Canadian inflation was 1.7% in August. It’s the first time in 8 months it fell below the Bank of Canada’s stated 2% target. This increases the odds that Canada’s key lending rate will remain unchanged for at least a few more months.
Here’s a good story on the relationship between interest rates and inflation by The Daily News.
Chris Bryan from the Abbotsford News thinks you should get by with what you need, especially when it comes to a down payment on a house. He maintains that: “perhaps a person who can’t save $20,000 shouldn’t buy a $400,000 home.”
If you ignore the top 4 foreclosure states in the U.S., American foreclosures actually declined last quarter.
Canadian Senator Jerry Grafstein wants to investigate Canada’s credit crunch
Canada’s newest entrant into the reverse mortgage market is Seniors Money. Unlike their competitor, CHIP, Seniors Money charges no penalties for early repayment. Nonetheless, the Montreal Gazette says a reverse mortgage should still be your last resort.
Canadian mortgage insurers insured about 450,000 mortgages in 2006. (Source: The Star)
After exiting the mortgage broker channel BMO hopes to hire “more mortgage specialists…increase volumes and regain lost share.”
The Canadian Bankers Association says only 0.24% of Canadian mortgages are in arrears. That’s a record low.
2/3’s of Canadian households own their homes. That’s the highest level on record.
Correction: Please note, in CMT’s story yesterday the sentence “Now we’re seeing some big lenders cut their discounts, to prime – 0.20%” should have read “prime – 0.50%.
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