Paying off bills hurting Canadians’ ability to save: study
LuAnn LaSalle – CTV MONTREAL — Almost a third of Canadian households report never or almost never having any money left to save after paying their bills, according to a new study issued Wednesday. Households that reported no wealth accumulation tended to be working, middle-aged people — although of varying income levels, says the study by the Certified General Accountants Association of Canada. “They felt that their incomes were not keeping pace with the cost of living,” said Rock Lefebvre, co-author of the study, which surveyed more than 1,800 people. Consumer...
Read MoreAre all our eggs in the housing basket?
Garry Marr – Financial Post If you want to include your home as part of your asset mix, Canadians may not be such bad savers after all. The net worth of Canadians keeps rising — it reached $199,700 per capita at the end of the fourth quarter of 2012. But that wealth is being generated from our flourishing property prices, something that financial planners haven’t always considered in a retirement planning scenario. An analysis of Statistics Canada National Households Balance Sheet by Carleton University professors Ian Lee and Vijay Job found Canadians have gross assets of...
Read MoreAlmost half of Canadians are keen to buy property, despite cooling market
Canadian Press – Financial Post TORONTO — A new report suggests nearly half of Canadian homeowners intend to buy a property in the next five years, despite a cooling off in the housing market. The BMO Housing Confidence Report says the 48% figure is mostly unchanged from late 2012, suggesting continued confidence in the housing market. Among major cities, the report found a five-point gain in buying intentions in Vancouver while Calgary was down by 13 points. Buying intentions in the Greater Toronto Area and Montreal have held steady, while Atlantic Canada has seen a 15% jump in...
Read MoreAnalyst shorts Canada on housing market slowdown
Brady Yauch – BNN.ca Another analyst has come out with a “short Canada” message for investors. Ben Rabidoux, Hanson Advisor analyst, says that while Canada’s housing market surged in the wake of the financial crisis – when real estate markets in other developed economies, particularly the U.S., suffered double digit sales and price declines – that strength is not sustainable. And when the housing market slows down, which it has in recent months, it will have serious implications for the overall economy. “If you look at how levered our economy and our labour...
Read MoreCanadian economy can’t keep relying on consumer borrowing: Mark Carney
Michael Babad – The Globe and Mail The highs of the lows Listening today to both Mark Carney and Julie Dickson, you get a sense of both the ecstasy and the agony of ultra-low interest rates. Both the Bank of Canada Governor and the head of the country’s bank regulator addressed the issue today, each from different perspectives and each with a warning. For his part, Mr. Carney cited his aggressive monetary policy as one of the reasons behind Canada’s better showing in the financial crisis than that of other developed countries. But that has to change at some point. “Stimulative...
Read MoreCanada bank regulator says watching housing risk, pleased so far
Andrea Hopkins – Reuters TORONTO (Reuters) – Canada’s top banking regulator said on Tuesday she is focused on the risk Canada’s big banks face from low interest rates and real estate lending, but is happy that the housing market is moving into more balanced territory. Julie Dickson, head of the Office of the Superintendent of Financial Institutions, or OSFI, said the impact of low interest rates can clearly be seen in the Canadian real estate market. Canada’s housing market was red hot in the years following the recession. But it began cooling in the middle of...
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