A report released this morning by TransUnion shows that, despite repeated warnings, Canadians are back on the borrowing bandwagon, pushing consumer debt to a new record high. According to the report, the average Canadian’s non-mortgage debt hit $26,221 in the second quarter of 2012, up $192 from the previous quarter. This is the highest per person debt level since the … Read More
RBC Increases Rates And the Argument for Smaller Lenders
The Royal Bank is the first of Canada’s big banks to hike rates, increasing two of its mortgages by one-fifth of a point each this morning. RBC’s posted rate for a three-year, fixed-rate mortgage has increased 0.2 percentage points to 4.05 while their special-offer rate for a five-year closed mortgage rose to 3.69 percent. RBC is the first major commercial … Read More
HELOC Lending Limits On The Way?
Rumour has it that lending limits for home equity lines of credit (HELOCs) could be slashed come the end of this month. These moves, which relate to the Office of the Superintendent of Financial Institutions’ new mortgage underwriting guidelines, will limit federally regulated lenders to limit all new HELOCs to 65 percent loan-to-value, down from the current rate of 80 … Read More
Are Two Addresses Better Than One?
Whether it’s a cottage in the Muskokas or a vacation home in Cabo, multiple homeownership is becoming more and more common among wealthy Canadians. Now, more than ever, Canadians are picking up secondary properties, many of them south of the border. While statistics are hard to come buy, numbers from the National Association of Realtors show that foreign buyers are … Read More
Carney and the Rate Game
Higher rates have been on Bank of Canada Governor Mark Carney’s mind this week. Carey signalled the chance of tighter policy on three separate occasions this week, even after keeping the key lending rate at 1.0 percent. however, Carney’s insistance that rates are on their way up sets Canada apart from other central banks that continue to look for ways … Read More