When: Monday May 25th, 2009 7:00pm - 8:00pm
Location: Rexall Health Centre
9625 Yonge Street - Richmond Hill (Yonge & Weldrick)
This FREE Seminar is for everyone including: Homeowners, First Time Home Buyers, Realtors and Real Estate Investors. You are invited to attend this Mortgage Seminar to learn why now is an ideal time to purchase your first home, upgrade to a bigger home, or to refinance your existing mortgage and take advantage of today's low rates:
SAVE MONEY
Refinancing Tips from Mortgage Professionals, Lower your Monthly Payments, Consolidate your Debts, and Increase Your Disposable Income Immediately!
Access Your Money
Use the Equity in your home to Renovate & Expand your Home, Finance your Child's Education, Make a Large Purchase, Take a Vacation, or Divesify your Assets.
First Time Home Buyers
Current market conditions, assembling your team or experts and why now is an ideal time to purchase.
To Register:Please call Greg Barrow at 416 807 7123 or email gbarrow@dominionlending.ca
Friday, May 22, 2009
Mortgage rates to remain stable: CMHC
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[Source - CMHC]Mortgage rates are expected to remain within 25 to 75 basis points of their current level for the remainder of 2009, according to CMHC's second quarter Housing Market Outlook, keeping them "very low in a historical context."
"Movements in mortgage rates are difficult to predict due to volatile economic conditions," the report stated. "Nevertheless, rates are expected to remain steady this year and edge higher in 2010."
Along with mortgage rates, CMHC listed employment, net migration and low birth rate as having key effects on residential construction, and forecast housing starts to decline to 141,900 in 2009 (most notably in Alberta and Saskatchewan) before rebounding to 150,300 in 2010.
"The decline in housing starts in 2009 can be attributed to several factors, including the current economic climate, increased competition from the existing home market, and the impact of strong house price growth between 2002 and 2007," said CMHC chief economist Bob Dugan. "Housing market activity will begin to strengthen in 2010 as the Canadian economy recovers, bringing housing starts more in line with demographic fundamentals over the forecast period."
Wednesday, May 20, 2009
Dominion Lending Centres on American Idol
In a distinctive time when Canadians need to know who to look to with confidence, Dominion Lending Centres emerges as the influential and only national mortgage company to reach into living rooms across the nation and educate the public about the necessity of consulting a Dominion Lending Centres mortgage professional for all of their mortgage needs.
If you are an American Idol fan and watched the finale tonight you would have seen some Dominion Lending Centres advertisments. In addition Dominion Lending Centres aired some ads on the Survivor finale on May 17th.
If you missed these shows you can still see our ad below.
We are the best equipped Mortgage Professionals, so give us a call today to find out why now is the best time to purchase your first home, upgrade to a bigger home or to refinance your existing mortgage. Call Greg Barrow at 416.807.7123
If you are an American Idol fan and watched the finale tonight you would have seen some Dominion Lending Centres advertisments. In addition Dominion Lending Centres aired some ads on the Survivor finale on May 17th.If you missed these shows you can still see our ad below.
We are the best equipped Mortgage Professionals, so give us a call today to find out why now is the best time to purchase your first home, upgrade to a bigger home or to refinance your existing mortgage. Call Greg Barrow at 416.807.7123
Canada's recession, likely its deepest since the Great Depression, may also be its shortest.
[Source - Bloomberg News Published: Wednesday, May 20, 2009]
Rising home and car sales, unexpected gains in building permits and employment, easing credit conditions and higher commodity prices signal Canada's slump may be nearing an end. Eight of 11 economists surveyed by Bloomberg this month predict the economy will return to growth next quarter.
"It doesn't feel quite like it's over yet, but people are breathing a little bit better," said Russ Girling, president of pipelines at TransCanada Corp., the country's biggest pipeline company, which recorded a 12% rise in revenue in the first quarter.
All but one of the country's five post-Second World War major recessions have lasted at least one year, with the shortest in 1957 at nine months, according to Philip Cross, who tracks the country's business cycles for Statistics Canada.
Canada's economy contracted at a 3.4% pace in the last quarter of 2008 and growth in the first quarter may shrink at a 7.3% rate, the Bank of Canada estimates.
The U.S. recession started in December 2007, according to the National Bureau of Economic Research, the arbiter of U.S. business cycles. Statistics Canada, which defines a major recession as a slump in which both employment and output post annual declines, has yet to date the start of Canada's recession, Cross said. The Bank of Canada has said the country entered into a recession in the fourth quarter of last year.
No Bailouts
While Canada has suffered from falling U.S. demand for exports, the country's banks have largely avoided credit losses. No government money has been given to any of Canada's 21 banks since global credit seized up in August 2007. The U.S. government oversees about US$200-billion in investments in banks through the taxpayer-funded Troubled Asset Relief Program.
Canada's housing market has also held up better than in the U.S., where prices declined 18.6% in February from a year earlier, according to the S&P/Case-Shiller index of 20 major cities. Average resale home prices in Canada dropped at less than half that pace during the same period, according to the Canadian Real Estate Association.
"We may not be in a recovery, but I think we might be in a position where it's not getting worse, where it's truly plateauing," Prime Minister Stephen Harper said in a May 8 interview, adding he'd like another "month or two" of data before coming to that conclusion.
Canada's benchmark Standard & Poor's/TSX Composite Index has posted a 50% gain in U.S. dollars since its low on March 9, compared with the 34% gain for the Standard & Poor's 500 Index over the same period.
Recession
Economists surveyed by Bloomberg this month said they expect Canadian growth to rebound at an annual pace of 0.5% in the third quarter and by 2% in the fourth quarter.
"In February, the rapid decline in demand had come to an end and by April, the rapid declines in employment had come to an end," Cross said. "Was that a temporary end or not? We don't know."
While Canada's jobless rate is at a seven-year high of 8%, the economy in April created new jobs for the first time in six months and sales of existing homes rose the most in more than five years. Credit markets are also improving. The Bank of Canada's composite index of financial market conditions is at its strongest since September.
Improved credit markets have allowed companies such as Enbridge Inc., the biggest transporter of oil to the U.S. from Canada's oil sands, to move ahead with the new debt sales to finance operations. Enbridge sold $400-million of bonds last week.
'Cross Our Fingers'
"Our approach is to watch for windows when we think there are opportunities to raise capital funds," said Richard Bird, Enbridge's chief financial officer. "This is a window and let's cross our fingers and hope that it's a trend."
A quick end to the recession would raise pressure on the Bank of Canada, led by Governor Mark Carney, to say it no longer plans to keep its benchmark lending rate near zero through June 2010. The country's central bank projected last month the economy will contract four consecutive quarters, bringing it closer to the average length of the last five major recessions.
"The Bank of Canada will have to revisit their own view of what they will do with interest rates," said Paul-Andre Pinsonnault, an economist at National Bank Financial. "GDP will be stronger than what they are looking for."
A quick end to the recession doesn't guarantee a strong rebound. DBRS Ltd., a rating company, predicts an L-shaped recovery for Canada, which it defines as "a prolonged period of flat or slowly improving performance."
"The earliest I can see an improvement is in October or November," said Jacques Plante, chief financial officer of Hart Stores Inc., a discount retailer. "I can't imagine we'll have anything positive this summer."
Rising home and car sales, unexpected gains in building permits and employment, easing credit conditions and higher commodity prices signal Canada's slump may be nearing an end. Eight of 11 economists surveyed by Bloomberg this month predict the economy will return to growth next quarter.
"It doesn't feel quite like it's over yet, but people are breathing a little bit better," said Russ Girling, president of pipelines at TransCanada Corp., the country's biggest pipeline company, which recorded a 12% rise in revenue in the first quarter.
All but one of the country's five post-Second World War major recessions have lasted at least one year, with the shortest in 1957 at nine months, according to Philip Cross, who tracks the country's business cycles for Statistics Canada.
Canada's economy contracted at a 3.4% pace in the last quarter of 2008 and growth in the first quarter may shrink at a 7.3% rate, the Bank of Canada estimates.
The U.S. recession started in December 2007, according to the National Bureau of Economic Research, the arbiter of U.S. business cycles. Statistics Canada, which defines a major recession as a slump in which both employment and output post annual declines, has yet to date the start of Canada's recession, Cross said. The Bank of Canada has said the country entered into a recession in the fourth quarter of last year.
No Bailouts
While Canada has suffered from falling U.S. demand for exports, the country's banks have largely avoided credit losses. No government money has been given to any of Canada's 21 banks since global credit seized up in August 2007. The U.S. government oversees about US$200-billion in investments in banks through the taxpayer-funded Troubled Asset Relief Program.
Canada's housing market has also held up better than in the U.S., where prices declined 18.6% in February from a year earlier, according to the S&P/Case-Shiller index of 20 major cities. Average resale home prices in Canada dropped at less than half that pace during the same period, according to the Canadian Real Estate Association.
"We may not be in a recovery, but I think we might be in a position where it's not getting worse, where it's truly plateauing," Prime Minister Stephen Harper said in a May 8 interview, adding he'd like another "month or two" of data before coming to that conclusion.
Canada's benchmark Standard & Poor's/TSX Composite Index has posted a 50% gain in U.S. dollars since its low on March 9, compared with the 34% gain for the Standard & Poor's 500 Index over the same period.
Recession
Economists surveyed by Bloomberg this month said they expect Canadian growth to rebound at an annual pace of 0.5% in the third quarter and by 2% in the fourth quarter.
"In February, the rapid decline in demand had come to an end and by April, the rapid declines in employment had come to an end," Cross said. "Was that a temporary end or not? We don't know."
While Canada's jobless rate is at a seven-year high of 8%, the economy in April created new jobs for the first time in six months and sales of existing homes rose the most in more than five years. Credit markets are also improving. The Bank of Canada's composite index of financial market conditions is at its strongest since September.
Improved credit markets have allowed companies such as Enbridge Inc., the biggest transporter of oil to the U.S. from Canada's oil sands, to move ahead with the new debt sales to finance operations. Enbridge sold $400-million of bonds last week.
'Cross Our Fingers'
"Our approach is to watch for windows when we think there are opportunities to raise capital funds," said Richard Bird, Enbridge's chief financial officer. "This is a window and let's cross our fingers and hope that it's a trend."
A quick end to the recession would raise pressure on the Bank of Canada, led by Governor Mark Carney, to say it no longer plans to keep its benchmark lending rate near zero through June 2010. The country's central bank projected last month the economy will contract four consecutive quarters, bringing it closer to the average length of the last five major recessions.
"The Bank of Canada will have to revisit their own view of what they will do with interest rates," said Paul-Andre Pinsonnault, an economist at National Bank Financial. "GDP will be stronger than what they are looking for."
A quick end to the recession doesn't guarantee a strong rebound. DBRS Ltd., a rating company, predicts an L-shaped recovery for Canada, which it defines as "a prolonged period of flat or slowly improving performance."
"The earliest I can see an improvement is in October or November," said Jacques Plante, chief financial officer of Hart Stores Inc., a discount retailer. "I can't imagine we'll have anything positive this summer."
Tuesday, May 19, 2009
Weekly Mortgage Rate Report - Toronto, Ontario
| This edition of Weekly Rate Minder has the latest, best rates for Canadian mortgages. At Dominion Lending Centres, we work on your behalf to find the mortgage that suits your needs. Best of all - our service is "free".* It's the selected lender that pays us and YOU get the best rate. *(O.A.C., E.&O.E.) | ||||||||||||||||||||||||||||||||
| • Our Best Rates (May 18, 2009) • Explore Mortgage Scenarios with Helpful Calculators on gregbarrow.ca | ||||||||||||||||||||||||||||||||
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Variable rate mortgages from as low as Prime + .75% Rates are subject to change without notice. Fixed mortgage rates shown in table above and quoted variable mortgage rates are available nationally to qualified individuals. Some conditions may apply. Lower rates may be available in certain regions, or to those with higher credit scores or higher net worth – check with your Dominion Lending Centres Mortgage Expert for full details. *O.A.C., E.& O.E. About Dominion Lending Centres
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Thursday, May 14, 2009
Possibly the Best Time Ever for First Time Home Buyers
First Time Home Buyers in Toronto and across Canada are purchasing their dream homes and taking advantage of today's low interest rates and lower housing prices, and the pace is picking up. The spring market is here and we are definitely in a buyers market.Some of my clients have lost out on multiple offer situations and others have gone back to make an offer, only for the property to already have been sold. Needless to say, if you have been waiting to make an offer due to lower rates, or further declines in the housing costs, you really don't need to wait any longer. It's time to get out there with your Realtor, find your dream home and snap it up before someone else does.
I have talked about the many incentives for First Time Home Buyers including:
1) Increase to $25,000 withdrawal amount from your RRSPs under the Home Buyers Plan (HBP)
2) $750 tax credit to closing costs for any purchase in 2009
3) Provincial Land Transfer Tax Rebate
4) Toronto Land Transfer Tax Rebate
For more details on any of these incentives, please call email me.
You are also invited to attend my FREE Mortgage Seminar on May 25th, 2009. It will be held at the Rexall Health Centre in Richmond Hill. I will be covering many topics, including Mortgage Basics, Market Conditions, First Time Home Buyer Tips, Assembling your Team of Experts and more. To register, please call Greg at 416 807 7123 or email me.
Have a great day and Happy House Hunting!
Wednesday, May 13, 2009
The 5 C's of Borrowing
[Source - Bob Quinlan]
A big part of the impending “doom and gloom” of the feared collapse of our economy has come from the lending policies, the performance of borrowers and the adjustments being made to lending policies of today and the future. When you are looking to borrow you need to consider that the economic climate will dictate how a lender will look at a deal. How the lender will come to the decision to approve a deal was a lot different in 2007 as to what it is in 2009. I would like to offer you who are reading this the basics of lending/borrowing along with some personal comments that help you decide: if you are going to apply for credit and what you should consider.
Firstly, lenders are in business to make (not lose) money. Consequently when a bank lends money it wants to ensure that it will get paid back. (the same as a borrower expects to come out of the end of a transaction with more than they went in with). To maximize the possibility of being paid back, the bank wants to make sure that there is sufficient assurance that a person can and will pay back a loan. The lender must consider the 5 "C's" of Credit each time it makes a loan.
Character
Is the general impression you make on the potential lender. The lender will form a subjective opinion as to whether or not you are sufficiently trustworthy to repay the loan. Your educational background and experience in your field of work will be included. The length of time at your current employment and your current residence will be considered. The longer you have been at both, the higher you will score on the character scale. In 2007 there was little concern that your future might be in jeopardy. In 2009 every source of income is scrutinized as whether it is feasible that it will continue.
Collateral
Is the extra security the lender has to cover the loan. In real estate transactions this generally means the property. If for some reason, you cannot repay the mortgage, the bank wants to know that the real estate the mortgage was taken out for is good and marketable real estate. A current real estate appraisal will determine the value for the property in today's market. Some lenders will limit themselves to the type of property they are going to accept. Rural properties have less interested buyers than urban properties. In the case of a foreclosure the lender doesn’t get the property. They have to apply to the courts to have them placed back on the market for resale to repay the loan. This takes time and money. Lenders will charge for the risk accordingly.
Capital
Is the money you personally have invested in the purchase, otherwise known as your down payment. The more of your own money you invest as a down payment, the more likely that you will do all you can to maintain your payment obligations. This fact was evident during the recession of the 90s where a large number of the power of sale properties, were at one time, purchased with small down payments. Capital is also reflected by your ability and willingness to save money and accumulate assets. The higher your net worth, the more you have as a cushion for repayment in the event you run into a financial set-back. Saved or earned capital is more highly regarded than “gifted”.
Credit
Is the evaluation of your habits in performing credit obligations. The information about your credit history is stored at the "credit bureau" and indicates how well you paid your bills over the last 6 years. All major credit cards, auto loans, leases etc. are reported to the credit bureau. A lender will evaluate your ability to maintain your obligations and try and determine how well you live within your means. Some individuals make the mistake of not paying the minimum monthly obligations on loans and credit cards with the expectation of making a larger payment the following month. These missed payments appear on their credit report branding them as chronic "late-payers" for the next 6 years.
Capacity
To repay the loan is probably the most critical of the five factors. The lender will want to know exactly how you intend to repay the loan. The lender will consider your income as it relates to the loan that you are applying for. Does the monthly carrying costs of the loan represent less than or equal to 32% of your total monthly income? If it is, the probability of you successfully repaying the loan is fairly high. When you include your personal debts, loans, cards, etc., a lender will likely not approve your total debt load of higher than 40% of your total monthly income. Prospective lenders will also want to know about any other sources of income you may have to repay the loan, if your steady income stream is interrupted. What savings can you fall back on? What property do you have that you could sell to cover payments?
The biggest factor that people are having the most difficult time with today is: These principles above change complete depending on what the future economy is predicted to do. For the past six years we have had a rising economy. Increasing property values. Little fear of people losing their jobs. Even if they do, the value of their property has risen so they can sell and get out of trouble. Now we are in the midst of a declining economy. It is expected that in the near future many jobs will be eliminated. House sales will fall along with the value of homes. Anyone who has a home that they purchased recently and lost a job had better have 10 – 20% equity or they won’t be able to sell. Without extra funds to pay the mortgage, foreclosure is probable.
Banks get their money from interest earned on repaid loans. They lose on foreclosures. The income they earn is used to pay investors who deposit their savings in the bank. They can only do that if they earn a profit. Do you having any savings in the bank? Would you keep it there if you thought your bank was losing money?
A big part of the impending “doom and gloom” of the feared collapse of our economy has come from the lending policies, the performance of borrowers and the adjustments being made to lending policies of today and the future. When you are looking to borrow you need to consider that the economic climate will dictate how a lender will look at a deal. How the lender will come to the decision to approve a deal was a lot different in 2007 as to what it is in 2009. I would like to offer you who are reading this the basics of lending/borrowing along with some personal comments that help you decide: if you are going to apply for credit and what you should consider.
Firstly, lenders are in business to make (not lose) money. Consequently when a bank lends money it wants to ensure that it will get paid back. (the same as a borrower expects to come out of the end of a transaction with more than they went in with). To maximize the possibility of being paid back, the bank wants to make sure that there is sufficient assurance that a person can and will pay back a loan. The lender must consider the 5 "C's" of Credit each time it makes a loan.
Character
Is the general impression you make on the potential lender. The lender will form a subjective opinion as to whether or not you are sufficiently trustworthy to repay the loan. Your educational background and experience in your field of work will be included. The length of time at your current employment and your current residence will be considered. The longer you have been at both, the higher you will score on the character scale. In 2007 there was little concern that your future might be in jeopardy. In 2009 every source of income is scrutinized as whether it is feasible that it will continue.
Collateral
Is the extra security the lender has to cover the loan. In real estate transactions this generally means the property. If for some reason, you cannot repay the mortgage, the bank wants to know that the real estate the mortgage was taken out for is good and marketable real estate. A current real estate appraisal will determine the value for the property in today's market. Some lenders will limit themselves to the type of property they are going to accept. Rural properties have less interested buyers than urban properties. In the case of a foreclosure the lender doesn’t get the property. They have to apply to the courts to have them placed back on the market for resale to repay the loan. This takes time and money. Lenders will charge for the risk accordingly.
Capital
Is the money you personally have invested in the purchase, otherwise known as your down payment. The more of your own money you invest as a down payment, the more likely that you will do all you can to maintain your payment obligations. This fact was evident during the recession of the 90s where a large number of the power of sale properties, were at one time, purchased with small down payments. Capital is also reflected by your ability and willingness to save money and accumulate assets. The higher your net worth, the more you have as a cushion for repayment in the event you run into a financial set-back. Saved or earned capital is more highly regarded than “gifted”.
Credit
Is the evaluation of your habits in performing credit obligations. The information about your credit history is stored at the "credit bureau" and indicates how well you paid your bills over the last 6 years. All major credit cards, auto loans, leases etc. are reported to the credit bureau. A lender will evaluate your ability to maintain your obligations and try and determine how well you live within your means. Some individuals make the mistake of not paying the minimum monthly obligations on loans and credit cards with the expectation of making a larger payment the following month. These missed payments appear on their credit report branding them as chronic "late-payers" for the next 6 years.
Capacity
To repay the loan is probably the most critical of the five factors. The lender will want to know exactly how you intend to repay the loan. The lender will consider your income as it relates to the loan that you are applying for. Does the monthly carrying costs of the loan represent less than or equal to 32% of your total monthly income? If it is, the probability of you successfully repaying the loan is fairly high. When you include your personal debts, loans, cards, etc., a lender will likely not approve your total debt load of higher than 40% of your total monthly income. Prospective lenders will also want to know about any other sources of income you may have to repay the loan, if your steady income stream is interrupted. What savings can you fall back on? What property do you have that you could sell to cover payments?
The biggest factor that people are having the most difficult time with today is: These principles above change complete depending on what the future economy is predicted to do. For the past six years we have had a rising economy. Increasing property values. Little fear of people losing their jobs. Even if they do, the value of their property has risen so they can sell and get out of trouble. Now we are in the midst of a declining economy. It is expected that in the near future many jobs will be eliminated. House sales will fall along with the value of homes. Anyone who has a home that they purchased recently and lost a job had better have 10 – 20% equity or they won’t be able to sell. Without extra funds to pay the mortgage, foreclosure is probable.
Banks get their money from interest earned on repaid loans. They lose on foreclosures. The income they earn is used to pay investors who deposit their savings in the bank. They can only do that if they earn a profit. Do you having any savings in the bank? Would you keep it there if you thought your bank was losing money?
Thursday, May 7, 2009
Dominion Lending Centres Industry News Update
Canada’s housing market is showing signs of emerging from its winter hibernation, according to the latest Real Estate Trends report released yesterday by Scotia Economics. Nationally, home sales strengthened in both February and March, and preliminary reports suggest this firming trend continued in April.
The report notes that the rise in demand, combined with fewer new listings, has restored a better balance to the market. The national new-listings-to-sales ratio averaged 2.2 in March, down from a cycle peak of 2.7 last November (about 2.0 is considered balanced). Average home prices steadied in February and March, although they were still down almost 8% year-over-year, or 5% on a regional sales-weighted basis.
“These ‘green shoots’ are encouraging,” said Adrienne Warren, Senior Economist and Real Estate Market Specialist at Scotia Economics. “On an annualized basis, average home prices in early 2009 are running about 6% below last year’s levels, while sales volumes are down 16%. This is tracking a slightly better performance than our forecast for a 10% decline in average prices this year, and at the low end of our forecast for a 15% to 20% drop in sales.”
The federal government’s Home Renovation Tax Credit (HRTC) has a lot of takers according to a recent survey by ResMor Trust, which revealed 94% of Canadian homeowners who are planning to renovate their homes before next February will take advantage of the credit. Of that number, 5% of respondents said they will add the renovation costs to their mortgage.
The HRTC applies to renovations between $1,000 and $10,000, and 83% of survey respondents said they planned to spend within that amount on renovations. Half of those surveyed said they will use savings to pay for the renovations, followed by 30% who will use a line of credit.
Bank of Canada Governor Mark Carney says the elements are in place for an economic recovery to begin later this year, and develop in “full force” in 2010.
“The prospect of [the economy] getting better is there. The policies in place for it to get better are absolutely there,” Carney said in an interview broadcast Sunday on the CBC.
“Part of what is driving recovery in 2010 is policy. It is the fact that monetary policy has been aggressively eased, and secondly there is a big fiscal policy response, not just in Canada but around the world. Those actions are going to start to hit later this year, and then really with full force in 2010.”
Even with a recovery, however, Carney suggested the economy will not return to the “heady days” prior to the onset of the credit crisis, beginning in the summer of 2007. “That’s not likely. It is not likely because there will be an overhang from the financial mess in other countries. It is going to take some time for [this] to be rectified and it is very [likely] that the new equilibrium... is not going to be at the same level.” – Financial Post
Changes to Canada’s accounting rules will help to keep this country’s banks from losing the much-lauded status they’ve gained during the financial crisis, industry players say.
Canada’s Accounting Standards Board unveiled proposed changes late last week to relax mark-to-market rules that apply to some troubled holdings that have been affected by the market turmoil, making it easier for banks and other companies to avoid writedowns.
Banks applauded the decision, saying it goes a long way toward maintaining a level playing field after US standard setters recently introduced new rules.
The sector had argued that, without the proposed changes, Canada’s system would be the most punitive in the world when it came to forcing banks to take writedowns on these holdings. International standards, which apply to European banks, were already more lenient than Canada’s, it argued. And with writedowns eating away at both profits and capital levels, variations in accounting rules could have prompted some investors to shift money to foreign banks. – Globe and Mail
Contractors took out $4.5 billion in building permits in March – up 23.5% from February. The rise ended five straight monthly declines. The March increase came mainly from the non-residential sector in Ontario, Quebec and Alberta.
Market analysts had on average expected a 2.5% increase in March from February. It was the largest month-on-month increase since the 28.7% recorded in March 2007.
Statistics Canada reports permits in the non-residential sector rose 47.9% to $2.3 billion following increases in the commercial and institutional components in Ontario, Quebec and Alberta. – Toronto Star
US consumers felt more confident about the economy last month than at any time since the September failure of Lehman Brothers that pushed global banking to the brink of collapse, a survey showed on Friday.
The Reuters/University of Michigan Surveys of Consumers said its final index of confidence climbed to 65.1 in April from 57.3 in March. That was the highest since September 2008 and the biggest one-month increase since October 2006.
The April reading also marked the first yearly increase since July 2007. Economists polled by Reuters expected a slightly lower final reading of 61.9 for April.
The index of current economic conditions rose to 68.3 last month from 63.3 in March – the best reading in four months. The index of consumer expectations climbed to 63.1 from 53.5, which was also the highest since September of 2008. – Reuters
The report notes that the rise in demand, combined with fewer new listings, has restored a better balance to the market. The national new-listings-to-sales ratio averaged 2.2 in March, down from a cycle peak of 2.7 last November (about 2.0 is considered balanced). Average home prices steadied in February and March, although they were still down almost 8% year-over-year, or 5% on a regional sales-weighted basis.
“These ‘green shoots’ are encouraging,” said Adrienne Warren, Senior Economist and Real Estate Market Specialist at Scotia Economics. “On an annualized basis, average home prices in early 2009 are running about 6% below last year’s levels, while sales volumes are down 16%. This is tracking a slightly better performance than our forecast for a 10% decline in average prices this year, and at the low end of our forecast for a 15% to 20% drop in sales.”
The federal government’s Home Renovation Tax Credit (HRTC) has a lot of takers according to a recent survey by ResMor Trust, which revealed 94% of Canadian homeowners who are planning to renovate their homes before next February will take advantage of the credit. Of that number, 5% of respondents said they will add the renovation costs to their mortgage.
The HRTC applies to renovations between $1,000 and $10,000, and 83% of survey respondents said they planned to spend within that amount on renovations. Half of those surveyed said they will use savings to pay for the renovations, followed by 30% who will use a line of credit.
Bank of Canada Governor Mark Carney says the elements are in place for an economic recovery to begin later this year, and develop in “full force” in 2010.
“The prospect of [the economy] getting better is there. The policies in place for it to get better are absolutely there,” Carney said in an interview broadcast Sunday on the CBC.
“Part of what is driving recovery in 2010 is policy. It is the fact that monetary policy has been aggressively eased, and secondly there is a big fiscal policy response, not just in Canada but around the world. Those actions are going to start to hit later this year, and then really with full force in 2010.”
Even with a recovery, however, Carney suggested the economy will not return to the “heady days” prior to the onset of the credit crisis, beginning in the summer of 2007. “That’s not likely. It is not likely because there will be an overhang from the financial mess in other countries. It is going to take some time for [this] to be rectified and it is very [likely] that the new equilibrium... is not going to be at the same level.” – Financial Post
Changes to Canada’s accounting rules will help to keep this country’s banks from losing the much-lauded status they’ve gained during the financial crisis, industry players say.
Canada’s Accounting Standards Board unveiled proposed changes late last week to relax mark-to-market rules that apply to some troubled holdings that have been affected by the market turmoil, making it easier for banks and other companies to avoid writedowns.
Banks applauded the decision, saying it goes a long way toward maintaining a level playing field after US standard setters recently introduced new rules.
The sector had argued that, without the proposed changes, Canada’s system would be the most punitive in the world when it came to forcing banks to take writedowns on these holdings. International standards, which apply to European banks, were already more lenient than Canada’s, it argued. And with writedowns eating away at both profits and capital levels, variations in accounting rules could have prompted some investors to shift money to foreign banks. – Globe and Mail
Contractors took out $4.5 billion in building permits in March – up 23.5% from February. The rise ended five straight monthly declines. The March increase came mainly from the non-residential sector in Ontario, Quebec and Alberta.
Market analysts had on average expected a 2.5% increase in March from February. It was the largest month-on-month increase since the 28.7% recorded in March 2007.
Statistics Canada reports permits in the non-residential sector rose 47.9% to $2.3 billion following increases in the commercial and institutional components in Ontario, Quebec and Alberta. – Toronto Star
US consumers felt more confident about the economy last month than at any time since the September failure of Lehman Brothers that pushed global banking to the brink of collapse, a survey showed on Friday.
The Reuters/University of Michigan Surveys of Consumers said its final index of confidence climbed to 65.1 in April from 57.3 in March. That was the highest since September 2008 and the biggest one-month increase since October 2006.
The April reading also marked the first yearly increase since July 2007. Economists polled by Reuters expected a slightly lower final reading of 61.9 for April.
The index of current economic conditions rose to 68.3 last month from 63.3 in March – the best reading in four months. The index of consumer expectations climbed to 63.1 from 53.5, which was also the highest since September of 2008. – Reuters
Friday, May 1, 2009
5-Year Yields Break Above 2%
[Source - Canadian Mortgage Trends]
If you are one of those savvy people who have been waiting for fixed rates to continue to drop before you decide to refinance, or as a first time home buyer, decide to buy, we may be at - or very close to the bottom.
The following post appeared on Canadian Mortgage Trends website yesterday and has some very valid reasons to get locked in sooner than later:
"Earlier today, 5-year bond yields broke above 2% for the first time in 8 weeks.
Keep an eye on the chart. A further 10-20 basis point increase might prompt certain lenders to start lifting fixed mortgage rates.
If you’re considering a new fixed-rate mortgage or pre-approval, there has never been a better time to apply."
(Chart data courtesy of the Bank of Canada. Please note: This is not a prediction or recommendation. Market conditions can change at any time.)
If you are one of those savvy people who have been waiting for fixed rates to continue to drop before you decide to refinance, or as a first time home buyer, decide to buy, we may be at - or very close to the bottom.
The following post appeared on Canadian Mortgage Trends website yesterday and has some very valid reasons to get locked in sooner than later:
"Earlier today, 5-year bond yields broke above 2% for the first time in 8 weeks.
Keep an eye on the chart. A further 10-20 basis point increase might prompt certain lenders to start lifting fixed mortgage rates.
If you’re considering a new fixed-rate mortgage or pre-approval, there has never been a better time to apply."
(Chart data courtesy of the Bank of Canada. Please note: This is not a prediction or recommendation. Market conditions can change at any time.)
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