loans: Canadian Gov't may increase Bank Mortgage Purchases to $75 Billion
- 11/12/08 05:46 PM
Finance Minister Jim Flaherty pledged today to triple the amount of mortgages the government can buy from banks to as much as C$75 billion. The Canadian Gov't, using its crown corporation, the Canadian Mortgage and Housing Corp. (CMHC), purchased $25 billion in mortgages last month. Allow me to explain in simply terms what the government is in fact doing... The gov't via CMHC has insured many mortgages for the banks. In other words, CMHC has sold the banks default insurance on mortgages that the banks have provided to their clients, which guarantees that CMHC will cover any shortfall realized by … (1 comments)
loans: Bank of Canada expected to Lower Interest Rates
- 11/12/08 05:43 PM
Bank of Canada has hinted that they may cut interest rates again. Early today in Toronto, Bank of Canada Senior Deputy Governor Paul Jenkins stated, "Some further monetary stimulus will likely be required to achieve our 2 percent inflation target over the medium term." The Cdn Central Bank cut its benchmark overnight lending rate to 2.25 percent on Oct. 21. Some economists expect that the Bank of Canada will cut their overnight rate a half point to 1.75 percent on Dec. 9. This would be the lowest since 1960.
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