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 […]
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 […]
Mortgage debt is a financial risk
Excessive mortgage debt is a financial risk for many homeowners, writes Peter Watson. The nagging issue of excessive mortgage debt held by Canadians continues. There is new information that the risk of excess borrowing is getting worse. This has significant implications for homeowners that might get caught carrying too much debt. Also, there is considerable […]
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 […]
Covid-19 Could Change Your Life for the Better
Bad news sometimes turns out to be good news, writes Peter Watson. For many, the Covid-19 pandemic will change your life in ways you could not have imagined. Sometimes change can have a negative impact, but it can also lead to positive results. This article will focus on the positive. Some will be able to […]
Financial Planning will be taught in elementary schools
Ontario’s overhaul of math teaching will include financial literacy, writes Peter Watson. Young children will start learning financial planning at school. This is an excellent life skill and, in my opinion, an educational upgrade. One of the foundations an individual carries through life is a strong education. Reports over the years show a correlation to […]
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 […]
