Rates: What Goes Up Must Come Down

Rates: What Goes Up Must Come Down

Rates: What goes up must come down. Or “how I learned to stopped worrying and love the uncertainty” In the past, the simplest way to predict what the Bank of Canada (BoC) would do with it’s key lending rate – y’know, the one that effects the cost of our credit cards, lines of credit and variable rate mortgages – was to check in with the overall strength of the Canadian economy. When things were good; high employment, strong exports, etc., the BoC would feel comfortable making money more expensive.  Rate hikes are an effective means of controlling our economy’s rate of inflation. Being that our economy is so heavily dependent on the strength of the U.S.  the BoC has typically followed moves...

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The Shell Game

The Shell Game

In the past 15 years, we have been watching big banks and credit unions encourage people to take on Home Equity Lines of Credit (HELOCs) along with their standard first mortgages. To make it easier for the layman to understand, we can call this type of mortgage a...
OFSI’s New Stress Test

OFSI’s New Stress Test

People have been listening to new jargon like “stress test” regarding mortgages. The government is using new words, which, in my opinion carry very negative connotations. Stress Testing is a practice as old as the woods in lending. It is called “qualifying for your...
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