Many older Canadians say mortgage freedom still years away

Canadians may have to put aside dreams of being financially free by their mid-50s. A majority will carry mortgage debt long after they become eligible for seniors discounts, according to Royal Bank’s (RY-T43.90-1.03-2.29%) latest housing survey. Three-quarters of Canadians surveyed for the poll released Thursday said they want to be mortgage-free by age 65. About 40 per cent… Read More

Port authority considers building office tower

The Toronto Port Authority is considering turning its surface parking lot near the foot of Bay St. into an office tower or mixed-use building, including possibly a hotel or condos. The agency, which operates the port and the island airport, has hired CB Richard Ellis to seek expressions of interest from developers for the 0.72… Read More

RBC hikes margins on 5-year variable mortgage rates

Royal Bank of Canada (TSX: RBC) says it’s increasing the margin on its variable rate mortgages to help offset funding costs increases due to global economic conditions. The cost of a posted variable five-year closed mortgage rate will move up 0.2 percentage points effective Wednesday, to sit even with the bank’s prime rate of three per… Read More

Interest rates may be set to fall

While the Bank of Canada had long been expected to start raising interest rates from their historic lows, experts say the bank is now under pressure to cut them, meaning rates for everything from lines of credit to mortgages could follow. “The market has already priced in a cut by December, and there’s some indication… Read More

Record household debt could be Canada’s undoing, economist says

OTTAWA— The very thing that lifted the economy from the depths of the recession — Canadians’ passion for owning a home — could also be its undoing, warns the chief economist for RBC Global Asset Management. Central to Eric Lascelles’ concern is that the availability of cheap credit has driven household debt levels to record… Read More

Too many condos? Not necessarily, Says RBC

Canadian condominium construction is strong, but not necessarily excessive, since new units are filling a gap by creating much needed rental stock, says a report by the Royal Bank of Canada. “Concerns have been raised about the growing number of investors fuelling the growth in condo sales in recent years,” said Robert Hogue, a senior… Read More

Housing prices to weaken in most markets

After three years of volatility, the Canadian housing market is settling into a more moderate pace of activity. An RBC report on the Canadian home resale market says home prices will increase by 4.4 per cent this year before they flatten to 0.4-per-cent growth for 2012. Home resales are expected to increase by 0.9 per cent this year… Read More

House affordability in Canada goes down (but only a little bit in Toronto)

Home ownership costs for Canadians rose in the first few months of 2011, according to RBC’s latest quarterly report on housing trends and affordability. In Toronto, the statistics are currently stable: home ownership costs rose 0.8% for detached bungalows and 0.1% for condominiums, although it dropped 0.9% for two-storey homes. Overall, the mortgage payments, utilities… Read More

55% of young adults holding off buying home: RBC poll

Over half of young adults aged 18 to 34 are delaying their purchase of a home by one year, reports RBC’s Annual Homeownership Study conducted in mid-January. Furthermore, 46% of young homeowners surveyed reported their mortgage is using up too much of their income. This is a contrast from last year’s survey, where record-low interest… Read More

Banks increase fixed mortgage rates 0.15% to 0.35%

Today three banks, TD Canada Trust, CIBC and RBC, have raised their fixed-term mortgage rates by as much as 0.35%. This will bring the posted rate for a 5 year closed mortgage to 5.69% for these three banks. This is the first major change in Canadian fixed mortgage rates in 2011. In mid-December 2010, mortgage… Read More