyer report
Thursday, 28 October 2010
Most Ontario boomers are planning to move to smaller homes, according to the TD Canada Trust Boomer Buyers Report. Eighty-six per cent are looking to downsize. Half said the smaller size will help them save money, while 36 per cent want to enjoy more luxurious features.
“Many boomers find that their needs and priorities have changed since they moved into their current home,” said Farhaneh Haque, regional sales manager for mobile mortgage specialists at TD Canada Trust. “If you find you have more room than you need, consider ‘right-sizing.’”
The report found these other provincial trends:
Sixty per cent of Atlantic Canadian boomers, versus 49 per cent nationally, plan to spend retirement in their current homes. But only 41 per cent of Atlantic homeowners will be retiring mortgage-free. Further, 22 per cent still need to pay off more than half their mortgage.
Alberta boomers are the most likely in the country to have paid off their mortgage in full with six-in-ten being mortgage-free, compared to 44 per cent nationally. Albertans are also the most likely to spend retirement at their vacation home (nine per cent versus five per cent nationally).
Meanwhile 56 per cent of boomers in Manitoba and Saskatchewan, compared to 36 per cent across the country, would consider buying a retirement property in the U.S.
Boomers in British Columbia are the least likely in the country to own a home and be mortgage-free, as nearly one-third of homeowners have more than 60 per cent of their mortgage left to pay off.
Canadian Mortgage Broker News - HST confusion abounds in Ontario
Canadian Mortgage Broker News - HST confusion abounds in Ontario
HST confusion abounds in Ontario
Thursday, 28 October 2010
It seems that the majority of Ontarians still don’t get it.
According to a recent Ipsos Reid survey, 56 per cent of Ontarians still mistakenly believe that the harmonized sales tax (HST) applies to the full purchase price of an existing home.
In truth, the tax only applies to the transaction fees for existing homes, and applies to the full price for new homes.
Since the average price of a resale home in Ontario is roughly $330,000, the majority of the survey’s respondents thought they would have to pay an additional $40,000 to purchase the home, according to the Ontario Real Estate Association (OREA).
The association says the province’s Realtors are become increasingly concerned that this persistent confusion is in fact dampening the housing market.
"We see it on the front lines every day. Clearly, Ontarians still don't know what the HST covers and what is exempt," OREA President Dorothy Mason said in a news release. "This is not helping the housing market, and it's not helping the Ontario economy. This confusion means that many buyers think the cost of a resale home is tens of thousands of dollars higher than it actually is.
"We're doing our part to inform our clients, but we shouldn't have to do it alone. We're calling on the Ontario government to launch an immediate public awareness campaign to educate taxpayers and end the HST confusion," said Mason.
Ipsos Reid surveyed 830 Ontarians, between October 4th and 11 th, on behalf of OREA. The estimated margin of error is +/-3.8 percentage points, 19 times out of 20.
HST confusion abounds in Ontario
Thursday, 28 October 2010
It seems that the majority of Ontarians still don’t get it.
According to a recent Ipsos Reid survey, 56 per cent of Ontarians still mistakenly believe that the harmonized sales tax (HST) applies to the full purchase price of an existing home.
In truth, the tax only applies to the transaction fees for existing homes, and applies to the full price for new homes.
Since the average price of a resale home in Ontario is roughly $330,000, the majority of the survey’s respondents thought they would have to pay an additional $40,000 to purchase the home, according to the Ontario Real Estate Association (OREA).
The association says the province’s Realtors are become increasingly concerned that this persistent confusion is in fact dampening the housing market.
"We see it on the front lines every day. Clearly, Ontarians still don't know what the HST covers and what is exempt," OREA President Dorothy Mason said in a news release. "This is not helping the housing market, and it's not helping the Ontario economy. This confusion means that many buyers think the cost of a resale home is tens of thousands of dollars higher than it actually is.
"We're doing our part to inform our clients, but we shouldn't have to do it alone. We're calling on the Ontario government to launch an immediate public awareness campaign to educate taxpayers and end the HST confusion," said Mason.
Ipsos Reid surveyed 830 Ontarians, between October 4th and 11 th, on behalf of OREA. The estimated margin of error is +/-3.8 percentage points, 19 times out of 20.
Canadian Mortgage Broker News - Canadas real estate market outlook for 2011 “decentâ€: PwC http://ping.fm/JKgPN
Canadian Mortgage Broker News - Canadas real estate market outlook for 2011 “decent”: PwC
Canadian Mortgage Broker News - Canadas real estate market outlook for 2011 “decent”: PwC
Canada's real estate market outlook for 2011 “decent”: PwC
Tuesday, 2 November 2010
2011 promises slowing, steady growth and decent prospects for Canadian real estate investors as long as the U.S. economy does not drag them down, according to the Emerging Trends in Real Estate 2011 report, released by PwC and the Urban Land Institute (ULI). The report reflects interviews with and surveys of more than 875 of the industry's leading real estate experts, including investors, developers, lenders, brokers and consultants in both Canada and the U.S.
According to the report, Canadian property owners and financial institutions cannot help contrasting their reasonably healthy condition with precarious U.S. markets. Canadian fundamentals trend near equilibrium, employment is recovering and banks boast sound balance sheets, putting Canada in a better place and boosting confidence that the local market can escape issues faced in the U.S. However respondents say a weak U.S. dollar and sputtering U.S. economy dampen cross-border commerce, especially hurting Ontario industrial markets, which serve Midwestern U.S. manufacturing centres.
"The big difference for Canada has been the sound condition of its banks," said Chris Potter, leader of the Real Estate Tax practice for PwC Canada. "We have no distressed banks and few distressed owners and sales. Now, rising interest rates coupled with tight bank requirements and broader economic concerns tamper down a recent home buying spurt, particularly in Ontario and B.C., where purchasers stepped up activity before HST went into effect."
While capital returns, investment opportunities will be limited. Institutions dominate the major central city markets, holding on to assets for steady income instead of trading. Emerging Trends respondents exemplify the hold-on mentality: they think it is a good time to buy, but do not want to sell. In this "compressing cap rate" environment, many deal-starved Canadians will be active in the U.S., where they should have greater opportunity to spend and find higher yields.
Canada has one of the world's healthiest capital markets and few borrowers confront refinancing issues. Overall in 2011, Emerging Trends respondents expect a reasonable balance in debt market capital availability and an oversupply of equity capital, the result of non-satiated buyers.
"In Canada, the real estate industry didn't get overleveraged and the markets never suffered any interruption of credit availability," said Holly Allen, leader of the Real Estate Deals practice for PwC Canada. "Canadian banks benefit from a combination of institutional risk aversion and relatively stringent government regulation."
Canada's real estate market outlook for 2011 “decent”: PwC
Tuesday, 2 November 2010
2011 promises slowing, steady growth and decent prospects for Canadian real estate investors as long as the U.S. economy does not drag them down, according to the Emerging Trends in Real Estate 2011 report, released by PwC and the Urban Land Institute (ULI). The report reflects interviews with and surveys of more than 875 of the industry's leading real estate experts, including investors, developers, lenders, brokers and consultants in both Canada and the U.S.
According to the report, Canadian property owners and financial institutions cannot help contrasting their reasonably healthy condition with precarious U.S. markets. Canadian fundamentals trend near equilibrium, employment is recovering and banks boast sound balance sheets, putting Canada in a better place and boosting confidence that the local market can escape issues faced in the U.S. However respondents say a weak U.S. dollar and sputtering U.S. economy dampen cross-border commerce, especially hurting Ontario industrial markets, which serve Midwestern U.S. manufacturing centres.
"The big difference for Canada has been the sound condition of its banks," said Chris Potter, leader of the Real Estate Tax practice for PwC Canada. "We have no distressed banks and few distressed owners and sales. Now, rising interest rates coupled with tight bank requirements and broader economic concerns tamper down a recent home buying spurt, particularly in Ontario and B.C., where purchasers stepped up activity before HST went into effect."
While capital returns, investment opportunities will be limited. Institutions dominate the major central city markets, holding on to assets for steady income instead of trading. Emerging Trends respondents exemplify the hold-on mentality: they think it is a good time to buy, but do not want to sell. In this "compressing cap rate" environment, many deal-starved Canadians will be active in the U.S., where they should have greater opportunity to spend and find higher yields.
Canada has one of the world's healthiest capital markets and few borrowers confront refinancing issues. Overall in 2011, Emerging Trends respondents expect a reasonable balance in debt market capital availability and an oversupply of equity capital, the result of non-satiated buyers.
"In Canada, the real estate industry didn't get overleveraged and the markets never suffered any interruption of credit availability," said Holly Allen, leader of the Real Estate Deals practice for PwC Canada. "Canadian banks benefit from a combination of institutional risk aversion and relatively stringent government regulation."
FN Mortgage rates as of 06/11/2010
FIRST NATIONAL
1 year fixed: 2.50 %
3 years fixed: 3.49 %
5 years fixed: 3.59 %
5 years 5% Cash back fixed: 5.29 %
First National Prime Rate: 3.00 %
Posted by
DataTracker Powered by CoolRent
1 year fixed: 2.50 %
3 years fixed: 3.49 %
5 years fixed: 3.59 %
5 years 5% Cash back fixed: 5.29 %
First National Prime Rate: 3.00 %
Posted by
DataTracker Powered by CoolRent
Thursday, November 4, 2010
First National - Renewal
First National - Renewal
Should you change your mortgage terms when you renew?
When your mortgage comes up for renewal, you have the flexibility to pay down some or all of your outstanding principal, without penalty, and to select new mortgage terms to meet your current needs.
Here are three typical situations and what you might consider doing under the circumstances.
Situation Consider… Benefit
You received a promotion, and your cash flow has increased.
•Increasing your monthly payment.
•Making a lump-sum principal prepayment to put towards your principal amount.
Both choices will reduce your total interest costs and help you become mortgage-free sooner.
You anticipate a major expense in the near future or are experiencing cash-flow difficulties.
•Increasing your mortgage principal by refinancing your mortgage and using the additional amount to pay off your debts.*
•Decreasing your monthly payment to help increase your cash flow.**
You’ll get an immediate cash infusion to pay other debts or make essential purchases.
You’ll have more monthly cash available for other expenses.
Your financial situation hasn’t changed.
•Renewing your existing mortgage terms.
Your mortgage will continue to meet your needs, just as it has in the past.
* To refinance your mortgage, you will need to requalify based on your current circumstances.
** Refer to your mortgage documents for details.
If your mortgage is coming up for renewal, be sure to contact your mortgage broker. We’ll help you review your options and help you select the mortgage that’s right for you.
Should you change your mortgage terms when you renew?
When your mortgage comes up for renewal, you have the flexibility to pay down some or all of your outstanding principal, without penalty, and to select new mortgage terms to meet your current needs.
Here are three typical situations and what you might consider doing under the circumstances.
Situation Consider… Benefit
You received a promotion, and your cash flow has increased.
•Increasing your monthly payment.
•Making a lump-sum principal prepayment to put towards your principal amount.
Both choices will reduce your total interest costs and help you become mortgage-free sooner.
You anticipate a major expense in the near future or are experiencing cash-flow difficulties.
•Increasing your mortgage principal by refinancing your mortgage and using the additional amount to pay off your debts.*
•Decreasing your monthly payment to help increase your cash flow.**
You’ll get an immediate cash infusion to pay other debts or make essential purchases.
You’ll have more monthly cash available for other expenses.
Your financial situation hasn’t changed.
•Renewing your existing mortgage terms.
Your mortgage will continue to meet your needs, just as it has in the past.
* To refinance your mortgage, you will need to requalify based on your current circumstances.
** Refer to your mortgage documents for details.
If your mortgage is coming up for renewal, be sure to contact your mortgage broker. We’ll help you review your options and help you select the mortgage that’s right for you.
First National - Lifestyle
Why it pays to stay in touch with your mortgage broker
When you were researching your options for your current mortgage, you probably spent a fair bit of time speaking with your mortgage broker. You may not realize that your mortgage broker can still be a valuable resource many years from now.
Your broker understands your needs. Whatever situation you might find yourself in as a homeowner, your broker has extensive experience providing with mortgage advice to others in similar scenarios, whether it’s buying, selling, or refinancing.
Your broker understands the market. You can count on an independent view of what’s happening in the markets. Your broker stays on top of the trends in real estate financing and other economic conditions and is aware of new developments and products that could be useful to you.
Your broker is a source of advice and knowledge about refinancing. If you’re thinking of refinancing, your mortgage broker is one of the first people you should speak to. He or she will again review your goals and outline your options, so you can make an informed decision.
Your broker can refer you to good people. Your mortgage broker regularly works with lenders, real estate agents, home inspectors, and lawyers who specialize in real estate. If you ever need a referral – for example, if you are looking for a real estate agent to help you find your next home – your broker can provide you with recommendations.
When you were researching your options for your current mortgage, you probably spent a fair bit of time speaking with your mortgage broker. You may not realize that your mortgage broker can still be a valuable resource many years from now.
Your broker understands your needs. Whatever situation you might find yourself in as a homeowner, your broker has extensive experience providing with mortgage advice to others in similar scenarios, whether it’s buying, selling, or refinancing.
Your broker understands the market. You can count on an independent view of what’s happening in the markets. Your broker stays on top of the trends in real estate financing and other economic conditions and is aware of new developments and products that could be useful to you.
Your broker is a source of advice and knowledge about refinancing. If you’re thinking of refinancing, your mortgage broker is one of the first people you should speak to. He or she will again review your goals and outline your options, so you can make an informed decision.
Your broker can refer you to good people. Your mortgage broker regularly works with lenders, real estate agents, home inspectors, and lawyers who specialize in real estate. If you ever need a referral – for example, if you are looking for a real estate agent to help you find your next home – your broker can provide you with recommendations.
Welcome to your Fall 2010 issue of "You're Home"
Welcome to your Fall 2010 issue of "You're Home," your quarterly newsletter provided by First National Financial LP, your mortgage provider. Read about the pros and cons of selling a home yourself or with an agent, buying a new construction or resale home, reasons to stay in touch with your mortgage broker, and find out what My Mortgage can do for you.
Should you sell your home yourself or use an agent?
Find out what My Mortgage can do for you
Buying a new construction or a resale home: Make the decision that’s right for you
Why it pays to stay in touch with your mortgage broker
Should you change your mortgage terms when you renew?
FAQ
Send us your feedback
Web site
Contact us
Should you sell your home yourself or use an agent?
Have you wondered whether you should sell your home yourself or use a real estate agent? Make an informed decision by considering the pros and cons of hiring a pro versus going solo.
Should you sell your home yourself or use an agent?
Find out what My Mortgage can do for you
Buying a new construction or a resale home: Make the decision that’s right for you
Why it pays to stay in touch with your mortgage broker
Should you change your mortgage terms when you renew?
FAQ
Send us your feedback
Web site
Contact us
Should you sell your home yourself or use an agent?
Have you wondered whether you should sell your home yourself or use a real estate agent? Make an informed decision by considering the pros and cons of hiring a pro versus going solo.
Wednesday, November 3, 2010
FN Mortgage rates as of 03/11/2010
FIRST NATIONAL
1 year fixed: 2.50 %
3 years fixed: 3.49 %
5 years fixed: 3.59 %
5 years 5% Cash back fixed: 5.29 %
5 years variable: Prime minus 0.70%
First National Prime Rate: 3.00 %
Posted by DataTracker Powered by CoolRent
1 year fixed: 2.50 %
3 years fixed: 3.49 %
5 years fixed: 3.59 %
5 years 5% Cash back fixed: 5.29 %
5 years variable: Prime minus 0.70%
First National Prime Rate: 3.00 %
Posted by
DataTracker Powered by CoolRent
Find out the electricity costs for another home
NEW! Find out the electricity costs for another home
Are you thinking about renting or buying an apartment, house or cottage? In just a few clicks, you can get an estimate of the home's electricity costs. All you need is the address, including the postal code, of the home you're considering.
| Go to your Personal Page and click on Estimate the electricity costs of the home you are considering. | ||||||
| ||||||
Canadian Mortgage Broker News - Real estate market steady: Royal LePage
Canadian Mortgage Broker News - Real estate market steady: Royal LePage
Real estate market steady: Royal LePage
Canada’s real estate market is returning to normal with a year-over-year average price increase of less than five per cent, according to a Royal LePage survey released Tuesday October 19.
The survey suggests house price appreciation slowed in the third quarter to a rate historically typical of balanced property markets.
“Most Canadian housing markets cooled in the third quarter,” Phil Soper, president and CEO at Royal LePage Real Estate Services, said in the report. “In fact, the year is unfolding much as we predicted with the unusually active first half of 2010 giving way to slower markets in the later part of the year.”
Soper said the third quarter was slightly stronger than anticipated, helped by the low rates in a competitive mortgage financing market and new demand fuelled by improved affordability in many regions.
“House price growth now sits just below the long-term annual average of approximately five per cent,” added Soper. “But once this is adjusted for inflation, which is very low and expected to continue to be that way for some time, appreciation is right on track. Canadian homeowners will be pleased.”
St. John’s, Winnipeg, Montreal and Vancouver posted price increases above the national average, with St. John’s rising between 12.3 per cent and 14 per cent depending on housing type, while Winnipeg had increases of between eight and 11.7 per cent year-over-year. Prices in both cities were fuelled by a population influx.
Canadian Mortgage Broker News - BoC, gloomier economic outlook
Canadian Mortgage Broker News - BoC, gloomier economic outlook
BoC, gloomier economic outlook
In general, the economic forecast is gloomier than previously predicted. Canada is being pulled down by a U.S. recovery that will be weaker than expected, a global turnaround that is “entering a new phase” fraught with uncertainty, and a retrenchment by Canadian consumers, the central bank said in a statement on the decision.
The expected growth for 2010 has been cut to 3 per cent from 3.5 per cent, while 2011 growth was cut to 2.3 per cent from 2.9 per cent, and 2012 growth raised to 2.6 per cent from 2.2 per cent.
Canadian Mortgage Broker News - Real estate market steady: Royal LePage http://ping.fm/uZ8Fe
Canadian Mortgage Broker News - Real estate market steady: Royal LePage
Canadian Mortgage Broker News - Real estate market steady: Royal LePage
Real estate market steady: Royal LePage
Canada’s real estate market is returning to normal with a year-over-year average price increase of less than five per cent, according to a Royal LePage survey released Tuesday October 19.
The survey suggests house price appreciation slowed in the third quarter to a rate historically typical of balanced property markets.
“Most Canadian housing markets cooled in the third quarter,” Phil Soper, president and CEO at Royal LePage Real Estate Services, said in the report. “In fact, the year is unfolding much as we predicted with the unusually active first half of 2010 giving way to slower markets in the later part of the year.”
Soper said the third quarter was slightly stronger than anticipated, helped by the low rates in a competitive mortgage financing market and new demand fuelled by improved affordability in many regions.
“House price growth now sits just below the long-term annual average of approximately five per cent,” added Soper. “But once this is adjusted for inflation, which is very low and expected to continue to be that way for some time, appreciation is right on track. Canadian homeowners will be pleased.”
St. John’s, Winnipeg, Montreal and Vancouver posted price increases above the national average, with St. John’s rising between 12.3 per cent and 14 per cent depending on housing type, while Winnipeg had increases of between eight and 11.7 per cent year-over-year. Prices in both cities were fuelled by a population influx.
Canadian Mortgage Broker News - WEB EXCLUSIVE: Is the Canadian consumer overextended with debt? http://ping.fm/yB9yD
Canadian Mortgage Broker News - WEB EXCLUSIVE: Is the Canadian consumer overextended with debt?
Canadian Mortgage Broker News - WEB EXCLUSIVE: Is the Canadian consumer overextended with debt?
Is the Canadian consumer overextended with debt? Who knows? Who should care?
By David Johnston, M.T.I., CFP
Manager,
Residential & Select IPL Mortgage Specialist
The Johnston Mortgage Team, New Brunswick
I grow weary of reading reports and surveys suggesting that consumer debt in Canada is a problem. Is it a problem or not? How do telephone surveys, which seem to occur daily, add to a situation that should be looked at from a numbers perspective?
I went to Statistics Canada's website and couldn’t find any hard numbers to verify the "mythical" average Canadian debt load. Statistics Canada did report in 2008 "the proportions of debtors increases early in the lifecycle but declines steadily later".
Financial Planning 101 teaches us that Canadian households, which are led by individuals 32 years of age or younger had on average a negative net worth. Typically, debts are paid with income, not assets. So it would be good to also learn what the average Canadian has in assets.
I do know that a good estimate of the average equity in Canadian residential properties is about 70 per cent. Yes, that would mean about $2.8 trillion dollars of value with approximately $1.0 trillion dollars in debt as reported in Canadian Mortgage Industry Report Fall 09, commissioned by the Canadian Association of Accredited Mortgage Professionals (CAAMP).
Recently, I read two academic reports on the impact or potential rising rates on the mortgage borrower. With the exception of a small percentage, most borrowers are in fine shape. Employment rates and income are the main factors when forecasting the likelihood of making mortgage payments and meeting debt obligations. Reasonable rate increases overall will not be a problem.
I think there is a lot of misinformation out there from special interest groups who want to curtail reasonable access to credit for consumers. A recent survey by the Royal Bank of Canada urged lenders and government to "do something?
In 2003 the UK the government was dealing with similar "unknowns”. They created a task force to tackle the consumer debt issue and eventually stated there was no generally accepted definition of over-indebtedness and inadequate information on which to base one"
The recent TD bank report states that soon Canadian household indebtedness will be over 150 per cent of personal disposable income (PDI). I find it strange that companies compare debt to disposable income. Assets and liabilities are on a balance sheet for companies. Why not for families?
Personal disposable income (PDI) is money available for debt servicing. I looked at TD's 2009 financial highlights. I am not an accountant; I just wanted to see how a bank compared debt in financial ratios. It looks to me that net income (PDI) was almost $5 billion dollars. The same report showed $255 billion in outstanding loans. Perhaps we need to survey 1000 Canadian consumers to see if we should worry that a bank seems to have borrowings in excess of 150 per cent of its net income? Of course, that’s crazy!
It is always prudent to manage debt responsibly. As a financial planner I counsel clients in that fashion.
Canada has a system that is the envy of the world, well regulated and prudent that helps us manage the down times. Senseless handwringing without full and candid disclosure can’t help anyone. It can frighten some people, which would be fine if we had the facts. Personally I think our current system is as good as possible given what will always be competing interests.
Canadian Mortgage Broker News - Household debt to outpace income: TD http://ping.fm/sNPcr
Canadian Mortgage Broker News - Household debt to outpace income: TD
Canadian Mortgage Broker News - Household debt to outpace income: TD
Household debt to outpace income: TD
When interest rates rise, 10 per cent of Canadian households could be in financial trouble, according to a TD Economics study.
TD chief economist Craig Alexander said household debt, which includes mortgages, has become excessive as Canadians get more accustomed to easy borrowing.
“One in 10 is a high ratio,” Alexander told CBC News. “It looks to us that Canadians’ personal finances have gotten stretched.”
Alexander also expects those debt levels to increase more rapidly than income growth.
The TD study said that even if the Bank of Canada’s overnight rate only rises to 3.5 per cent by 2013, family debt might still rise five per cent annually. That should be a concern, the report said, given its prediction that incomes will likely grow only by four per cent a year.
Monday, November 1, 2010
FN Mortgage rates as of 01/11/2010
FIRST NATIONAL
1 year fixed: 2.50 %
3 years fixed: 3.49 %
5 years fixed: 3.59 %
5 years 5% Cash back fixed: 5.29 %
5 years variable: Prime minus 0.65%
First National Prime Rate: 3.00 %
Posted by DataTracker Powered by CoolRent
1 year fixed: 2.50 %
3 years fixed: 3.49 %
5 years fixed: 3.59 %
5 years 5% Cash back fixed: 5.29 %
5 years variable: Prime minus 0.65%
First National Prime Rate: 3.00 %
Posted by
DataTracker Powered by CoolRent
"The Week Ahead" - November 1-5th
"The Week Ahead" - November 1-5th
CIBC Economic's "The Week Ahead".
Key Highlights
The Fed looks likely to match what is now the conventional wisdom, offering up a mid-sized dose of, say, a half trillion in quantitative easing doled out at a pace of roughly $100 bn per month, with nothing said about what happens after that. Fiscal policy will be tricky work in Washington in the months ahead. Keeping the economy moving in the near term will require a soft hand on any fiscal tightening in 2011, and if things get worse, even another dose of stimulus.
Key Numbers to watch this week:
- Canada – Labour Force Survey – October (Fri – 7:00AM) – We see a gain of 10K jobs in October which would keep the unemployment rate at 8.0%, in line with the slowdown in the pace of job creation in recent months.
- US – Employment Situation - October - (Fri - 8:30AM) – We expect the jobless rate to increase slightly to 9.7%, the highest level since May.
Equity Insights:
- If there’s one message from expectations of a 28% rise in S&P 500 earnings in Q3 on the back of only a 7% yr/yr rise in sales, it’s that cost cutting is still alive and well in America’s mills, mines and factories.
- The Fed’s unlikely to leave investors in the lurch next Wednesday, but recent estimates by some observers of as much as $2 trillion of asset purchases do not square with the recent cautious remarks by Bernanke and Yellen.
- Relative to the average of the last ten years, utilities, materials, and consumer staples firms are paying out the least dividends at present, for each dollar of earnings. That would seem to suggest potential room for dividend hikes by some of those firms.
Currency Currents:
- The decrease in merchandise trade surplus over the past eight years should be attributed to the Canadian dollar’s appreciation which has effectively eroded our manufacturing base to the point that our share of the US market is now under 15% versus 20% before the loonie started its run in 2002.
- As recent restrictions on foreign capital inflows by the Brazilian government have dampened real sentiment, hot money flows may be finding their way into the Mexican bond market, adding support to the peso.
- If inflationary pressures persist, any upward moves in PBOC bill rates would increase the cost of draining yuan printed to buy US Treasuries. To take the pressure off, the PBOC may consider slowing the pace of its US Treasury purchases and allow a modest appreciation of the yuan over the next year.
Sunday, October 31, 2010
Canadian Mortgage Broker News - Canadian house prices overvalued
Canadian Mortgage Broker News - Canadian house prices overvalued
Canadian house prices overvalued
Wednesday, 27 October 2010
Canadian housing is overvalued, but not as much as those in Australia, Hong Kong or France, according to a new worldwide survey.
The Economist magazine’s annual survey showed Canadian homes cost on average 23.9 per cent more than they are worth. Meanwhile the scale ranged from the high end with Australian homes overvalued by 63.2 per cent, to Japan at the low end, where houses are undervalued by 34.6 per cent.
“Singapore, Hong Kong and Australia boast the gaudiest year-on-year price increases, even if the rate of appreciation is a down a bit from the summer,” the report states.
Canada’s house prices were up 4.5 per cent from one year earlier. From 1997 to 2010, prices have increased by 70 per cent, according to the report.
The Economist’s analysis of “fair value” housing is based on comparing the ratio of current house prices to rents with the long-term average. In other words, the purchase price of a house is divided by the rent it could have earned per year.
Canadian house prices overvalued
Wednesday, 27 October 2010
Canadian housing is overvalued, but not as much as those in Australia, Hong Kong or France, according to a new worldwide survey.
The Economist magazine’s annual survey showed Canadian homes cost on average 23.9 per cent more than they are worth. Meanwhile the scale ranged from the high end with Australian homes overvalued by 63.2 per cent, to Japan at the low end, where houses are undervalued by 34.6 per cent.
“Singapore, Hong Kong and Australia boast the gaudiest year-on-year price increases, even if the rate of appreciation is a down a bit from the summer,” the report states.
Canada’s house prices were up 4.5 per cent from one year earlier. From 1997 to 2010, prices have increased by 70 per cent, according to the report.
The Economist’s analysis of “fair value” housing is based on comparing the ratio of current house prices to rents with the long-term average. In other words, the purchase price of a house is divided by the rent it could have earned per year.
Saturday, October 30, 2010
"The Week Ahead" - October 25-29th
CIBC Economic's "The Week Ahead".
Key Highlights
This week, the Bank of Canada took a step back and issued a new growth projection. They indicate that growth in the years ahead will come from net exports and capital spending, less from consumer and housing activity. How confident can they be that trade performance can ultimately fill the gap as fiscal policy tightens?
Key Numbers to watch this week:
- Canada – Real GDP –August (Fri – 8:30AM) – Canadian GDP is poised to bounce back in August with indicators of economic activity showing a healthy performance for the month. However, the services sector show a more modest growth expectation.
- US –GDP (Q3 Advance) – September (Fri, 8:30AM) – The deepest recession since WWII basically began in the housing market. Now the slump in sales and starts, brought on by the tax credit's expiry, insures that sector will revert to being a drag on Q3 performance
Equity Insights:
- Four fifths of the 32% of S&P 500 members who have reported have topped the streets earnings estimates. Could it be that analysts are underestimating a company's offshore activities and earnings?
- AAII Consumer sentiment index has tested five-month highs recently. Typically a high reading suggests less money "waiting on the sidelines".
- China's Q3 GDP data shows that growth has moderated but remains healthy. Resource markets have overreacted in the past to rumours of China – savvy investors may want to keep their eyes open on potential buying opportunities.
Currency Currents:
- The C$ lost ground this week as the Bank of Canada's revised assessment of the negative output gap cemented a rate pause for the foreseeable future. We may now see the anticipated gradual approach to rate hikes.
- Our error-correction model has the C$ overvalued by roughly 7 cents (fair value – 1.10C$/US$). However, when looking at PPP, the IMF estimates the loonie should be closer to 1.22C$/US$
- China's authorities are taking steps to stem the nation's high inflation rate, now at 3.6%. Authorities may favour a higher level to the yuan, rather than policy rate increases to promote an orderly disinflation in the Chinese property market.
Thursday, October 21, 2010
CAAMP Stat
Bank of Canada Interest Rate
July 20, 20100.75 %
September 8, 20101.00 %
October 19, 2010Next meeting date
Source: Bank of Canada
Top of Page
Bank Prime Lending Rate
July 21, 20102.75 %
September 9, 20103.00 %
October 20, 2010Next meeting date
Source: Bank of Canada
Top of Page
Conventional Mortgage - 5 Year Rate*
August 23, 20105.49 %
August 30, 20105.39 %
September 15, 20105.39 %
Source: Bank of Canada
*Determinant for high ratio mortgage variable qualifying rate
July 20, 20100.75 %
September 8, 20101.00 %
October 19, 2010Next meeting date
Source: Bank of Canada
Top of Page
Bank Prime Lending Rate
July 21, 20102.75 %
September 9, 20103.00 %
October 20, 2010Next meeting date
Source: Bank of Canada
Top of Page
Conventional Mortgage - 5 Year Rate*
August 23, 20105.49 %
August 30, 20105.39 %
September 15, 20105.39 %
Source: Bank of Canada
*Determinant for high ratio mortgage variable qualifying rate
Canadian Mortgage Broker News - Building construction eases in August: StatsCan
Canadian Mortgage Broker News - Building construction eases in August: StatsCan
Friday, 8 October 2010
Building construction eases in August: StatsCan
The value of Canadian building permits issued in August fell 9.2 per cent compared with the previous month as contractors retracted from the non-residential sector.
Contractors took out $5.7 billion in building permits overall for the month, with the downturn in the non-residential sector outweighing an increase in the residential sector, according to a Statistics Canada report released Thursday October 7.
“It was a surprisingly large drop,” said Doug Porter, a Bank of Montreal economist, to the Canadian Press. “Of course, building permits are arguably the most volatile economic report that Statistics Canada releases. So you obviously have to treat it with a little bit of caution, especially permits in the non-residential sector, which can be extremely lumpy.”
After four months of decline, the value of residential sector permits issued by municipalities increased two per cent to $3.5 billion in August. At the same time, they issued just $2.2 billion worth of non-residential permits, down 22.9 per cent from July.
Canadian Mortgage Broker News - Ontario posts biggest housing starts decline http://ping.fm/LasKj
Canadian Mortgage Broker News - Ontario posts biggest housing starts decline
Canadian Mortgage Broker News - Ontario posts biggest housing starts decline
Tuesday, 12 October 2010
Ontario posts biggest housing starts decline
Ontario housing starts posted the biggest decline in all Canadian provinces as residential construction eased for single detached homes and condominium development.
Approximately 54,500 starts (seasonally adjusted and annualized figures) broke ground last month, down 10.9 per cent from August, according to the Canada Mortgage and Housing Corporation.
“Canadian housing demand has cooled significantly this year, and supply has begun to follow,” said economist Robert Kavcic for BMO Capital Markets to the Toronto Star. “Starts should continue to soften in the next few quarters, pulled down by the cooling we’ve seen on the demand side of the housing market.”
So far this year, Ontario new home construction is ahead by 29 per cent over 2009, though much of it is from the market’s strength earlier this year. Starts, which are counted when the concrete foundations are poured, are a key indicator of future economic activity, as new development generates job growth.
Canadian Mortgage Broker News - Housing starts rate down for September: CMHC http://ping.fm/pN1Y9
Canadian Mortgage Broker News - Housing starts rate down for September: CMHC
Canadian Mortgage Broker News - Housing starts rate down for September: CMHC
Tuesday, 12 October 2010
Housing starts rate down for September: CMHC
The seasonally adjusted annual rate of housing starts was 186,400 units in September, according to Canada Mortgage and Housing Corporation (CMHC). This is down from 189,300 units in August.
“Housing starts moved lower in September due to a decrease in urban single starts in Atlantic Canada and Ontario,” said Bob Dugan, chief economist at CMHC’s Market Analysis Centre. “Multiple starts were unchanged.”
The annual rate of urban starts decreased by 3.3 per cent to 163,200 units in September. In Atlantic Canada, urban starts decreased by 23.7 per cent and by 10.9 per cent in Ontario.
Meanwhile, urban starts increased by 6.4 per cent in British Columbia, by 3.9 per cent in Quebec, and by 0.6 per cent in the Prairie region.
Canadian Mortgage Broker News - Home prices rise in August: StatsCan http://ping.fm/xnIsU
Canadian Mortgage Broker News - Home prices rise in August: StatsCan
Canadian Mortgage Broker News - Home prices rise in August: StatsCan
Thursday, 14 October 2010
Home prices rise in August: StatsCan
Canadian new home prices rose unexpectedly in August after a decline the prior month.
The 0.1 per cent increase reversed its identical loss in July, and was led by a 0.9 per cent rise for Hamilton, Ont., according to Statistics Canada. Economists had predicted the index would decline by another 0.1 per cent, based on a Bloomberg survey of nine responses.
Home sales were helped by low borrowing costs. Canada’s average five-year fixed mortgage rate sat at 5.39 per cent the week of October 4, close to the 5.25 per cent set in April 2009 as the lowest in half a century.
New home prices had increased 2.9 per cent in August 2009.
Canadian Mortgage Broker News - TD bank overhauls mortgage program
Canadian Mortgage Broker News - TD bank overhauls mortgage program
Wednesday, 13 October 2010
TD bank overhauls mortgage program
TD bank is redesigning its mortgage program to make it easier for homeowners to tap into their equity and harder for them to switch to another lender when their mortgage renewal comes up.
The main difference of the overhaul is a switch to collateral-charge mortgages, which are similar to lines of credit. The bank is encouraging employees to approve customers at 125 per cent of a home’s actual value with certain conditions, so the homeowner can easily borrow more money if the property value increases.
Unlike traditional mortgages, collateral mortgages are difficult to transfer from one lender to another because they must be paid in full to be cancelled.
Wednesday, October 20, 2010
The Bank of Canada Monetary Policy Report
The Report is now available on the Bank of Canada’s website at:http://www.bankofcanada.ca/en/mpr/pdf/2010/mproct10.pdf
Canadian Mortgage Broker News - Home sales rise for second straight month http://ping.fm/VQAQm
Canadian Mortgage Broker News - Home sales rise for second straight month
Canadian Mortgage Broker News - Home sales rise for second straight month
Monday, 18 October 2010
Canadian housing sales have rose for the second straight month, according to the Canadian Real Estate Association (CREA).
In September, the seasonally adjusted annual rate of sales increased by 3 per cent, and prices has begun to stabilize. The average price of a home sold in Canada last month was $331,089, down slightly from the $331,683 average a year ago. But prices were up from a month earlier, when the average was $324,928.
“Supply and demand are rebalancing and that’s keeping prices steady in many markets,” said Georges Pahud, CREA president.
Monday, 18 October 2010
Canadian housing sales have rose for the second straight month, according to the Canadian Real Estate Association (CREA).
In September, the seasonally adjusted annual rate of sales increased by 3 per cent, and prices has begun to stabilize. The average price of a home sold in Canada last month was $331,089, down slightly from the $331,683 average a year ago. But prices were up from a month earlier, when the average was $324,928.
“Supply and demand are rebalancing and that’s keeping prices steady in many markets,” said Georges Pahud, CREA president.
Canadian Mortgage Broker News - High buy/rent ratio may lead to housing price correction http://ping.fm/43DUb
Canadian Mortgage Broker News - High buy/rent ratio may lead to housing price correction
Canadian Mortgage Broker News - High buy/rent ratio may lead to housing price correction
Tuesday, 19 October 2010
The current high buy/rent ratio may indicate a vulnerable housing market said Desjardins Securities, but others aren’t placing too much weight on the measurement.
Canadian house prices rebounded from the recession, hitting a new record in May and bringing the buy/rent ratio to about 1.85x. This means mortgages are increasingly difficult to afford compared to rent, as house prices increase and rents remain stable.
So, excluding major factors such as taxes and maintenance, homeowners pay about twice what renters pay.
“This is precipitously close to the 2.3x level reached in December 2007 and the 2.5x level reached in 1988, which preceded house price corrections of 13 per cent and 10 per cent, respectively,” Ed Sollbach and Deep Jaitly of Desjardins wrote in a research note.
They added that when the buy/rent ratio hit an “unsustainable” 3.6x in Toronto in 1989, it was followed by a 29-per-cent decline in house prices.
However, at that time unemployment was also rising and a spike in interest rates to 14 per cent forced many homeowners to sell.
The problem with the rent/own ratio is that half of the provinces employ rent control, so prices can’t rise with the broader housing market. For example, house prices in some Toronto neighbourhoods have gained 30 per cent in the last year but Ontario limits rent increases to 2.1 per cent.
“Maybe that’s just telling us that rents are just too low,” said Gregory Klump, the chief economist at the Canadian Real Estate Association in a recent interview with The Globe and Mail. “I’m not a fan of the price-to-rent ratio because it’s so skewed by the fact that rents are subject to rent control.”
Tuesday, 19 October 2010
The current high buy/rent ratio may indicate a vulnerable housing market said Desjardins Securities, but others aren’t placing too much weight on the measurement.
Canadian house prices rebounded from the recession, hitting a new record in May and bringing the buy/rent ratio to about 1.85x. This means mortgages are increasingly difficult to afford compared to rent, as house prices increase and rents remain stable.
So, excluding major factors such as taxes and maintenance, homeowners pay about twice what renters pay.
“This is precipitously close to the 2.3x level reached in December 2007 and the 2.5x level reached in 1988, which preceded house price corrections of 13 per cent and 10 per cent, respectively,” Ed Sollbach and Deep Jaitly of Desjardins wrote in a research note.
They added that when the buy/rent ratio hit an “unsustainable” 3.6x in Toronto in 1989, it was followed by a 29-per-cent decline in house prices.
However, at that time unemployment was also rising and a spike in interest rates to 14 per cent forced many homeowners to sell.
The problem with the rent/own ratio is that half of the provinces employ rent control, so prices can’t rise with the broader housing market. For example, house prices in some Toronto neighbourhoods have gained 30 per cent in the last year but Ontario limits rent increases to 2.1 per cent.
“Maybe that’s just telling us that rents are just too low,” said Gregory Klump, the chief economist at the Canadian Real Estate Association in a recent interview with The Globe and Mail. “I’m not a fan of the price-to-rent ratio because it’s so skewed by the fact that rents are subject to rent control.”
Monday, October 18, 2010
Mortgage rate promo - 5y 3.49%
Promotion de Taux 5 ans 3.49%
Pour les dossiers soumis et déboursés entre le 1 octobre et le 30 novembre 2010
Pour les dossiers soumis et déboursés entre le 1 octobre et le 30 novembre 2010
Tuesday, October 12, 2010
FN Mortgage rates as of 12/10/2010
FIRST NATIONAL
1 year fixed: 2.50 %
3 years fixed: 3.59 %
5 years fixed: 3.69 %
5 years 5% Cash back fixed: 5.29 %
5 years variable: Prime minus 0.65%
First National Prime Rate: 3.00 %
Posted by DataTracker Powered by CoolRent
1 year fixed: 2.50 %
3 years fixed: 3.59 %
5 years fixed: 3.69 %
5 years 5% Cash back fixed: 5.29 %
5 years variable: Prime minus 0.65%
First National Prime Rate: 3.00 %
Posted by
DataTracker Powered by CoolRent
Friday, October 1, 2010
FN Mortgage rates as of 01/10/2010
FIRST NATIONAL
1 year fixed: 2.50 %
3 years fixed: 3.70 %
5 years fixed: 3.79 %
5 years 5% Cash back fixed: 5.49 %
5 years variable: Prime minus 0.65%
First National Prime Rate: 3.00 %
Posted by DataTracker Powered by CoolRent
1 year fixed: 2.50 %
3 years fixed: 3.70 %
5 years fixed: 3.79 %
5 years 5% Cash back fixed: 5.49 %
5 years variable: Prime minus 0.65%
First National Prime Rate: 3.00 %
Posted by
DataTracker Powered by CoolRent
Thursday, September 16, 2010
FN Mortgage rates as of 16/09/2010
FIRST NATIONAL
1 year fixed: 2.50 %
3 years fixed: 3.70 %
5 years fixed: 3.79 %
5 years 5% Cash back fixed: 5.49 %
5 years variable: Prime minus 0.65%
First National Prime Rate: 2.75 %
Posted by DataTracker Powered by CoolRent
1 year fixed: 2.50 %
3 years fixed: 3.70 %
5 years fixed: 3.79 %
5 years 5% Cash back fixed: 5.49 %
5 years variable: Prime minus 0.65%
First National Prime Rate: 2.75 %
Posted by
DataTracker Powered by CoolRent
Friday, September 10, 2010
FN Mortgage rates as of 10/09/2010
FIRST NATIONAL
1 year fixed: 2.60 %
3 years fixed: 3.70 %
5 years fixed: 3.79 %
5 years 5% Cash back fixed: 5.49 %
5 years variable: Prime minus 0.65%
First National Prime Rate: 2.75 %
Posted by DataTracker Powered by CoolRent
1 year fixed: 2.60 %
3 years fixed: 3.70 %
5 years fixed: 3.79 %
5 years 5% Cash back fixed: 5.49 %
5 years variable: Prime minus 0.65%
First National Prime Rate: 2.75 %
Posted by
DataTracker Powered by CoolRent
Wednesday, September 8, 2010
Bank of Canada rises the overnight rate with 0.25% to 1% http://blog.danielkatev.com/feeds/2126498923609087500/comments/default
Bank of Canada rises the overnight rate with 0.25% to 1%
Bank of Canada hikes rates for third time
September 8, 2010 | 09:09
Money
Mortgage costs for many Canadians went up for the third time this year on Wednesday, with the Bank of Canada hiking its target for the overnight rate by a quarter point to 1%.
The bank rate is now 1.25% and the deposit rate 0.75%, the bank said in a statement. Echoing comments made in previous rate hike announcements, the central bank said any further hikes increases will need to be carefully considered in light of the “unusual uncertainty surrounding the outlook.”
Canada’s economy has cooled rapidly in recent months, leaving economists mixed as to whether Governor Mark Carney would up borrowing costs this time around. Most now expect him to pause in the tightening cycle until the economic recovery, particularly south of the border, gets on a firmer footing.
The bank said that the Canadian economy was softer in the second quarter than it had expected. However, business investment and consumer demand were in line with its forecasts.
Going forward the bank said it expects business investment to rise strongly and consumer demand to be solid.
The weak spot in the outlook for Canada is the U.S. economy, home to three quarters of the country’s exports.
“In the United States, the recovery in private demand is being held back by high unemployment and recent indicators suggest a more muted recovery in the near term,” it said.
Tuesday, September 7, 2010
Montreal is approaching 2011 at full speed | Construction Industry News | Reed Construction Data http://ping.fm/T3gJ6
Montreal is approaching 2011 at full speed | Construction Industry News | Reed Construction Data
Montreal is approaching 2011 at full speed | Construction Industry News | Reed Construction Data
Data source: Ontario Ministry of Labour/Chart: Reed Construction Data – CanaData
Montreal is approaching 2011 at full speed
August 25, 2010 - John Clinkard
As Montreal heads into the second half of 2010, it’s clear that the city must be doing something right.
For the past seven months it has consistently exhibited stronger year-over-year job growth than all but two of the 10 largest metro areas in the country.
Job growth has been particularly strong in wholesale and retail trade (+35,200), followed by finance insurance and real estate (+25,800); health services (+17,900); construction (+17,200); accommodation and food services (+10,600); and professional and technical services (+10,200).
This strong pattern of employment growth, accompanied by low interest rates and sustained net migration, has helped to underpin housing demand in Montreal.
According to the Greater Montreal Real Estate Board, sales of existing homes are up by 10% year to date, and median single family house prices ($258,000) are up by 5% year over year.
Demand for new housing is also strong, reflected by a 32% year-to-date increase in housing starts and a 48% year-to-date rise in residential building permits over the first six months of the year.
As is the case across much of the country, the combination of dissipating pent-up demand and deteriorating affordability is causing housing demand in Montreal to cool.
But the strong year-to-date increase in residential permits should sustain new residential construction into 2011.
While the pace of residential construction appears to be down-shifting, the outlook for both industrial and commercial construction is quite strong.
According to CB Richard Ellis, a gradual increase in manufacturing demand has caused the industrial availability rates in the Greater Montreal Area (GMA) to decline by 40 per cent since the end of 2009.
Reflecting this stronger pace of manufacturing activity, the value of industrial building permits has picked up since the beginning of the year and is now +73% year to date in June.
Also, despite relatively high office vacancy rates in the GMA, it appears that stronger retail and office-based employment growth is contributing to a turnaround in commercial construction, reflected by an 8% year-to-date increase in commercial building permits.
Employment growth - Montreal vs total Canada
Thursday, September 2, 2010
Canadian Mortgage Broker News - Atlantic Canada housing starts up in 2010 http://ping.fm/tq4jX
Canadian Mortgage Broker News - Atlantic Canada housing starts up in 2010
Canadian Mortgage Broker News - Atlantic Canada housing starts up in 2010
Wednesday, 1 September 2010
Atlantic Canada housing starts up in 2010
Atlantic Canada's housing starts for 2010 are predicted to be up from last year. Moncton, New Brunswick, will see 1,080 housing starts by the end of 2010 compared to 973 starts in 2009, according to the Canada Mortgage and Housing Corp.'s third-quarter 2010 Housing Market Outlook release.
Meanwhile in Saint John, builders expect to have put up 670 home units in 2010, a small increase versus the 659 from last year. But sales of existing homes are likely to drop by end of 2010 in New Brunswick to 6,750 from 7,000 in 2009.
Across Atlantic Canada, which includes New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland, housing activity is supposed to rise by nearly seven per cent in 2010 compared to the year before. Single-housing starts are forecasted to increase by nine per cent in 2010, as the economy continues to recover. Low vacancy rates and an aging population also suggests multiple starts should rise to five per cent by the end of the year.
Wednesday, September 1, 2010
Canadian Mortgage Broker News - CIBC: Slowdown may be healthy
Canadian Mortgage Broker News - CIBC: Slowdown may be healthy
Monday, 30 August 2010
CIBC: Slowdown may be healthy
The Canadian housing market is poised to strengthen after a brief slowdown, according to CIBC chief executive officer Gerry McCaughey.
In a television interview with Business News Network McCaughey said the slowdown in the Canadian housing market is healthy as it allows the industry to "catch a breath."
"The indications are Canada is doing reasonably well, the recovery in the U.S. and probably in Canada seems to be slowing somewhat, but I believe this is probably a pause," McCaughey said. "I think all recoveries from recessions have a lot of doubt and hesitation around them, and I think the main thing is for us to keep our eye on the ball for the future."
CIBC reported its Q3 earnings last Wednesday posting net profits that grew to $640 million.
FN Mortgage rates as of 01/09/2010
FIRST NATIONAL
1 year fixed: 2.60 %
3 years fixed: 3.70 %
5 years fixed: 3.89 %
5 years 5% Cash back fixed: 5.49 %
5 years variable: Prime minus 0.65%
First National Prime Rate: 2.75 %
Posted by DataTracker Powered by CoolRent
1 year fixed: 2.60 %
3 years fixed: 3.70 %
5 years fixed: 3.89 %
5 years 5% Cash back fixed: 5.49 %
5 years variable: Prime minus 0.65%
First National Prime Rate: 2.75 %
Posted by
DataTracker Powered by CoolRent
Canadian Mortgage Broker News - Ontario housing activity to stabilize in 2011 http://ping.fm/QmdNq
Canadian Mortgage Broker News - Ontario housing activity to stabilize in 2011
Canadian Mortgage Broker News - Ontario housing activity to stabilize in 2011
Tuesday, 31 August 2010
Ontario housing activity to stabilize in 2011
Ontario housing activity tapered off in recent months and the demand will continue to slow till stabilizing in early 2011. This is according to the 2010 Third Quarter Housing Market Outlook by Canada Mortgage and Housing Corporation.
"A number of temporary factors have boosted Ontario home sales and prices from this time last year," said Ted Tsiakopoulos, CMHC's Ontario regional economist. "However, higher mortgage carrying costs, increasing supply pressures and declining first-time buyer demand will temper Ontario's housing momentum later this year and into 2011."
Other highlights of the forecast included:
- Employment market on recovery and goods sector showing signs of stability
- Ontario existing home sales will come off of peak levels; then improved affordability will boost sales later in 2011
- Ontario sales will range between 175,000 and 210,000 unit sales this year and next
- Ontario home starts expected to reach 61,525 units in 2010; and will likely range between 47,000 to 66,000 units in 2011
- Demand for single detached homes will weaken in more expensive Ontario markets
- Rising mortgage carrying costs will increase demand for apartment ownership and rental accommodation
Canadian Mortgage Broker News - Canadian housing bubble still looms
Canadian Mortgage Broker News - Canadian housing bubble still looms
Tuesday, 31 August 2010
Canadian housing bubble still looms
Though home sales are slowing, prices in six of Canada's largest housing markets are in bubble territory.
Home prices are sitting at 4.7 to 11.3 times Canadians' annual income - much higher than historical comfort levels of between three and four times income, according to a report by the Canadian Centre for Policy Alternatives (CCPA). The report defines a bubble occurring when housing prices increase more rapidly than inflation, household incomes and economic growth.
"To see all of the major markets outside of that comfort zone is very unique and concerning," said David Macdonald, a research associate who wrote the report called "Canada's Housing Bubble: An Accident Waiting To Happen."
Sales have fallen by 25 per cent since reaching its peak at the begnning of the year. But canadian home prices were up 13.6 per cent in June from a year ago in Canada's major cities.
"The concern today is all six major markets, not just Vancouver and Toronto, are out of that comfort zone," said Macdonald, including Calgary, Edmonton, Ottawa and Montreal. "All six major markets now have an average price of over $300,000."
***The CCPA is an independent, non-partisan research institute concerned with issues of social and economic justice.
Tuesday, August 24, 2010
FN Mortgage rates as of 24/08/2010
FIRST NATIONAL
1 year fixed: 2.60 %
3 years fixed: 3.70 %
5 years fixed: 3.99 %
5 years 5% Cash back fixed: 5.49 %
5 years variable: Prime minus 0.65%
First National Prime Rate: 2.75 %
Posted by DataTracker Powered by CoolRent
1 year fixed: 2.60 %
3 years fixed: 3.70 %
5 years fixed: 3.99 %
5 years 5% Cash back fixed: 5.49 %
5 years variable: Prime minus 0.65%
First National Prime Rate: 2.75 %
Posted by
DataTracker Powered by CoolRent
Monday, August 23, 2010
FN Mortgage rates as of 23/08/2010
FIRST NATIONAL
1 year fixed: 2.60 %
3 years fixed: 3.70 %
5 years fixed: 3.99 %
5 years 5% Cash back fixed: 5.49 %
First National Prime Rate: 2.75 %
Posted by DataTracker Powered by CoolRent
1 year fixed: 2.60 %
3 years fixed: 3.70 %
5 years fixed: 3.99 %
5 years 5% Cash back fixed: 5.49 %
First National Prime Rate: 2.75 %
Posted by
DataTracker Powered by CoolRent
Monday, August 16, 2010
FN Mortgage rates as of 16/08/2010
FIRST NATIONAL
1 year fixed: 2.60 %
3 years fixed: 3.70 %
5 years fixed: 4.09 %
5 years 5% Cash back fixed: 5.49 %
First National Prime Rate: 2.75 %
Posted by DataTracker Powered by CoolRent
1 year fixed: 2.60 %
3 years fixed: 3.70 %
5 years fixed: 4.09 %
5 years 5% Cash back fixed: 5.49 %
First National Prime Rate: 2.75 %
Posted by
DataTracker Powered by CoolRent
Wednesday, August 11, 2010
FN Mortgage rates as of 11/08/2010
FIRST NATIONAL
1 year fixed: 2.60 %
3 years fixed: 3.75 %
5 years fixed: 4.09 %
5 years 5% Cash back fixed: 5.59 %
First National Prime Rate: 2.75 %
Posted by DataTracker Powered by CoolRent
1 year fixed: 2.60 %
3 years fixed: 3.75 %
5 years fixed: 4.09 %
5 years 5% Cash back fixed: 5.59 %
First National Prime Rate: 2.75 %
Posted by
DataTracker Powered by CoolRent
Monday, August 9, 2010
FN Mortgage rates as of 09/08/2010
FIRST NATIONAL
1 year fixed: 2.60 %
3 years fixed: 3.75 %
5 years fixed: 4.19 %
5 years 5% Cash back fixed: 5.59 %
First National Prime Rate: 2.75 %
Posted by DataTracker Powered by CoolRent
1 year fixed: 2.60 %
3 years fixed: 3.75 %
5 years fixed: 4.19 %
5 years 5% Cash back fixed: 5.59 %
First National Prime Rate: 2.75 %
Posted by
DataTracker Powered by CoolRent
Saturday, August 7, 2010
SLAVI TRIFONOV & KUKU BAND SHOW in Montreal
>> ИМÐÐœ БИЛЕТИ Ð’ ОФИСР>> 514-906-7785 <<
5 0КТОМВРИ , 2010 (вторник)19:30 ч
SALLE ANDRE-MATHIEU,
475, Boulevard de l’Avenir, Laval, H7N 5H9
...Залата Ñе намира точно Ñрещу Метро Ðœontmorency , паркинг - 5 $
ИÐФОРМÐЦИЯ за БИЛЕТИ:
• 45 CAD
• 75 CAD ограничен брой VIP билети (първите 4 реда пред Ñцената)
• 35 CAD за възраÑтни над 65 г., деца от 10 до 16 г. и хора Ñ ÑƒÐ²Ñ€ÐµÐ¶Ð´Ð°Ð½Ð¸Ñ
• Забележки:
• * Деца под 10 г. Ñе допуÑкат безплатно.
• ** Ð’Ñички видове билети (без VIP) в Ð´ÐµÐ½Ñ Ð½Ð° концерта ще бъдат Ñ 10 CAD по-Ñкъпи.
>> ИМÐÐœ БИЛЕТИ Ð’ ОФИСР>> 514-906-7785 <<
5 0КТОМВРИ , 2010 (вторник)19:30 ч
SALLE ANDRE-MATHIEU,
475, Boulevard de l’Avenir, Laval, H7N 5H9
...Залата Ñе намира точно Ñрещу Метро Ðœontmorency , паркинг - 5 $
ИÐФОРМÐЦИЯ за БИЛЕТИ:
• 45 CAD
• 75 CAD ограничен брой VIP билети (първите 4 реда пред Ñцената)
• 35 CAD за възраÑтни над 65 г., деца от 10 до 16 г. и хора Ñ ÑƒÐ²Ñ€ÐµÐ¶Ð´Ð°Ð½Ð¸Ñ
• Забележки:
• * Деца под 10 г. Ñе допуÑкат безплатно.
• ** Ð’Ñички видове билети (без VIP) в Ð´ÐµÐ½Ñ Ð½Ð° концерта ще бъдат Ñ 10 CAD по-Ñкъпи.
Friday, August 6, 2010
Thursday, August 5, 2010
FN Mortgage rates as of 05/08/2010
FIRST NATIONAL
1 year fixed: 2.60 %
3 years fixed: 3.80 %
5 years fixed: 4.19 %
5 years 5% Cash back fixed: 5.59 %
First National Prime Rate: 2.75 %
Posted by DataTracker Powered by CoolRent
1 year fixed: 2.60 %
3 years fixed: 3.80 %
5 years fixed: 4.19 %
5 years 5% Cash back fixed: 5.59 %
First National Prime Rate: 2.75 %
Posted by
DataTracker Powered by CoolRent
Tuesday, August 3, 2010
FN Mortgage rates as of 03/08/2010
FIRST NATIONAL
1 year fixed: 2.70 %
3 years fixed: 3.75 %
5 years fixed: 4.29 %
5 years 5% Cash back fixed: 5.79 %
First National Prime Rate: 2.75 %
Posted by DataTracker Powered by CoolRent
1 year fixed: 2.70 %
3 years fixed: 3.75 %
5 years fixed: 4.29 %
5 years 5% Cash back fixed: 5.79 %
First National Prime Rate: 2.75 %
Posted by
DataTracker Powered by CoolRent
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