Mortgages Canada

We have completed Canadian mortgage glossary and will be posting it soon on the website. It is a total of over 150 pages long, describing every possible mortgage term in Canada. Thus far there is no other glossary on in Canada or on the web that can match our size. All content is 100% original and double checked using multiple sources. We will be posting updates.

Also, we’ve been working on the subproject and redesign of the website. All of the site issues will be fixed and new sections added. Right now we did not touch many of the issues (we know about them), since the new version is coming and there is not point in touching the old one.

Mortgage Interest Rates

we are very busy with the site and only update interest rates once a week on monday, in rare cases more often. Once the update launches you will receive daily updates from all Canadian banks and lenders.

CIBC curbs credit card lending - The Star

Canadian Imperial Bank of Commerce will continue tightening credit card lending and is forecasting “slower demand” for mortgages, noting the fading economy will likely spur a bigger rise in personal bankruptcies in 2009.

CIBC posted a 51% profit decline, the biggest full year loss in its history. TD profits fell 7% further and National Bank of Canada lost another $237 millions. CIBC predicts slow down in mortgage lending and more personal and small business bankruptcies as economy worsens to the south.

Mortgage rates post largest drop in 27 years - Reuters

Interest rates on U.S. 30-year fixed-rate mortgages plummeted by the largest amount in 27 years this week after an unprecedented intervention by the Federal Reserve, data from home funding company Freddie Mac showed on Thursday.

The mortgage rate decline was 0.44%, which is the largest decline since 1981.

Laurentian Bank reports record net income of $102.5 million for 2008 - Stock Analyst

MONTREAL, Dec. 5 /CNW Telbec/ - For the year ended October 31, 2008, Laurentian Bank is reporting net income of $102.5 million, or diluted earnings of $3.80 per common share, compared with $94.5 million, or diluted earnings of $3.48 per common share in 2007. Return on common shareholders’ equity was 11.0% in 2008, compared with 10.9% in 2007.

They somehow managed to make money while most other banks are either on the verge of collapse, or experiencing major declines. I was also surprised to find out that Google makes around 50 times more money than Laurentian Bank!

Auto Execs Plead for $34B Bailout - Democracy Now

The chief executives of Detroit’s struggling Big Three automakers returned to Capitol Hill Thursday to plead for a $34 billion taxpayer bailout. Speaking before the Senate Banking Committee, General Motors CEO Richard Wagoner asked for the biggest haul, totaling $18 billion.

GM said they will soon run out of cash, which could cause one of the biggest corporate bankruptcies in history.

“To that end, our plan respectfully requests $12 billion in short-term loans and a $6 billion line of credit. We are seeking an immediate loan of $4 billion and potentially a second draw of up to $4 billion in January reflecting the current very weak state of automotive production and demand.”

Chrysler asked for $7 billion, and Ford requested a $9 billion dollar line of credit.

US is officially in recession Internet blogs have been chanting for several months, and mainstream media has finally admitted that credit crunch is far beyond subprime mortgage crisis. GM is facing bankruptcy, Citi Bank almost collapsed, and some of the major airlines seized to exist. How does this affect your home buying? Should you buy? Should you wait?

Recession Home Buying Tips

As things get worse to the south of Canadian border, expect less import / export between the countries, as a result, decline in the economy. Some Canadian corporations are already laying off people, but not as much as in the US. The best thing to do is to research your industry and analyze the importance of your position.

• If you play an integral role in your company then there’s less chances for lay offs.
• If you company is engaged in relatively stable business field, which is not affected by decline in the economy, then again, there are less chances for layoff.

Once you feel confident that you will be able to maintain your position, get your shopping hat on and jump on some of the best deals in years.

Shopping for a Home

Wait for prices to go further down if you can. As recession worsens, inevitably home prices will keep going down. It’s a bi-product. As the home prices go down you will be abe to get bigger home for less.

How long should I wait? - that question is hard to answer. Money supply is dependant on Central Banks. If they choose to detract money supply (as happening at the moment), prices will continue to go down. The minute they decide to increase money supply, economy will start getting better, but we cannot predict when this will occur. Read news and observe carefully. When you feel you’ve caught prices at the lowest point, make an offer and get a mortgage.

This is a recoup of the most importnant financial events of the past weeks.

Oct. 27 Royal Bank Cuts 24 Jobs at Investment Bank Amid Market Downturn

Royal Bank of Canada, the country’s largest bank, cut 24 jobs at its investment-banking unit last week in Toronto and New York as demand slows. “We’re just doing some trimming in response to the markets,” spokeswoman Katherine Gay said today in an interview. “It’s not a big downsizing, it’s just a general reduction.”

October 23, 2008 Economy on verge of recession, central bank warns

OTTAWA - The Canadian economy will be on the verge of recession until the spring, the Bank of Canada warned Thursday, slashing its forecast for growth to an anemic 0.6 per cent this year and again next year, the weakest performance since previous recession in the early 1990s.

But the “sky is not falling,” governor Mark Carney said at a news conference, after releasing the bank’s quarterly Monetary Policy Update, during which he refused to label the downwardly revised forecast performance a recession, preferring instead to call it “sluggish.”

Thu Oct 23 UPDATE 1-Canada buys C$7 bln in second mortgage auction

OTTAWA, Oct 23 (Reuters) - Canada’s housing agency said on Thursday that its second operation to buy mortgage-backed securities from banks under a special C$25 billion ($20 billion) program generated an average yield of 4.095 percent.

The program, announced Oct. 10, is meant to help domestic banks free up cash for lending, as their costs have risen in world credit markets.

Thu Oct 16 Canada buys C$5 billion in mortgages from banks

OTTAWA (Reuters) - The Canadian government bought C$5 billion ($4.2 billion) of mortgages from financial institutions on Thursday, giving them more cash to make loans and try to overcome the severe constraints in global credit markets.

Ottawa, acting through government-run Canada Mortgage and Housing Corp (CMHC), plans to buy up to C$25 billion in the securities, which mature in five years. The aim is to help banks raise longer-term funding, which has been expensive in recent months, so that they can make more loans available to Canadian businesses and consumers.

October 15, 2008 The end is here for 40-year mortgages

Effective Oct. 15, the maximum mortgage amortization period for new mortgages will be reduced from 40 years to 35 years. All mortgages must have at least a five per cent down payment. Homebuyers must have a minimum credit score of 620 and a maximum of 45 per cent total debt service ratio (the amount of gross income that is spent on servicing debt and housing-related expenses such as heat or condo fees).

Oct. 15, 2008 National Bank Adjusts its Mortgage Rates

October 15 Mortgage borrowers pushed to lock in

Canadian banks are trying to convince consumers to lock in their mortgage rates because more than 20% of the home loans they have negotiated have become unprofitable, according to industry sources. The push has come after the banks cut the discount they offered to consumers with variable-rate products tied to the prime lending rate. Two weeks ago a consumer could get a variable rate product at 0.60 percentage points below prime; today it is one percentage point above prime.

Oct 10, 2008 Canada buys 25 billion dollars in mortgages

Canada is buying 25 billion dollars in insured mortgage pools to help the country’s banks, plagued by the widening global financial crisis, raise long-term funds to loan to Canadians, Finance Minister Jim Flaherty said Friday.

“This is going to make loans and mortgages more available and more affordable for ordinary Canadians and businesses,” Flaherty told a news conference.

Big drops seen for Canada’s big banks

Amid rising worries around credit quality and liquidity worldwide, Bank of Nova Scotia and Bank of Montreal are expected to report a drop in earnings when they post their third quarter results Tuesday. - Financial Post

It wasn’t long before Scotia Bank and Bank of Montreal reported decline in revenue:

Scotiabank earnings

TORONTO, Aug. 26 /PRNewswire-FirstCall/ - Scotiabank today reported third quarter net income of $1.01 billion compared with $1.03 billion the same period last year. Quarter over quarter, net income was up 3% from $980 million, due primarily to higher net interest income, increased customer-driven revenues and strong trading results.

Diluted earnings per share were $0.98 compared to $1.02 in the same period a year ago and $0.97 last quarter. Return on equity remained strong at 21.0%. - Earth Times

Bank of Montreal Profit Declines on Bad Loans

Net income for the quarter ended July 31 fell 21 percent to C$521 million ($494.4 million), or 98 cents a share, from C$660 million, or C$1.28 a share, a year earlier, the Toronto-based bank said today in a statement. Revenue rose 7.5 percent to C$2.75 billion. - Bloomberg

Both banks experienced a slight decline in revenue, which is to be expected with worldwide decline in economy.

Weakness in Canadian economy helping home buyers

Desjardins Economic Studies says that after eight years of rising prices, housing costs are going down. “For the second quarter in a row we have had an increase in affordability,” said Hélène Bégin, senior economist with Desjardins. - Financial Post

This is the exact patterns that happened in the US only on a smaller scale.

• Dollar going down
• Mortgage guidelines tightened
• Banks report losses
• Real Estate Prices go down

This is good news for home buyers. Pay less for the same house.

GE exits Canadian mortgage business

The global credit crisis has claimed another victim in the Canadian mortgage industry as General Electric Co. winds up its mortgage operations here.After three years in the business, GE Money Canada said it will stop taking new mortgage applications tomorrow. It’s the latest in a string of alternative lenders that have decided to scale back operations or close shop amid the credit crunch. - Globe and Mail

General Electric owns Canadian Insurance company GE Capital which competes with Canada Mortgage and Housing Corporation. General Electric is also a lender, appliances manufacturer, arms maker with participation in electricity, lighting, industrial automation, medical imaging equipment, motors, railway locomotives, aircraft jet engines, and aviation services.

Insured home equity lines of credit (HELOCS) will require 20% down come October 15

Insured home equity lines of credit (HELOCS) will require 20% down come October 15.  That’s too bad.  These products have been really popular and it’ll be a shame to shut out folks with only 10-15% down. - Canadian Mortgage Trends

Home Trust to offer traditional mortgages

Alternative lender Home Trust Co. is launching a line of traditional mortgage products that will compete directly with those offered by the banks. Globe and Mail

Home capital will be offering mortgages through mortgage brokers. If borrowers don’t succeed, for reasons that could include an insufficient credit score or income verification, they can then turn to a more expensive alternative product offered by Home Trust.

Home Trust will be focusing on B type and C type mortgages.

Mortgage News

Desjardins Group Announces Changes in Residential Mortgage Rates

    LEVIS, QC, July 25 /CNW Telbec/ - Desjardins
Group announces the following changes in mortgage
rates for caisses in Québec and Ontario(*),
effective on July 28th, 2008.    <<

    ------------------------------------

    Terms            Rates

    -----            -----

    ------------------------------------

    6 months open    8,40 %   unchanged

    ------------------------------------

    6 months closed  6,90 %   unchanged

    ------------------------------------

    1 year open      8,80 %   unchanged

    ------------------------------------

    1 year closed    6,50 %   + 0,20 %

    ------------------------------------

    2 years          6,65 %   unchanged

    ------------------------------------

    3 years          7,00 %   + 0,35 %

    ------------------------------------

    4 years          7,00 %   + 0,15 %

    ------------------------------------

    5 years          7,10 %   unchanged

    ------------------------------------

    7 years          7,60 %   unchanged

    ------------------------------------

    10 years         7,75 %   unchanged

    ------------------------------------

(*) Desjardins Credit Union branches in

Ontario may apply different

        rates.

    >>

Source: CNW Group

National Bank Adjusts its Mortgage Rates

MONTREAL, QUEBEC -
National Bank (TSX: NA) has adjusted

its rates for residential mortgages, The new rates are effective

as of July 28, 2008.

TERM           CURRENT RATE) NEW RATE CHANGE

---------------------------------------------

FIXED-RATE OPEN TERM6 months open           8.400  8.400  0.000

1 year open             8.800  8.800  0.000

FIXED-RATE CLOSED TERM

3 months closed         6.500  6.500  0.000

6 months closed         6.500  6.500  0.000

1 year closed           6.500  6.500  0.000

2 years closed          6.650  6.650  0.000

3 years closed          6.650  7.000  0.350

4 years closed          7.000  7.000  0.000

5 years closed          7.000  7.000  0.000

7 years closed          7.600  7.600  0.000

10 years closed         7.750  7.750  0.000

VARIABLE-RATE CLOSED TERM

5 years Variable rate

(discount included)     4.500  4.500  0.000

5 years Saver           6.150  6.150  0.000

5 years Capped rate     4.750  4.750  0.000

Source: MSNBC

Mortgage crisis may be looming for Canada

Peter Hall, vice-president and chief economist with Export Development Canada, said in a report that in addition to U.S. housing woes, housing starts were down 56% year-over-year during May in the United Kingdom, 18% during the first quarter of the year in Spain and 17% year-over-year in May in France.

Hall noted that housing starts in Canada are “soaring on the strength of the domestic economy and a huge dollop of very sell-timed fiscal stimulus,” and that a continuing excess of housing starts over requirements means “Canada’s turn may come soon” for a housing crisis.

Canada banks RBC, CIBC, Scotia, TD an others had an average of $1-$3 billion in write downs loosing money due to the conditions to the south. States were hit hard so Bank of Canada took steps to protect Canadian housing and ended support for 40 year and 100% mortgages. Is that enough? Hardly.

Portfolio manager Adrian Mastracci of Vancouver-based CKM Wealth recommends:

- Consider a condominium or townhouse as a starter home, before buying a detached house.

- Remember that in addition to the purchase price of a home, you may have legal and realtor costs, expenses for moving, renovations, furniture, repairs, maintenance, property taxes, insurance and utilities.

- Save 20% for a down payment to reduce extra fees, consider taking money from your registered retirement savings plan through the Home Buyers Plan, and forego making non-registered investments because you would need an 8.9% return to do better than paying down a 5.75% mortgage if you’re in the 35% tax bracket.

Article Source: National Post

Laurentian Bank announces changes in mortgage products

MONTREAL, July 24 /CNW Telbec/ - The Laurentian Bank today announced changes to its mortgage products in order to conform with new regulations to be introduced October 15, 2008. The changes, which take effect at the Bank immediately, are as follows: - The maximum amortization period for mortgages is reduced to 35 years; - The minimum down payment required for any new mortgage is 5 %. - CNW Group

Calgary home prices dip $43,000

A year ago, Calgary’s residential real estate market set a record for the highest ever monthly average sale price for a single-family home at $505,920 in July.

But the market has changed and, according to the Calgary Real Estate Board website on Thursday, the average MLS sale price for single-family homes in the Calgary area for the past 30 days was $462,778.

Also in the past 30 days, the median sale price was $410,000, while a year ago in July it was $435,000. - Calgary Herald

CIBC faces lawsuit over subprime exposure

TORONTO (Reuters) - Canadian Imperial Bank of Commerce (CM.TO: Quote) is the first Canadian bank to face legal action over investments tied to plunging U.S. subprime mortgages, after a Toronto law firm revealed a proposed class action on Wednesday, claiming the bank and some executives failed to fully disclosure its exposure.

The lawsuit, filed in an Ontario court, alleges that the bank, President and Chief Executive Gerald McCaughey and other officers and directors, did not disclose the extent of CIBC’s total exposure, through various structured-credit securities, to the sliding U.S. subprime mortgage market. - Reuters Canada

 BMO, CIBC, ING end 40 year mortgages. Canada no longer supports 100% mortgages.

The Department of Finance announced it will no longer support:

- 100% Mortgages

- 40 Year Mortgage

The new maximum is 95% and 35 year mortgages. Canada Mortgage and Housing Corporation stopped offering insurance for those mortgages. The Department of Finance also set new lending standards:

- A new 620 minimum credit score requirement

- 45% maximum TDS ratio

- New loan documentation standards

New rules effective October 15, 2008. New rules affect CMHC, GE Capital and other mortgage insurance firms.

Why Tighten the Bolts?

US is in recession. Mortgage lenders are going bust. Banks are loosing hundreds of billions. Mortgages are in part responsible for the damage, because US banks used to lend to anyone who walked through the doors.

New rules might save Canadian economy from going down the restroom. CIBC, RBC, TD and other banks already lost billions, so tighter guidelines mean less money in the system and less risk for the banks.

CMHC, BMO, CIBC, ING end 40 year mortgages

Toronto Star reported:

ING Direct Canada has become the first domestic lender to officially pull the plug on controversial 40-year mortgages following the federal government’s surprising decision to tighten mortgage rules.

The next day Toronto reported again:

Two of Canada’s biggest banks are following in the footsteps of ING Direct Canada by immediately purging 40-year mortgages from their product line-ups in the wake of the federal government’s decision to toughen mortgage rules.

Expect other banks to follow.

As per new rules. MortgageCanada.ca no longer offers 100% mortgages and 40 year mortgages.

Canada said it will tighten rules for mortgages guaranteed by the government to avoid a housing market collapse such as what happened in the U.S. after a surge in subprime loans.

Mortgages insured by the government will be limited to a maximum term of 35 years and require a minimum down payment of 5 percent, compared with zero now, the Finance Department said today in Ottawa. The rules, which take effect Oct. 15, also demand that borrowers provide new types of documents and have a minimum credit score. - Bloomberg

——————————————–

Canada’s domestic credit crunch has eased enough for the Bank of Canada to be the first of the major central banks in the world to shut the wicket on its emergency lending program. “The announcement suggests that the Bank of Canada believes the worst of the credit crunch is now in the rear-view mirror,” said TD Securities economic strategist Charmaine Buskas.- Canada.com

Nevertheless, dollar lost it’s buying power again. Good indicator are food prices, oil and gold. They’re aren’t really going anywhere, it’s the dollar that buys less for the same price.

Mortgage News

Variable-rate mortgages shine as prime falls - Globe & Mail

Interest rate cuts like the one announced yesterday by the U.S. Federal Reserve are providing some badly needed leverage to people renewing or taking out new mortgages. The Fed pared half a percentage point off its benchmark interest rate yesterday, an echo of a larger cut made last week. The Bank of Canada has been trimming rates as well, and the trend is expected to continue as a result of slowing economic growth. The upshot here for people refinancing or arranging new mortgages: Go with a variable rate. It’s your best chance of out-manoeuvring the big banks as they try to squeeze extra profits from borrowers to compensate for difficulties elsewhere.

Canadian dollar drops below parity on growth news and profit taking - Canadian Press

OTTAWA - The Canadian dollar fell dramatically Thursday morning, falling more than a cent against the American greenback on evidence that Canada’s economy began to slide in November and more subprime woes in the United States are on the horizon. After rising strongly in the past week, the loonie plunged 1.32 cents to 99.36 cents US as Statistics Canada reported that the Canadian economy barely edged forward in November, rising 0.1 per cent, and production of goods fell 0.2 per cent, from October. Output from the depressed Canadian manufacturing sector decreased 0.3 per cent in November, reaching its second-lowest level since the beginning of 2007.

New head of Bank of Canada faces many old challenges - The Vancouver Sun

“The economy shook off the slowdown in the U.S. to burst into the final quarter of the year with a much greater-than-expected expansion, according to the Statistics Canada report. The report, however, doesn’t change the fact that growth here will slow in the new year as the sharper-than-expected U.S. slowdown undermines Canadian exports.” Sound familiar? That was from a story by Canwest News Service seven years ago, just before David Dodge, who retired Thursday, took over as governor of the Bank of Canada.

Canadian economic growth slows - Globe and Mail

The Canadian economy slowed in November as a record high dollar took a toll on factories and forestry firms. The country’s gross domestic product expanded 0.1 per cent in the month, Statistics Canada said Thursday, in line with economists’ expectations and cooler than the 0.2-per-cent growth tallied in October. The report confirmed the Canadian economy eased in the second half of the year as currency-related woes and weakening U.S. demand stung exporters. Most economists see further weakness in the coming months. “Given our forecast for weaker growth in the first half of 2008, this supports the case for further rate cuts from the Bank of Canada as the economy moves into a situation of excess supply,” said Jacqui Douglas, economics strategist at TD Securities, in a note.

Real Estate News

Toronto’s “tremendous achievement” Is this a strange characterization of higher taxes? - Real Estate Intelligence

Toronto homeowners will face a 3.75 per cent property tax increase this year, as well as the city’s new land transfer tax which comes into effect today. The Toronto land transfer tax, which comes into effect today, is expected to raise $175 million for city coffers. There will also be a non-residential property tax increase of 1.25 per cent. According to the city, the property tax increase will result in an additional $80.70 in taxes on a residence worth $365,000, which is thought to be the average Toronto house price.

When is the Right Time to Buy? - Edmonton Real Estate Blog

There is a lot of debate in Edmonton right now, about whether it is the right time to buy or not. The timing of a home purchase depends on many factors including your personal finances, goals and desires, as well as external factors such as affordability, the economy, financing availability and more. I can’t answer when the best time to buy for every individual is, but I’d like to put something in perspective…

Real Estate in Victoria BC - Property Transfer Tax And The First Time Home Buyers’ Program - Real Estate Info

Over the years the prices of Real Estate in Victoria has been on the rise and for those who have invested in Real Estate has seen some pretty good returns.

The high price of Real Estate in Victoria makes it pretty tough for the First Time Home-buyers. When you purchase Real Estate in Victoria or all of BC for that matter there are a lot of extra costs involved. Here are some of them:

* Property Transfer Tax

* Appraisal

* Lawyer fees

* Real Estate Commission (rarely as a buyer but it happens)

* Hook up charges for gas, electricity, cable, phone, etc.

More women buying their own homes - Calgary Herald

Seven in 10 Canadian women homeowners bought their properties as a “good investment,” says a new national poll released today.

The poll by TD Canada Trust, conducted in the first two weeks of this year by Ipsos-Reid, was among women aged 20 to 45 who have purchased a home as an individual rather than jointly with a spouse or common law partner. Among this group, the average age when they purchased their first home is 29 years - 82 per cent are single, 80 per cent have no children and 49 per cent have a university degree.

Mortgage News

Predatory lending and Canadian seniors - The Vancouver Sun

The meltdown of the American subprime mortgage market has recently made worldwide headlines. Reading the press, it would be easy to think that this problem only affects large financial institutions and high-powered stock market investors. What does this international crisis have to do with senior citizen homeowners in Canada? The Canadian Centre for Elder Law is currently working on a project that investigates this question among others. The Centre is a non-government organization dedicated to law reform and outreach on legal issues affecting older adults.

Federal Reserve(US Central Bank) lends $30 billion at 3.123% - Los Angeles Times

The Federal Reserve made $30 billion in 28-day loans to banks at the lowest rate since it began holding special auctions last month to end the logjam in credit markets. The 3.123% rate was the lowest of the four auctions conducted since mid-December. Demand from banks, as measured by the ratio of the volume of bids to the amount of money being auctioned, also was the lowest since the auctions began. The Fed’s auctions are part of a coordinated effort with central banks in Britain, Canada, Switzerland and the euro region to increase temporary funds available for banks.

Real Estate News

Canada ranks best on housing affordability survey - CTV

Canada is at the top of the list in a new study comparing housing affordability in six countries. The Demographia International Housing Affordability Survey: 2008, released by Wendell Cox Consultancy, compared conditions in the larger cities of Australia, Canada, Ireland, New Zealand, the United Kingdom, and the United States. To determine affordability, researchers used the median multiple technique — which calculates the median house price as a multiple of the median household income.

Perspectives on Real Estate Representation - Real Estate Intelligence

When you call an agent from an ad or a sign, you have to remember that they are working for the seller — and definitely not the buyer. You are talking to the listing agent who was hired by the sellers to list and sell their home. His or her job — and obligation — is to get as much money as possible for the seller. This ties in with the fact that the agent has an incentive to get more. The higher the sales price, the more money the agent will make. It may be hard to keep this in mind as you spend time with the agent and feel you know and feel comfortable with them. Even though you begin to trust that agent, never to reveal the highest price you are willing to pay, or other concessions you know you would be willing to make. Because that person represents the seller, and must relay this type of information to the seller.

Real Estate In Victoria BC - Victoria, BC vs West Island, QC - Real Estate Info

2007 was another positive year for the local real estate market. We saw healthy activity and growth throughout the West Island and the good news is that all indicators point towards another good year in 2008. According to statistics from the Greater Montreal Real Estate Board, the average price of a single family home in the West Island increased from $346,358 in 2006 to $358,086 in 2007 for an increase of just over 3%. The number of sales was also up by almost 11% which was a good indicator that buyer activity remained strong.

Mortgage News

Muslim Canadian Congress asks CMHC to drop Islamic banking study - THE CANADIAN PRESS

The Canada Mortgage and Housing Corp. is being urged by a moderate Muslim organization to abandon the idea of a study on Islamic banking because such a system could leave many Muslims isolated. The Muslim Canadian Congress, in a letter to CMHC, said the concept is “an attempt by Islamists, with backing from Middle Eastern Financial Institutions and their Western partners, to scare Muslim Canadians into believing that they should pay more to the banks and demand less in return as an act of religiosity.”

FirstLine Matrix Mortgage to Become Adjustable(Variable) Rate Mortgage - First Line

The beauty of Matrix is versatility. The fixed rate and LOC portions can add up to 75% of the value of your home. You can use the fixed rate portion alone for the first months or years, then when you have a new expense, simply access your LOC portionÑno new application is required. You can pay off your LOC portion at any time. And as you pay off the fixed rate portion, that additional equity is instantly available to your LOC.

Canadian Stocks Rise, Led by Banks, CIBC; CP Rail Advances - Bloomberg

Canadian stocks rose a second day, led by Canadian Imperial Bank of Commerce, on speculation equities already reflect a slower U.S. economy and may rally more after an expected interest-rate cut from the Federal Reserve tomorrow. Canadian Pacific Railway Ltd. led industrial shares higher, after the railroad reported profit that exceeded analysts’ estimates. Canadian Oil Sands Trust and other energy producers advanced along with crude-oil prices.

Loonie crosses back over parity - Globe and Mail

The currency traded at par — or to be precise, $1.00221 (U.S) — “supported by the general shift out of safety and an embrace of equity and risk,” said Stewart Hall, market strategist at HSBC Securities (Canada), in a morning note. Asian and European markets bounced back Tuesday, while North American stocks gained ground on the prospect of a U.S. rate reduction. Federal Reserve Open Committee members start their interest-rate meeting today, and are widely expected to cut the key lending rate by 50 basis points tomorrow at 2:15 EST.

Real Estate News

RBC expects housing affordability to improve this year despite threat of US recessision - Alberta Index

Nationwide housing affordability should start to improve this year following last year’s rising homeownership costs, according to the latest Housing Affordability report by RBC Economics. “Almost every house class in every province and major city saw affordability deteriorate last year,” said Derek Holt, RBC’s assistant chief economist. “Unlike the late 1980s and early 1990s when both unemployment rates and interest rates pushed into double digits and led to declining affordability, the prime culprit this time around has been a long string of house price gains that have outstripped income gains.”

Victoria housing among world’s most costly - Times Colonist

Victoria, Vancouver and Kelowna all made the top 25 of the least affordable housing markets in the world, according to the fourth annual Demographia International Housing Affordability Survey. The survey compiled by consultant Wendell Cox, a senior fellow at the Frontier Centre for Public Policy, and Hugh Pavletich, a property investment manager in New Zealand, rates cities using a measurement tool called a median multiple.

Bleak house outlook? Not in Canada - The Star

Various forecasters predict sales of new and used homes will slow in Canada this year, but nothing like is happening in the United States.
They all foresee prices going up. In fact the latest forecast, which benefits from having more recent data, is among the most optimistic for home prices. Economists at the Royal Bank of Canada are predicting larger average increases than some other forecasts released earlier, including for Ontario and Toronto. Yet they also foresee an improvement in affordability, at least compared with the latter part of 2007, thanks to a coming dip in interest rates and a healthy increase in household spending power.

DEEP SNOW, DEEP POCKETS - Globe and Mail

In the remote mountains of British Columbia near the small town of Revelstoke, snow pours almost constantly, an average of 15 metres annually, an astounding amount that has made Revelstoke and nearby Rogers Pass famous for the snow-obsessed in Canada and beyond for decades. Now, four real estate developers are planning to spend $1-billion - with $80-million already on the table - on Revelstoke Mountain Resort LP, a giant new ski area that opened last month on Mount Mackenzie in eastern British Columbia. At its core, this is a huge property play in a place that’s essentially in the middle of nowhere.

Mortgage News

Scotiabank lowers mortgage rates - CNW News

Scotiabank announced today the following changes in residential mortgage interest rates, effective January 29:

- two-year closed 7.40 per cent (decreases by 0.10 per cent)

- three-year closed 7.40 per cent (decreases by 0.10 per cent)

- four-year closed 7.35 per cent (decreases by 0.15 per cent)

- five-year closed 7.39 per cent (decreases by 0.10 per cent)

- seven-year closed 7.70 per cent (decreases by 0.10 per cent)

Canadian Economy Provides Better Quality Jobs Than U.S., CIBC Economist Says - CEP News

Canadians are landing better quality jobs even as the economy batters the manufacturing sector, a trend that is very different for their U.S. cousins, a CIBC study indicates. “It seems that in Canada, the loss of manufacturing jobs is being offset by job gains in sectors with equivalent and higher employment quality. That’s not the case in the U.S. where the jobs now being lost in sectors such as construction/real estate and manufacturing are being replaced by lower quality jobs,” writes CIBC Benjamin Tal in a report entitled “An Island of Stability,” about the CIBC Employment Quality Index.

Dollar’s drop gives foreign investors edge - Local News

The weak dollar has given foreign investors strong incentive to buy property in Hawai’i’s slowing housing market, which just capped a second year of declining sales. Australian, Canadian and European currencies have risen sharply in recent months to give real estate investors from those countries their strongest buying power in more than a decade.

Toronto: City property taxes up 3.75% - TheStar

Toronto homeowners will be facing a 3.75 per cent property tax hike this year. City officials will roll out an $8 billion spending budget for 2008 on Monday that sources say calls for a 3.75 per cent increase – almost identical to last year’s 3.8 per cent. On the average home, that translates to about $80 extra. The perennially cash-strapped city is presenting a balanced budget this year, thanks to a land-transfer tax on home purchases that goes into effect next Friday.

Real Estate News

Should I buy now or should I buy later…? - Vancouver 24 Hours

24 hours Vancouver and CTV have teamed up to bring you an in-depth look at the current real-estate market in the Lower Mainland. The series kicks off today by exploring what homeowners can expect with current market conditions.

Let it be known: Christie Coughlan is not in the market for a shoebox. Unimpressed at the idea of throwing her money at a 400-sq.-ft. condo, the 28-year-old advertising exec is still living on a month-to-month lease. “It’s hard,” says Coughlan of her now two-month-old search to find a home. “It’s more expensive than I expected.”

Alberta real estate sales increased in 2007 - Calgary Herald

Alberta ended 2007 with $25.5 billion in residential MLS sales, up 19.9 per cent compared with 2006, according to a report released Monday by the Canadian Real Estate Association. The report also said that overall sales were down by 3.9 per cent last year from a year ago to 71,430 units but the average sale price increased by 24.8 per cent to $356,235. New listings also had a 32.9 per cent hike for the year to 124,933.

Mortgage News

National Bank Adjusts its Mortgage Rates - PR USA

Laurentian Bank changes its mortgage rates - CNW Group

Desjardins Group Announces Changes in Residential Mortgage Rates - Desjardins Group

January 25, 2008 – Desjardins Group announces the following changes in mortgage rates for caisses in Québec and Ontario*, effective on January 28, 2008.

Canadian Core Inflation Slowest Since December 2005 - Bloomberg

Canada’s annual inflation rate excluding volatile items such as gasoline was the lowest in two years in December, giving central bankers more flexibility to cut interest rates. Core prices rose 1.5 percent in December, slowing for the sixth straight month and below the central bank’s target for a third month, from 1.6 percent in November, as Canada’s strong dollar made imported books and cars cheaper. Economists surveyed by Bloomberg forecast the rate would quicken to 1.7 percent, the median of 21 estimates.

Mortgage rates ease - CBC News

Borrowing costs declined on Friday as major Canadian banks cut their mortgage rates on several longer-term loans.
Royal Bank, TD Canada Trust and Laurentian Bank all announced cuts ranging from 0.05 to 0.1 of a percentage point.
With the change, a posted five-year closed mortgage rate now ranges from 7.39 to 7.4 per cent.

Five options to generate revenue when you find yourself house rich, cash poor - Ottawa Citizen

The reverse mortgage is growing in popularity in Canada, but it is not the only tool available to seniors who want to generate instant cash by tapping into their home’s value. Gordon Pape, an investment expert and author of the new book Sleep Easy Investing, says whatever option you choose will depend on a number of factors, including the reason you want access to ready cash. Will the money be used to pay for a new roof, or as an investment that will generate a monthly income?

Mortgage: To fix or to float? - Financial Post

Would you borrow money from someone if they could change the rate of interest whenever they wanted to? About 20% of Canadians signing up for new mortgages have been doing just that. One out of every five new mortgages is now a variable rate product tied to prime. Prime is dictated by your bank. As rates tumbled during this housing cycle, consumers worried about locking into long-term mortgages. The fear of being shut out of the latest rate cut from the Bank of Canada had consumers looking to products with floating interest rates.

USA - What are the warning signs of a possible recession? - CTV

With a housing crisis, credit crunch and volatile stocks, our U.S. neighbours may well be heading towards a recession. BMO Capital Markets predicted Wednesday the United States is heading towards a mild recession — one more in an increasingly loud chorus of voices that thinks the world’s biggest economy might be contracting. The Bank of Canada followed up Thursday by saying the U.S. economy would barely grow in the first half of this year and could easily tip into recession. While the central bank lowered its growth forecast for the local economy, it also predicted that Canada will avoid a recession.

Ottawa running healthy $6.7-billion surplus - Financial Post

OTTAWA — The federal government was running a healthy $6.7-billion surplus eight months into the current fiscal year, even after including the cost of retroactive income tax cuts for the 2007 tax year, which were announced in the fall budget update.The latest monthly report on the government’s finances suggest it easily has the cash to cover the cost of other tax measures - such as the GST cut, which kicked in on Jan. 1 - and meet its commitment to provide $1-billion in relief in the upcoming budget to help offset the impact on manufacturing and forestry industries of the strong dollar and weakening U.S. economy.

Real Estate News

This Week in Toronto Real Estate - BlogTo

January is normally a very quiet month in the real estate world, but there were a lot of interesting news items on the real estate front this week so I’ve compiled them into a single post with the tidbits. Call it a Morning Brew for real estate junkies. Condos are hot. For the first time ever, condos appreciated at a higher rate than the traditional detached homes in 2007. Once considered the holy grail of Toronto real estate, detached homes appear to be losing some of their luster as prices have simply become out of reach for most first or even second-time home buyers.

TORONTO - City property taxes up 3.75% - The Star

Toronto homeowners will be facing a 3.75 per cent property tax hike this year. City officials will roll out an $8 billion spending budget for 2008 on Monday that sources say calls for a 3.75 per cent increase – almost identical to last year’s 3.8 per cent. On the average home, that translates to about $80 extra.

FLORIDA, US credit crunch, bargain house prices. Florida formula pays off - National Post

My formula, which Mr. Ruddle deployed, is find out the 2006 value, offer half (he found out the 2005 value and added 10%) then bid. It worked for him. And if it hadn’t, he would have and should have just walked away. As I wrote, I have done a little preliminary research myself of so-called “bargains” in Florida and the market remains very scary and getting worse. Hundreds of properties are on the market, in pre-foreclosure or foreclosure in most communities, which makes it perilous for the unwary buyer who doesn’t do his or her homework then drive a hard bargain.

Mortgage News

Street Capital Financial Corporation Launches Mortgages In British Columbia
and Alberta - Street Capital

VANCOUVER, January 3, 2008 - Street Capital Financial Corporation, a Canadian-owned and operated
mortgage lender, has officially commenced lending in British Columbia and Alberta, as part of its national
lending strategy.

CIBC May Take $4.1 Billion Writedown, Analyst Says - Bloomberg

Jan. 24 (Bloomberg) — Canadian Imperial Bank of Commerce, the country’s worst-performing bank stock over the past year, may take $4.1 billion in pretax writedowns in the first quarter, according to CIBC World Markets analyst Darko Mihelic.
Canadian Imperial has already announced writedowns of $2.46 billion for the first two months of the quarter, which ends Jan. 31. The amount of writedowns will probably rise after the value of the securities linked to the U.S. subprime mortgage market declined this month, Mihelic wrote in an note to clients today.

Real Estate News

Let’s steal Florida Part II - Financial Post
Want a Cottage in Florida? US in Turmoil, Bargains at Half the Price.

Our dollar’s high. Their’s isn’t. Even so, buyers should "steal" and not pay anything near asking prices. With so many foreclosures, prices should plummet. I have done a little preliminary research myself of so-called “bargains” in Florida and the market down there remains a very scarey one. Hundreds of properties are on the market, in pre-foreclosure or foreclosure in most communities which makes it perilous for the

Mortgage News

Canada’s primary security dealers expect another 0.25% rate cut from the Bank of Canada on March 4 - Edmonton Journal

“There is a chance the Bank of Canada will step up to the plate and cut rates 50 (basis points) at tomorrow’s meeting instead of 25 (basis points), and there is also a chance that the Fed comes to the market earlier than its January 30 scheduled meeting and lowers rates 50-75 (basis points),” said Andrew Pyle, investment executive at Scotia McLeod.

BMO senior economist, Sal Guatier, says the Bank of Canada “is certainly on track to cut rates again in March.” - Financial Post

Mr. Guatieri expects U.S. rates to be as low as 2% by mid-year, with the Bank of Canada expected to cut rates at a slower pace because of the country’s stronger economy. “The bank indicated the likely need for further easing, and unless you see a big improvement in economic conditions, especially south of the border, I think Carney is certainly on track to cut rates again in March,” he said, adding that the local overnight target rate will likely decline to 3% by mid-year.

Midday News Recap: Canada’s Flaherty Says BOC Prepared to Deliver More Rate Cuts - CEP News

Flaherty made the comments during interviews with Bloomberg TV and Reuters in Dubai, UAE. He said the Bank of Canada had indicated it would continue to cut interest rates down the road and that there are no plans for tax cuts or subsidies to businesses. He also he was comfortable with the Canadian dollar trading in the 95-98 cent U.S. range as seen so far in 2008, and that he was hoping for less volatility in the future.

The Ministry of Finance is seeking your views on draft regulations under the Mortgage Brokerages, Lenders and Administrators Act, 2006. - Ontario Govenment

Ontario Govenment wants your comments on a new mortgage broker legislation.

Dear Stakeholder:
I am pleased to enclose for your review and comment a copy of Draft Regulations for Consultation proposed under the Mortgage Brokerages, Lenders and Administrators Act, 2006. The new Act will be fully proclaimed on July 1, 2008. The proposed new regulations and proposed amendments to existing regulations will support the implementation of the new regulatory framework.

New Homes: More buyers opting for 40-year mortgages - Times Colonist

The ability of financial institutions to offer 40-year amortization mortgages in the last year has changed the dynamics of the housing market. By extending their mortgage payments over 40 years, buyers can lower their monthly mortgage payments, bringing high-priced homes within the financial reach of more consumers. For example, the average price of a single-family house in Victoria is $624,450. With 20 per cent down, a buyer would need a mortgage of $499,560. At a mortgage interest rate of 6.25 per cent, a 25-year mortgage for that house would cost $3,271.42 per month. By extending the mortgage to a 40-year term, the monthly payments drop by $462.79 to $2,808.63.

U.S. real estate a ‘bargain’ for foreign buyers - Boston.com

“All of my international buyers are just going to love this,” the agent said. “I can’t wait to tell them what’s now available.”

….It turned out that more than 60 percent of the agent’s clients were buyers from overseas. And, she is not the only real estate professional cultivating the foreign market. According to the National Association of Realtors, 65 percent of Florida Realtors had at least one international customer, and the trade group’s “Profile of International Home Buying Activity” indicated that at least 7 percent of home sales in Florida were to foreign purchasers.

Real Estate News

How to Make Your New Home Walk Through a Success! - The Edmonton Real Estate Blog

Ah the joy of a new property. After months of frustration or elation (depending on your experience) you receive a letter (depending on your builder 30 - 45 days prior to possession) announcing your possession walk through dates. More and more I am getting contacted by people with new properties (imagine that), and I am noticing a disturbing trend among the builders: they are preventing access to the property prior to the “walk through”. Even more disturbing is the trend of holding the walk through on the day of possession.

Canadian residential real estate future is solid - CNW Group

“The results in 2007 show the strength and the affordability of the Canadian residential market,” says CREA President Ann Bosley. “The statistics again show just how different the housing markets are in Canada and the United States. Canadian REALTORS(R) know that Canadian mortgage lenders correctly see that home prices will continue rising. We know there is still strong competition for mortgage business in Canada.”

Year of the Condominium in Toronto - Real Estate Intelligence

Condominiums experienced unprecedented upward pressure on average price in 2007, surpassing gains reported in the single-detached category for the first time in key GTA districts, including the central core and west end. According to RE/MAX Ontario-Atlantic Canada, the average price of a condominium rose 12.2 per cent in the central core in 2007 ($327,559 vs. $292,064) while values in the west end jumped 7.3 per cent from $215,036 to $230,749. Statistics for single-detached homes reveal an 11.5 per cent increase in average price in the central core ($910,906 vs. $816,938) and a 6.6 per cent increase in the west ($417,407 vs. $444,945) during the same period.

Mortgage News

Bank of Canada lowers overnight rate target by 1/4 percentage point to 4 per cent - Bank of Canada

OTTAWA – The Bank of Canada today announced that it is lowering its target for the overnight rate by one-quarter of one percentage point to 4 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 4 1/4 per cent.
In the second half of 2007, the Canadian economy grew broadly in line with the Bank’s expectations in the October Monetary Policy Report (MPR). Despite some slowing in growth in the fourth quarter, the Canadian economy continues to operate above its production capacity. Both core and total CPI inflation have been lower than projected in the MPR, largely reflecting a price-level adjustment related to increased competitive pressures in the retail sector stemming from the level of the Canadian dollar.

Canadian banks cut prime rates to 5.75 pct - Reuters

Editor’s Note: Good News if you are looking for a new loan or have a variable(adjustable) rate mortgage.

Royal Bank of Canada (RY.TO: Quote, Profile, Research), the country’s largest lender, was first off the mark, lowering its prime rate to 5.75 percent from 6.00 percent.

Toronto-Dominion Bank (TD.TO: Quote, Profile, Research),

Bank of Montreal (BMO.TO: Quote, Profile, Research)

Canadian Imperial Bank of Commerce (CM.TO: Quote, Profile, Research)

Bank of Nova Scotia (BNS.TO: Quote, Profile, Research)

National Bank of Canada (NA.TO: Quote, Profile, Research)

Laurentian Bank of Canada (LB.TO: Quote, Profile, Research) followed suit.

The cuts are effective Wednesday.

Scotiabank Changes Variable Mortgage rates - CNW Group

TORONTO, Jan. 22 /CNW/ - Scotiabank today announced changes in the interest rates charged on Scotia residential mortgages. The rates on the following products are:

<< - The Prime Rate for the three-year Ultimate Variable Rate Mortgage will decrease by 0.25 per cent to 5.75 per cent, effective January 23, 2008; - The Prime Rate for the five-year Flex Value Mortgage will decrease by 0.25 per cent to 5.75 per cent, effective January 23, 2008. >>

RBC follows Bank’s lead with quarter-point cut - Financial Post

Royal Bank of Canada responded swiftly to the central bank’s announced rate cut by decreasing its prime lending rate by 25 basis points to 5.75%. RBC is the first of the big Canadian banks to act following the Bank of Canada’s decision to cut the benchmark interest rate by 25 basis points to 4.00% on Tuesday, following a 75-basis-point cut to the U.S. rate by the Federal Reserve.

There had been some speculation that the commercial banks would resist the urge to follow the Bank of Canada by lowering rates. However, RBC’s announcement that it will cut its prime rate from Wednesday was quickly followed by the other big banks. Canadian Imperial Bank of Commerce, Toronto-Dominion Bank and Bank of Montreal also said they are lowering the prime lending rate by 25 basis points.

US - Federal Reserve slashes US rates on day when ‘chaos reigned supreme’ - Guardian

The biggest single cut in US interest rates for more than two decades was not enough to avoid a wave of panic selling on Wall Street today, but helped London shares to claw back some of yesterday’s losses. The US Federal Reserve stunned the markets at 1.20pm with its 75 basis point cut to 3.5%, reacting to growing fears of a recession in the world’s largest economy. However it did not prevent a rush of selling when Wall Street opened an hour later. The Dow Jones Industrial Average plunged more than 400 points within minutes of the opening bell, a fall of almost 4%. Speculation that further cuts are imminent helped the index to recover somewhat to 11,958.18 by 7pm GMT, a 1.17% fall.

Be Mortgage Savvy in 2008 - CNW Group

For homeowners who now have a variable-rate mortgage, Siegle advises sticking with this type of mortgage for the time being. "For those with variable mortgages, falling rates mean more opportunity to pay down their mortgage," he says. "If your variable mortgage is the type with unchanging monthly payments, a rate reduction means more of your money is going towards paying down your debt. If your payments are reduced in tandem with rates, consider keeping your payment the same, to attack the mortgage principal faster."

Canada Will Skirt Recession, But U.S. Already There, Says BMO’s Cooper - CEP News

U.S. is in a recession, but Canada will avoid one of its own in 2008 largely due to commodity-driven growth, BMO chief economist Sherry Cooper told the Canadian Club of Ottawa. “I’m here to tell you unfortunately that the data now in my view suggests the U.S. economy is in a recession,” said Cooper as she opened her speech at the packed Fairmont Chateau Laurier ballroom.

Real Estate News

Real Estate In Victoria BC - BC’s 434 Million Boom - Real Estate Info

No end in sight for major projects in the region, say construction firms. Massive infrastructure projects are going to help keep the province’s non-residential construction industry booming for years, says the president of the B.C. Construction Association. “Our existing infrastructure is wearing out — needing updating, needing maintenance — and we need actual new infrastructure, whether it is roads, buildings and utilities,” Manley McLachlan said.

Toronto’s Hot Spot - Real Estate Intelligence

The Toronto Real Estate Board district E01 is bounded by Danforth Avenue to the north, Lake Ontario to the south, the Don Valley Parkway to the west and Coxwell Avenue to the east. "In Beaches-Riverdale, there were 63 home sales in December 2007 versus 36 in December 2006 so that’s a 75 per cent increase," said Maureen O’Neill, board president.

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