Mortgages

The trigger

One more sleep until the nobs at the central bank take back another bit of stimulus. With the BoC rate increasing a quarter point this week, that’s three increases in a handful of months, with more on the way. The implications could be epic, especially if you borrowed against your house to buy B ...

Rate hike, new mortgage rules may trigger real estate slowdown

TORONTO — Canada’s real estate market will hit a slow patch in 2018 as tighter mortgage stress tests apply pressure and the impact could be exacerbated if an expected interest rate hike drives buyers to put off their home purchases, economists said Monday. The Bank of Canada will make its first ...

Canadian home sales surge in December

Ottawa, ON, January 15, 2018 – Statistics released today by The Canadian Real Estate Association (CREA), show national home sales continued to climb in December 2017. Highlights: National home sales rose 4.5% from November to December. Actual (not seasonally adjusted) activity was up 4.1% year-o ...

Investing = rational thinking + emotion (book excerpt and review)

    SPEEDREADER Book: Adaptive Markets: Financial Evolution at the Speed of Thought Author: Andrew W. Lo Publisher: Princeton University Press https://www.amazon.ca/Adaptive-Markets-Financial-Evolution-Thought/dp/0691135142 Price: Hardcover $42.28, Kindle $33.99 WHO IT’S FOR: Anyone interested ...

They’re back

Ten years ago when Lehman Brothers collapsed and the lights started to go out, money fled into safe stuff. Bonds. US debt. Yields shot higher, taking the two-year Treasury over 2%. By 2011, with the Fed rate at zero, those bonds had dropped to 0.14%, or next to nothing. Even two years ago they sat ...

China in focus

Myopia, or nearsightedness, is a refractive error of the eye that causes distant objects to appear blurry, while close objects remain clear. A similar phenomenon can happen in investing: sometimes we fail to see certain risks and opportunities because they seem “far away” either in time or geog ...

Splitting condo ownership fairly with your partner

Q: My girlfriend of three years and I are moving in together in the new year, once I close my condo sale. We both agree about my going on title, and I am hoping to also pay down some of her outstanding mortgage with some of my proceeds, and together we would also be splitting the mortgage paymen ...

Get ready

Let’s get ready for next Wednesday. For the third time in just half a year the central bank will raise interest rates. This is entirely consistent with what the American central bank (the Fed) has done, where the cost of money has popped four times in a year. Remember how this macho but gender-s ...

Canadian real estate market outlook 2018

Romana King is an award-winning personal finance writer, a real estate expert and speaker. She is the current Director of Content at Zolo.ca There’s never a dull day in real estate. Last year started off with a big nervous question: Will the Canadian housing market crash? In 2018, the new yea ...

The exodus

Seven years ago Joan and her fresh husband decided not to buy a condo in Vancouver. “We did the math and got the willies thinking about dumping all our savings and salaries into a mortgage, and backed out of the offer.” Since then the same condo’s risen in market value by $190,000, she says. ...