Media-spread contentions that Canadians are seeking financing beyond their means and risking their financial security on variable rates are not true according to the Canadian Association of Accredited Mortgage Professionals (CAAMP).
CAAMP reviewed 40,000 Canadian mortgages from 2009 in a report issued this month entitled, Revisiting the Canadian Mortgage Market – Risk is Small and Contained.
The report reflected that Canadians do heed the concerns voiced by the Bank of Canada; that, “sustained growth of household debt in the context of an environment of rising interest rates will increase the vulnerability of households to an adverse shock over the medium term”, as stated in the BoC Financial System Review, released December.
Mortgage Renewals in Canada
Renewal time is approaching. Your bank offers you a rate well above their posted special rate, which they are offering to new customers. Don’t be submissive when your renewal date approaches. You can use this time to negotiate a better rate.
You’ve proved in your term that you are a devoted mortgagor. You’ve made your payments on time for a significant duration; you should not settle for a rate a full percentage point, or more, above what you could achieve elsewhere.
Investor’s of the New Year are looking for stocks that pose good potential for growth and minimal risk. Companies who present solid balance sheets, pragmatic growth strategies and well-managed plans are most likely to gain the favour of 2010’s mindful, tactical investor.
Investors should be looking for companies with a strong potential to generate cash flow and with interest-swallowing debt loads well in check.
Some investment advisors recommend to take intangible assets and goodwill completely out of the balance sheet equation to get a clearer scope of the true healthiness of a company. Others suggest selecting balance sheets showing very little leverage, particularly where U.S. businesses are concerned, unless the business is in extremely prominent standing and producing something that is in large consumer demand.