Household Debt Continues to be a Risk
Many Canadians will not be able to make higher interest rate mortgage payments, writes Peter Watson. Canadians’ personal finances are at risk because of high debt levels. A recent report by Canada Mortgage and Housing Corporation sounded an alarm. Since 2010 Canada has had the most personal debt levels of all G-7 countries. The UK […]
Housing Has Become a Financial Stress
Increased interest rates and higher house prices are causing financial stress, writes Peter Watson. The attraction to homeownership remains strong; however, the financial risks are growing. The Bank of Canada predicted that homeowners renewing their mortgage in the next few years will see an increase of 20 to 40 per cent in monthly payments. This […]
Canadians Worry About Personal Finances
People worry about retirement and investments, writes Peter Watson. Canadians are concerned about their ability to fund retirement and they have negative feelings towards their investments. There are many reasons creating this pessimism, including Covid, higher interest rates, and everything seems to be more expensive. Plus, personal debt levels continue to rise. According to a […]
House Prices To Fall
Homeowners face the possibility of significant decrease in value of their house, writes Peter Watson. “Property values, already slipping, are likely to fall more than 10% in the coming year.” This quote is from a recent report from RBC Economics. Add this to other news on housing prices and the new reality is Canadians largest […]
Financial Stress for First Time Homeowners
Two financial concerns for first-time homeowners are rising interest rates and declining house prices, writes Peter Watson. We can learn a lot about the possible negative emotional side effects of the real estate market by connecting the dots between real estate and personal finances. Many are new to homeownership. The same way some investors are […]
Understanding Inflation is Important to Investing Success
Should investors worry they may receive poor stock market returns if inflation rates rise? Historically, that has not been the case. Assume the stock market gained 10 per cent during a year that inflation was three per cent. The first three per cent of return is needed to account for inflation. An investor needs to […]
House Value Warning Issued by CMHC
A warning has been issued that house prices have become risky for our country, writes Peter Watson. This information was just released by Canada Mortgage and Housing Corp. It issued its highest risk rating and specifically mentioned three cities, Toronto, Hamilton and Ottawa. According to the Canadian Real Estate Association, many smaller communities have seen […]
Failed CMHC Policy Could Not Control Rising House Prices
Canadian house prices continue to rise and are increasingly unaffordable, writes Peter Watson. Canada Mortgage and Housing Corp. failed at its attempt to slow the increase of house prices. This could affect homeowners and prospective homeowners. Last year CMHC increased the financial requirements to qualify for mortgage insurance. Mortgage insurance is required for buyers who […]
Home Ownership Dangerously More Accessible
Allowing more homeowners to qualify to purchase a home has many inherent risks. Buyer Beware, writes Peter Watson. A change allowing more home buyers to qualify for a larger mortgage started April 6, 2020. This move could backfire. The change has to do with the “stress test” implemented a few years ago to help cool […]
Tips on your personal credit rating
Your credit rating is extremely important. Every time you attempt to borrow money the lender will check your credit rating to determine if they should approve the loan. This includes applying for a mortgage, credit card, car financing, or any other debt. Because so many consumers use credit cards for their financial transactions, a large […]