As expected, the Bank of Canada kept its key interest rate on hold last Thursday, even amongst growing concern over consumer debt. This rate has stood at a near record low of 1.00% since September of 2010 in an effort to boost economic growth. Nothing in the statement suggests a change in the rate anytime soon. In fact, the tone of the Bank’s official statement was relatively optimistic. Continue reading
Tag Archives: Mortgage
Harper Government Makes Moves to Protect Consumers
The Harper government announced Sunday that it would be moving forward with several measures to help Canadian consumers achieve greater control over their own finances.
In a release posted to the Department of Finance Canada website, the Honourable Ted Menzies, Minster of State (Finances) and Shelly Glover, Parliamentary Secretary to the Minister of Finance, announced that measures would be taken to ban unsolicited credit card cheques, and that a shorter cheque hold period would be instituted later this year. It is believed that these changes will provide Canadian’s with more timely access to their own money. A new Mortgage Code was also announced. Continue reading
How to Avoid Mortgage Fraud
Real estate fraud is happening at an alarming rate in Canada, according to a recent report published in the Vancouver Sun. The report from consumer credit company Equifax uncovered roughly $400 million worth of mortgage fraud in Canada last year. And many experts believe that’s just the tip of the iceberg. These figures represent only frauds that Equifax was able to uncover within their client holding.
Data from the report revealed that nearly two-thirds of all fraud committed in Canada last year was real-estate related, thanks in part to more stringent lending practices. In fact, mortgage fraud increased by 150 percent in 2011. Continue reading
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