More Canadians are carrying their mortgages into old age, and it’s complicating retirement plans

More Canadians are carrying their mortgages into old age, and it’s complicating retirement plans

More retirement-age Canadians are still paying off a mortgage, and financial advisers say rising interest rates will make it even more challenging for Canadians to pay off their home before they retire. The number of people older than 65 with an outstanding mortgage in their residence increased from 1.2 million to 1.5 million between 2016 … Read more

Number of variable-rate mortgage holders hitting trigger rate will climb to 65 per cent next year, BOC warns

Number of variable-rate mortgage holders hitting trigger rate will climb to 65 per cent next year, BOC warns

Homes on Sherman Brock Circle in Newmarket, Ont. on Mar 30, 2021.Fred Lum/the Globe and Mail Canada’s financial system should be able to weather a period of heightened stress, but many recent home buyers could experience a “painful” squeeze as interest rates continue to rise, the Bank of Canada’s second-in-command said Tuesday. In a speech … Read more

A new 3.49% six-month mortgage is launching soon. Should you get it?

A new 3.49% six-month mortgage is launching soon.  Should you get it?

Many mortgage shoppers are by and large still choosing variable or short-term fixed rates, hoping they can reset their rate lower in 12-24 months.Sean Kilpatrick/The Canadian Press Most in the mortgage industry believe that interest rates will be lower by the end of next year. And the bond market agrees. It’s pricing in a Bank … Read more

Despite interest rate hikes, Canadians have been slow to ditch variable mortgages. Here’s why

Despite interest rate hikes, Canadians have been slow to ditch variable mortgages.  Here’s why

Canadians have been slow to turn away from variable-rate mortgages despite a slew of central bank interest rate hikes since March. It’s an unusual trend that mortgage brokers chalk up to economic uncertainty, regulations and – for some borrowers – a need for flexibility. As of August, variable-rate mortgages still accounted for 44 per cent … Read more

The lowest mortgage rates in Canada this week

The lowest mortgage rates in Canada this week

The lowest advertised uninsured fixed rates in Canada mostly climbed this week, by four to eight basis points.Joe Raedle/Getty Images The lowest advertised uninsured fixed mortgage rates in Canada mostly climbed this week, by four to eight basis points. Popular two-year fixed rates, which attract people who want to lock in for a few years … Read more

Recent home buyers on erupting mortgage payments, how their parents are helping and who they blame for rising rates

Recent home buyers on erupting mortgage payments, how their parents are helping and who they blame for rising rates

Eight months of sharply rising interest rates have strained the finances of recent home buyers, but not their confidence that buying property was the right decision. An informal survey of 653 people who bought their first homes in recent years found several pain points. Almost one in three said they’re feeling financial pain but managing, … Read more

Growing number of mortgage loans have amortization periods of more than 30 years

Growing number of mortgage loans have amortization periods of more than 30 years

At Royal Bank of Canada, Bank of Montreal and Canadian Imperial Bank of Commerce, the percentage of mortgages with an amortization of more than 30 years recently doubled in a three-month span, according to company filings.Evan Buhler/The Canadian Press A growing share of mortgage loans made by major Canadian banks have amortization periods of more … Read more

Are Canadians worse off financially now than in the 1980s?

Are Canadians worse off financially now than in the 1980s?

For many Canadians old enough to remember, the current bout of runaway consumer price increases and escalating borrowing costs feels like a pared-back version of the 1980s. That was the era when the country’s annual inflation rate shot past 12 per cent a few times, and when mortgage rates briefly rose past 20 per cent. … Read more

Real estate influencers, Canada’s unfair recession and the UK crisis: Must-read business and investing stories

Real estate influencers, Canada’s unfair recession and the UK crisis: Must-read business and investing stories

Canadians who have been able to keep a stockpile of cash are better prepared for the impending recession.Denis Pepin/Getty Images/iStockphoto Getting caught up on a week that got away? Here’s your weekly digest of The Globe’s most essential business and investing stories, with insights and analysis from the pros, stock tips, portfolio strategies and more. … Read more

As rate hikes continue, is it time to lock in your variable rate mortgage?

As rate hikes continue, is it time to lock in your variable rate mortgage?

With the Bank of Canada widely expected to announce another outsized rate increase next week, a growing number of variable-rate mortgage holders ask themselves a dreaded question: Is it time to lock into a fixed rate? The answer usually boils down to the state of the homeowners’ household finances, said James Laird, co-CEO of online … Read more