Despite higher rates, a healthy slice of our population is staying open minded to variable mortgage rates. A CIBC poll today finds that: 72% of Canadians expect rising interest rates over the next 12 months (26% think they’ll stay the same) An overwhelming 83% of Canadians favour “predictability and stability over risk” when it comes to their finances (unsurprisingly) 77%...
The market is betting on rates heading higher this Wednesday. That’s bad news for mortgage shoppers. Or is it? One could argue that a rate hike on July 11 makes the fixed or variable rate decision even easier. Essentially the Bank of Canada is doing mortgage shoppers a favour. Here’s why… Closer to the Finish The higher rates go, the...
Love it or hate it, Canada’s controversial mortgage stress test has led to one welcome benefit: bigger mortgage discounts. That’s due partly to slowing demand for B-20-compliant mortgages—i.e., mortgages that require borrowers to pass the banking regulator’s “stress test,” which was adopted in January. In its latest Senior Loan Officer survey, the Bank of Canada writes, “Mortgage approval rates continued...
AbsoTrumpingLutely. The more useful question is, what are the chances it will? Economists project Canada’s economy could shrink 1.8% in 2020 if the U.S. pushes us into a global trade war. In that case, we’d fall into recession in late 2019 or early 2020, they say. Canadian exports would dive, partly due to U.S. tariffs making our goods too expensive...
One in four borrowers will renew their mortgage this year, estimates the Bank of Canada. Some of them are about to find renewing a whole lot trickier and potentially more expensive — thanks to two important rule changes: #1. The Much-Publicized Stress Test As most of you now know, on January 1 the government (OSFI) made it harder to get...
Someday you’ll be getting mortgage advice from an online robot. This “chatbot” will ask you questions to determine your needs. It’ll then recommend the most suitable mortgage based on your answers and its programming. Today, of course, people use human mortgage advisors for this very same thing. But robo-advisors are different. They don’t: Sleep (They’re available anytime you are, 24/7/365)...
“We cannot withstand a trade war with the United States” – Rona Ambrose. When over 70% of your exports go to one country, and that country’s representativessay,“There’s a special place in hell,” for your Prime Minister, that’s a problem. This is what the state of relations has come to between two of the world’s closest allies. Given Trump’s tendency to...
When a prospective homebuyer finds out they don’t need to pay for the services of a mortgage broker, their first thought is often: “What’s the catch?” Like many financial advisers, mortgage brokers typically get paid by commission. The lender providing the mortgage pays the broker that commission (finder’s fee) for referring and managing the application and mortgage closing. How Much...
Captain Chaos, a.k.a., The Golden Wrecking Ball, a.k.a., President Donald, has just punched America’s allies in the face with a short-sighted metals tariff, a move Canada and the EU proclaimed “totally unacceptable.” Canada, being the largest exporter of steel to the U.S., immediately counter-punched today with tariffs on U.S. exports. All of this doesn’t look good if you’re hoping to...
Here’s the latest on today’s Bank of Canada rate announcement: Rate Decision:No change in rates Prime Rate:Remains at 3.45% Market Rate Outlook:Two more hikes in 2018 BoC GDP Outlook:2% growth in 2018 and 2019; 1.8% in 2020 BoC Statement:Click here The Money Quote: “…Developments since April further reinforce Governing Council’s view that higher interest rates will be warranted to keep...
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