Mortgage Bytes

  • BofC “With the Fed easing so aggressively, the Bank of Canada will have little choice but to join the party. Look for the Bank to cut by 50 basis points in its next rate announcement.” — CIBC’s Benjamin Tal
  • CIBC expects the Bank of Canada’s target rate will fall 1% by June.
  • British Columbia has 49,729 houses worth over $1 million.  A year ago it had “just” 38,027.
  • BMO’s Michael Gregory says U.S. lenders are tightening up credit standards in a “draconian fashion.”
  • All the big banks except TD have now agreed to participate in Canada’s asset-backed commercial paper restructuring. The banks will provide up to $14 billion in emergency capital–should it be needed.  London Free Press Story, Time Colonist Story
  • CMHC expects Saskatchewan home prices to jump another 28% in 2008.
  • MortgageBrokers.com’s CEO says “current rates, available mortgage products and projected rate cuts” will make Canada’s mortgage market “more active” in 2008.
  • Canadian Tire says it “accumulated” $35 million in “high-quality” mortgages in 2007.  Their mortgage pilot will continue “throughout 2008.”
  • Angus Reid says 44% of people don’t know how much to budget for housing costs.
  • Home inspectors in BC may become regulated.
  • Should you pay down your mortgage or invest in your RRSP?  Gordon Powers says it depends on your mortgage and tax bracket. Here’s a similar take from Morningstar.
  • Is Canada an energy and metals superpower?  You would think…but mining, oil, and gas are only 4.58% of our economic output. By comparison, financial services and real estate account for 20%.
  • Islamic financier, UM Financial, wants CMHC to continue it’s Muslim mortgage study, despite recent criticism.
  • London, ON is giving away free down payments to 116 low-income families, but only 25 have bothered to apply!  Who needs free money anyhow? 
  • Investors Groups says 1 in 5 homeowners plan to use their home’s equity to supplement their retirement.
  • Here’s what $1 million buys you in Calgary these days: Link
  • If you get mortgage life insurance and die, prepare for an investigation.  It’s called “post claim underwriting” and CBC’s marketplace has blown the cover off it. Some are incensed to know that paying the premiums doesn’t necessarily mean you qualify for the insurance. Video
  • Canadian Capitalists says high interest rates are the main Achilles heel of the Manulife One and Canadian Tire One-and-only mortgages.
  • Xceed has found a buyer for $98 million of its mortgages. The alternative lender has also worked out a deal with an unnamed insurer to retroactively insure some of Xceeds previously funded mortgages.  CEO Ivan Wahl says “Xceed expects to be able to originate up to $250 million per quarter of residential mortgages that are insured by CMHC, Genworth or PMI Canada.”  Those insurer agreements “are providing Xceed with the ability to insure newly originated mortgages that can eventually be sold to the Canada Mortgage Bond Program.”
  1. As surprising as it may be I’m not too shocked at that Calgary home. It’s got an awesome view, 3000 sq. feet of space if you include the basement. It’s in an area close to a huge city. It’s close to almost any amenity a family would need.
    Though for comparison I’d like to point out this place near Moncton, NB:
    http://tinyurl.com/yr5uko
    I dunno . . . I think it’s a smidgen nicer.
    With the fed easing what we need is our BoC to grow some kahunahs and stop trailing in the feds shadow of destroying the dollar. I’m no economist, but I think these cuts are just going to cause more problems.
    Plus, your comment on TD being the bank that didn’t ‘get dirty’ reads kind of like it’s not helping with the solution. I believe it was very clear that it will not take on risks solving a problem that it didn’t create. It could have easily read “The four banks that caused all sorts of credit problems are caughing up 14 billion. TD, who wasn’t a part of the problem, will not have to put up any of it’s assets.”

  2. Hi Traciatim, Thanks for the comment. The ABCP/TD blurb was just a factoid. The context is in the two stories we linked to. Your note about TD’s involvement (or lack of) is true–and yes, why should they be pony up for this mess (rhetorically speaking)? Cheers…

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