| |||||||
| Current Rates: |
| Terms | The Bank | Our Rates |
|---|---|---|
| 1 Year | 3.30% | 2.44% |
| 2 Years | 3.55% | 2.99% |
| 3 Years | 4.10% | 3.39% |
| 4 Years | 5.04% | 3.49% |
| 5 Years | 5.39% | 3.69% |
| 7 Years | 6.45% | 4.75% |
| 10 Years | 6.60% | 4.95% |
| VIRM | 3.00% | 2.50% |
| The prime rate is 3.00% | ||
| Contact Info: |
| Why a competitive mortgage insurance market matters |
While the re-emergence of certain private mortgage default insurers might not make it onto the radar of most homeowners, the increased competition could pose to change the types of mortgage products available to them.
Read More| A life preserver for debt drownings |
When it comes to financial priorities, most Canadians say that becoming 'debt-free' is at the top of their list - but in the last year, almost half believe they didn't come any closer to achieving that goal.
| A great home reno resource |
There are a lot of things about home renovations that can be intimidating – finding a reputable contractor, setting a realistic budget, even just finding a physical example of the idea that's in your head.
| A new no-fee chequing account |
Canadians are estimated to spend, on average, as much as $185 per year on banking service fees on their chequing accounts, according to an Angus Reid poll. This is cash ING Direct is hoping to spare its customers with the launch of its new, no-fee, THRiVE chequing account.
Read MoreWhile the re-emergence of certain private mortgage default insurers might not make it onto the radar of most homeowners, the increased competition could pose to change the types of mortgage products available to them.
Mortgage default insurance - provided, currently, by Canada Mortgage and Housing Corporation, Genworth Financial Canada and Canada Guaranty - is the insurance you are legally required to purchase if you put down less than 20% when purchasing a home. This insurance protects the bank or lender in case you default against your loan - even though the buyer is required to pay the premium.
While this type of insurance has more to do with the lender than the homebuyer, it did affect the types of mortgage products - and the number of approvals - that took place in Canada before the recession hit. For years, Genworth and CMHC were the only two players in the market. When AIG United Guaranty came along (now Canada Guaranty), we saw premiums drop, 40-year mortgages enter the marketplace and the introduction of zero-down loans.
Other U.S.-based mortgage default insurers were waiting in the wings - poised to enter the Canadian market - until the recession hit, and they all fled. AIG suffered its share of troubles too - and it had to deal with the negative connotation associated with its U.S. arm that developed during the banking crisis.
Six months ago, the Ontario Teacher's Pension Plan announced that it would be partnering up with AIG United Guaranty, which promptly changed its name to Canada Guaranty. Since then, the company has been building up strength to become a contender in the tight mortgage default insurance market.
While tightened government restrictions won't allow a 40-year amortization back into the market anytime soon, you have to assume Canada Guaranty has some tricks up its sleeve if it wants to play with the big dogs. In most cases, lenders choose which default insurer they go with and 75% of the time, they opt for CMHC because its insurance is completely backed by the government. The private insurers still have a government guarantee, but it's only 90% of their portfolio.
At the very least, we may see some decreased premiums, which is never a bad thing!
When it comes to financial priorities, most Canadians say that becoming 'debt-free' is at the top of their list - but in the last year, almost half believe they didn't come any closer to achieving that goal.
According to a poll of 1,000 Canadians by Manulife Bank of Canada, most Canadians didn't take advantage of low interest rates and make an extra mortgage payment. About 29% said their debt increased in the past year, and another 17% saw no change in their debt levels.
If you fall into the above group, here are some tips for devising a debt management plan:
1. Figure out how much debt you have.
While it may be painful, the only way to lower your debt level is to know where it stands. Make a list of all the debt you owe - including credit cards, car loans, lines of credit, mortgage debt and student loans.
2. Track and analyze your spending.
For some people, it's easy to pinpoint how they got into debt. For others, it's not as clear. Either way, it's important to spend to track your spending. Bring a notebook out with you for a week and jot down everything you buy - from coffees to clothing purchases. If you're more of a virtual banker, comb through your bank and credit card statements from the past month or two to see where your money is going. Experts say most households waste up to 15% of their take-home income. Find out where that waste is, and determine ways to put it towards your debt.
3. Come up with a plan.
Keeping your current habits in mind, set an achievable spending and debt reduction plan. Prioritize your debt, with credit card debt as the most urgent to pay off, and car loans, mortgage debt and student loans rounding out the bottom of the priority list. The first credit cards you pay off should be the ones with the lowest balance. If possible, see if consolidating your debt - either to one low-interest credit card, or a home equity line of credit - is an option.
4. Focus on one debt at a time.
If possible, see if consolidating your debt - either to one low-interest credit card, or a home equity line of credit - is an option. If it isn't, start making extra payments on the credit card with the lowest balance, while meeting the minimum payments on your other cards. Once the first debt is paid off, take the full amount you were spending on it, and put it towards the next lowest card.
5. Create debt-free habits.
Once your debt is paid off, it's important to start saving. A credit card should not be used if you don't have the money to pay it off at the end of the month. Instead, you should aim to have a significant "cash cushion" to pull from when unforeseen expenses arise.
If your debt is more than you can manage on your own, please feel free to give me a call - and I will refer you to a professional who can help.
There are a lot of things about home renovations that can be intimidating – finding a reputable contractor, setting a realistic budget, even just finding a physical example of the idea that's in your head.
HomeRenovationGuide.com can help with at least a few of those things. The Canadian, Rogers-owned site is designed for homeowners and contractors alike, to help them find information and resources for their next home project.
In addition to a useful blog, the site also has a vast array of helpful articles – and "how-to" videos – as well as a "tips from the pros" section, an inspiration section and an opportunity to share your renovation photos. It's worth a look!
Canadians are estimated to spend, on average, as much as $185 per year on banking service fees on their chequing accounts, according to an Angus Reid poll. This is cash ING Direct is hoping to spare its customers with the launch of its new, no-fee, THRiVE chequing account.
Up until now, the most popular no-fee chequing account in the country belonged to Presidents' Choice Financial which, similar to ING Direct, is able to save customers money by eliminating full branches from its business structure.
THRiVE Chequing offers many no-cost features such as free ABM access through the 2400-machine Exchange Network, free email alerts and monthly online account statements as well as the ability to write, deposit and view cheques online for no extra charge. THRiVE Chequing also offers Whoops! Protection, an industry-first feature that covers clients up to $250 on overdrawn funds with no fee or interest, provided funds are paid back within 30 days.
The company will slowly roll out the product in the coming weeks and months, with the goal of offering it to all Canadians in January, 2011.
No comments:
Post a Comment