Genworth boosts scrutiny to mitigate delinquencies
Canada’s largest private mortgage insurer is exercising “heightened vigilance” in Western Canada in preparation for a potential rise in delinquencies. Genworth president and CEO Stuart Levings said that the company isn’t pulling out of the region but is weighing the risks of each policy very carefully, and it may mean some circumstances are no longer acceptable for the company to insure. Those working in the oil and gas industries, for example, could find that their cases are given more scrutiny. Levings said that he expects the level of delinquent loans, which has been low and stable in recent years, to see “moderate” increases, although in Alberta it could be sharper. Read the full story.
Yale lecturer latest to warn of a Canadian housing bubble
Canadians are resorting to risky strategies in order to finance home purchases and fuelling the bubble in the process. That’s the warning from Yale lecturer Vikram Mansharamani who has added his voice to those forecasting trouble ahead. His main concern is that more homeowners are dipping into the equity in their property to fund renovations or help family members, especially their children, to get on the property ladder. In a recent blog post the lecturer likened the situation to a cartoon: “In this Loonie tune, it seems our Crazy Canadian Coyote has run off the cliff, his feet are still moving, but he has yet to look down.” Read the full story.
TD predicts improving economy after “very weak” first quarter
Analysts from TD Economics have predicted that the Canadian economy will gradually improve this year in terms of personal income, employment and economic growth, but that the first quarter will show weakness with GDP at an annualized rate of just 0.5 per cent. The overall tone of the report is positive though as it says that there will be a slight rebound in oil which should enable the energy sector to ride out the storm. It forecasts a full-year GDP of 1.9 per cent, down from 2.4 per cent last year.
Apple Watch app helps Australian homebuyers
The real estate industry could benefit from the forthcoming launch of the Apple Watch. That’s the hope of an Australian property listings website owned by Rupert Murdoch’s News Corp. It has launched a new app that will work with Apple’s newest piece of tech to help buyers find properties and also to allow agents to target potential clients directly to their wrist.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate