Docstoc

Talk of Looming Mortgage Crisis in Canada Unfounded

Document Sample
Talk of Looming Mortgage Crisis in Canada Unfounded Powered By Docstoc
					Presented by Daniel Toriola
Profit in real estate. Looking to get started in real estate investing but don't know where to start? Don't have enough cash or credit to purchase an investment property? Afraid to take on payment risk? Too confused on lease options? Click here to know more

AwareINDIA Web Hosting Offers One Click Installations For Popular Open Source Software like WordPress, Joomla, Mambo, Drupal, PHPbb, OScommerce, CubeCart, Zen Cart, PHPnuke with our Fantastico Enabled Hosting Plans. More... Click here to know more

Talk of Looming “Mortgage Crisis” in Canada Unfounded By Bruce Owens

Doomsayers, prompted by a continual stream of bad news from the United States about the U.S. housing and mortgages market, continue to predict that Canada is next on the hit list of countries to be sucked into a mortgage and housing crisis triggered by events south of our border. Many of these sobering pieces fail to take into account that the current woes in the United States are very much a made-in-the-U.S.A. phenomenon sparked to a very large degree by ultra-lax lending practices stateside. The latest such piece (“Mortgage Crisis May Be Looming for Canada”, published July 17th) comes from the Edmonton Journal, which is perhaps no coincidence as the Edmonton real estate market was one of the hottest in the country as much of Alberta and Saskatchewan rode the crest of an economic prosperity wave on the back of a booming energy sector. Now with real estate markets across the country easing back from the largest Canadian housing boom since the Second World War, markets in Edmonton and across Alberta have fallen more dramatically than elsewhere in Canada. Alberta markets, of course, had farther to settle to get back into equilibrium as we move from one phase of the economic cycle to the next. The article cites as its sole Canadian source a recent report from Export Development Canada, the federal crown corporation charged with building overseas markets for Canadian products such as the lumber used in new home construction worldwide. The report from Export Development Canada tracks plummeting new home construction starts in the U.S. and Europe (and which mentions, peripherally, Canadian new home starts) from which the Journal concludes that it could be Canada’s turn for a “housing crisis”. This is the flimsiest of evidence on which to make such a startling and alarming conclusion, and it ignores both the federal governments own analysis of the state of Canadian new home construction, and its own analysis of the causes of the U.S. housing woes. The latest survey of Canadian new home construction from the Canada Mortgage and Housing Corporation indicates that housing starts remained high in June despite a decrease in overall housing starts. But further, it shows that housing starts declined in all urban areas in Canada except Ontario, where a moderate increase in home construction was fuelled by a surge in multiple-family (i.e., condominium) new home starts rather than single-family homes.

Abc Mortgage Consulting Sell mortgage ebook with advice and tips to help save time and money before applying for a mortgage. Page 1

Presented by Daniel Toriola
The analysis in the Journal is largely based on the Finance Department’s recent announcement that as of October 15th, federally-backed mortgage insurance through the CMHC and other private mortgage insurers will no longer be available for mortgages with extended amortization periods over 35 years and new home buyers will be required to put up a 5% down payment when buying a home to qualify for federally-backed mortgage insurance. The recent move by the feds to further tighten Canada’s already conservative lending standards reflects a level of prudence in mortgages and lending standards that was not reflected in a much more loosely regulated banking system in the U.S.. Indeed, the Journal reports that as of October 1st, 2009 the U.S. Federal Reserve Board “will require lenders to verify a borrower's income in determining repayment ability, to take a lender's ability to repay a loan from income into consideration, to establish escrow accounts for property taxes and homeowners insurance in certain cases, and basically to advertise rates and payments with clear notice if a rate is not fixed.” These are standards that Canadian lenders have long adhered to, and standards that were only strengthened by the Finance Department’s further tightening of lending rules for the banks and trust companies that write the majority of Canadian mortgages. We are now seeing the chickens come home to roost in the U.S. where nation-wide banks are facing liquidity and credit pressures not experienced since the Great Depression. The third largest U.S. bank failure ever occurred last week and the U.S. government has moved to backstop Fredddie Mac and Fannie Mae, the two largest holders of U.S. mortgage debt. The ongoing housing and credit crunch in the U.S. is having, and will no doubt continue to have, a profound impact on Canada’s economy. However, that effect has been considered and acted upon, both by the Finance Department with its recent tightening of already conservative lending practice, and most recently by the Bank of Canada which continues to tread a fine line between fostering a stimulative economic climate and fighting off inflation pressures from high gas and commodity prices by keeping its main lending rate at 3% historically, a relatively low lending rate. To suggest that Canada is courting a made-at-home mortgage crisis because one regional market continues to generate increasing new home construction starts – and that in more affordable, multi-family residential units – while much differently regulated markets in the U.S., U.K. and Europe experience significant declines in housing starts and overall housing prices is to go to court with very little evidence. A wider survey of the Canadian economic picture, such as that released by the Bank of Canada explaining its interest rate decision – suggests that the Canadian economy will continue to grow albeit very moderately through 2008 and 2009 before righting itself in 2010, unlike the U.S. which continues to struggle through a made-at-home recession. And, generally, as goes the economy, so goes the housing and mortgages market. For more information on mortgages or to speak to an experienced mortgage broker please visit http://www.canadianmortgagesinc.ca/mortgage_brokers/

Immigration To Canada Made Easy Interactive ebook for anyone aspiring to migrate to Canada and a Directory of 3,092 Canadian Job Recruiters. Page 2

Presented by Daniel Toriola
Mortgage Rates in Canada By D Morris

Canadian province controls the mortgage and its rates in Canada. Canadian banks play a vital role in the mortgage industry. A study made in 2004 revealed that, these banks cover around 63% of the entire mortgage industry in Canada. These yearly surveys help the people to understand about the mortgage rates in Canada. The Canada Mortgage and Housing Corporation or the CMHC conducts yearly surveys to revise the picture of mortgage market. The CMHC is a recognized bureau of Canadian Government, which guarantees for the best and the lowest mortgage rates offered to Canadians. Various types of mortgage programs with distinctive features and technologies are available in Canada mortgage industry. Canadians may go for any type of mortgage matching their interests. Mortgage seekers can use the Internet to make a thorough study on the mortgage rates in Canada. Many mortgage web sites offer mortgage rate calculators to compute and compare different rates. This comparison procedure helps to select the lowest mortgage rate. Various Types of Mortgage Rates in Canada: Below mentioned are the three major types of mortgage rates available in Canada: 1.Variable mortgage rate: The primary cost of the variable mortgage rate is less than 0.25%. It is very much possible to modify the variable mortgage rates every month. Individuals may capitalize the lowest possible mortgage rate in Canada with variable mortgage rate. Variable mortgage rate provides two distinctive modes of payment. First, is the fixed mode and second is the variable mode. Fixed mode of payment does not fluctuate for five years. On the other hand, the variable mode of payment fluctuates every month with respect to interest rates and the principal amount. 2.Fixed mortgage rate: This is a traditional type of mortgage, which offers 75% rate of the mortgage benefit. It involves various terms and period options to provide higher flexibility. 3.The Capped mortgage rate: Capped mortgage rate offers long-term security features with flexible term rates. It also offers variable and relevant interest rate per month in concern with the principal amount. The 5-year term in this mortgage rate decides the capped or maximum mortgage rate. It guarantees the best rate to mortgage buyers. Finally, it offers optional payment mode as such variable and fixed payments. Brief Summary: Apart from all these various types of mortgages and their rates, one more type of mortgage is available in Canada it's the money saver mortgage, which also offers lowest mortgage rates. Money saver mortgage is a 5-year plan with variable interest rates based on the principal amount. Here, it is possible to regulate the mortgage rates and payments in every three month, based on the

Mortgage Loan Tips Why some people almost always get the lowest interest rate on their mortgage - for the least points - and NO Junk Fees! Page 3

Presented by Daniel Toriola
variations of principal amount. Hence, individuals may save money and pick the lowest rate with the help of money saver mortgage. Finally, people can gain access to the best mortgage rates in Canada by using the Internet. Mortgage buyers can browse through several mortgage web sites, which offer the complete information regarding the best and affordable mortgage rates in Canada.

D. Morris has numerous years in the lending business and has been a successful real estate investor. He is able to think outside the box and provides your avenue to the best rates and terms in the Canadian market. http://www.residentialmortgagecanada.com

Mortgage Cycling Revealed Affiliates Earn $31.00. Patent Pending Mortgage Reduction Program Quickly Builds A Minimum Of $40,000 Worth Of Home Equity. Page 4

Presented by Daniel Toriola

Related eBooks: Mortgage Rates in Canada 5 Tips on Choosing a Mortgage How to Find Canada's Best Mortgage Broker Programmed Underwriting Of Canada Mortgage Role of Residential Broker in Canada Get more Free PDF eBooks at FreePDFeBooks.com Related Products: Money Saving ideas BEFORE You Borrow Money Membership Millionaire The Toaster's Handbook Baby's First Year -What Parent Needs To Know

Malamaal.com: A genuine resource center for Quality Ebooks and Softwares
This PDF eBook is for free Distribution only, it cannot be SOLD Tickets Exposed The best ebook for buying and reselling tickets! Click here to know more

Powered By FreePDFeBooks.com ReBrand this PDF eBook with your Name / URL / ClickBank Affiliate ID for Free

Let's Get Your Mortgage Approved Former Loan Officers Reveal Secrets To Getting Your Mortgage Approved -A proven method. Page 5


				
Patricia Johnson Patricia Johnson Management Consultant
About Sharing ideas with others. The documents may contain basic information you already know. The documents are shared, also keeping in mind the people who don't know. Also, the documents might be useful to those who think they know buy they don't know that they don't know.