The Bank of Canada: A Brief History
The Bank of Canada is the nation’s central bank. Established in 1935 through the Bank of Canada Act, the BoC’s main goal is to promote the economic and financial interests of Canada. Before the 1930’s there was no need for central banking due to Canada’s scattered and primarily rural economy. The branch bank network that […]
Do you know The Bank of Canada Wants You to Take a Fixed Rate Mortgage.
Newton’s third law states that for every action there is an equal and opposite reaction. Newton can probably help us figure out how many more interest rates hikes we have in store for us. His law may also be useful in countering the claim the interest rates will continue to increase in the next two […]
The Impact of B20: New Underwriting Guidelines
OSFI – the regulator of all Canadian Financial Institutions has imposed underwriting guidelines for Residential Mortgages on all regulated lenders and CMHC. These underwriting guidelines are known as B20 and have been created at the insistence of the Financial Stability Board, the financial oversight organization of all G20 nations. The creation of these guidelines is […]
Did u Know the Mortgage Rules are Changing Tomorrow
Friday December 29th, 2017 is the last day Canadians will be able to qualify for a mortgage at their contract rate. As of January 1st, 2018 all mortgagors will need to qualify at the Bank of Canada’s prescribed 5 year rate, or 2% higher than their contract rate, whichever is greater. This means about 20% […]
The US Debt Crisis and Your Mortgage
After a month of nail biting, furrowed brows and bated breath in the US, a resolution has finally been met. The Republicans and Democrats have reached an agreement to allow the debt ceiling to be raised, bringing an end to an arduous negotiation process which had all the civility and amicability of a Paul McCartney […]
The top four reasons why a second mortgage could improve your financial future
Like a ‘broken telephone’ game, the second mortgage’s reputation has morphed, been misunderstood, and is still much maligned. Unfortunately, this leads Canadian homeowners to overlook the most powerful tool in their financial toolkit. Below are four key reasons why a second mortgage could be your smartest move. Read on to learn how a second mortgage […]
Should you refinance or not? What do you think?
Three real-life borrowing scenarios. And how you can save thousands by planning ahead. In most cases there is an option available to refinance the entirety of your mortgage debt into one mortgage. Although this may seem like a prudent financial move, in many cases, it can cause serious financial damage. Let’s take past Cannect clients Pat […]
Do you Know what is the Variable Rate Mortgages(VRM’s)
Variable Rate Mortgages (VRM’s) are gaining in popularity in Canada, and with good reason. Five year fixed rates have been hovering around 3.5% for the past several months and Canadians are starting to see the benefits of a nice low rate locked at prime – 0.5%. Canada’s Prime Rate is at 3% right now, and […]
We don’t know what we don’t know. But at least we know how long we won’t know it for.
The entire world is now faced with a temporary period of drastically high unemployment, decimated consumer confidence, and mounting consumer debt. COVID 19 is going to wreak havoc on the world’s economy. This is a certainty. What’s equally certain is that things will return back to normal. Right now, we need confidence, and from what […]
