|While many parts of the world are struggling economically and housing has become out of reach for many, Canadians are still enjoying vibrant times in both housing and the overall economy. Credit agencies around the globe continue to rank Canada in the top echelons of well managed countries.
-12.5 million households in Canada…31% rent, 69% own
-of the 69% that own, 39.9 have a mortgage and 28.9% have no mortgage
-69% of homeowners have more than 20% equity in their homes
-1.5 trillion in household debt but 1 trillion of that is in mortgages
As Canadians we are in the fortunate position to be well equipped to take advantage of our responsible nature and the fact that interest rates are at the most favourable rates and terms in history. Looking at your own situation in the most of opportunistic times only makes for responsible and smart borrowing.
If you’re thinking of buying your first or second home, borrowing to invest to increase your wealth and take advantage of current tax laws or simply need to refinance all your debts into one, together we can put a plan in place that looks at all the choices you have to take advantage of this extraordinary time.
Your options are as unique as you are, call or email me today and together let’s start exploring your opportunities.
By the way we just introduced a new corporate video and it’s gone viral. Have a look, it’s quite funny.
Category Archives: Mortgage News
Since August, financial markets have been pricing in at least oneBank of Canada rate cut (according to overnight index swap yields, which reflect rate expectations).
Economists, on the other hand, have hung on to their rate hike forecasts for dear life. Most analysts still predict that the next BoC move will be a rate increase in late 2012.
Now, we’re starting to see some economists let go of those predictions.
BofA economist Sheryl King is the latest example. She’s looking for the overnight rate to make a round-trip back to 0.25% by early 2012. That would peg prime rate at 2.25% if banks pass along the full cut.
David Madani, an economist at Capital Economics, is looking for a half point cut by April or June. “Even if we are wrong,” he says, “the broader message remains that interest rates will remain unusually low for a very long time.”
King and Madani join Goldman Sachs as being the most vocal rate cut forecasters.
If they’re right, then as we noted onMonday, variable rates could continue outperforming 5-year fixed rates over the next five years. That’s true even with the stingy discounts from prime being offered at the moment. (Nationally speaking, variables are averaging a measly prime – 0.25%, or 2.75% today.)
Poor discounts aside, a minority of borrowers today are willing to make a bet that rates stay flat or drop over the next 1-2 years.
“I almost expect more people to jump into variable given the long-term interest rate environment looks so benign,” says Sal Guatieri, senior economist with BMO Capital Markets.
Rob McLister, CMT