1 Year 2.89%
2 Year 3.05%
3 Year 3.19%
4 Year 3.29%
5 Year 3.09%
7 Year 3.99%
10 Year 3.89%
ARM / Variable 2.90%
Line of Credit 3.50%
Qualifying Rate 5.24%
The Toronto stock market closed lower as energy stocks retreated on a sign of falling demand and concerns about potential fallout from the worsening debt crisis in Europe and Greek elections on Sunday.
The S&P/TSX composite index lost 80 points to close at 11,497.87 as traders focused on Spain and Italy and the higher borrowing costs both countries are facing.
Traders worry that the $E100 billion euros Spain will be borrowing to aid its banks will just add to the government’s already considerable debts and perhaps force it to seek its own sovereign bailout.
Canada’s banking regulator has stepped in with changes that may take some of the edge off the central bank’s worries about household debt. As part of a larger, international effort to try to prevent another housing crisis like the subprime mortgage disaster, the Office of the Superintendent of Financial Institutions (OSFI) will announce a full suite of new lending rules later this month but ahead of that announcement, the OSFI issued a letter to Canada’s banks detailing their plans for mortgage rules so far.
The biggest change comes in regards to the Home Equity Line of Credit (HELOC) product. The OSFI plans to cut the amount of debt available through HELOC‘s from the current limit of 80% of a property’s value to 65%.
Although there was an expectation among some observers that HELOCs would be required to amortize at some point, they will not. OSFI recognizes that “the revolving aspect of a HELOC is a fundamental feature of the product”.