How to get a better loan rate from your bank

Canada’s big banks are being squeezed by low interest rates and slowing demand for loans and mortgages. That means they’re more willing to compete for your business. Bank profits depend heavily on what’s known as the interest rate spread. These institutions take deposits in the form of chequing and savings accounts that pay little interest…


BoC signals that rates will rise gradually

The recent jump in Canada’s inflation rate should be temporary and price levels will remain subdued even with a gradual reduction in monetary stimulus, the Bank of Canada said on Wednesday. Despite putting an interest rate hike firmly back on the table for the second half of the year on Tuesday, the bank suggested in…


How to Use Your Mortgage to Make More Money

How to Use Your Mortgage to Make More Money Through the real estate growth which took place in the early 2000’s, quite a few people searching for a mortgage loan may possess a mortgage broker sell them on interest-only loans as a way to pay for a property which these folks could not find the…


Private Lender Saves Winnipeg Couple from Losing Their Home

The Hopewell’s (not their real names) were only weeks away from losing their home to bank foreclosure. The Hopewell’s efforts to re-finance their mortgage were futile as the majority of banks, credit unions and finance companies will not knowingly finance an individual that is in foreclosure. The Hopewell’s managed to secure private financing through a…


Banks hike mortgages by up to 25 basis points

TD Canada Trust and RBC are raising some of their fixed-term mortgage rates by as much as one-quarter of a percentage point, beginning Wednesday. Both bank’s five-year mortgages, one of the most commonly chosen by homeowners in Canada, will rise 0.25 of a percentage point to 5.44%. “Mortgage rates typically go up when bond yields…


Is it good to combine mortgages, loans?

The ability to combine a mortgage and other loan contracts in a packaged deal became increasingly popular as interest rates fell and home prices rose. Loyal borrowers who qualified for ready access to credit appreciated the flexibility, and the potential for savings on the cost of setting up a new loan. But many borrowers may…


Why rising interest rates haven’t flattened the housing market

The Bank of Canada cranked up its trendsetting overnight rate for the third time in four months on Wednesday and the impact will be felt by a wide range of borrowers. But home buyers? Not so much. True, the central bank’s increase of one-quarter of a percentage point has already been applied by the major…


Central banks must raise interest rates

There is an urgent need for industrialized economies to begin cutting their debt-laden budgets and central banks to hike interest rates — or else face the risk that inflation gets unwieldy, the OECD warned Wednesday in its latest global economic outlook. “Exit from exceptional fiscal support must start now, or by 2011 at the latest,…


Combination mortgages increasing in popularity

The popularity of combination mortgages is on the rise, according to new survey from Royal Bank of Canada. According to RBC’s 17th Annual Homeowners Survey, 40% of Canadians who are likely to purchase a home within the next two years plan to take out a combination mortgage — which offer both fixed and floating rate…


Toronto credit union offering mirco-loans for business

As more people in Canada access microcredit to start and expand businesses, the economic and social benefits are growing. The Globe and Mail wrote a story on Pangiotis Tsiriotakis an entrepreneur who took advantage of the nmicroloans that Alterna Credit Union was offering. Read more