Mortgage, Money and Dream – Our thoughts on Canadian Mortgage Market
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Growing inflation, how much worried should you be?

Canadian 5 year Bond Yield - One month trend - June 2014

Last week Canadian consumer price index made a lot of headlines, by reaching 2.3% in May 2014. For the first time in two years that inflation went about 2% mark. As a result all the investors thought that this is a clear indication of future rate hike.

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Mortgage defaults – remained stable for a while

Actual five years fixed mortgage rates offered by brokers

Apart from Alberta, numbers of mortgage defaults or payment misses have remained steady for last two years. Average Canadian mortgage arrear rate has stabilized close to 0.3%. Actual mortgage rate stayed almost flat during this period. That suggests a close correlation between the two – interest rate

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Bank of Canada – must remain a spectator for a while

Central banks generally talk about rate hike when the economy is booming. Canadian economy shows no sign of any solid performance except housing sector. The issue with Canadian housing sector is – it appears to be founded on quick sand of speculation. Bank of Canada is not

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Bank of Canada – Departure from 2% Inflation Target?

It is not news that Bank of Canada left the overnight target rate as-is (@1%). Prime rate remained at 3% for now. The chorus of the lenders about restriction in the delivery mechanism may be a prelude to push prime up in future – but that is

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When will mortgage interest rate go up?

What we are experiencing right now is not the right indicator of future.  What future has for us in its bag can be predicted (with median confidence) using some indicators. There are many factors which influence interest rate but only a handful of them have the most

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How long 1% overnight rate will continue

Bank of Canada has been running the longest stretch of stable overnight target rate in recent history. There is no end in sight to it. About year and a half ago, Canadian total inflation went negative. At that time the bank said it is a temporary drop

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Bank of Canada – Rate Announcement

It is just a less than a day away – the Bank of Canada rate announcement. All eyes are set on the bank to see how they react to the latest market changes. Housing is allegedly crashing and inflation is low – how would these influence the

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Mortgage Refinancing and Home Equity Takeout – Outlook

Early last year about one-in-five mortgage borrowers were taking out equity from their homes. On an average they took a bit more than $40,000 off their homes for various reasons. Many went for a fresh new mortgage and some preferred to get a second mortgage or even

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Aftermath of rate regulation or just basics

Mortgage default insurance regulation has changed. This may or may not affect some borrowers. Few border-line borrowers will be affected. Some rich buyers may not get CMHC insurance. Apart from effected few – it appears that the business will be as usual. That is what some established

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Canadian inflation target stays the same.

Government of Canada and Banks of Canada review country’s inflation target about every five years. That target dictates the BOC overnight target lending rate which partially keeps inflation within that target range. As Canadian dollar is a floating currency, its value or buying power fluctuates with many

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Inflation – A media round-up

Inflation rates went up to 3.1% for CPI and 1.9% for core-CPI, and it is being discussed all over. Everyone is busy documenting their opinions and sharing ideas. So, let us take a look at what they have to say. According to Bloomberg: The yield on the

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Inflation growing stronger or just another seasonal bubble.

Economists were predicting that May-11 inflation in Canada to be in the median range of 3.3% – according to Bloomberg News. Some others were looking at a 3.2% range. The actual data published by Statistics Canada today, proved to be much higher than that – consumer-price index

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