Back in April, FinanceĀ MinisterĀ Mark Carney remarked that “in exceptional circumstances, if there are issues that threaten financial stability, such as household debt… the bank could use monetary policy for that purpose.”
Just three months later, those exceptional circumstances have become reality.
On Wednesday, the Federal Government made their move to further tighten mortgage rules, addressing concerns over high Canadian household debt.Ā Continue reading
If you believe the headlines, housing prices are on the rise across Canada even as consumer debt continues to pile up. The allure of low mortgage rates has thousands of home hunters bidding on what appear to be overpriced properties. But is that really the case?
When it comes to understanding the true price of a home, there’s one main factor to keep in mind – affordability. When the affordability of homes good, demand will usually exceed supply, leading to a hot housing market. So, just how affordable are homes in the current market? The answer from the Bank of Canada might surprise you. Continue reading
The price of a new home in Canada is on the rise, according to data released by Statistics Canada today. Market information from March shows that the price of a new home in Canada rose by 0.3% from the previous month, marking the 12 consecutive monthly increase. While relatively minimal, the jump was slightly greater than the 0.2% advance predicted by market experts.
Numbers don’t lie – houses are expensive,Ā competitionĀ is fierce and properties are selling fast. If you’re currently on the market for a new home, you best be prepared – a potential bidding war could be on the horizon. According to a nationwide survey conducted by the Bank of Montreal, one in four Canadians is willing to enter into a bidding war – a decision that could come back to haunt them a few years from now. Continue reading
Think that a 5 percent down payment is enough to secure a great mortgage rate? Think again. Pulling together the minimum 5 percent down payment, while a good start, is just that – a start. If you’re a first time home buyer looking to move up the property ladder, don’t skimp on your down payment. If you’re having trouble pulling together the 5 percent minimum, you’re setting yourself up for a hard, long haul. Continue reading
A hot housing market is pushing borrowers farther and farther away from mainstream financing and it’s causing quite the stir in the Canadian subprime mortgage industry. The source of the excitement? A growing pile of mortgage debt that’s coming from outside of Canada’s big six banks. Continue reading