Be careful before you break that mortgage

Low mortgage rates tempt, but penalties for breaking can be high

Holes in housing market data have economists worried

Canada’s financial leaders are under pressure to provide a clearer picture of the housing market, in the face of conflicting opinions about the health of a sector that is crucial to the national economy.

Home Buyers squeezed out of market must save more – or settle for less

What’s a buyer in the marginal category to do?

RBC warns bond yields could double – Spiking from historic lows

Time to strap on your seatbelt. The yield on the U.S. 10-year bond will shoot up to 3% by the end of this year, nearly twice this year’s lows, says Royal Bank of Canada’s chief U.S. economist.

Important Upcoming Credit Bureau Changes

Starting on Wednesday May 8, 2013, Equifax will begin reporting telecommunication (Telco’s) companies’ trade lines on your credit bureau reports (Bell, Rogers, Telus etc.).  While all Equifax account holders nationwide will have these trades reported on their bureaus by August 1st, we have arranged to have them delivered to you now.

Record benchmark price for Calgary single-family homes in April

CALGARY — The benchmark price of single-family homes in the city reached a new high of $452,900 in April, as market conditions that favour the seller finally drove prices above the unadjusted peak in 2007, said the Calgary Real Estate Board.

“It’s really encouraging to see that the Calgary market remains strong,” said Becky Walters, CREB’s president, in releasing the MLS data for April on Wednesday. “It’s reassuring to both buyers and sellers to see that this area is outperforming many parts of the country.”

Bank of Canada Update

By The Canadian Press:

OTTAWA – The Bank of Canada says it is holding firm on interest rates even though the economy is considerably weaker than it has anticipated.

Canada’s central bank has lowered its 2013 economic growth forecast to 1.5 per cent from the previous estimate of two per cent.

Want To Transform Debt Into Retirement Savings?

Preet Banerjee Globe and Mail Jan 21 2013

Recent polls and studies remind us that many Canadians have lots of credit card debt and little retirement savings. Fortunately, for some people, there is a way to reverse that – almost overnight.

As long as you can commit to running a balanced budget, or ideally a surplus budget, you will eliminate a high-interest debt used to pay for depreciating assets and replace it with a low-interest debt used to fund an appreciating investment.

Bank of Canada maintains overnight rate target at 1 per cent

Ottawa, Ontario - The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

B20 Summary

Here is what’s changing for federally regulated lenders:

  • HELOCs: The maximum loan-to-value on a HELOC will drop from 80% to 65%. That will sting borrowers who leverage HELOCs for productive purposes (e.g., as substitutes for open mortgages, or as a low-cost borrowing source for income-generating investments or small business).