Mortgage Blog
Canadian Mortgage Lessons for America
January 25, 2010 by Gordon McCallum
I just read a great analaysis by the Financial Times by Robert Pozen of the key differences between the Canadian and US housing markets.
Pozen gets into the three main differences between the two systems, which he contends are the largest reasons why the Canadian real estate market has stayed relatively strong when compared to the utter collapse of real estate markets in many US States.
The three biggest differences, according to Pozen are as follows:
1. Canadian lenders require at least 5% down, and often more, in order to purchase a home. (I guess nobody told him that lenders ...
Read more »Bank of Canada Rate Likely to Remain Unchanged
January 17, 2010 by Gordon McCallum
Most analysts are predicting that the Bank of Canada’s announcement tomorrow, Tuesday January 19th, 2010, will signal that things are improving but reiterate it’s previous commitment to keeping the overnight rate at it’s current .25%.
iMarketnews.com has a story about the Bank of Canada’s likely decision that includes some very interesting quotes, such as:
- Inevitably, the Bank will start to increase its rate, but not soon, most believe. That likely will happen “sometime this year,” says Eric Lascelles, chief rates strategist for TED Securities. However, he adds, “it is simply premature for the fireworks to ...
Read more »Should You Consider a 10-Year Mortgage Rate?
January 17, 2010 by Gordon McCallum
With interest rates at record lows, it might be tempting to consider a 10-year fixed rate. After all, at the current rate of 5.35%, that number is significantly lower than the past decade’s average five-year fixed mortgage rate of 6.78% (albeit, the posted rate).
The tricky thing about 10-year rates is that it’s impossible to predict where interest rates will go within a decade. In the past decade alone, five-year fixed rates fluctuated between 8.75% and 3.49% – and variable rates were even lower. True, if you were to opt for a five-year fixed rate ...
Read more »No Undue Risk - Part Two
January 14, 2010 by Gordon McCallum
In a follow-up to yesterday’s report from CAAMP showing that consumers in Canada are not taking undue mortgage risk, there’s a very interesting article with quotes all around from bank presidents, economists, et al furthering the suggestion that Canada can avoid a US-style mortgage meltdown.
You can read the Toronto Star mortgage article here
What do you think?
Some of the more interesting quotes from the article include:
Will Dunning: “The degree of risk from rising mortgage rates appears to be small and manageable.”
“The reality is that in the past, interest rates have played only a minor ...
Read more »Canadian Home Owners Not Taking 'Undue Risk'
January 13, 2010 by Gordon McCallum
The Canadian Association of Accredited Mortgage Professionals has released the results from a survey showing that Canadians are making good, responsible financial decisions when it comes to their mortgage borrowing.
This Financial Post article goes into some more detail, and basically backs up the findings we’ve had too.
I did a quick report on our system and over the past three years the average loan-to-value ratio (LTV) for our clients was about 65.5%. Not bad – especially considering how many mortgages for first-time buyers we do. Those usually involve lower down-payments and higher LTVs.
Keep it up Canada! Let ...
Read more »Canadian Bond Watch - January 13 2010
January 12, 2010 by Gordon McCallum
As you know by now, fixed interest rates are directly correlated with bond yields. The current Canadian bond yields show that bond yields have come back down after a 30 basis point run up over the past four or five weeks.
There had been a lot of speculation that the US and Canadian job reports would indicate better growth, which meant a likely scenario of rate increases. Thankfully for home buyers, that didn’t materialize, so we didn’t see any massive rate increases – with one exception.
In fact, today I received a notification from Street Capital that they had ...
Read more »Canadian Mortgage Awards 2010 - Call for Nominations!
January 10, 2010 by Gordon McCallum
In 2009 First Foundation was privileged to have been selected as a finalist in the Canadian Mortgage Awards for “Best Customer Service from an Individual Office.” We didn’t win, so we need your help to get back to Toronto this year and try again!
Canadian Mortgage Professional Magazine publishes the Mortgage Broker News as well as Canadian Realestate and they’ve been big supporters of ours and our industry.
We’re asking for your help! If you’ve worked with us in the past year and consider us worthy of a nomination, please visit the CMP Canadian Mortgage Awards ...
Read more »New for 2009 Tax Year: Home Buyer's Tax Credit
January 7, 2010 by Shayla Damery
It’s almost tax season again, and you know how I can tell? I received my tax package in the mail yesterday. Being the numbers nerd that I am (I get excited about doing my taxes), I had to open it up and flip through the tax guide to get an idea of what kinds of credits, etc. that I would qualify for in the 2009 tax year. Something that was highlighted in the package is a new program for 2009 and subsequent tax years that I wasn’t aware of: the Home Buyer’s Tax Credit.
Basically, you’re ...
Read more »New Year's Resolution: Protect Your Identity
January 6, 2010 by Gordon McCallum
As we embark on the new journey known as 2010 many of us have made a list of ways we’d like to improve ourselves. Whether it’s better diet, more exercise, healthier lifestyle habits, better financial discipline, or just good old fashioned determination to have more fun, one thing is sure: I don’t know anyone who wants to have a bad year this year.
One way to have a very bad year is to get your identity stolen. At the very least, it can be a terrible hassle. At the very worst, it could cost you a substantial ...
Read more »I look HOT in tights!
December 20, 2009 by Gordon McCallum
Merry Christmas! We hope you and your family have had a great year. At First Foundation we’ve got lots to be thankful for, so here’s a quick list in no particular order:
1. You! Our customers, for making 2009 our best year yet!
2. Our families, for putting up with us.
3. Mark Carney, the chairman of the Bank of Canada, for keeping interest rates low.
4. The Feds for mandating somewhat more reasonable lending policies.
5. Good honest hard working Albertans who take care of their credit – making it much easier to get them approved.
6. Our ...
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