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The Bank of Canada today announced that it is maintaining its target for the overnight rate at 3 per cent. The operating band for the overnight rate is unchanged, and the Bank Rate remains at 3 1/4 per cent. The three global developments highlighted in the July Monetary Policy Report Update continue to have a major influence on the Canadian economy. Two of them - the course of the U.S. economy and the ongoing turbulence in global financial markets - have evolved broadly in line with the Bank's expectations. However, there is an increased risk of a more pronounced interplay between weakness in the U.S. economy and tightness in credit conditions that could affect the U.S. outlook for 2009. With respect to the third highlighted development, the sharp increases in commodity prices, the risk identified in July that these prices could be weaker than assumed has materialized. This has been largely due to the impact of slower global growth on the demand for energy. Given tight inventories, commodity prices can be expected to remain volatile. The reduction in commodity prices has been a significant factor in the decline of the Canadian dollar against the U.S. dollar. The weaker global growth and the decline of the Canadian dollar will have opposing effects on the demand for Canadian goods and services. In Canada, domestic demand has slowed modestly but remains strong. It continues to be supported by financial conditions that remain significantly better than those in most other major economies and by income gains stemming from past improvements in the terms of trade. Overall, the level of economic activity is slightly lower than expected in July but still close to the economy's production capacity. Global inflationary pressures remain elevated, with potential implications for import prices and the dynamics of inflation in Canada. While total CPI inflation has moved above 3 per cent, core inflation has stayed at 1.5 per cent as expected. The temporary factors affecting both of these measures should dissipate over the coming quarters, and the Bank continues to expect that total and core inflation will converge on 2 per cent in the second half of 2009. However, the recent decline in both spot and futures prices for energy means that the spike in total CPI inflation expected between now and the first quarter of 2009 will be lower than projected in July. Given these developments, the Bank judges that the current level of the target for the overnight rate remains appropriately accommodative. The Bank will continue to monitor carefully economic and financial developments in the Canadian and global economies, together with the evolution of risks, and set monetary policy consistent with achieving the 2 per cent inflation target over the medium term. Information note: The Bank of Canada's next scheduled date for announcing the overnight rate target is 21 October 2008. A full update of the Bank's outlook for growth and inflation, including risks to the projection, will be set out in the Monetary Policy Report, to be published on 23 October 2008. The Government of Canada today announced adjustments to the rules for government guaranteed mortgages aimed at protecting and strengthening the Canadian housing market. The new measures include:
Today's announcement marks a responsible and measured approach by the Government to ensure Canada's housing market remains strong and to reduce the risk of a U.S.-style housing bubble developing in Canada. The new limits are planned to take effect October 15, 2008. This would allow existing mortgage pre-approvals with the common 90-day duration to be used or expire. Certain exceptions would also be permitted after October 15. The Government will work closely with all stakeholders to ensure timely and effective implementation of these measures. As these measures relate only to new, government-backed insured mortgages, Canadians who already hold mortgages will not be affected by this announcement. The measures announced today will build on the strength of Canada's housing market. According to the International Monetary Fund, the increase in house prices in Canada is based on sound economic factors such as low interest rates, rising incomes and a growing population. A recent Statistics Canada report concluded that home ownership is at record levels, with over two-thirds of Canadians owning their own home. Mortgage arrears-overdue mortgage payments-have also remained low. In recent years, the percentage of mortgages in arrears for three months or more continues to be at low levels not seen since 1990. For more information: http://www.fin.gc.ca/news08/08-051e.html TORONTO, ON - InterBay Funding Corp., a national wholesale lender specializing in small commercial real estate financing, announced today it will no longer originate commercial mortgages in Canada. Dean West, Vice President Canadian Division, says the move to cease commercial lending is a result of the continuing weakness in the Capital Markets. "The typical process of originating loans and selling the loan in a security instrument has changed dramatically since the fall of 2007. Despite high demand for small commercial mortgage financing and a combination of favourable conditions (strong real estate values, low interest rates, strong employment stats, and performing mortgages) the investment markets remain sensitive to the sub-prime problems that have touched markets worldwide." West said. "With that disconnect, and the prospect of a lengthy recovery, it was decided that originations should cease." "I am extremely proud of our Canadian Interbay team and the sequent loss of these talented people is a very sad occasion." Ancillary department, Interbay Loan Servicing Corporation will continue servicing operations from the Toronto office. Mortgage Intelligence's consultants now fully compliant with Ontario's new Mortgage Brokerages, Lenders and Administrators Act, 2006 - June 30, 2008, Toronto, ON - Mortgage Intelligence is pleased to announce that as of June 15, 2008 the organization and its network of 397 independent consultants in Ontario are fully compliant with the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA), which comes into effect on July 1, 2008. "Our achievement of early compliance truly demonstrates Mortgage Intelligence's commitment to set the standard for best practices within the Canadian mortgage brokerage industry," said Mark Moreau, President of Mortgage Intelligence. "We continue to equip our consultants with best-in-breed compliance tools and processes so they can remain focused on their top priorities - their clients." The new act, which replaces the current Mortgage Brokers Act, will improve consumer protection through new licensing and supervision requirements for mortgage brokers and agents. The four types of licences being issued by the Financial Services Commission of Ontario (FSCO) under the new act include: • Mortgage Brokerage licence - a corporation, partnership or sole proprietorship that has a Mortgage Brokerage licence, allowing it to carry on the business of dealing and trading in mortgages in the province of Ontario. • Mortgage Broker licence - a person who deals or trades in mortgages for a Mortgage Brokerage. • Mortgage Agent licence - a person who deals or trades in mortgages for a Mortgage Brokerage, under the supervision of a licensed Mortgage Broker. • Mortgage Administrator licence - an organization that receives mortgage payments from borrowers and sends them to investors. Over the past several months, Mortgage Intelligence worked closely with FSCO and the Canadian Association of Accredited Mortgage Professionals (CAAMP) to execute a comprehensive education and licencing program to enable Mortgage Intelligence consultants in Ontario to obtain the appropriate Mortgage Broker or Mortgage Agent licenses prior to the July 1, 2008 deadline. For more information on this and other Industry News: www.FreeMortgageReports.ca David Yeoman, AMP
OTTAWA - The Bank of Canada today announced that it is maintaining its target for the overnight rate at 3 per cent. The operating band for the overnight rate is unchanged, and the Bank Rate remains at 3 1/4 per cent. Since the April Monetary Policy Report (MPR), economic developments have been broadly in line with expectations. However, the balance of risks to the Bank's April projection for inflation in Canada has shifted slightly to the upside. Although the composition of U.S. growth has not been favourable for demand for Canadian goods and services, overall, global growth has been stronger and commodity prices have been sharply higher than expected. At the same time, many of the downside risks to inflation identified in the April MPR have eased, while the evolution of credit conditions has been in line with expectations. The risk remains that potential growth will be weaker than assumed. With the decline in first-quarter GDP, the Canadian economy is judged to have moved into excess supply, which is expected to increase this year. Consistent with the April MPR, the Bank continues to project that economic growth will pick up this year and accelerate in 2009, owing in part to a firming of U.S. demand and accommodative monetary policy in Canada. If current levels of energy prices persist, total CPI inflation will rise above 3 per cent later this year. However, with the Canadian economy operating in excess supply, core inflation is expected to remain below 2 per cent through 2009. Both total and core inflation should converge on 2 per cent in 2010 as the economy returns to balance. Against this backdrop, the Bank now judges that the current stance of monetary policy is appropriately accommodative to bring aggregate demand and supply into balance and to achieve the 2 per cent inflation target. There continue to be important downside and upside risks to inflation in Canada, which the Bank will monitor closely. Information note:The Bank of Canada's next scheduled date for announcing the overnight rate target is 15 July 2008. The Bank will publish an updated projection for the economy and inflation, and its assessment of the risks, in the Monetary Policy Report Update on 17 July 2008. For more information on how today's announcement will impact mortgage rates visit: www.OntarioMortgageTeam.com
It's Now the Law - Land Transfer Tax Rebate for Resale Homes In the 2007 Ontario Economic Outlook and Fiscal Review, the government proposed to expand the Land Transfer Tax Refund Program to include first-time homebuyers of resale homes for agreements of purchase and sale entered into after December 13, 2007. This measure was included in Bill 44, Budget Measures and Interim Appropriation Act, 2008, and, having received Royal Assent on May 14, 2008, is now law. NOTE: if you or your clients have purchased and closed their real estate transaction any time after December 14, 2007 they may qualify for the rebate. David Yeoman, AMP OTTAWA - The Bank of Canada today announced that it is lowering its target for the overnight rate by one-half of a percentage point to 3 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 3 1/4 per cent. Growth in the global economy has weakened, reflecting the effects of a sharp slowdown in the U.S. economy and ongoing dislocations in global financial markets. Growth in the Canadian economy has also moderated as buoyant growth in domestic demand, supported by high employment levels and improved terms of trade, has been substantially offset by the fall in net exports. While both total and core CPI inflation were running at about 1.5 per cent at the end of the first quarter, the underlying trend of inflation is judged to be about 2 per cent, consistent with an economy that was operating just above its production capacity. The Bank is now projecting a deeper and more protracted slowdown in the U.S. economy. This has direct consequences for the Canadian economic outlook, with declining exports projected to exert a significant drag on growth in 2008. In addition, tightening credit conditions and softening sentiment are expected to moderate business investment and consumer spending. Nevertheless, domestic demand is projected to remain strong, supported by firm commodity prices, high employment levels, and the effect of cumulative easing in monetary policy. The Bank projects that the Canadian economy will grow by 1.4 per cent this year, 2.4 per cent in 2009, and 3.3 per cent in 2010. Consistent with this growth profile, the economy moves into excess supply in the second quarter of 2008, and spare capacity continues to increase through early next year. However, a gradual recovery in the U.S. economy, a return to more normal credit conditions, and accommodative monetary policy should generate above-potential growth and bring the economy back into balance around mid-2010. The recent price-level adjustments for automobiles and the effect of past changes in indirect taxes will keep measured inflation below target through 2008. The emergence of excess supply in the economy should keep downward pressure on inflation through 2009. Both core and total inflation are projected to move up to 2 per cent in 2010, as the economy moves back into balance. There are both upside and downside risks to the Bank's new projection for inflation; these risks appear to be balanced. In line with this outlook, some further monetary stimulus will likely be required to achieve the inflation target over the medium term. Given the cumulative reduction in the target for the overnight rate of 150 basis points since December, the timing of any further monetary stimulus will depend on the evolution of the global economy and domestic demand, and their impact on inflation in Canada. A full analysis of economic and financial developments, trends, and risks will be set out in the Bank's Monetary Policy Report, to be published on 24 April 2008. Information note: The Bank's next scheduled date for announcing the overnight rate target is 10 June 2008. For information on this and how it will impact the mortgage rate market visit: David Yeoman, AMP www.FreeMortgageReports.ca offers the Canadian Consumer access to all the information they need to you know about mortgages, because knowing more about mortgages can save you thousands of dollars. Unlike some mortgage websites where they provide similar reports, only to harvest your name, phone number and email address, I am pleased to provide these mortgage reports free of charge and without obligation. Why? I am confident that once you have reviewed some of the valuable information available, you will not hesitate to refer family, friends and co-workers to our website and our mortgage services. Whether you are looking to purchase a resale or your first home, mortgage renewal or renovating, improving your monthly cash flow by consolidating debts, purchasing a cottage or investment property, I am confident you will find these Free Mortgage Reports of value to you. You have a dream of home ownership. I make sure that dream doesn't come at too high a cost. David Yeoman, AMP For a complete unbiased assessment of how this information impacts you contact: David Yeoman phone: 705-725-7757
For a complete unbiased assessment of how this information impacts you contact: David Yeoman phone: 705-725-7757
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Dave Yeoman Barrie, ON More about me… Mortgage Intelligence Inc. (Dave Yeoman) Office Phone: (877) 725-7757 Email Me ;) Links;) Tags (Tag Cloud);) Archives
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