16 May

Canadian banks not immune to housing bubble: OSFI official

General

Posted by: Mike Hattim

Andrew MayedaFinancial Post Canada’s banks, ranked the soundest on the planet by the World Economic Forum, aren’t immune to collapses triggered by falling housing prices, according to the government official implementing new mortgage rules. Previous failures of Canadian financial institutions were due to bad real estate lending and sharp falls in housing prices, and these […]

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10 May

Are Canadians ready for higher rates?

General

Posted by: Mike Hattim

JEREMY TOROBINOTTAWA— Globe and Mail Update Policy makers are right to fret about overbuilding in the Toronto and Vancouver condo markets, but it’s worth remembering that unless those bubble-like markets burst, the less-than-ideal mix of high household debt and overpriced housing may be more manageable than it looks. Concerns about housing have been in sharp […]

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10 May

Banks talk down consumer debt hysteria

General

Posted by: Mike Hattim

Garry MarrFinancial Post The Bank of Canada may be thinking about raising interest rates but there’s apparently no need to because Canadians are hunkering down to cool debt obligations on their own. “The pace of growth in household credit is no longer a reason for the Bank of Canada to move from the sidelines any […]

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2 May

Why smaller down payments can lead to better mortgage rates

General

Posted by: Mike Hattim

Garry MarrFinancial Post It doesn’t make much sense, but a skimpy down payment on a home might actually get you a better mortgage rate in today’s market. Blame the government subsidy known as mortgage default insurance, which ultimately makes it less risky to lend money to someone who has only 5% down compared to someone […]

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1 May

Putting Toronto’s housing boom in perspective

General

Posted by: Mike Hattim

Dr. Sherry S. CooperFinancial Post Housing is a key sector in any economy and many developed countries pride themselves on a high level of homeownership. Certainly that is the case in Canada and the U.S., and increasingly the case in emerging economies such as China where homeownership has grown very rapidly. But, as we have […]

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30 Apr

Variable vs fixed: Is it time to lock in your mortgage?

General

Posted by: Mike Hattim

By Madhavi Acharya-Tom Yew | Fri Apr 27 2012 The search for the right mortgage can make a person feel a bit like Goldilocks: On the hunt for something that is not too short, not too long, but just right. For Ilda Dinis and her partner, Ryan Johnsen, that meant choosing a five-year term with […]

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27 Apr

Mortgage lending change could trigger soft landing or ‘apocalypse’

General

Posted by: Mike Hattim

By Susan Pigg and Les Whittington | Thu Apr 26 2012 The federal government has moved to further tighten up mortgage lending and cool the overheated Canadian real estate market by effectively reining in the Canada Mortgage and Housing Corp. What’s unclear is whether the move will throw a cold compress on Toronto’s feverish housing […]

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25 Apr

Safer home loans needed to avert future crises, regulator says

General

Posted by: Mike Hattim

Emily FlitterFinancial Post Regulators published global guidance on Wednesday to make granting home loans more rigorous, five years after weak lending standards in the U.S. mortgage market spiralled into the worst financial crisis in decades. The Swiss-based Financial Stability Board (FSB), a regulatory task force for the world’s top 20 economies, said poorly underwritten home […]

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24 Apr

A reality test for would-be home buyers

General

Posted by: Mike Hattim

ROB CARRICKGlobe and Mail Never ask anyone who lends money if you can afford a house. Lenders care about their own money. Not yours. So while you’re thinking about how you’ll manage the cost of a mortgage and all your other living expenses, lenders seek the answer to one single question: How much risk is […]

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9 Apr

Renewing your mortgage? Be a hero

General

Posted by: Mike Hattim

ROB CARRICKGlobe and Mail Let’s see whether the many people who bought a house in 2007 show the appropriate killer instinct when renewing their mortgages this year. Surveys indicate that about one-third of mortgage holders are actively trying to terminate their mortgages early by making extra payments. But we need to do more now, before […]

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