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Money Mortgage borrowing slides to lowest point since 2014

18:21  14 june  2018
18:21  14 june  2018 Source:   cbc.ca

Canada debt-to-income ratio hits two-year low as rates set to rise

  Canada debt-to-income ratio hits two-year low as rates set to rise Canada debt-to-income ratio hits two-year low as rates set to riseCanadian household debt as a share of income slipped in the first quarter to a two-year low, a development sure to please policymakers worried about the pain that rising interest rates will cause.

The lowest mortgage interest rates since November did little to encourage people to refinance their home loans or take out a new loan to buy a home. This week, the slide in interest rates came to a grinding halt after fears over North Korea subsided.

Tuesday, March 04, 2014 . Mortgage Monitor: Mortgage Loan originations declined to the lowest point since Nov. These declines are largely tied to the increased mortgage interest rate environment, which is having a significant impact on the number of borrowers with incentive to refinance.

Related video: 5 secrets from real estate insiders [Provided by GoBankingRates] 

Canadians' mortgage borrowing over the first three months of 2018 fell by $2 billion to $13.7 billion — the lowest level since the second quarter of 2014 —  following the introduction of new lending rules and a rise in interest rates, Statistics Canada reported Thursday.

The federal agency said the slide in mortgage borrowing mirrored the 17 per cent decrease in the value of residential resale activity in the first quarter of this year.

Mortgage borrowing among Canada's millennials sees major pullback

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It took a few weeks, but borrowers finally took notice of a drop in mortgage interest rates. That is the lowest rate since the week ending April 20. “While the level of refinance activity remains historically low , the reprieve in rate increases may have stopped the slide .”

Mortgage rates have risen about a full percentage point since hitting record lows roughly a year ago. The average doesn't include extra fees, known as points , which most borrowers must pay to get the lowest rates.

a house that has a sign on the side of a building: Statistics Canada says mortgage borrowing fell $2.0 billion to $13.7 billion in the first quarter of this year, the lowest level since the second quarter of 2014. © Graeme Roy/Canadian Press Statistics Canada says mortgage borrowing fell $2.0 billion to $13.7 billion in the first quarter of this year, the lowest level since the second quarter of 2014. The figures on mortgage borrowing are in the latest release of Statistics Canada's national balance sheet, which details such things as Canada's national net worth, the household sector's total worth and debt and federal government borrowing.

With the cooling in mortgage borrowing, household credit market debt for the quarter was the equivalent of 168 per cent of household disposable income. That figure is down from the 169.7 per cent seen in the fourth quarter of 2017.

In other words, there was $1.68 in credit market debt for every dollar of household disposable income. Credit market debt includes consumer credit, plus mortgage and non-mortgage loans.

Kevin O'Leary: This is the age when you should have your mortgage paid off

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The percentage of home owners borrowing equity through re- mortgaging has since declined. Equity borrowers tend to be employed, a reflection of the need to be able to service any additional debt, although they also tend to have lower incomes, higher (non-housing) debt and lower savings or

AP April 10, 2014 , 5:04 PM. Mortgage rates have risen about a full percentage point since hitting record lows about a year ago. The average doesn't include extra fees, known as points , which most borrowers must pay to get the lowest rates.

Bloomberg reported that the drop in the debt-to-income ratio was the biggest on records dating back to 1990, and the ratio is now down to its lowest level in two years. The debt-to-income ratio hit a record high of 170 per cent in the third quarter of last year. 

Related gallery: 7 times it makes sense to pay off your mortgage early [Provided by Money Talks News] 

7 Times It Makes Sense to Pay Off Your Mortgage Early: Most people need a home loan to get the dwelling of their dreams. It is the one form of debt that financial experts typically do not frown upon.However, there are times when it makes sense to pay off your home loan early.Reducing the time it takes to retire your mortgage may be to your advantage if you want to free up monthly income for other purposes. What follows are seven examples of when it pays to pay off a mortgage ahead of schedule.It's not the usual blah, blah, blah. Click here to sign up for our free newsletter. 7 times it makes sense to pay off your mortgage early

Use this 4-step plan to save for retirement and pay down your debt .
Don’t wait until you’ve retired your debt to save for retirement. PFG

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