Here are some highlights from recent News headlines relating to Mortgages in Canada
[Source - Dominion Lending Centres - March]
With financial institutions in the United States either faltering or collapsing altogether, banks in Canada now find themselves among North America’s largest.
A new ranking by Bloomberg News puts four Canadian banks among North American’s top 10, as measured by assets. Royal Bank, Canada’s biggest bank by assets, is now seventh largest in North America, according to data compiled by Bloomberg from company filings. TD Canada Trust, Scotiabank and Bank of Montreal rank eighth, ninth and 10th.
All of Canada’s six largest banks were profitable in the quarter that ended January 31st, 2009 and, according to Bloomberg, reported less than US$20 billion in debt-related write downs since the credit crisis began in 2007. – CTV.ca
Canadian banks are turning down some of the funding that the government is making available to them, a sign that they are recuperating from the financial crisis.
The banks have stopped selling the government the full amount of mortgages they could under Ottawa’s $125 billion mortgage purchase program – the centrepiece of the federal government’s plan to help the industry.
That’s not to suggest they aren’t facing problems, with consumers increasingly losing their jobs and unable to pay off their debts. But the banks are no longer struggling to raise funds to make loans. – Globe and Mail
Bill C-10, legislation that will help provide the immediate economic stimulus the Canadian economy needs to combat the global recession, received Royal Assent last week – allowing for the implementation of important elements of Budget 2009.
Key measures in the Bill include improved access to financing for Canadian households and businesses, strengthened benefits for Canadian workers, enhanced availability of training, increased Employment Insurance benefits and tax relief for Canadians. In particular, extension of Employment Insurance benefits by an extra five weeks will take effect immediately, helping Canadians who rely on this program now instead of forcing them to wait longer.
“Through Canada’s Economic Action Plan, our government is providing the responsible leadership required during these challenging economic times by giving Canadians the necessary tools do deal with the global economic crisis,” said Finance Minister Jim Flaherty. “Bill C-10 enables the government to provide the potent economic stimulus needed to encourage growth and restore confidence in our economy.”
First-time homebuyers are being lured into the real estate market by falling prices, lower interest rates, more selection and new government incentives, a new report shows.
RE/MAX said preliminary figures show sales were up in February, after a terrible January, driven by more first-time buyers entering the market.
The report comes alongside new Statistics Canada figures showing the first year-over-year decrease in new-home prices in more than a decade.
RE/MAX said lower prices and record low lending rates are prompting many first-time buyers to “get off the fence, out of the rental, and into the market”. – Canadian Press
Xceed Mortgage Corporation announced last week that it intends to apply to the Minister of Finance for approval to be continued as a federally regulated Schedule I bank.
Although no formal application has been made, Xceed has had preliminary discussions with the office of the Superintendent of Financial Institutions (OSFI) regarding its intentions to carry on business as a bank and is optimistic that it will receive the necessary approval to do so, although no assurances have been provided by OSFI.
“Our decision to apply to form a Schedule I bank reflects the changes that have taken place in capital markets during the past two years,” said Ivan Wahl, Chairman and Chief Executive Officer. “We believe that forming a deposit-taking financial institution will provide Xceed with another important means of raising stable capital at a reasonable cost that we can deploy productively for Canadians, particularly for originating new mortgages and renewing existing ones.”
Finance Minister Jim Flaherty unveiled a new government website last week: www.actionplan.gc.ca that will allow Canadians to hold governments and public officials accountable for action on the economy.
“Canadians want governments and public officials at all levels to work together to stimulate the economy,” Flaherty said. “They want to see us taking action on the economy in an accountable and transparent manner.”
The website, which will be updated regularly, includes details of Canada’s Economic Action Plan, with links to specifics of initiatives and projects as they are announced. It also explains the roots of the global financial crisis and Canada’s relative performance.
“We are responding with unprecedented speed because we are in a global recession that has arrived with unprecedented speed,” Flaherty said. “Canadians will now be able to measure progress so they can hold both elected representatives and unelected officials to account.”
The International Monetary Fund (IMF) said last week that while Canada faces tough times ahead, sound government fiscal policy and a stable banking system have made the country one of the best-equipped to weather the global recession.
The statement by IMF Mission Chief Charles Kramer following his visit to Canada said the government has managed its budget well over the last 10 years, cutting the federal debt in half, which “has left the country in prime form at the beginning of the global turmoil.”
He said official response to the crisis – namely the fiscal package announced in January – was well-timed and well-planned. He also praised the Bank of Canada, which has cut its target rate by 400 basis points since December 2007, to a record low of 0.5%.
Looking ahead, “the authorities have expanded their toolbox for dealing with the possible emergence of more severe financial strains. These tools include capital injections and other policy measures that, while not needed now, are prudently being developed should the need arise,” he said. – CEP News
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