Mortgage, Money and Dream – Our thoughts on Canadian Mortgage Market
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Slow Market – Two more years?

In the early ‘90s housing downturn – consumers remained worried about taking big loan for about 6 years. It took the market long time to start to recover and that risk avert mindset constrained credit growth in that period of time. If we can take a lesson

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Stagnant credit growth – Money is dead. Mortgage, HELOC growth will slow further

It is only about 10% of the money – that is created by the government. Rest of it come from various credit products offered by the banks or financial institutions. The industry grows the money by lending-deposit-lending cycle. Money is required to pump up nominal GDP. In

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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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Prediction, price and probability – why do we even try?

It is true that an economist can predict some future, at-least the media tells us that. Those predictions are doubtful at the best. Whatever had been said by experts – did come true in the end but certainly not on the time it was supposed to happen.

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Financial instability – interest rate gliding down as a result.

Whatever is in abundance on Earth we usually consume that the most. Let us take water and air as examples. We use those resources in a regular basis and do not even think about their existence – if we are not in a shortage of those two.

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Variable interest rate outlook – drifting away

Major Canadian banks are predicting that it is very un-likely that BOC will raise overnight rate any time this year. According to this report, today many major Canadian dealers including – RBC Capital Markets, BMO Capital Markets, CIBC World Markets, TD Securities and Scotia Capital, – confirmed

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Reports and surveys, indicating lower borrower pools.

The study by BMO shades some light on current market condition. That study tells us about borrowers and the way lending market working at present. The borrowing cultures are changing. Few years ago, the banks were selling home equity based loan to do renovations. Now only 43%

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Bank of Canada report – Making sense of it all

The Financial System Review by Bank of Canada was published. It takes a while to go through this 63 page document and understand what it said. Most of it is not for a mortgage agent like me. Part of it has some useful information. The parts which

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Interest rate – current condition

Many national newspapers started to report on interest rate scenario in the perspective of the weak housing demand. Last Friday CREA release their revised annual resale housing forecast and that news followed a barrage of headlines in many of Canadian national and local newspapers. The Globe and

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It will be 2017 before housing market reaches a positive equity territory (in US)

In the recent Weekly Market Insight published by CIBC suggested that it will be till 2017 before the housing market reaches a positive balance territory. In plain words “the selling price of the house will be more than the buying price”. How long is long? Using a

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