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Mortgage industry in the media
by
Contributed - Story:
44150
Jan 3, 2009 / 5:00 am
Jan 3, 2009 / 5:00 am
In recent weeks, there have been numerous articles in the national media on the state of the Canadian mortgage industry. Issues regarding the impact of longer amortizations and a perceived failure to anticipate the effects of various mortgage products have been at the forefront.
CAAMP Members Should Be Aware Of The Following Important Facts:
Arrears and default rates remain low in Canada particularly when compared to the U.S. Canadian mortgage holders have on average over 50% equity in their properties. For all home owners, (those with and those without a mortgage), the equity ratio exceeds 70%.
Longer amortization periods and 100% LTV mortgages do not equate to subprime or alternative mortgages which are based on a borrower's credit worthiness. Relatively few outstanding mortgages in Canada have 40 year amortization periods – only six percent or just over 300,000 mortgage holders out of 5.25 million.
Mortgage products in Canada are transparent. Mortgagors with a variable rate product know their rate and most have the option to convert to a fixed rate product. In the past year, 40% of mortgage holders took out a variable rate mortgage with the expectation that declining rates will continue to drop. This is in stark contrast to the U.S. where the resetting of option ARM mortgages means millions of mortgage holders have been and will continue to face higher rates.
A rise in default rates in Canada is not apparent. It's a fact that the economy is slowing, however if borrowers find themselves with financial difficulties, it will most likely be a result of their employment situation rather than their mortgage product.
Differences between the Canadian and U.S. markets remain. The option ARMs that have and continue to be reset to higher rates are not common in Canada. Those who hold variable and even fixed rate products in Canada are now doing so in a declining interest rate environment. A greater percentage of mortgages in Canada are funded by balance sheet lenders than in the U.S. Subprime or alternative lending products were never as common in Canada.
Canada has a rich history of mortgage insurance. Nearly half of all mortgages obtained in any given year are insured with a second approval process for mortgage applications. Underwriting principles and guidelines in Canada, while not perfect, are more thorough than in the U.S.
Regulation for Canadian mortgage brokers and agents is more stringent than in the U.S. Several provinces have recently updated or are in the process of updating their origination legislation including Ontario, Quebec, Saskatchewan, Manitoba and Nova Scotia. There are now license requirements and in most provinces education and disclosure requirements. This will ultimately lead to enhanced professionalism in our industry and added security for Canadian borrowers.
Statistics Source: CAAMP's Annual State of the Residential Mortgage Market in Canada, by CAAMP Chief Economist Will Dunning.
CAAMP Members Should Be Aware Of The Following Important Facts:
Arrears and default rates remain low in Canada particularly when compared to the U.S. Canadian mortgage holders have on average over 50% equity in their properties. For all home owners, (those with and those without a mortgage), the equity ratio exceeds 70%.
Longer amortization periods and 100% LTV mortgages do not equate to subprime or alternative mortgages which are based on a borrower's credit worthiness. Relatively few outstanding mortgages in Canada have 40 year amortization periods – only six percent or just over 300,000 mortgage holders out of 5.25 million.
Mortgage products in Canada are transparent. Mortgagors with a variable rate product know their rate and most have the option to convert to a fixed rate product. In the past year, 40% of mortgage holders took out a variable rate mortgage with the expectation that declining rates will continue to drop. This is in stark contrast to the U.S. where the resetting of option ARM mortgages means millions of mortgage holders have been and will continue to face higher rates.
A rise in default rates in Canada is not apparent. It's a fact that the economy is slowing, however if borrowers find themselves with financial difficulties, it will most likely be a result of their employment situation rather than their mortgage product.
Differences between the Canadian and U.S. markets remain. The option ARMs that have and continue to be reset to higher rates are not common in Canada. Those who hold variable and even fixed rate products in Canada are now doing so in a declining interest rate environment. A greater percentage of mortgages in Canada are funded by balance sheet lenders than in the U.S. Subprime or alternative lending products were never as common in Canada.
Canada has a rich history of mortgage insurance. Nearly half of all mortgages obtained in any given year are insured with a second approval process for mortgage applications. Underwriting principles and guidelines in Canada, while not perfect, are more thorough than in the U.S.
Regulation for Canadian mortgage brokers and agents is more stringent than in the U.S. Several provinces have recently updated or are in the process of updating their origination legislation including Ontario, Quebec, Saskatchewan, Manitoba and Nova Scotia. There are now license requirements and in most provinces education and disclosure requirements. This will ultimately lead to enhanced professionalism in our industry and added security for Canadian borrowers.
Statistics Source: CAAMP's Annual State of the Residential Mortgage Market in Canada, by CAAMP Chief Economist Will Dunning.
 Deck the halls for a warm welcome this holiday season. (Photo: Flickr user, 87969594) |
by
Contributed - Story:
43948
Dec 20, 2008 / 5:00 am
Dec 20, 2008 / 5:00 am
We all do a little more entertaining over the holiday season. And at this time of year, you want to offer your guests the warmest of holiday welcomes. This year, deck the halls...and your front entrance too. Build a little excitement on your front porch, and then let your warm, welcoming front hall sparkle with the holiday spirit!
Let there be light! But don’t be a “Sparky Griswold”, swathing everything in sight with mega-watt power. A bit of restraint will often create more mood and mystery than will an over-the-top light display. Hang a string of golden stars above your entry porch, or light up one or two small potted evergreen trees with tiny sparkle lights. Real cedar garland (accented with scarlet bows for the daylight hours) entwined with tiny clear lights looks superb when framing an outside door. Your guests will love the cedar scent, and the glimmer of little lights makes a magical entrance.
Invest in a timer. Don’t give your outdoor lights a second thought. Set up a timer to turn them on at twilight and turn them off at bedtime.
Go natural with your front door. This is where guests will notice that special touch. You can gather greenery from your garden onto a wire frame, or bring home a heavenly balsam wreath from a nearby garden centre or tree farm. Tie on a big red ribbon, wire in some pine cones, and you will have the loveliest wreath in the neighborhood!
Add a touch of winter whimsy. Dress up your entryway – inside or out – with a whimsical touch. Perhaps you could hang up some ice skates (red laces of course), or adorn an older wooden sleigh with evergreen and a generous bow?
Bells, bells, bells. You can never have too many jingle bells hanging on doorknobs and over your doors signaling the arrival of family or guests. This is especially true when you are secretly wrapping gifts and need a jingle warning!
Greet your guests with warmth, colour, and fragrance. Place baskets of red tulips and creamy narcissus in front of your hall table mirror. Twist tiny sparkle lights and cedar garland through your banister, and keep a big china bowl filled with bundled cinnamon sticks and handfuls of cloves nearby.
Protect from winter drafts. Take a cue from the Victorians this holiday season. Drape thick claret or olive green velvet curtains over your front door to keep away the chill. During the day, tie them back with velvet ribbon or silky cords.
Enjoy the sound of music. It would be lovely if you could have music softly piped into your entry hall for arriving guests. A jazzy holiday album may suit your taste, or consider some classic English chorale hymns and carols to add serenity and comfort to your holiday season.
Holiday hugs and kisses. For warm holiday greetings, hang a ball of mistletoe from your hall fixture with a shining satin ribbon.
So go ahead and deck the halls...and warm your house with good friends and good cheer this holiday season.
So go ahead and deck the halls...and warm your house with good friends and good cheer this holiday season.
 Protect your mortgage investment with mortgage insurance. (Photo: Flickr user, 21861018) |
by
Contributed - Story:
43299
Nov 22, 2008 / 5:00 am
Nov 22, 2008 / 5:00 am
your situation best.
 Protect your home and garden investment before the snow falls. (Photo: Flickr user, pigdump) |
by
Contributed - Story:
42988
Nov 8, 2008 / 5:00 am
Nov 8, 2008 / 5:00 am
Whatever the weatherman or the almanac says, we know that the warm season really ends with the changing of the clocks to mark the beginning of standard time again. Mornings are suddenly dark and frigid, and we know that winter is upon us. Protect your home and garden investment – by taking some time to batten down the hatches outdoors before the snow flies!
1. Last chance for repairs: Begin by looking up. Your roof and eaves troughs will need to be in good condition to protect your home in the coming months. In particularly, be sure to clear leaves and debris from
gutters and downspouts if a clog forces melting ice back against the shingles, you’ll be dealing with an ice dam – a serious hazard to the integrity of your roof. While you’re checking the eaves trough, make a visual inspection of the roof itself – looking for loose or broken
shingles, or damaged vents. Check your chimney for any loose brick or crumbling mortar. Mortar is temperature-sensitive and difficult to repair as the weather gets cold. Any work on the roof should be considered
a two-person job, we should add. Always have a strong adult to steady the ladder for the person working at the roof.
Now is also the time to repair any fence, lattice, or trellis – before the winter winds and ice take their toll.
2. Tool shed tune-up: Many a fine garden tool has met its demise far too soon, because it has been left outside over the winter. Your yard and garden tools have been working hard this summer, and they’ll be in need of
proper care and storage for winter. Begin by removing any caked dirt with a good wire brush some gardeners prefer using a wire whisk attachment on a power drill. Now’s the time to sharpen any tools that have become blunted by a season’s use: hoe’s, spades, pruners, loppers and saws, if you have them. As you’re cleaning, check your tools carefully for any loose screws or nuts. Finally, spray any metal parts and cutting edges with a good
penetrating oil like WD-40. Wooden handles should be wiped with boiled linseed oil to prevent cracking and drying.
3. Power tools often have special requirements at the end of season. In general, you should change the oil and spark plugs of any equipment, and have blades sharpened. This can be done professionally, if you prefer.
4. Before the freeze: Garden hoses don’t need much care, and it’s easy to forget about them at the end of the season. But take some time to straighten and drain your hose, and store it in a loose coil or on a reel – not hanging from a nail. Be sure you don’t leave an opportunity for water to enter the hose over the winter months. If you have an irrigation system, be sure to winterize it as well – blowing out the lines to ensure that ice doesn’t have an opportunity to split and break the waterlines below ground. Turn off any outside taps at source, then drain them at the faucet.
5. Wheelbarrows, carts and wagons these workhorses also deserve some attention at the end of the season. Touch up any paint chips and treat any rust spots. Give wheels a spray of oil to keep them running smoothly.
6. Turn on the lights! You’ll need your outdoor lighting as the nightfall comes sooner. Take the time to replace bulbs and ensure that any switches and timers are adjusted for the shorter daylight hours.
1. Last chance for repairs: Begin by looking up. Your roof and eaves troughs will need to be in good condition to protect your home in the coming months. In particularly, be sure to clear leaves and debris from
gutters and downspouts if a clog forces melting ice back against the shingles, you’ll be dealing with an ice dam – a serious hazard to the integrity of your roof. While you’re checking the eaves trough, make a visual inspection of the roof itself – looking for loose or broken
shingles, or damaged vents. Check your chimney for any loose brick or crumbling mortar. Mortar is temperature-sensitive and difficult to repair as the weather gets cold. Any work on the roof should be considered
a two-person job, we should add. Always have a strong adult to steady the ladder for the person working at the roof.
Now is also the time to repair any fence, lattice, or trellis – before the winter winds and ice take their toll.
2. Tool shed tune-up: Many a fine garden tool has met its demise far too soon, because it has been left outside over the winter. Your yard and garden tools have been working hard this summer, and they’ll be in need of
proper care and storage for winter. Begin by removing any caked dirt with a good wire brush some gardeners prefer using a wire whisk attachment on a power drill. Now’s the time to sharpen any tools that have become blunted by a season’s use: hoe’s, spades, pruners, loppers and saws, if you have them. As you’re cleaning, check your tools carefully for any loose screws or nuts. Finally, spray any metal parts and cutting edges with a good
penetrating oil like WD-40. Wooden handles should be wiped with boiled linseed oil to prevent cracking and drying.
3. Power tools often have special requirements at the end of season. In general, you should change the oil and spark plugs of any equipment, and have blades sharpened. This can be done professionally, if you prefer.
4. Before the freeze: Garden hoses don’t need much care, and it’s easy to forget about them at the end of the season. But take some time to straighten and drain your hose, and store it in a loose coil or on a reel – not hanging from a nail. Be sure you don’t leave an opportunity for water to enter the hose over the winter months. If you have an irrigation system, be sure to winterize it as well – blowing out the lines to ensure that ice doesn’t have an opportunity to split and break the waterlines below ground. Turn off any outside taps at source, then drain them at the faucet.
5. Wheelbarrows, carts and wagons these workhorses also deserve some attention at the end of the season. Touch up any paint chips and treat any rust spots. Give wheels a spray of oil to keep them running smoothly.
6. Turn on the lights! You’ll need your outdoor lighting as the nightfall comes sooner. Take the time to replace bulbs and ensure that any switches and timers are adjusted for the shorter daylight hours.
The views expressed are strictly those of the author and not necessarily those of Castanet.
Castanet presents its columns "as is" and does not warrant the contents.
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