Garry Marr, Financial Post May 16, 2012 – 7:04 PM ET Last Updated: May 17, 2012 5:35 PM ET
Another trend, one which was not considered by the industry before, is people moving into more expensive, upscale homes after retirement.
The one thing Canadians won’t be retiring anytime soon is their mortgage debt, according to a new survey.
Bank of Montreal says 51% of Canadian homeowners plan to carry their mortgage into their retirement years.
“It’s a phenomenal number Read the rest of this entry »
Make sure to check in with Prime Rates at 9am E.S.T. for the Bank of Canada rate announcement.
Although Bank governor Mark Carney has been uncomfortable with the low interest rates in the country, we expect no change in the overnight rate and therefore no change to prime. Mortgage lending rates are expected to remain unchanged.
By Liam Lahey
Despite highly-competitive interest rates, Canadians are backing away from the real estate market. And it’s no wonder. Consumers are bombarded with contradictory economic reports about the fragility of the housing market in the U.S., the blistering-hot Canadian real estate bubble — is it even a bubble? — and varying interest rates that seem to change on a dime according to the whims of the big-six Canadian banks.
These conflicting messages are playing out in housing market sentiment, Read the rest of this entry »
Postmedia News Mar 22, 2012 – 11:30 AM ET | Last Updated: Mar 22, 2012 6:07 PM ET
OTTAWA – Finance Minister Jim Flaherty saw irony Thursday in major banks seeking changes to mortgage rules from government, given the control the banks themselves have over the industry.
Flaherty said, however, the possibility of tightening the insured mortgage market – which has been done three times under the current Conservative government – is there. Those decisions, however, result from constant evaluation of the markets.
“I find it a bit odd that some of the bank executives are taking the position that the minister of finance or the government somehow should tell them how to run their business,” Flaherty said during an appearance in Stittsville, Ont., just west of Ottawa.
“We have bank executives in Canada going and saying ‘really, the rules on insured mortgages should be tightened up.’ They must forget that they are actually the ones that issue the mortgages. It’s their market. It’s not my market. They decide what they want to charge in interest rates. Read the rest of this entry »
By Gail Johnson
With the popularity of home-decorating shows like Trading Places soaring, suddenly everyone’s an interior designer. But from a real expert’s point of view, where are home-owners’ renovation dollars best spent? Read the rest of this entry »
Postmedia News Mar 5, 2012 – 10:40 AM ET | Last Updated: Mar 5, 2012 6:01 PM ET
By Jason Fekete
OTTAWA * The federal government and some of the country’s leading economists remain worried about Canada’s housing market and rising household debt, and are cautioning Canadians against borrowing too much.
However, they are more optimistic about Read the rest of this entry »
Steve Ladurantaye, From Thursday’s Globe and Mail
The hot housing market that powered the country’s post-recession recovery is slowing to a crawl.
The Canadian Real Estate Association said sales dropped and prices moderated in January, with the weakness spread among more than half of the country’s cities. Sales in Vancouver and Toronto slowed to a crawl, with few houses available to would-be buyers.
The low number of listings means there could be Read the rest of this entry »
By Nicolas Van Praet, Financial Post
MONTREAL – Canadians are more indebted than ever before but the pace at which they’re borrowing money is slowing.
Despite a reduction in consumer appetite for new credit in the fourth quarter of 2011, consumer debt loads continue to increase but at a much lesser rate than observed in previous years, according to the latest national credit report from Atlanta-based Equifax.
The average debt outstanding by Canadians – which includes credit cards, loans and lines of credit but not mortgages – rose 4.5% during the last three months of 2011, to just under $6,000. That borrowing pace is about half of what it was the year before, when Canadians’ outstanding debt balances grew at a rate of 8%.
“We are seeing that Canadians, even though they are not reducing their debts, they are not increasing them at the same rate as before,” said Nadim Abdo, vice-president of consulting and analytical services for Equifax Canada. “That in itself is a positive.” Read the rest of this entry »
Tavia Grant … From Wednesday’s Globe and Mail
Canadians have set a new record for household debt, a sign that many families are leaving themselves vulnerable to an economic shock.
The debt burden of Canadian households has surpassed levels of both the United States and the United Kingdom and, by at least one measure, they are hurtling toward those countries’ peak levels of 2007, new Statistics Canada data show.
The concern is that any sudden negative event – such as a jump in unemployment, falling house prices or rising interest rates – could put many thousands of families in financial stress. The debt squeeze also suggests that consumer spending will be muted in the year to come, putting a damper on economic growth.
The ratio of debt to personal disposable income hit a high of 152.98 per cent in the third quarter from 150.57 per cent in the prior three months, Statscan said Tuesday. The report comes as Bank of Canada Governor Mark Carney is again sounding the alarm over swelling household debt. “Our greatest domestic risk relates to household finances,” the central banker said in a CBC radio interview.
Roughly one in 10 Canadians is in a vulnerable financial position, Read the rest of this entry »
With just 2 weeks to go until Christmas Day, we thought it would be a good time to give a few reminders on holiday safety tips. While not a complete list of all possible areas, at least it should start you thinking.
1) Water your tree.
They tell me there’s nothing quite like a “real” tree. For allergy sufferers like myself that is not an option. If you have a “real” tree don’t forget to keep the water reservoir filled so the tree doesn’t dry out too much. A dried out tree is definitely a fire hazard.
2) Check your lights and electrical connections.
Since we only use the tree & house lights for a few weeks a year and them keep them stored away (neatly and packaged with care ?) the rest of the year, examine electrical cords for breakage, kinks etc. Also, don’t overload any outlet with too many cords. Avoid a fire hazard by using up to date equipment and checking it as you are putting it up for the season. When taking down the lights & decorations, examine them and discard anything that looks past its useful lifetime … its safer to do it now rather than put it away for next year and perhaps forget to check it then.
3) Lock your car doors.
Whether its in the mall parking lot, gas station or your own driveway be aware not to create a crime of opportunity for someone by leaving your shopping bags in full view in an unlocked vehicle. It only takes a few minutes to have several hours of planning and shopping – not to mention the expense – ruined by a careless moment. Hide your purchases in the trunk, don’t leave your purse in the car and upon arrival at home immediately take all shopping into the house.
4) Don’t drink and drive.
Its unfortunate that this should even need to be on the list but after years of education and awareness campaigns stretching through the whole calendar year, there are still those who make the wrong decision. Take a designated driver, arrange with a spouse or loved one for pick up or call a driver service. The minor inconvenience is nothing compared to the alternative of drinking and driving.
Happy holidays to you and yours from us at Prime Rates. If you’ve got any tips of your own to add to the list please let us know!