Mortgage Logic

Economics

Good News, CMHC Competitors Decide Not to Tighten Rules, Maintain Home Shopping Affordability

In a news releases today Genworth Canada and Canada Guaranty have both confirmed that they will not follow suit with Canada’s main mortgage insurer, CMHC, in tightening lending guidelines for mortgages. Genworth MI Canada Inc. (TSX: MIC) said: “it has no plans to change its underwriting policy related to debt service ratio limits, minimum credit …

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Further Reason Not To Fear Rising Interest Rates

Canada’s income tax rates have become uncompetitive, and the economy will pay the price. Jamie Golombek: High tax rates, which reduce the reward of earning more income, discourage people from engaging in productive economic activity…(read more)

January 9, 2019 – Bank of Canada Makes No Change to its Key Rate

The Bank of Canada has decided to leave its key rate untouched (at 1.75%) with its announcement today. As expected, their hawkish view on ramping up rates has cooled off. Major FI prime rates will likely stay at 3.95%. The Canadian economy is not performing as expected right now for the following reasons: • Lower …

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U.S. Fed & Trump More Important to Canadian Rates than Bank of Canada Right Now

  Much has happened with interest rates, the lending market and investing since our last update several weeks ago.  We thought it important to wait and confirm this week’s move by the U.S. Federal Reserve (the U.S.’s equivalent of the Bank of Canada) before further comment.  Here is what is important to know: 1.) On …

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Feds Raise Down Payment Requirements

by Theophilos Argitis and Greg Quinn, Bloomberg News Canada is raising minimum down payments on some government-insured mortgages, a move aimed at curbing the risk of a housing crash in Toronto and Vancouver where high prices are leaving some families at risk from heavy debt loads. Finance Minister Bill Morneau announced the plans on Friday …

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Canadians Prolific Buyers of Florida Property

Garry Marr, National Post The National Association of Realtors (U.S.) reported that Canadians spent US$2.2-billion on Florida real estate in 2013. This makes Canada the state’s No. 1 international buyer of real estate for the seventh consecutive year. Canadians comprised 31.6% of all international purchases in Florida. 89% of Canadians pay cash for their property …

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