CanEquity Mortgage & Financial Blog (Page 2)

Many Canadians dream of owning a recreational property, where they can retreat to enjoy nature or a change of scenery. When it comes to financing those purchases, though, Canadians are split on the best way to turn that dream into a reality.

More than half of those who intend to buy a recreational property in the next five years or so said they would be willing to rent out the property to offset some of the ownership costs, according to a recent survey from Royal LePage Real Estate Services. Other potential methods would-be homebuyers said they would use to afford their dream homes include cutting back on discretionary spending or going in on a purchase with family and friends. One in four indicated they would like to buy land and build a home at a later date.

The story is different among those who actually own recreational properties, the survey found. Despite the willingness of would-be buyers to rent out their homes, only 17 percent of current owners do so. A further 10 percent said they would like to rent out their recreational property, but haven't done so. Continue reading »

Mortgage rates in Canada may be near all-time lows, but that doesn't mean everyone is reaping the benefits. For many, home loans and other debts are proving to be a hindrance on retirement savings, according to a new BMO Financial Group report.

BMO surveyed homeowners across the country to see how many are worried about carrying mortgage debt into retirement. Overall, more than half of Canadians – 51 percent – said they would probably carry a mortgage into retirement, while roughly the same amount – 52 percent – said their mortgage made it hard to save for their golden years. Canadians in British Columbia and Quebec were most likely to carry a mortgage into retirement. In those provinces, nearly three out of four respondents said they would be paying off their home loans long after exiting the workforce.

"Paying off your mortgage prior to entering retirement is very important, because it will eliminate a significant amount of debt and keep you from having to manage higher debt loads after you stop working," said Tina Di Vito, head of the BMO Retirement Institute. "When you are no longer receiving employment income, it makes it much harder to let go of large amounts of money." Continue reading »

It may not be the strangest holiday in Canada (National Peanut Butter Lover's Day, anyone?), but healthcare professionals in Ottawa are getting ready to celebrate the first ever Medical Imaging Team Day on May 17.

The day is meant to celebrate the doctors, nurses, sonographers and other medical professionals who make up the medical imaging team. Imaging professionals who will be in Ottawa for the celebration also hope the event will educate the public on medical imaging.

"Many Canadians have, or know someone who has, undergone a medical imaging procedure," according to a Medical Imaging Team Day press release. "It is one of the fastest-growing medical specialties today and yet most people know very little about medical imaging, including its benefits and risks. Medical imaging examinations include X-ray, MRI, CT scan, ultrasound and nuclear medicine." Continue reading »

Existing home sales in Canada inched up in April, piggybacking on the Toronto and Calgary markets, which handily outpaced the rest of the country, according to the Canadian Real Estate Association.

From March to April, home sales climbed 0.8 percent. In year-over-year numbers, the market was up 11.5 percent from the same period in 2011. The CREA speculates that tighter mortgage rules implemented in March of last year caused the market to stall, contributing to the big difference.

So far this year, Canadians have bought and/or sold 157,804 homes, 49,480 of which were sold last month. On the whole, according to the CREA, the market is balanced. The sales-to-new listings ratio, which signifies market health, is currently roughly 55.9 percent. Ratios of between 40 and 60 percent are considered balanced. Continue reading »

Canada's housing market has been on an upward trajectory for the past few years, with no real end in sight. In Ottawa, bank leaders and financial regulators are at loggerheads over the best course to take to avoid a serious meltdown. Among commercial real estate professionals, however, attitudes and outlooks are good.

The results of the Second Quarter 2012 Canadian Real Estate Sentiment Survey from the Real Property Association of Canada indicated most commercial real estate leaders see continued growth in the sector over the coming year, which will plateau sometime around the fourth quarter. The Overall Real Estate Sentiment Index climbed two points in the second quarter to land at 63 out of a possible 100. Anything over 50 signifies a positive trend, anything below 50 a negative trend. This marks the 11th consecutive survey in which results reflect a positive outlook. Continue reading »

Shifting wage and lifestyle trends have resulted in more women than men looking to buy their first home in the next two years.

The 19th Annual Royal Bank of Canada Homeownership Poll surveyed likely homebuyers across the country to discover attitudes toward buying a new home. Of those who are likely to buy a house in the next 24 months, 49 percent of female respondents would be first-time homebuyers, compared with 35 percent of men.

Man or woman, affordability is the most commonly cited reason for delaying homeownership – 47 percent of respondents of both sexes placed it at the top of their list. In other areas, however, women appear to be more cash-conscious than their testosterone-driven counterparts. Nearly one in four women also listed concerns over job security, too small a down payment or simply not being ready as reasons to delay buying a home, compared with roughly 15 percent of men. Continue reading »

Home prices across Canada continued to rise this month, prompting a fresh wave of concern over a possible housing bubble, according to a recent analysis in the Financial Post.

Statistics Canada recently released a report showing home prices in March went up 0.3 percent, marking the 12th consecutive month of increases, according to the Post. Coupled with a report from the Canadian Mortgage and Housing Corporation that showed new home starts up 14 percent in April, the news has some politicians warning – again – of a potentially detrimental housing bubble.

The two most notable doomsayers, Bank of Canada governor Mark Carney and Finance Minister Jim Flaherty, have been clamoring for consumers to reign in borrowing to prevent a collapse. According to Carney, consumer debt in Canada poses the greatest domestic threat to the economy. Despite their dire rhetoric, neither man has used his position to implement measures that might slow the market. Continue reading »

Canadian mortgage rates have been hovering at all-time lows for roughly two years, since the Bank of Canada lowered its overnight target lending rate to 1 percent in 2010. But with the bank indicating it may soon raise interest across the country, many have been wondering whether average Canadians are ready for the financial burden. One new study said most of them are.

A large majority of Canadians have been taking steps to mitigate the risk of higher monthly mortgage payments due to interest rate hikes, and most appear capable of absorbing a 2 percent interest rate hike over the next couple years, according to Toronto Dominion Bank economist Francis Fong. In a recent study, he and his organization noted that many Canadians have been paying down their home loans and tackling household debt, reported The Globe and Mail. Continue reading »

Lots of changes are coming for the Canadian Mortgage and Housing Corporation, starting with some new oversight from the Office of the Superintendent of Financial Institutions. But what will this mean for consumers looking for a mortgage? For many, the new rules will make home loans easier to get through an alternative mortgage broker.

More stringent oversight of the CMHC will mean the agency can back fewer mortgages. Ministers have already declined to raise the current $600 billion cap on mortgages backed by CMHC, and as the agency nears that limit, some mortgage lenders might become reluctant to issue new loans. In a note to clients obtained by the Financial Post, GMP Securities Analyst Stephen Boland said customers at bigger banks will feel the new restrictions most keenly. Continue reading »

Canadian homeowners are good at paying their debts on time, a new study suggests. The Canadian Imperial Bank of Commerce recently released its Household Credit Analysis report, which shows the rate of mortgage delinquency across the country is just 0.4 percent.

The highest delinquency rate appears to be in Alberta, where 0.7 percent of homeowners are behind on their home loans. According to CIBC, this could be because of a high rate of younger, less established homeowners in the region. The figures are still far healthier than the delinquent mortgage rate of U.S. homeowners, which credit rating agency TransUnion places at 5.78 percent, according to The Associated Press.

The mortgage market as a whole is starting to show some signs of moderating, according to CIBC. Increased regulation of the Canadian Mortgage and Housing Corporation, as well as increased use of full-scale appraisals during adjudication, are both contributing to this trend, said Benjamin Tal, deputy chief economist at CIBC and author of the report. Continue reading »