Under new mortgage rules just announced by Finance Minister Bill Morneau, all insured mortgage borrowers must now pass a "stress test" proving that they can carry a mortgage at a realistic rate (the Bank of Canada's conventional five-year fixed posted rate), and not simply the "teaser" rate offered for a short period by the mortgage lender.
Instead of drawing a forgone conclusion that you'll spend hundreds to thousands of dollars just because it's the holidays -- let's find another way. No one likes the impending debt emergency in the new year. To avoid spending beyond your means, now is the perfect time to get your financial house in order and save for the holidays.
Sherry's financial needs were not met through payday loans, but made worse by them -- and, as a result, she and her family were caught in a long-term cycle of debt from which they could not escape. Unfortunately, Sherry's form of repeat payday loan borrowing is common and it can sink families into poverty.
B.C. has become the first foreign government to issue a Masala bond in India. Essentially, B.C. took on $97.5 million in debt and immediately reinvested that money not in B.C. infrastructure or something that would help B.C. taxpayers, but in the Housing Development Finance Corporation (HDFC) Limited of India.
Did you know interest payments on debt are already the third highest expenditure in Ontario's budget? Interest payments cost more than the entire budgets for transportation, college and universities, children and youth services, even slightly more than social services. Only health care and education have higher budgets than interest payments on debt.
The growth in the visible minority population has seemingly changed the nature of the vertical mosaic and the portrait of inequality in Canada. The question that preoccupies researchers is whether the upward mobility experienced by most European origin groups can be replicated by non-European immigrants and their children.
Real estate agents can talk about the upside of buying right now, but they don't explain the downside of carrying massive debt. Yes, you may build some equity if you purchase a home, but if you've mortgaged 90 per cent of it, very little of your payments in your first five to 10 years will go towards repaying principal.
Prime Minister Justin Trudeau is in Tokyo this week for a bilateral visit with Japanese Prime Minister Shinzo Abe, as well a G7 leaders summit in nearby Ise-Shima. While increasing trade is a major focus of the Prime Minister's visit (Japan is Canada's fifth largest trading partner), Canadians should cross their fingers that Trudeau doesn't ask his Japanese counterpart for advice on fiscal policy and the virtues of massive infrastructure spending.
Recently the Ontario government asked for comments on potential reductions in the maximum total cost of borrowing a payday loan in Ontario. In particular, the Ministry was recommending that the cost be reduced from the current $21 per $100 advanced, to either $15 per $100, $17 per $100 or $19 per $100.
The Office of the Superintendent of Bankruptcy just released their 2015 Annual Report of bankruptcies and consumer proposals in Canada and from these numbers we can see the impact shifts in the Canadian economy have on indebted Canadians. In 2015, 121,609 Canadians filed for insolvency, an increase of three per cent over the prior year.
Thirty-six is the new 30 for first-time home buyers in Canada -- meaning that the average age of current home buyers is 36, while the majority of current home owners bought their place before they were 30. Considering that millennials are typically 25 to 34 years old, many are left asking the question: are millennials buying homes?
What you don't have to do forever is live with debt. You don't have to spend every month calculating how much you can afford to put towards debt repayment, while continuing to use credit, and staying in the never-ending cycle of borrowing money and trying to pay it back. It's not an easy cycle to get out of; I know that firsthand.
Equifax will combine credit histories, ratings, and mortgage information with Teranet's database of property values to offer lenders and financial institutions an assessment of a borrower's debt-to-asset value and home equity. This RESL metric will help lenders measure risk in the real estate market, allowing them to determine if they want to lend or not.
March Break is just around the corner, and if you're like many Canadians, you're probably wondering how you're going to afford to pay for it. Luckily, there's an easy way to save money, keep your children happy, and teach them a few life lessons too. Use the break as an opportunity to put your kids in the classroom of life by involving them in the March Break budgeting process. Here's how:
While it is a worthy goal to maximize your savings prior to retirement, it is even more important that you retire debt free. If you retire and are still making payments on car loans, mortgages, or high interest rate debts like credit cards and payday loans you require a much higher income in retirement to survive.