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Poloz in, Carney out as Bank of Canada Governor…3 major changes in less than a year!! Anyone else find this strange??!.

Poloz, Carney, Flaherty Stephen Poloz was announced as Mark Carney’s replacement as the new Bank of Canada Governor.  The announcement was a surprise for many… Most thought the Deputy Governor, Tiff Macklem, would have been a more likely candidate.  But Jim Flaherty, Minister of Finance, chose Poloz…. probably because he shares the same vision as Flaherty…  tighter lending rules, higher rates.. etc..

But this article isn’t about why Poloz is in, and Macklem is out.   I want to bring something else to your attention.   Did you know that we have had 3 major changes in less than 6 months?   Mark Carney is leaving Canada to head the Bank of England.   Then, within 6 months, the head of OSFI, Julie Dickson, announced she will be leaving in 2014.   And now Karen Kinsley, CEO of CMHC, has announced she is stepping down.  I’ll add in a fourth.. Robert P. Kelly has come in as Chairperson of CMHC… You’ll need to read this to understand why this is relevant.

These are major changes folks.  OSFI, CMHC and the Bank of Canada Governor.   3 major players that run and regulate Canada’s Financial and Banking sectors.  Has anyone asked why  they are all leaving now? Continue reading “Poloz in, Carney out as Bank of Canada Governor…3 major changes in less than a year!! Anyone else find this strange??!.”

CMHC CEO Karen Kinsley out, Wall Street banker Robert Kelly in… anybody asking why??

Karen Kinsley Karen Kinsley has been with CMHC (Canada Mortgage and Housing Corporation) for 25 years.  The last 10 as it’s CEO.  CMHC makes buying a home more affordable by insuring the mortgage against default.  End result is a lower down payment requirement and lower interest rates.   CMHC is profitable.  They earned $1.7 billion in 2012 and $17 billion over the last 10 years.

In 2012, the Federal govt and the Minister of Finance decided to move CMHC under OSFI (Office of the Superintendent of Financial Institutions).   OSFI is a regulatory body that provides regulation and supervision to 152 Banks, Trust companies and other Lenders.   They function like auditors.  A move questioned by many and one that contradicts the spirit of what CMHC is supposed to stand for.

Enter Robert P. Kelly.  Mr. Kelly was appointed as Chairperson of the Board of Directors of CMHC this same month.  Coincidence?  Here’s a bit of history on Robert KellyKelly….He worked at TD Bank from 1981 to 2000 leaving as a senior executive that was on the short list to be TD’s CEO.. he didn’t get the job and left for the U.S. to join Wachovia, then later Bank of New York Mellon as CEO and Chairman.  I remember Mr. Kelly from my days working at TD.  He was always a higher profile, more visible executive…  Continue reading “CMHC CEO Karen Kinsley out, Wall Street banker Robert Kelly in… anybody asking why??”

Fixed mortgage rates could move up this week.

graph trend up Guess I shouldn’t have talked about the record low interest rates last week…   Today, 2 small lenders increased their fixed mortgage rates and another Lender warned of a potential increase coming sometime this week.  What’s driving the higher rates?   A jump in the 5 year bond yields.  Fixed mortgage rates are directly affected by the Govt of Canada bond yield.

With bond yields jumping 20 basis points in the past 1o days, it’s only logical to assume mortgage rates will go up.   click here to see bond yields.   But hey, with interest rates at record low levels, it’s no reason to panic.  Rates are still great…. if you want to protect yourself against a possible increase, get a rate hold… it’s free and there’s no obligation.   Most Lenders will hold rates for 120 days..

Need help to get a rate hold?  Call me.   I can help.

Your best interest is my only interest.

As always, I welcome your comments, calls and questions.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

More BIG SIX BANK penalty nightmares… when will Canadians learn to look elsewhere for their mortgage?

greedy banker Here’s a great article from The Star’s Ellen Roseman on mortgage penalty nightmares.  She shares just a few stories out of the dozens she’s received over the past little while.   There is no reasonable justification for charging borrowers these inflated penalties…   If you think your immune from these penalties, think again.

Notice the name of the Banks that are mentioned in her article… Yes, part of the BIG SIX club…  Don’t get lulled into believing that dealing with a BIG SIX BANK offers some sort of immunity from higher penalty charges…   The experiences of these borrowers and countless others proves otherwise…

I’ve been getting more calls and comments on this recently… $10,000, $15,000, $20,000 in penalties.  How is it that the smaller Lenders can offer the same or better interest rates, and not charge these inflated penalties?   The BIG SIX BANKS reported a record $30billion combined profit in 2012…!!  Doesn’t make any sense, does it?   And yet, it continues…

Remember, there are several other Lenders that don’t calculate their penalties with the same inflated formula…   Seek advice from a mortgage broker…  get another opinion… There are better options and I have access to them!   It’s no secret…. I’m happy to share this info to anyone that wants it.

Come on Federal govt… do something to stop this madness and protect Canadians from this gouging!

Your best interest is my only interest!

As always, I welcome your comments, calls and questions.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

RBC Boycott has gone viral with Facebook and twitter.

RBC-Bank It’s official.  Canadians are outraged over RBC replacing Canadian workers with foreign workers. The story broke this weekend from CBC and it’s not going away anytime soon.greedy banker

Over 5,000 comments were posted before the comments section was closed.   And now a Facebook page called ‘Boycott Royal Bank of Canada” and several twitter hashtags have popped up creating quite a buzz amongst Canadians.

RBC executives are trying to put a positive spin by saying they are trying to ‘redeploy the affected employees’.  Come on RBC, we all know what’s happening.  So let’s be very clear.  RBC is replacing current Canadian jobs with cheaper foreign labor.   The current jobs are being shipped overseas to India where labor is less expensive.   End result is a higher net profit for the RBC shareholder.   I guess 2012’s record $7billion profit just isn’t enough! Continue reading “RBC Boycott has gone viral with Facebook and twitter.”

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