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Posted Consumer Debt

World Debt clock comparison… How’s Canada doing compared with the world?

Debt.  It’s a popular topic.  Personal debt. Govt debt. Corporate debt.  Back in 2013, I published an article comparing Canada’s debt with the rest of the world.  Back then, like today, there was so much negative news being written about our so-called high personal debt level.   I thought I’d turn the tables on the govt and see how they were doing.

Here we are, 2018 and  five years later.  We’re supposedly experiencing fantastic economic times.  Lowest unemployment in 40 years according to the Dec 2017 job report.  Things are so good that we can increase minimum wage by over 30% in Ontario and other Provinces.  We must really be doing great, right? Scorecard time…

The logical conclusion, or the simple math equation is with GOOD TIMES OR A STRONG PROSPEROUS ECONOMY = LOWER NATIONAL DEBT…. Consumers are expected to lower their personal debt levels.  Isn’t the govt supposed to lower or work on eliminating our national debt?  One would think so. Let’s find out… Continue reading “World Debt clock comparison… How’s Canada doing compared with the world?”

Posted 2 Comments on Rates are going up… for now… is this the end of low rates? Consumer Debt

Rates are going up… for now… is this the end of low rates?

 Next Wednesday will be the first Bank of Canada meeting date to set the Target rate, which directly affects Bank Prime rate and Variable rate mortgages. It’s almost a certainty that the Bank of Canada Governor, Stephen Poloz, will raise the rates.

POSITIVE DATA MEANS HIGHER RATES

There’s been too much positive economic data lately. Low unemployment levels (5.7%, the lowest since the ’70s), higher spending by consumers, slightly higher inflation (2.1%), record level stock market. We’ve also seen some comments and posturing by the Bank of Canada Govr that suggests we should expect a 0.25% increase.

Bond yields have also been moving steadily upward. Yup, we should expect a rate hike. And depending on how the market reacts to this, we could possibly see another rate hike at the next Bank of Canada meeting on March 7th.

BUT WAIT, IS THIS THE END OF MORTGAGE RATES IN THE 3.00%’s?

Continue reading “Rates are going up… for now… is this the end of low rates?”

Posted Debt

Last call for mortgage approvals under the current rules….and an in-depth look at how these new rules will impact YOU in 2018.

 TIME IS ALMOST UP..

With just days to go before the new mortgage rules take effect on January 1st, we are seeing a flurry of mortgage applications.   Panic buying and refinancing is at its peak. And rightfully so..  next year, you will qualify for at least 15% less mortgage.

(TIP… get a preapproval before Dec 31st and it will remain valid for 120 days from the date of preapproval. You do not have to enter into a purchase agreement before Dec 31st.  And if refinancing, you don’t have to close prior to Dec 31st. This is not with all banks.  Call my office for more info.)

LET’S BEAT UP ON THE SELF-EMPLOYED SOME MORE Continue reading “Last call for mortgage approvals under the current rules….and an in-depth look at how these new rules will impact YOU in 2018.”

Posted Money saving tips

Recent mortgage fraud in Toronto.. you can prevent it easily.. Read on.

In November, Toronto police said a woman used fake ID to get a $300,000 mortgage.  The unsuspecting homeowner only discovered a mortgage had been fraudulently registered on their home when they received mortgage documents in the mail.

This is not a new scam. It’s happened many times in the past. Here’s a big one from 2010 that involved $140million and hundreds of people.  This one was huge.  Most are not this big or elaborate.  It’s the smaller ones, like the recent one for $300,000, that are more common place.

HOW IT’S DONE

Continue reading “Recent mortgage fraud in Toronto.. you can prevent it easily.. Read on.”

Posted Mortgage News

OSFI’s new mortgages rules… a silver lining..

 SEARCHING FOR THE POSITIVE..YES, THERE IS SOME.

Hard to find any positive news from OSFI’s (Office of the Superintendent of Financial Institutions) new mortgage rules announced last week.

In case you missed it.. It just became harder to qualify for a mortgage.  I’m talking about those with more than 20% down payment.  Harder than it’s ever been in my 28 yr career. Harder than I think we’ve ever seen in history.

The old rule of mortgage lending was that if you had a large down down payment of 35% or more, and you had good credit, quality real estate, then you were approved.  You were guaranteed to get a great mortgage.  And rightfully so.  You earned that right.  You built up significant equity.  And the chances of someone defaulting on that mortgage was very slim.

No reason to ask borrowers a long list of questions about their historical earnings, 3 years of income tax returns, Notice of Assessments, blood tests and other bodily fluids (okay, they aren’t asking for bodily fluids or blood.. but it sure feels that way.). Beginning January 1st, 2018, that logic is gone.  Banks will have to put you through the toughest mortgage qualifying process that you’ve ever seen.

I’m not the smartest person, but someone has to explain to me why it should be tougher for someone with more than 20% down, even 50% or 70% down payment, to qualify for a mortgage than someone with 5% down?   This makes no sense.  And there is no logical reason to do this.  Discouraging home ownership or real estate ownership is wrong.

THE SILVER LINING

Here’s that silver lining I was talking about.. Continue reading “OSFI’s new mortgages rules… a silver lining..”