Sunday, January 30, 2011


New Mortgage Rules…

Concern over rising consumer debt levels is prompting Ottawa to make three new changes to Canada’s mortgage rules.

Finance Minister Jim Flaherty announced on Jan.17 that three new federal rules will come into effect March 18, 2011.

Reduce the maximum amortization period to 30 years from 35 years for government-backed insured mortgages with loan-to-value ratios of more than 80%.

CLICK HERE for the etnire story from The Edmonton Sun


Thursday, January 27, 2011

Canadians' debt problem is clearly fixing itself

Although they're still being barraged with ominous warnings about the dangers of too much debt, it appears that Canadians figured this out long ago. They were already cutting the growth of borrowing sharply by the middle of last year.

CLICK HERE for the entire story at The Gazette


Wednesday, January 26, 2011

Banks in spotlight amid rising housing debt

Amid rising uncertainty around the Canadian economy many analysts are quietly expressing concern about the banks and their exposure to ballooning consumer debt.

One statistic that gets bandied about is the value of outstanding mortgages which recently passed the $1-trillion mark.

What happens if employment starts to deteriorate and a lot of borrowers suddenly find themselves unable to make their payments? How would such an event impact real estate prices?

CLICK HERE to read the entire article at The Financial Post


Canadians heed warnings on increased debt by Bank of Canada



TORONTO, Jan. 26 /CNW/ - Canadians are getting the message on cutting debt levels with growth in household credit now rising at its slowest pace since 2001, finds CIBC's latest Household Credit Analysis Report.

Inflation adjusted growth in household credit in the third quarter of 2010 was the slowest in nearly ten years, while the 0.27 per cent increase in credit during November (the latest available data point) was the softest monthly reading in more than 15 years.

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Monday, January 24, 2011

What happens if you declare bankruptcy

When Valerie Freeman entered the commerce degree program at Ryerson University, she couldn't help but notice the credit card come-ons that seemed to be everywhere — in the student halls, pubs, even residences.

An optimistic 19-year-old, she took up the offers and was approved on the strength of her future income.

Freeman, freshly armed with plastic, indulged in outings at the nearby Eaton Centre for stress-relief shopping.
It turned into more and more; she bought clothing, shoes, gifts, a laptop, “You name it, I charged it,” Freeman told the Star.

CLICK HERE to read the entire article at The Toronto Star

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Mortgage insurance needs to be returned to roots

Mortgage insurance is on its way to being mortgage insurance once again.

No longer should it be boat-loan insurance, or vacation-funding insurance, backed by the Canadian taxpayer. The package of mortgage reforms unveiled by the federal government Monday goes some lengths to ensuring that’s true, but there’s more that can be done.

CLICK HERE to read the entire article at The Globe and Mail

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Bank of Canada chief warns again on debt levels

Bank of Canada Governor Mark Carney warned again on Sunday that Canadians should take steps to deal with high levels of household debt because interest rates would at some point rise from near-historic lows.

"Canadians could overextend themselves and they could get into a position where the debts that are sustainable at very low interest rates prove unsustainable when rates return to a more normal level," he said in a transcript of an interview with CTV's "Question Period."

CLICK HERE for the entire story from REUTERS

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