Mortgages 
There are currently 16 blog entries related to this category.
Bank of Canada holds key rate at 1%
The Bank of Canada holds their key lending rate at 1% for the tenth consecutive meeting. Banks therefore are expected to keep their prime rates at 3%.
Uncertainty around the global economic outlook has increased. The recession in Europe is worse than they anticipated.
US growth was slightly more robust than anticipated however the European crisis is expected to weigh on US growth.
Canadian dollar is still strong and the weaker external outlook is expected to dampen GDP growth in Canada.
Federal Election and Calgary Real Estate
There’s nothing better than a good federal debate. Well actually, that’s not true. Having a government be able to do its job without being having to be sidetracked by numerous costly elections, well that surpasses the greatness of watching prime-minister-wannabes duke it out on live TV. As I was watching the debates last night---wondering what must have happened to Mr. Ignatieff in his childhood that turned him into such an angry individual---I considered what we have lost by being forced into this 300 million dollar-election. Of course the first such thing that came to mind was the grinding halt which befell Realtors’ federal lobbying efforts, among many other things. But you’re not here to read about the other things, you’re here to read about real…
Bank of Canada holds key rate at 1%
The Bank of Canada holds their key lending rate at 1%. Banks therefore are expected to keep their prime rates at 3%.
The Bank of Canada's key points:
"Global economic recovery is proceesing at a somewhat faster pace than anticipated".
"Stretched household balance sheets are expected to restrain the pace of consumption growth and residential investment."
"With a little more excesss supply in the near term, that Bank continues to expect that the economy will return to full capacity by the end of 2012."
Zero Down Home Loans
You can still purchase a home with zero down, despite what you might
think. The lender will qualify you based on a 95% loan to value (LTV)
mortgage. A zero down payment mortgage is an option if you can qualify
to make your principle, interest, tax, heat and 1/2 condo fees (if
applicable) payments at 95% LTV. The lender actually funds 100% of the
purchase price on your possession day. The lender is paying the seller
your 5% down payment so you can purchase the home. You will also have
to show you have money totaling 1.5% of the purchase price to cover
closing costs of possession. A zero down mortgage is considered a
‘high ratio loan’ which requires mortgage loan insurance. The mortgage
insurance begins at 2.9% and is usually…
Bank of Canada increases rate
The Bank of Canada increased their key lending rate by 0.25% to 1%. Banks therefore are expected to raise their prime rates to 3%.
The Bank of Canada said consumption growth is expected to remain solid and business investment to rise strongly.
The Bank now expects the economic recovery in Canada to be slightly more gradual than it had projected. "Financial conditions in Canada have tightened modestly but remain exceptionally stimulated."
Canadians Struggle With Housing Costs
Mortgage rates are climbing for Canadian home owners but experts say that we are very unlikely to have a foreclosure wave like the one that has been taking place in the United States.
Previous mortgage levels were low enough that many Canadians bought into a housing market that they can barely afford now; increased rates have resulted in many home owners paying more than 40% of their monthly income into keeping a roof over their heads, reducing the amount of money that they can spend on savings, health, and nutrition.
What has worked in the past to get more Canadians into home ownership—like low interest rates and small required down payments—has also worked to cause problems for many of those home owners now that interest rates have risen. Our modern…
Variable Interest Rates are Heading Up - The first time in many years!
The Bank of Canada increased their key lending rate by 0.25 percent to 0.5 percent. This is the first time they raised rates in nearly 3 years. Banks therefore are expected to raise their prime rates to 2.50%.
The Bank of Canada's key lending rate held strong at 0.25% for 13 months, since April 2009.
The Bank of Canada increased their rate to re-establish normal functioning of the overnight market.
"The spillover into Canada from events in Europe has been limited to a modest fall in commodity prices and some tightening of financial conditions."
"Acitvity in Canada is unfolding largely as expected. The economy grew by a robust 6.1% in the first quarter, led by housing and consumer spending. Employment growth has resumed."
"CPI inflation has been in line…
Prime Interest Rate Remains the Same!
The Bank of Canada announced today that it will hold its rate at 1/2 percent. Banks therefore are expected to keep their prime rates at 2.25%.
The Bank of Canada says that the global recovery is proceeding stronger than projected. This fact is recognized to be largely due to ongoing stimulus packages that are expected to end later this year. Despite the progress to recovery, they mention the durability of the recovery over the long term is uncertain.
The Bank of Canada mentions our domestic demand in Canada is good which has fueled our recovery here. While they have positive growth on the books, the removal of the stimulus packages, the near parity of the Canadian dollar to the US and the absolute low level of US demand are quoted as severe drags on our…
Tighter mortgage rules may lead to more cheating
Mortgage fraud may not be the most serious crime in the grand scheme of things, but it's not something the government should be helping. But that's exactly what real estate professionals say is a likely result of the new mortgage rules being put into place on April 19.
"There's going to be a dramatic increase in mortgage fraud again," says Don Campbell, president of the Real Estate Investing Network, a Calgary-based association of investors who collectively own more than $3 billion in property. "You watch this thing start to take off."
The reason? It's virtually impossible for investors to buy a third rental property without putting 20% down because the new Canada Mortgage and Housing Corp. rules use a 50% add-back policy instead of an 80% offset for rental…
Interest Rates Stay The Same!
The Bank of Canada announced today that it will hold its rate at 1/2 percent. Banks therefore are expected to keep their prime rates at 2.25%.
The Bank of Canada inflation worries have subsided somewhat. The Bank now says Canadian inflation risks "are roughly balanced."
The Bank of Canada has mentioned again the fact that high domestic demand and ongoing financial stimulus is spurring on the Canadian recovery. That being said, the level of economic activity at 5% annualized growth is a little higher than their projections from their January Report.
The Bank of Canada has mentioned that a higher than desired Canadian dollar as well as absolute low levels of US demand for Canadian products are acting as a significant drag on our economy. As a…
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Last updated on: 2012-02-10 00:18:44
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