Mortgage Logic

Rates Remain Calm

Bank of Canada Leaves its Key Rate Alone and Bond Rates Seemed to Have Peaked On March 1st the Bank of Canada (BoC) decided to leave their key overnight lending rate alone,  thus influencing the Prime interest rate the same. It does not seem likely that the BoC will raise rates anytime soon especially given the […]

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Finance Minister Tightens Insured Mortgage Rules Again In Less Than A Year

Going Overboard, Who Is Captain Of Canadian Mortgage Ship? Today the Canadian Finance Minister (Flaherty) announced additional tightening of rules for government backed (insured) mortgages.  Last April 2010 he introduced rules that effectively reduced the ability for Canadians to leverage their homes and revenue properties.  Today he focused solely on Canadians’ homes.  The three sweeping

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US Manufacturers Will Come out of Recession Meaner & Leaner

Unemployment not a concern of progressive means of production in US. At a recent CAAMP (Canadian Association of Accredited Mortgage Professionals) conference in Montreal, Benjamin Tal, CIBC economist said (paraphrased) that the most significant event that will come out of the current extended period of low interest rates will be the massive re-investment by manufacturers/exporters

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Bank Rate Watch: What Will the Bank of Canada decide?

The Bank of Canada is concerned about the strong Canadian dollar affecting the pricing of goods and services to export customers.  The U.S. economy remains sluggish and foreclosures of residential properties there remain very high.  Economist generally believe that a consumer led expansion will be the only true way out of recession in the U.S. 

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Significant Statistics

Prudence Paying Off For Canadian Mortgage Borrowers – Spring 2010 • There are approximately 9.3 million homeowners in Canada, including about 5.55 million with mortgages. • Almost 80 per cent of young borrowers have opted for a fixed rate mortgage or a mortgage that combines fixed and variable rates. • A small number of mortgage

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Bank Rate/Variable Rate Watch

Bank of Canada leaves rate as is, although it signaled that they will begin raising it sooner than later, i.e. June rather than July 2010.  The extent and timing of increases will depend upon the economic outlook, and more specifically targeting a 2% inflation rate.  There are three considerable reasons existing why the bank rate

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