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Posted by: Dean Kimoto
By Nina Dragicevic Between inflation, housing costs and interest rates, debt is ballooning for many younger Canadians. Scott Terrio sees it all the time. The manager of consumer insolvency says the average credit card balance in Canada is less than $4,500, but the cases he saw last year averaged more than $12,000 for this young group. […]
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Mortgage borrowers are increasingly opting for variable-rate mortgages, a trend that is expected to continue as the Bank of Canada continues to lower interest rates. As of the first quarter, 12.9% of new mortgage borrowers opted for a variable-rate mortgage, according to figures from the Bank of Canada. That’s up from a low of 4.2% […]
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Mortgage payments can sometimes be a tricky topic for some homeowners, leading to confusion about when payments are due and what time period they cover. Recently, we watched two client misunderstandings unfold, highlighting the need for clear, calm communication. Let’s delve into their cases and clarify why mortgage payments are made in arrears, not in […]
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Payment shocks at renewal due to shorter mortgage terms have become a growing concern for many Canadians. This has led some to question whether adopting longer mortgage terms, similar to those in the United States, would provide greater financial stability. While Canadian lenders can theoretically provide 15-, 20-, 25-, or even 30-year mortgage terms, market […]
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In the face of higher costs, more Canadians are changing their grocery shopping habits, hunting for bargains and switching to lower-cost brands — yet many are leaving money on the table when it comes to their single largest transaction. According to a recent survey conducted by Mortgage Professionals Canada, homeowners are doing less haggling at renewal, despite most facing higher interest rates. […]
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Average rents across Canada are now up 32% from their pandemic lows. The average asking rent in May was $2,202, up $200 from the previous month and 9.3% from a year ago, according to the latest monthly report from Rentals.ca. Rent prices have been climbing steadily in recent years, rising $540 or 32% since hitting their […]
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Both existing homeowners and new homebuyers are benefiting from a drop in interest rates seen over the past week. Following last week’s Bank of Canada interest rate cut, which lowered rates for existing variable-rate mortgage holders, bond yields also plunged, triggering reductions in fixed-mortgage rate pricing. Last week, Government of Canada bond yields, which influence […]
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A collective sigh of relief as the BoC cut rates for the first time in 27 month Today, the Bank of Canada boosted consumer and business confidence by cutting the overnight rate by 25 bps to 4.75% and pledged to continue reducing the size of its balance sheet. The news came on the heels of […]
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BMO reported a rise in delinquencies in the second quarter and said it expects credit challenges to persist with interest rates now likely to remain higher for longer. The bank saw 90+ day delinquencies in its real-estate secured lending (RESL) portfolio rise to 0.19% in the quarter, up from 0.17% last quarter and 0.14% of […]
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The likelihood of a rate cut next week has increased due to disappointing Canadian GDP growth. Real gross domestic product (GDP) only rose by 1.7% (seasonally adjusted annual rate) in the first quarter of this year, which is well below the expected 2.2% and the Bank of Canada’s forecast of 2.8%. Fourth-quarter economic growth was […]
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