First Foundation`s Best Rates to Open the Week:
1 Year 2.89%
2 Year 3.05%
3 Year 2.99%
4 Year 3.29%
5 Year 3.25%
7 Year 3.99%
10 Year 3.89%
ARM / Variable 2.85%
Line of Credit 3.50%
Qualifying Rate 5.44%
By the end of the day, Tuesday, the benchmark S&P/ TSX composite index had lost 10.57 points, or 0.09%, to 11,860.66. Earlier in the session, it was off as much as 85 points due to the European elections held over the weekend, the results of which could derail efforts to control the eurozone`s debt crisis.
In France, Greece and Germany, by voting for left of center candidates, citizens made it clear that they are infuriated with the current austerity measures that have been imposed in order to keep their country afloat but have caused depression-like conditions. A change in approach to managing the crisis will likely have to be made now but the uncertainty of what that approach may be left world markets on edge today.
Ottawa has been warning the general public about dangerously high household debt-to-income levels for a while now and depending on who you talk to, their rhetoric has either begun to achieved it`s purpose of reigning in debt growth or was over stated to begin with.
Bank of Canada Governor, Mark Carney, told the Commons Finance Committee that the growth of that debt has slowed from upwards of 10% a year, down to about 4%, for the past two years. The average debt to income ratio had climbed to an alarming 153%.
But Brian Hurley, head of private mortgage insurer Genworth Financial, has a somewhat different view according to an interview for mortgagetrends.ca. He looks back to 2007 when home price appreciation started to flatten. “We don’t see them (homeowners) stretching on the debt service levels like Ottawa is warning us about. We don’t see that coming through in our portfolio; as a matter of fact we see some good self-discipline there.”