Category Archives: FamilyLending.ca

Canadians More Cautious About Household Debt?

The Bank of Canada has been repeating warnings about dangerous household debt levels for months, however data released on Tuesday shows that people might finally be starting to get the message. The central bank noted that consumer spending has been “moderate” as of late, suggesting that Canada’s craving for credit could be beginning to subside.

The Bank of Canada’s third-quarter monetary report also touched on a new plan for interest rates, pushing back the timing of an increase, while at the same time warning that a boost could occur in order to dissuade individuals from taking on additional debt.

Tuesday’s release was the first time that Ottawa’s policy makers linked household debt to interest rates. According to the report, “imbalances in the household sector” has become a factor that could force an increase in the Bank of Canada’s current setting of one percent.  Continue reading →

Should You Invest in Real Estate?

Does the thought of investing in real estate appeal to you? Well, now could be the perfect time to take the leap into the rental investment arena. The continued strength of the nation’s real estate market, along with the expectation that interest rates will remain low, should provide plenty of appeal for investors looking to ramp up their real estate portfolio.

According to a recent report released by Bank of Montreal Economics, there are a plenty of advantages to investing in commercial Canadian properties. Earl Sweet, senior economist and managing director at BMO Capital Markets has stated that “After a severe and protracted market downturn in the 1990s, the commercial real estate industry in Canada has been characterized by cautious development and prudent lending practices.” This calculated approach has enabled the sector to reamin extremely attractive to investors. Continue reading →

How To Buy A House When You Have Bad Credit

According to recent reports, more than one in eight adult Canadians are expected to declare bankruptcy or negotiate a debt settlement with creditors. And yet, Canada’s homeownership numbers are currently at a record high. This just goes to show you that devastated credit doesn’t have to leave you high and dry when it comes to entering the housing market. Granted, credit-challenged consumers are bound to encounter more than their fair share of bumps along the road to homeownership. Even so, poor credit history isn’t insurmountable. Here’s what you need to know if you’ve recently gone through a bankruptcy or consumer proposal but are still optimistic about buying your first home. Continue reading →

Housing Starts Not Bad in September

September’s housing starts fell less than originally expected says the Canada Mortgage and Housing Corp. Housing data released on Tuesday showed that housing starts fell to a seasonally adjusted annualized rate of 220,215 units last month. This was down from 225,328 units in August, but was still well above the predicted drop to 207,50o, according to poll of analysts from Reuters.

These numbers are well north of what economists state is required to meet the growth rate in household formations. However, many still feel that demand for new homes is primarily being supported by accommodative interest rates. If low mortgage rates were to begin to rise, the tides could quickly shift, causing a correction that would seriously impact the market. Continue reading →

Consumer Debt Impacts IMF’s Outlook for Canada

Canada’s economic outlook took a big hit this morning as the International Monetary Fund downgraded the nation’s financial outlook. Inflated consumer debt levels and a shaky housing market were at the heart of the downgrade, which was announced in Tokyo this morning at the IMF-World Bank annual meeting.

The Washington-based global lender’s quarterly World Economic Outlook downgraded Canada’s economic advance from 2.1 percent to 1.9 percent for 2012. Next year’s growth was also altered from 2.2 percent to 2.0 percent. Currently, the Bank of Canada has estimated growth of 2.1 percent for this year and 2.3 percent for 2013. The central bank doesn’t issue it’s next forecast until October 24 when the Monetary Policy Report is released. Continue reading →