U.S. economy weakness helps keep variable mortgage rates low

This is one new article that came across my desk this morning:

http://ca.news.yahoo.com/s/capress/100226/business/us_economy

In summary, it is stating that the pace of growth for the US economy for the last quarter of 2009 was 5.9%, beating analyst estimates. Why is a mortgage broker writing a commentary on the US economy? I will tell you in a second. (more…)

Canada may require higher mortgage downpayments: report

http://ca.reuters.com/article/domesticNews/idCATRE5BK2FU20091221

I find this to be an interesting article. This is similar to what the government did last year with regards to requiring 5% downpayment and eliminating 40 year amortizations. At that time last year, although it made my job a little more difficult in terms of financing clients, I could understand why they did take those measures and I think things have worked out quite well in terms of stabilizing the Canadian real estate markets. (more…)

National Post: Fixed or variable? Time to revisit

There is a new article in the National Post discussing whether home-owners should choose fixed or variable in todays economic environment.

Fixed or variable? Time to revisit

It is interesting to me that over much of the time I have been in this industry, there are always pushes by the banks and media towards fixed rate mortgages, as this article appears to be intended for. The article seems similar in that while they always admit that over the long term, variable rate come out well ahead of fixed rates, the next words out of their mouths are “but that was before, and this is now.” (more…)

The Canadian Credit Bureau Story

If you have ever taken out a loan, used a credit card or participated in a “buy now, pay later” offer, you will have a credit history. Your credit report contains personal information, credit information, banking information, public records (bankruptcies or credit related judgments against you), collection information, consumer statements and credit report inquiries.

Before 1970 there were about 150 regional credit bureaus that divided up the country, today there are really just 3 major bureaus:

(more…)