CMHC Mortgage Regulations to Restrict Real Estate Investment
Filed Under Main Content · Tagged: Borrowers, Cmhc Mortgage, Debt Service, Household Income, Invest, Kicker, Kitchener Waterloo, Mortgage Investment, Mortgage Regulations, People, Real Estate Investment, Real Estate Investment Properties, Rental Property, Waterloo Real Estate
Kitchener Waterloo Real Estate Investment Properties- Currently when you buy a rental property, CMHC will allow you to use a 80% rental offset, which means that they used to take 80% of the gross rental income that the income property generated, and subtract that from the borrowers total debt, to establish the total debt service (TDS) ratio.
What that means is that you don’t have to have the household income to cover 100% of the value of the rental property, like you do with a home you live in, because the bank will let you offset the debt using 80% of the revenue the rental produces (does that make sense?).
They’re changing this amount to 50%, which makes it much tougher for people to qualify for investment properties, but the real kicker is that…
The 2010 Federal Budget: Your guide to the key numbers
Filed Under Main Content · Tagged: Federal Budget, Hair Transplants, Invasive Aliens, National Budget, New Shoes
National Post- The new budget unveiled yesterday mentioned something for everyone (or the lack thereof), from new shoes to invasive aliens and men in need of hair transplants. Click on the number for a full story on each issue below…
The 2010 Federal Budget: Your guide to the key numbers - Posted
Countdown begins to interest rate hikes
Filed Under Main Content · Tagged: Bank Of Canada, Benchmark Rate, Bmo Capital Markets, Countdown, Economist, Economy, First Steps, Inflation, Interest Rate Hikes, Mark Carney, Michael Gregory, Subtle Changes, Urge
Financial Post- The Bank of Canada took its first steps Tuesday toward returning the country to more normal interest rate levels by signaling a more hawkish tone on inflation and acknowledging the economy is performing better than expected on "vigorous" consumer demand.
The messages were conveyed in the Bank of Canada’s latest interest-rate statement, which kept its record-low benchmark rate of 0.25% as is and pledged to keep it there until July. But most bank watchers took note of subtle changes in the statement, compared with previous rate announcements, and there was enough there for them to begin the countdown to rate hikes.
"I suspect [governor] Mark Carney and company are starting to feel the urge to tighten — not a strong urge now, but an urge nevertheless," said Michael Gregory, senior economist at BMO Capital Markets…
Countdown begins to interest rate hikes
BMO aims to jump-start mortgage arm
Filed Under Main Content · Tagged: Bank Of Montreal, Bmo, Cash Earnings, Cheap Mortgages, Earnings Per Share, First Quarter, Globe And Mail, Growth Mode, High Interest Rates, Jump Start, Lost, Mail Bank, Market Share, Mortgage Business, Profits, Quarter Profit, Rivals, Savings Accounts
The Globe and Mail- Bank of Montreal is planning to kick its mortgage business back into growth mode, after another quarter in which it lost market share to rivals.
BMO reported a first-quarter profit of $657-million yesterday, up from $225-million a year ago, making it the third Canadian bank to consecutively top analysts expectations. Its cash earnings per share came in at $1.13, while the Street had been forecasting profit of about $1.03 per share.
The bulk of BMO’s earnings came from its Canadian lending operations, while profit from its U.S. lending business was 43 per cent lower than a year ago.
"We just had our sixth terrific quarter in a row," Frank Techar, the head of the bank’s Canadian lending arm, said in an interview.
Mr. Techar took over those struggling operations in July 2006, after a period in which the bank’s profits were suffering partially because of a strategy that sought to lure customers with cheap mortgages and high interest rates on savings accounts…
BMO aims to jump-start mortgage arm - The Globe and Mail
Economy hotter than estimated, Bank of Canada says
Filed Under Main Content · Tagged: Bank Canada, Bank Of Canada, Benchmark, Core Inflation, Domestic Spending, Downside, Economy, Fourth Quarter, Globe And Mail, Globe Mail, Inflation Outlook, Inflation Risks, Mark Carney, Nod, Pledge, Target
Globe and Mail- The Bank of Canada kept its benchmark lending rate at a historic low 0.25 per cent Tuesday, while hinting that policy makers are on closer guard for shifts in the inflation outlook that might force them to rethink their pledge to stay on hold through midyear.
In the statement accompanying Tuesday’s decision, Governor Mark Carney and his rate-setting panel acknowledged that growth and inflation have been hotter than policy makers projected in their January forecast, saying the economy’s 5-per-cent growth in the fourth quarter was “spurred by vigorous domestic spending and further recovery in exports.”
Also, in a nod to the fact core inflation came in at the central bank’s 2-per-cent target in January, sooner than policy makers had anticipated, they sounded a somewhat more hawkish tone on price gains. The central bank said the risks to their inflation outlook are now “roughly balanced,” as opposed to language from previous statements which had said inflation risks were “tilted slightly to the downside…”
Economy hotter than estimated, Bank of Canada says - The Globe and Mail
