Canadians shelled out more for gas and energy October, pushing the annual inflation rate to a two year high with Ontario reporting the highest boost in prices for all the provinces.
Consumer prices rose 2.4 per cent in the 12 months leading up to October, the largest increase since October 2008, Statistics Canada reported on Tuesday.
October’s boost followed a 1.9 per cent increase in September. “About half of the 0.5 percentage point increase can be attributed to higher gasoline prices,” the report showed. In October gas cost 8.8 per cent more than it did the same time the previous year. Energy prices advanced 9.1 per cent and transportation costs and insurance premiums rose 4.6 per cent and shelter costs rose 2.8 per cent.
In Ontario, prices rose 3.4 per cent in the 12 months leading up to October after a 2.9 per cent increase in September. Gas prices were up 11 per cent, and significant increases were recorded in electricity and the purchase of passenger vehicles.
Underlying core inflation for the country, which excludes energy, rose three-tenths of a point to 1.8 per cent, nearing the Bank of Canada’s target two-per-cent range.
The sharp run-up in core and overall inflation took markets by surprise.
Consensus among economists was inflation would increase to about 2.2 per cent, based on a recent pick-up in oil prices and the continuing impact of the new harmonized sales tax in Ontario and British Columbia.
Craig Alexander, senior vice president and chief economist with TD Bank Financial Group said in a note while core inflation came in above consensus “the result does not indicate that an inflation problem is in the cards.”
The report “also does not alter our perspective that the Bank of Canada is on hold until next July,” he said. Alexander said “the uptick of inflation is likely an aberration and will not last.”
“In truth, the outcome in October is a bit of a head scratcher. The acceleration of inflation is at odds with the underlying economic environment and the strength in the Canadian dollar this year,” he said.
Not all prices were higher in October. Prices for clothing and footwear edged down 0.1 per cent, although the drop was less than the 2.2 per cent reported in September.
Mortgage interest costs retreated by three per cent, the price of computer equipment and supplies dropped 12.5 per cent and air transportation and furniture were lower than the previous year.
Doug Porter, deputy chief economist with BMO Financial Group said after “a steady stream of mild inflation readings, it’s a bit of a jolt to get a true high-side surprise,” in a note.
“The underlying firmness in domestic spending has clearly put a floor under inflation, with rising energy prices adding a lift,” he said.
Porter noted that core inflation remains below the central bank’s 2 per cent target “as does headline inflation after accounting for the impact” of Harmonized Sales Tax.
“However, if we see anything close to a repeat performance in the next few months, there will be some serious misgivings at the Bank about keeping rates at 1 per cent for much longer,” he said.
Tuesday, November 30, 2010
Monday, November 29, 2010
Canada's inflation rate jumps half-point to 2.4 per cent, highest in two years
By Julian Beltrame, The Canadian Press
OTTAWA - Canada's annual inflation rate jumped to 2.4 per cent in October, its highest level in two years, as Canadians were hit with price hikes for most things from gasoline to cars, shelter and food.
The half-percentage-point increase in the annualized consumer price index was well above what analysts had forecast, and is likely to raise some alarms with the Bank of Canada.
Statistics Canada blamed higher energy costs for most of the increase, particularly an 8.8 per cent hike in gasoline prices, but most things were noticeably higher in October.
Transportation costs rose 4.6 per cent, while shelter costs increased 2.8 per cent.
Other higher costs included food which was up 2.2 per cent, electricity 8.1 per cent, cars 4.9 per cent, car insurance 4.6 per cent, and property taxes by 3.5 per cent.
On a month-to-month basis, Canadians paid 0.4 per cent more in October for a basket of items than in September.
Economists had expected an increase to about 2.2 per cent from a recent pick-up in oil prices and the continuing impact of the new harmonized sales tax in Ontario and British Columbia — two populous provinces that can move the national needle — but the higher number suggests that inflation may be more sticky than previously thought.
Even the underlying core inflation, which excludes volatile items like gasoline, rose three-tenths of a point to 1.8 per cent, edging nearer to the Bank of Canada's two-per-cent target.
Central bank governor Mark Carney, whose prime mandate is to guard against price spikes, is still expected to hold steady on interest rates at the next scheduled decision date next month, however.
Not all prices were higher last month. Clothing and footwear continued to be bargains as prices edged down 0.1 per cent, although the drop was less than the 2.2 per cent seen in September.
As well, mortgage interest costs retreated by three per cent, the price of computer equipment and supplies dropped 12.5 per cent and air transportation and furniture were lower than last year as well.
Regionally, the two HST provinces continued to have among the highest inflation rates in the country, with Ontario leading the way at 3.4 per cent, half-a-point higher than in September, and British Columbia at 2.9 per cent. Newfoundland's inflation also remained elevated at three per cent.
Alberta and Manitoba had the lowest inflation among provinces at 1.2 per cent.
OTTAWA - Canada's annual inflation rate jumped to 2.4 per cent in October, its highest level in two years, as Canadians were hit with price hikes for most things from gasoline to cars, shelter and food.
The half-percentage-point increase in the annualized consumer price index was well above what analysts had forecast, and is likely to raise some alarms with the Bank of Canada.
Statistics Canada blamed higher energy costs for most of the increase, particularly an 8.8 per cent hike in gasoline prices, but most things were noticeably higher in October.
Transportation costs rose 4.6 per cent, while shelter costs increased 2.8 per cent.
Other higher costs included food which was up 2.2 per cent, electricity 8.1 per cent, cars 4.9 per cent, car insurance 4.6 per cent, and property taxes by 3.5 per cent.
On a month-to-month basis, Canadians paid 0.4 per cent more in October for a basket of items than in September.
Economists had expected an increase to about 2.2 per cent from a recent pick-up in oil prices and the continuing impact of the new harmonized sales tax in Ontario and British Columbia — two populous provinces that can move the national needle — but the higher number suggests that inflation may be more sticky than previously thought.
Even the underlying core inflation, which excludes volatile items like gasoline, rose three-tenths of a point to 1.8 per cent, edging nearer to the Bank of Canada's two-per-cent target.
Central bank governor Mark Carney, whose prime mandate is to guard against price spikes, is still expected to hold steady on interest rates at the next scheduled decision date next month, however.
Not all prices were higher last month. Clothing and footwear continued to be bargains as prices edged down 0.1 per cent, although the drop was less than the 2.2 per cent seen in September.
As well, mortgage interest costs retreated by three per cent, the price of computer equipment and supplies dropped 12.5 per cent and air transportation and furniture were lower than last year as well.
Regionally, the two HST provinces continued to have among the highest inflation rates in the country, with Ontario leading the way at 3.4 per cent, half-a-point higher than in September, and British Columbia at 2.9 per cent. Newfoundland's inflation also remained elevated at three per cent.
Alberta and Manitoba had the lowest inflation among provinces at 1.2 per cent.
Tuesday, November 23, 2010
Inflation at highest rate in two years
The Canadian Press
OTTAWA—Statistics Canada says Canada’s annual inflation jumped half a point to 2.4 per cent last month, as the cost of gasoline, cars, shelter and food all rose.
The rate follows a 0.2 per cent rise the previous month and brings the country’s annual inflation rate to the highest it’s been in two years.
On a monthly basis, overall prices increased by 0.4 per cent in real terms from September.
Prices rose in every province, but no more so than in Ontario, where the inflation rate reached 3.4 per cent.
The bigger-than-expected increase was partly attributed to the introduction of the harmonized sales tax in the big provinces of Ontario and British Columbia, but even underlying core inflation saw a hefty lift, to 1.8 per cent from 1.5 per cent in September.
OTTAWA—Statistics Canada says Canada’s annual inflation jumped half a point to 2.4 per cent last month, as the cost of gasoline, cars, shelter and food all rose.
The rate follows a 0.2 per cent rise the previous month and brings the country’s annual inflation rate to the highest it’s been in two years.
On a monthly basis, overall prices increased by 0.4 per cent in real terms from September.
Prices rose in every province, but no more so than in Ontario, where the inflation rate reached 3.4 per cent.
The bigger-than-expected increase was partly attributed to the introduction of the harmonized sales tax in the big provinces of Ontario and British Columbia, but even underlying core inflation saw a hefty lift, to 1.8 per cent from 1.5 per cent in September.
Tuesday, November 16, 2010
Is retirement chained to your home?
Garry Marr, Financial Post
Canadians plan to take longer to pay off their mortgages, maybe even 35 years, but they don't expect it to affect their retirement plans. Something in that plan just doesn't add up.
A new study from the Canadian Association of Accredited Mortgage Professionals (CAAMP) shows consumers are taking advantage of longer amortization lengths at previously unheard of levels. Statistics released this week show 42% of mortgages originating in the last year went for an amortization period of more than 25 years.
It's a huge jump when you consider that just five years ago, you couldn't even get an insured mortgage backed by the government that was amortized above that period. Now the government limits insured mortgages to 35 years.
The reason for the longer amortization periods is simple: you can qualify for more mortgage when your monthly payment is lower because it is spread out over 35 years rather than 25.
Within the same survey by CAAMP, consumers were asked about their retirement expectations. Those with extended amortizations plan to retire on average at 61.9 years old. Those amortizing their mortgage for less than 25 years plan to retire on average at a surprisingly similar 61.5 years old.
"This data on expectations does not prove that actual retirement will be unaffected by recent trends in housing and mortgage markets," CAAMP says in its study. No kidding. "But it does suggest that consumer's evaluations of their life-cycle options have not been materially altered."
Are consumers being entirely realistic about their future?
Will Dunning, chief economist with CAAMP, says the percentage of Canadians retiring with a mortgage is small — small enough that it is difficult to track.
"We find a lot of people taking [longer amortizations] are making additional payments," Mr. Dunning says, adding previous studies have shown people try "aggressively" to repay their mortgages.
Victor Fiume, president of the Canadian Home Builder's Association, says Canada is just catching up to a trend that has taken place in other jurisdictions.
"In many, many countries across the world, paying off a home is a multi-generational kind of thing. It doesn't happen in this generation. Lots of the stuff going on in England is multi-generational because the houses are so expensive," Mr. Fiume says.
There is no arguing the increased flexibility a longer amortization mortgage gives, but increasingly some consumers find themselves getting into financial trouble because they have bitten off too much, says Patricia White, executive director of Credit Counselling Canada.
"People will always decide what is easiest for them," she says. "But you have to plan in advance to make accelerated payments. You need to make some conscious decisions about how to get rid of that mortgage debt faster."
Canadians always do better when they have direct withdrawals from their bank accounts and less discretionary power about paying down debt, Ms. White adds.
Vince Gaetano, a principal broker and owner at Monster Mortgage, agrees people who choose the longer amortization and the lower payment rarely take advantage of that extra cash flow to make additional payments later on. "It's a very small group of people who do that," he says.
He thinks consumers going for the longer amortization are banking on the fact their homes are going to rise in value faster than any gains they get paying their mortgage off earlier.
"Real estate over time will appreciate at more than 2% to 4% per year," Mr. Gaetano says. "People are saying, 'It won't affect my retirement because I plan to retire with a home that will appreciate in value [in addition to the principal you are paying down].' It's not a bad strategy if you are in a market that gives you consistent appreciation, but you are not going to get that in every market in Canada."
There is no getting around the fact the people who take a longer amortization will take longer to repay their loan. The CAAMP study found consumers going longer than 25 years, were done with their mortgage at age 53 on average, compared with an average of 47 years for those going for the less than 25 years.
If you are going for a longer amortization, you better hope your home goes up in value because you are going to have fewer mortgage-free years in which to save. It's hard to believe that won't affect retirement plans.
Canadians plan to take longer to pay off their mortgages, maybe even 35 years, but they don't expect it to affect their retirement plans. Something in that plan just doesn't add up.
A new study from the Canadian Association of Accredited Mortgage Professionals (CAAMP) shows consumers are taking advantage of longer amortization lengths at previously unheard of levels. Statistics released this week show 42% of mortgages originating in the last year went for an amortization period of more than 25 years.
It's a huge jump when you consider that just five years ago, you couldn't even get an insured mortgage backed by the government that was amortized above that period. Now the government limits insured mortgages to 35 years.
The reason for the longer amortization periods is simple: you can qualify for more mortgage when your monthly payment is lower because it is spread out over 35 years rather than 25.
Within the same survey by CAAMP, consumers were asked about their retirement expectations. Those with extended amortizations plan to retire on average at 61.9 years old. Those amortizing their mortgage for less than 25 years plan to retire on average at a surprisingly similar 61.5 years old.
"This data on expectations does not prove that actual retirement will be unaffected by recent trends in housing and mortgage markets," CAAMP says in its study. No kidding. "But it does suggest that consumer's evaluations of their life-cycle options have not been materially altered."
Are consumers being entirely realistic about their future?
Will Dunning, chief economist with CAAMP, says the percentage of Canadians retiring with a mortgage is small — small enough that it is difficult to track.
"We find a lot of people taking [longer amortizations] are making additional payments," Mr. Dunning says, adding previous studies have shown people try "aggressively" to repay their mortgages.
Victor Fiume, president of the Canadian Home Builder's Association, says Canada is just catching up to a trend that has taken place in other jurisdictions.
"In many, many countries across the world, paying off a home is a multi-generational kind of thing. It doesn't happen in this generation. Lots of the stuff going on in England is multi-generational because the houses are so expensive," Mr. Fiume says.
There is no arguing the increased flexibility a longer amortization mortgage gives, but increasingly some consumers find themselves getting into financial trouble because they have bitten off too much, says Patricia White, executive director of Credit Counselling Canada.
"People will always decide what is easiest for them," she says. "But you have to plan in advance to make accelerated payments. You need to make some conscious decisions about how to get rid of that mortgage debt faster."
Canadians always do better when they have direct withdrawals from their bank accounts and less discretionary power about paying down debt, Ms. White adds.
Vince Gaetano, a principal broker and owner at Monster Mortgage, agrees people who choose the longer amortization and the lower payment rarely take advantage of that extra cash flow to make additional payments later on. "It's a very small group of people who do that," he says.
He thinks consumers going for the longer amortization are banking on the fact their homes are going to rise in value faster than any gains they get paying their mortgage off earlier.
"Real estate over time will appreciate at more than 2% to 4% per year," Mr. Gaetano says. "People are saying, 'It won't affect my retirement because I plan to retire with a home that will appreciate in value [in addition to the principal you are paying down].' It's not a bad strategy if you are in a market that gives you consistent appreciation, but you are not going to get that in every market in Canada."
There is no getting around the fact the people who take a longer amortization will take longer to repay their loan. The CAAMP study found consumers going longer than 25 years, were done with their mortgage at age 53 on average, compared with an average of 47 years for those going for the less than 25 years.
If you are going for a longer amortization, you better hope your home goes up in value because you are going to have fewer mortgage-free years in which to save. It's hard to believe that won't affect retirement plans.
Monday, November 15, 2010
What's in your TFSA?
NOREEN RASBACH
Just over two years ago, I wrote a column for The Globe’s investing section about Tax-Free Savings Accounts. It was a few months before TFSAs were widely available (on Jan. 1, 2009) and financial experts, who enthusiastically hailed them as “revolutionary,” predicted an onslaught of publicity about how best to use the accounts. TFSAs, they said, were going to be as well known as RRSPs in no time.
Well, the second anniversary is coming up, and there seems to be a lot of confusion amongst Canadians about TFSAs. In a poll released by the Bank of Montreal this week, 36 per cent of respondents say they have a TFSA -- but many are unclear about what you can use them for.
The survey of 1,513 Canadians found 20 per cent did not know that mutual funds are eligible with a TFSA (they are), 26 per cent were unaware that GICs are eligible (they are, too) and 37 per cent had no idea what investments were eligible (cash, mutual funds, exchange-traded funds, stocks, GICs and bonds – if you can put it in a RRSP, you can put it in a TFSA).
The difference between RRSPs and TFSAs is that for RRSPs, you get a tax break when you invest but must pay taxes when you withdraw. With TFSAs, you get no tax break when you invest but you don’t have to pay taxes when you withdraw. So if I invested $5,000 in stocks through the account and they doubled in value (hey, I can dream), I could take the $10,000 out of the account and pay no taxes on the $5,000 profit.
There’s a limit of $5,000 a year that you can put into the account, but Janet Pettigrew, district vice-president with the Bank of Montreal, said that limit may be confusing consumers who believe they need $5,000 just to open one. In the poll, 40 per cent of respondents who didn’t have a TFSA said it was because they didn’t have enough money to invest in one.
“People think they have to have extra money for a TFSA,” she said. “They don’t realize they can start by putting, say, $500 or $1,000 in. No matter how small the amount is, it’s still good to start your savings within a TFSA.”
Ms. Pettigrew also worries that consumers are using TFSAs like traditional saving accounts – that is, they’re just storing cash in them rather than taking that money and putting it into other investment options, like GICs or mutual funds, and earning higher interest. She suggests that these people go to see a financial planner at their bank and get some free advice about some alternative ways to save and invest.
The question for me has always been whether it is better to put money in an RRSP or a TFSA? Ms. Pettigrew suggests that for a long-term investment – like retirement funds -- use the RRSP; if you want to save for something shorter term – like a vacation, a home renovation or a new car -- use a TFSA, which is more flexible.
If you’ve used up all your eligibility room in your RRSPs, taking full advantage of a TFSA makes sense, she said.
Canadians may not be fully aware of all of the specific options available in TFSAs, but they have come around to them in general. The new investments accounts have a high approval rating – nearly 70 per cent surveyed agreed the TFSA is a good investment and savings tool. That’s a good start.
Just over two years ago, I wrote a column for The Globe’s investing section about Tax-Free Savings Accounts. It was a few months before TFSAs were widely available (on Jan. 1, 2009) and financial experts, who enthusiastically hailed them as “revolutionary,” predicted an onslaught of publicity about how best to use the accounts. TFSAs, they said, were going to be as well known as RRSPs in no time.
Well, the second anniversary is coming up, and there seems to be a lot of confusion amongst Canadians about TFSAs. In a poll released by the Bank of Montreal this week, 36 per cent of respondents say they have a TFSA -- but many are unclear about what you can use them for.
The survey of 1,513 Canadians found 20 per cent did not know that mutual funds are eligible with a TFSA (they are), 26 per cent were unaware that GICs are eligible (they are, too) and 37 per cent had no idea what investments were eligible (cash, mutual funds, exchange-traded funds, stocks, GICs and bonds – if you can put it in a RRSP, you can put it in a TFSA).
The difference between RRSPs and TFSAs is that for RRSPs, you get a tax break when you invest but must pay taxes when you withdraw. With TFSAs, you get no tax break when you invest but you don’t have to pay taxes when you withdraw. So if I invested $5,000 in stocks through the account and they doubled in value (hey, I can dream), I could take the $10,000 out of the account and pay no taxes on the $5,000 profit.
There’s a limit of $5,000 a year that you can put into the account, but Janet Pettigrew, district vice-president with the Bank of Montreal, said that limit may be confusing consumers who believe they need $5,000 just to open one. In the poll, 40 per cent of respondents who didn’t have a TFSA said it was because they didn’t have enough money to invest in one.
“People think they have to have extra money for a TFSA,” she said. “They don’t realize they can start by putting, say, $500 or $1,000 in. No matter how small the amount is, it’s still good to start your savings within a TFSA.”
Ms. Pettigrew also worries that consumers are using TFSAs like traditional saving accounts – that is, they’re just storing cash in them rather than taking that money and putting it into other investment options, like GICs or mutual funds, and earning higher interest. She suggests that these people go to see a financial planner at their bank and get some free advice about some alternative ways to save and invest.
The question for me has always been whether it is better to put money in an RRSP or a TFSA? Ms. Pettigrew suggests that for a long-term investment – like retirement funds -- use the RRSP; if you want to save for something shorter term – like a vacation, a home renovation or a new car -- use a TFSA, which is more flexible.
If you’ve used up all your eligibility room in your RRSPs, taking full advantage of a TFSA makes sense, she said.
Canadians may not be fully aware of all of the specific options available in TFSAs, but they have come around to them in general. The new investments accounts have a high approval rating – nearly 70 per cent surveyed agreed the TFSA is a good investment and savings tool. That’s a good start.
Wednesday, November 10, 2010
More homeowners opting for long amortization
Canadians are taking longer to pay off their mortgages but don’t expect it to affect their retirement plans.
A new study from the Canadian Association of Accredited Mortgage Professionals (CAAMP) showed 42 per cent of new mortgages in the last year went for an amortization period of more than 25 years. Five years ago, you couldn’t even qualify for an insured mortgage backed by the government that was amortized for more than 25 years.
In the same survey, CAAMP found those with extended amortization plan to retire on average at 61.9 years, while those with less than 25 years amortization plan to retire on average at 61.5 years.
“This data on expectations does not prove that actual retirement will be unaffected by recent trends in housing and mortgage markets,” the CAAMP report noted. “But it does suggest that consumers’ evaluations of their life-cycle options have not been materially altered.”
Homeowners opt for longer amortization periods because the monthly payment is lower when spread over 35 years instead of 25.
A new study from the Canadian Association of Accredited Mortgage Professionals (CAAMP) showed 42 per cent of new mortgages in the last year went for an amortization period of more than 25 years. Five years ago, you couldn’t even qualify for an insured mortgage backed by the government that was amortized for more than 25 years.
In the same survey, CAAMP found those with extended amortization plan to retire on average at 61.9 years, while those with less than 25 years amortization plan to retire on average at 61.5 years.
“This data on expectations does not prove that actual retirement will be unaffected by recent trends in housing and mortgage markets,” the CAAMP report noted. “But it does suggest that consumers’ evaluations of their life-cycle options have not been materially altered.”
Homeowners opt for longer amortization periods because the monthly payment is lower when spread over 35 years instead of 25.
Tuesday, November 9, 2010
Canadians comfortable with their mortgage debt levels; One third have made additional payments in the last 12 months
Canadian Association of Accredited Mortgage Professionals releases
Annual State of the Residential Mortgage Market in Canada report
TORONTO, Nov. 8 /CNW/ - Canadian homeowners are comfortable with their mortgage debt, have significant home equity and could withstand an increase in their mortgage interest rate, according to the sixth Annual State of the Residential Mortgage Market report from the Canadian Association of Accredited Mortgage Professionals (CAAMP), released today. Highlights:
The vast majority of Canadians with mortgages are able to afford at least a $300 increase in their monthly mortgage payments.
One in three (35 per cent) mortgage holders have either increased their payments or made a lump sum payment on their mortgage in the last year.
89 per cent of Canadian homeowners have at least 10 per cent equity in their homes and 80 per cent have more than 20 per cent equity.
Overall home equity is at 72 per cent of the total value of housing in Canada; for homeowners who have mortgages, equity level averages 50 per cent.
As of August 2010, there was $1.01 trillion in outstanding residential mortgage credit in Canada, an increase of 7.6 per cent from last year.
"Canadians are being smart and responsible with their mortgages," said Jim Murphy, AMP, President and CEO of CAAMP. "They are building equity in their homes and making informed, long-term mortgage decisions. The survey results speak to the strength of our mortgage market, especially when compared to the United States."
Homeownership is a good long-term investment
Most Canadians agree that buying a home is a good long-term investment and are focused on their mortgages to support that investment.
Many mortgage holders are making voluntary additional payments: 16 per cent have increased monthly payments during the past year, 12 per cent have made lump sum payments, and 7 per cent did both.
Canadians are exercising caution when taking out their mortgages, with a majority choosing a fixed-rate (66 per cent). A five-year fixed-rate mortgage remains the most popular option in Canada. Despite the fact that variable rate mortgages have become much less expensive compared to fixed rates, the majority choice is still fixed rates: this decision is based on people's individual assessments of risk, not just the cost difference.
Potential rate increases won't be a problem
The CAAMP study found that a vast majority of Canadians have significant capabilities to afford higher payments if and when mortgage interest rates rise. 84 per cent report that they could weather an increase of $300 or more on their monthly payments.
Most of the people who have low tolerances for increased payments have fixed rate mortgages, by the time their mortgages are due for renewal, their financial capacity will have expanded and their mortgage principal will have been reduced.
Also, Canadians have been able to negotiate better than posted mortgage interest rates. For five year fixed rate mortgages arranged in the past year, the average rate is 4.23%, which is 1.42 points lower than typical, advertised rates.
Of the 1.4 million Canadians who renewed their mortgage in the past year, 72 per cent were able to renegotiate a decreased rate: on average, rates are 1.09 percentage points less than the rates prior to renegotiating.
Canadians have significant equity in their homes, strengthening the housing market
Canadians' home equity is impressively high. Among homeowners who have mortgages, the average amount of equity is about $146,000, or 50 per cent of the average value of their homes.
The amount of equity take-out in the past year is unchanged from last year with around one in five homeowners, or 18 per cent, taking equity out of their home, at an average of $46,000. The most common purpose for equity take-out is debt consolidation and repayment (45 per cent) followed by home renovations (43 per cent), purchases and education (19 per cent) and then investments (16 per cent).
The report is authored by CAAMP Chief Economist Will Dunning and based on information gathered by Maritz Research Canada in a survey of Canadian consumers conducted in October 2010.
Need advice? Want the latest rates? Check out http://www.tmdc.ca/
Thursday, November 4, 2010
Deloitte Report: Mortgage brokers making inroads with first-time buyers. Mortgage Brokers http://ping.fm/8xn93
Deloitte Report: Mortgage brokers making inroads with first-time buyers
Mario Toneguzzi, Postmedia News
The percentage of Canadians using mortgage brokers to buy their homes has increased significantly, according to a Deloitte report. In the 1990s, mortgage brokers numbered in the hundreds and were "lenders of last resort" for borrowers unable to obtain a mortgage directly from a bank or credit union. "Over the last decade, an increasing number of viable options for borrowers have surfaced," the report says. "In addition to branch-based lenders, borrowers can consult with the banks' own mobile mortgage specialists as well as independent brokers--while also conducting their own research online. "In this changing and information-abundant environment, the mortgage brokerage channel has emerged as a legitimate competitor." The report said share of origination transactions increased from 26% in 2003 to 38% in 2009 as mortgage brokers made particular inroads with first-time homebuyers and young Canadians. Feel free to call or email me for your free, no hassle consultation on what mortgage is right for you
The percentage of Canadians using mortgage brokers to buy their homes has increased significantly, according to a Deloitte report. In the 1990s, mortgage brokers numbered in the hundreds and were "lenders of last resort" for borrowers unable to obtain a mortgage directly from a bank or credit union. "Over the last decade, an increasing number of viable options for borrowers have surfaced," the report says. "In addition to branch-based lenders, borrowers can consult with the banks' own mobile mortgage specialists as well as independent brokers--while also conducting their own research online. "In this changing and information-abundant environment, the mortgage brokerage channel has emerged as a legitimate competitor." The report said share of origination transactions increased from 26% in 2003 to 38% in 2009 as mortgage brokers made particular inroads with first-time homebuyers and young Canadians. Feel free to call or email me for your free, no hassle consultation on what mortgage is right for you
Tuesday, November 2, 2010
Credit Card Debt Tips - How To Eliminate Bills And Avoid Credit Card Debt Bankruptcy
To eliminate bills and avoid credit card debt bankruptcy there are few facts people should pay attention to. It is noted that recently many people are searching ways to get out of debts. However it is possible only when one acts prudently.
If you think of spending all of your savings to come out of impending debts it is not wise at all. After paying debts nothing would be left to manage household chores with. Nowadays many people do not have an economic security. It is advisable to spare your savings if you have any. Obtaining help from outside is more prudent than that.
If a settlement company is used it would be very easy to get relieved from debts. These companies have existed since nineteen eighties making many lives safe. They can negotiate with banks and obtain a reduction of the due amount. Then clients can pay the lowered amount to the company instead of the bank.
When choosing a company it is wise to choose a registered company. It should also hold veritable client records and recommendation. A company registered under the Better Business Bureau will probably fulfill all qualities of an authentic company.
According to the new laws these companies cannot charge an upfront fee from the clients. The customer should only pay money after accepting at least a percentage of the reduction. Therefore if a company asks for payment in advance it is illegal.
Moreover these companies should reveal all positive and negative outcomes of accepting their service. For an instance they should tell the client that if he ignores paying the company a late fee would be added to his reduced amount. The new laws have altered the settlement field very much. It is better to be knowledgeable about these regulations before accepting service. Settlement ways are a very good solution to come out of debt.
Debt settlement is a legitimate way to avoid bankruptcy.
If you think of spending all of your savings to come out of impending debts it is not wise at all. After paying debts nothing would be left to manage household chores with. Nowadays many people do not have an economic security. It is advisable to spare your savings if you have any. Obtaining help from outside is more prudent than that.
If a settlement company is used it would be very easy to get relieved from debts. These companies have existed since nineteen eighties making many lives safe. They can negotiate with banks and obtain a reduction of the due amount. Then clients can pay the lowered amount to the company instead of the bank.
When choosing a company it is wise to choose a registered company. It should also hold veritable client records and recommendation. A company registered under the Better Business Bureau will probably fulfill all qualities of an authentic company.
According to the new laws these companies cannot charge an upfront fee from the clients. The customer should only pay money after accepting at least a percentage of the reduction. Therefore if a company asks for payment in advance it is illegal.
Moreover these companies should reveal all positive and negative outcomes of accepting their service. For an instance they should tell the client that if he ignores paying the company a late fee would be added to his reduced amount. The new laws have altered the settlement field very much. It is better to be knowledgeable about these regulations before accepting service. Settlement ways are a very good solution to come out of debt.
Debt settlement is a legitimate way to avoid bankruptcy.
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