The Shock of Higher Mortgage Payments Could be Just Around the Corner

Most homeowners face higher mortgage payments in the next two years, writes Peter Watson. Last year many homeowners escaped the burden of rising interest rates pushing their mortgage payments higher. That will soon change. Interest rate increases do not immediately affect all existing mortgages. For example, if you have a five-year mortgage at three per […]
Mortgage Payments Are Becoming Challenging

The most significant challenge for some over the next few years is making their mortgage payments, writes Peter Watson. Many have already experienced the effect of higher interest rates. The lucky ones have locked in a specific mortgage rate that has not come due, but that day is coming. There are several realities to homeownership. […]
Why paying off your mortgage is a smart move

It’s time to pay off your mortgage, writes Peter Watson. For many years historic low interest rates encouraged people to borrow. Those days have passed. Depending on your mortgage details, your interest rate has already increased or likely will soon. Paying off your mortgage is a good idea, especially before you retire. During retirement your […]
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 […]
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 […]
New home mortgage stress test
Qualifying for a home mortgage became more difficult at the beginning of this year, and will add downward pressure on house values. This is not a prediction that the value of homes will decrease. Downward pressure could result in smaller increases in the value of houses or, in fact, a decline in prices. The government […]
Bank of Canada warns on record household debt levels
Does your out-of-control increasing debt keep you awake at night? It should. The governor of the Bank of Canada, Stephen Poloz, is concerned about soaring home prices and the increasingly high amount of household debt Canadians are accumulating. He says it keeps him awake at night. Debt can be your friend right up until the […]
Canadians love affair with personal debt continues unabated
Much can be learned about the priorities of Canadians when you look at borrowing patterns. Also, much can be learned about the risks of personal debt. TransUnion is a credit monitoring firm. It released its Q2 2017 Canadian Industry Insights Report in August showing how Canadians borrow. The numbers show the Canadian dream of homeownership […]
The financial and human sides to soaring house prices
A hot topic of conversation these days is real estate. Specifically, the exorbitantly high prices of houses in Oakville and other communities in the GTA. According to the April 4 numbers released by the Oakville, Milton and District Real Estate Board, Oakville’s median residential sale price for the month of March increased by 44.77 per […]
The dangers of Canada’s real estate bubble will affect us all
Ottawa remains fearful of the dangers of a continuing rise in residential real estate prices. Last week, the federal government introduced new rules and restrictions that are designed to discourage speculation by foreign investors. Plus, the government wants to prevent homeowners from accumulating mortgage debt beyond their financial means. Finance Minister Bill Morneau continues to […]