CBC Marketplace exposes TD’s collateral mortgage

TDhandcuffs FINALLY!!!!!   A major TV news program calls out TD Canada Trust’s collateral mortgage.  CBC Marketplace aired an episode called ‘Busting the Banks’ on January 25th.  Hey, it’s only taken 2 years but who’s counting??… Lol!    If you want to skip to the video link, just click here and scroll to the 8:00 min mark. (by the way, I should point out my contributions to this episode. I was contacted by the producers of CBC Marketplace for my opinions and advice during the filming of this episode….over the past 3 months, I assisted with some of the research. Hope you find the info useful).

During the program, CBC took a hidden camera into a TD branch….the reporter posed as a potential mortgage borrower….   Only when questioned for the 4th time did the TD banker disclose their mortgage was a collateral charge….  but they didn’t seem to explain the difference between a conventional mortgage and a collateral mortgage… The Banker only agreed that the collateral charge was a disadvantage. Read the rest of this entry »

Interest rates to stay low for longer than expected…

Mark Carney The, soon to be, ex-Bank of Canada Governor, Mark Carney, is leaving us with a present…  During yesterday’s Rate Announcement, the first of eight regularly scheduled rate meetings this year, Carney said the economy is growing at a slower pace than expected….  we having a cooling housing market….. inflation remains low and is not an immediate concern….  Last but not least, he expects the economy will not reach it’s full capacity in late 2014 and that withdrawing any monetary policy stimulus is less imminent than previously anticipated.

End result, no rate hikes are expected til 2014…  These comments come as a bit of a surprise given the Bank of Canada has wanted to raise rates for the past 2 years.  Well, maybe it’s Carney’s way of giving us a departing present….Let’s not look a gift horse in the mouth. Read the rest of this entry »

Scotiabank closes ING Direct mortgage broker division… but who cares?

Scotia and ING In an email sent to Mortgage Brokers today, ING announced they will close the Mortgage Broker division February 16, 2013.   My first reaction was one of sadness.  In the mid 2000’s, ING was a strong Lender and partner with Mortgage Brokers.   They offered some great products, competitive pricing, a fair prepayment penalty calculation and had an excellent team of employees, including their senior management.

Yes, I was sad to hear they would close the Broker division… But then I asked myself how much would this affect me?  my clients? How much business was I referring to ING these days?  The answer soon made me realize that there isn’t any reason for sadness.    I soon realized that since they made the switch to registering all their mortgages as a collateral mortgage charge, back in December 2011, I all but completely stopped recommending them to my clients. Read the rest of this entry »

Genworth Financial $50billion increase is good for Consumers

Genworth Financial CanadaThe Federal govt controls hi-ratio mortgage lending…. (mortgages that are greater than 80% loan to value)…  There is a $600 billion limit for Canada Mortgage and Housing Corporation (CMHC… a federal corp).   And a $250 billion limit for Genworth Financial Canada (a private corp).

Last year, the govt reported CMHC was fast approaching it’s $600 billion limit and that it had no intentions of increasing that limit.  Then last month, the federal govt announced they would increase Genworth’s limit to $300 billon.  This gives Canada’s mortgage lenders some breathing room as it now appears as though there is enough room to cover mortgages for a few years…

WHY YOU SHOULD PAY ATTENTION Read the rest of this entry »

Personal Debt levels and Mortgage Debt levels

debt amination Unless you’ve been living under a rock for the past 4 years, it’s impossible to not know the Federal govt’s concern about Canada’s Personal Debt level.   The media has covered this topic extensively.  After all, bad news sells more than good news…..

Here’s some current stats from Statistics Canada that really gets my blood boiling!….  We now carry a total debt load equal to around 164% of our annual household income.  That’s at an all-time high….  The govt is convinced that we are spending too much or our income towards real estate…   They have made numerous changes to mortgage lending rules that make it much tougher to qualify for a mortgage.  If there really is a problem, why is the govt focusing on low-interest rate products like mortgages?

Current mortgage rates are at around 3.00%.    Current credit card rates range from 9.99% to 19.99%….personal loan and car loan rates range from 6.00% to 9.00% and up.   Aren’t low-interest rate products better than high-interest rate products?   We have not seen any changes to these non-mortgage debt products….   Who benefits from higher rates?  Yup, your banker!Read the rest of this entry »

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