Category Archives: General Interest

Mortgage Changes Could Happen Before March

Tougher mortgage requirements could be on the horizon for Canadian homeowners, according to analysts surveyed by a recent Reuters poll. This comes on the assumption that housing prices will cool off this year. Experts anticipate that housing prices will climb just 0.1% this year, a considerable decrease from the 0.9% year-to-year increase seen in 2011.

Ten out of 14 economists polled by Reuters answered “yes” when asked if they thought Ottawa would step in and tighten mortgage rules within the next 12 months. If Finance Ministry Jim Flaherty were to adjust requirements it would be his fourth intervention in the nation’s real estate market in as many year.  Continue reading →

Should You Pay Off Debt or Invest in Your RRSP?

With the RRSP deadline looming, many Canadians are trying to make sense of their investment options. Personal debt levels in Canada have hit record highs, most of us don’t have a pension to fall back on and our retirement savings are far from adequate. Which leads us to the perennial problem: Should Canadian’s focus on paying off their mortgage and lowering debt or invest in RRSPs?  Continue reading →

Renters Could Drive Increase in Canadian Homeownership

According to a recent study conducted by TNS Canada, the nation’s housing market is expecting to see increased activity within the next two years. The online study, which was commissioned by TMG The Mortgage Group Canada, discovered that just under one third of Canadian renters are planning to buy real estate within the next two years. That amounts to a potential increase in demand of nearly 12%. Not surprisingly, many recipients credit mortgage interest rates for driving their purchase decision. Continue reading →

“Price War” Prompts TD and RBC to Up Rates

Canadian mortgage rates are on the rise again, reportedly thanks to “price-cutting” by some of the nation’s top banks. After briefly offering record-low rates of 2.99% on a 4-year fixed mortgage, both RBC and TD have raised rates by 40 basis points. The move comes rather unexpectedly; when the Royal Bank of Canada announced it was dropping their rates on January 13, the bank stated that they intended to keep the rates locked in the market until February 29. Continue reading →

Understanding Canadian Covered Bonds

Covered bonds have long been a source of cost-efficient and secure financing for lenders. A staple of European financing for nearly 200 years, covered bonds first made their way onto the Canadian banking scene in 2007. Since then, Canadian covered bonds have helped to lower mortgage rates (indirectly) and have provided borrowers with additional financing options. So just what are these bonds and why are some economists calling them the next hottest mortgage products? Read on to find out! Continue reading →