Thesubprime lending industry is alive and well in Canada; that is the subject of this Toronto condo market report. In fact, subprime lenders hold almost 8% of Canadian mortgages, which is a hefty 37.8% increase compared to the same quarter last year. And, this is the sixth consecutive quarter we saw thesubprime lending industry grow. It’s now at its highest level in 10 years. Although many pundits blame the spike in prime lending to the newmortgage stress tests, it’s clear that this trend began years beforestress testing was introduced.
Toronto condo market report: What are subprime loans and how do you get one?
Any loans that are for borrowers that do not have a good credit score
They’re done throughprivate lenders, typically accessed through a mortgage broker
Private lenders are not federally regulated like the banking industry
Private lenders charge steep prices
Toronto condo market report: Why do people take subprime loans?
You may be asking why anyone would take asubprime loan and pay considerably more money than they would at a bank.
Transunion estimates that 11.9% of the 28.4 million Canadian consumers withcredit profiles are subprime which means that they wouldn’t qualify for a mortgage from the bank
A borrower with excellent credit might resort to a subprime loan because the bank won’t lend them as much money as they need
Even a person with bad credit or no credit, there is a private lender willing to give a subprime loan
Toronto condo market report: How is subprime lending affecting Toronto’s condo market?
For some reason known only to the government, they don’t track subprime lending. CIBC Economics show that over:
1 in 10 Toronto condos registered in 2017 was attached to astronomically high mortgage rates
17.4% of owner-occupied condos registered in 2017 had a mortgage rate above 9%
16.2% of condo investors with units that registered last year were paying more than 9%
Toronto condo market report: What’s going to happen if the market starts to soften?
The problem with paying astronomically high-interest rates is what’s going to happen if the market starts to soften? How will these condo owners with subprime loans get their money out, let alone make a profit?
The mortgage stress tests are in place for a very good reason. To ensure that Canadians don’t buy houses or condos that they can’t afford. Trying to avoid the system by going to private lenders and paying high-interest rates can put you in afinancial danger zone.
Toronto condo market report: Are you in a financial bind?
If you’re in a financial bind because you’re living in a property that you can’t afford, or for any reason, you needprofessional help now. With a cumulative 50+ years of experience, theIra Smith Team has helped people just like you who are facing a financial crisis. Give us acall today. We can help you overcome your financial difficultiesStarting Over, Starting Now.
If you’re a Toronto resident then you’ve seen the cost of living in Canada continuously rise. However, the cost of living in Toronto has risen over 20% faster than in the rest of Canada. And, the cost of living is now 36% higher than it was in 2002.
The cost of living in Canada: What StatsCan says
According to Statistics Canada, a few categories were responsible for most of the gains – gasoline, food from restaurants, passenger vehicles, homeowner replacement costs and mortgage interest costs. The cost of living in Canada: 6 Reasons The Cost Of Living In Toronto Causes Many To Downsize Their Life
In the last 10 years, the cost of living has skyrocketed. In 2008, Toronto’s living wage – the minimum amount necessary for an individual to meet their basic needs – was $16.60 per hour or an annual income of $34,000.
Since then:
The cost of childcare in Toronto has risen by roughly 30%
Rent has gone up an average of 13%
Public transit cost has increased by 36%
The average price for a 1 bedroom condominium downtown is about $400,000
An average price for a single detached home $1.2 million
The average price for a litre of gasoline is $1.37/litre (with predictions that it could soon reach $1.50/litre)
The cost of living in Canada: How much do you need to live comfortably in Toronto?
According to a report by the Toronto based think-tank, the Wellesley Institute, a single person between the ages of 25-40 would need to make between $46,186 and $55,432 – after tax – to live the good life in the Greater Toronto Area.
They arrived at that figure by first accounting for the basic costs of survival, like food and shelter, and then considering the costs associated with quality of life categories like social participation, which includes things like hobbies, travel and socializing.
“This figure indicates the total cost of supporting an individual’s ability to thrive, which is defined as meeting their basic material needs, enabling connections to community and family, supporting educational and professional advancement, and ensuring long-term financial security,” the report states. The cost of living in Canada: Is the cost of living forcing you to change your lifestyle?
For many, the answer is yes. You can’t cut down or out on necessities like housing, food, transit, and daycare. But, you can:
We can’t lower the cost of living or find you a fantastic, cheap place to live, but we can help you solve your financial problems. Give us a call today because with immediate action and the right plan you can be back on your feet financially Starting Over, Starting Now.
Bankruptcy is sometimes necessary for the financially troubled individual or company. In Canada in 2017, there were 125,807 insolvency filings; 60,669 bankruptcies and 65,138 proposals. Bankruptcy in Ontario Canada accounted for 15,968 of the 2017 filings. The majority of these across Canada filings were people, not companies.
Bankruptcy in Ontario Canada: Not entirely unexpected
This is an expected statistic once you understand the purpose of the Canadian insolvency system to get rid of financial obligations. It is also for the financial rehabilitation of people and companies and if possible, allow them to do so while retaining their assets. In a down economic climate, even more, debtors use bankruptcy to protect their wide range of interests. Although on a per capita basis Canadians are savers, more recently, especially related to real estate, we are a country of borrowers. A lot of people are overloaded with debt, including credit card debt. Bankruptcy in Ontario Canada: Bankruptcy is not always right
Any debtor with severe monetary troubles must think about bankruptcy. Bankruptcy isn’t always the right response though. In my practice, we first run through the various options available to avoid bankruptcy.
It is proper only when you have too many financial obligations that you cannot realistically repay, in whole or in part, from your future earnings or from selling your assets. This is the meaning of the financial state of insolvency.
If you make $100,000 a year and your financial obligations are only $20,000 (assuming you have no assets), why go bankrupt? Temporary financial sacrifice on your part could pay off your debts in full. This is definitely more suitable for bankruptcy. What about a proposal?
Although each case is unique, generally speaking, if your unsecured financial debts are less than 60 percent of your net yearly pay, stay clear of bankruptcy. You could use a self-help remedy to pay off your debts in full. Alternatively, you could look to the proposal or consumer proposal mechanisms under the Bankruptcy and Insolvency Act (Canada).
Under the proposal provisions of the BIA, a person or company could take up to 5 years to pay off part of the debt. A successful proposal forgives the balance of your debt (subject to certain ones indicated below). Many creditors will wait if you show good faith and make organized repayments that provide your creditors with a better result. A filing may protect some assets
A bankruptcy or proposal filing may also be necessary to secure your assets; this is especially true for companies looking to restructure. In a BIA filing, all civil actions against you instantly stop— whether they are legal actions, CRA garnishments or secured creditor seizure and enforcement (the last under specific conditions). Every creditor must obey the automatic stay of proceedings imposed by the BIA. A proposal filing gives you the possibility to solve your economic issues with lenders who would certainly otherwise seize and sell your assets. Timing is everything
I advise every person and company in need of restructuring that timing is crucial. It is human nature for debtors to regularly wait far too long. By waiting too long, they shed possible advantages from an earlier restructuring filing. The longer a person or company waits, the fewer options they have. Also, if you wait too long, the less creative I can be to protect your assets.
5 general tips
Collect your tax refunds prior to your filing. When you file for bankruptcy, any tax refund owing to you prior to the date of bankruptcy belong to your bankruptcy estate. Your licensed insolvency trustee (Trustee) collects the payments.
The insolvency process is meant to treat all creditors fairly and all ordinary unsecured creditors equally. Seek the advice of a Trustee prior to making payments to specific unsecured creditors prior to filing. Your good intentions may prove to have created transactions that the Trustee can attack. The Trustee will then seek recovery from those parties.
Consider how the causes of your insolvency will look to your creditors. Uncontrolled lifestyle spending looks a lot different from ongoing costs due to a mental or physical illness or an addiction. The causes of your insolvency sometimes dictate whether a proposal or bankruptcy filing is preferable.
Have you contributed to an RRSP in the 12 months before filing for bankruptcy? That amount will have to be paid over to your Trustee under bankruptcy or accounted for in what type of proposal can be successful.
If you have student loans, was the last time you were either a full or part-time student more than 7 years prior to your filing? If no, you won’t be able to end the student loan debt. However, it may be enough to relieve yourself of your other unsecured debts to have enough funds every month to start repaying the student loans.
Some debts can’t be discharged
Bankruptcy will not end every debt. There are certain debts that cannot be discharged through bankruptcy. Examples are:
student loans as described above
child support and alimony under either a court order or written separation agreement
fines or restitution ordered by a Court
debts arising out of fraud, embezzlement or misappropriation while acting in a fiduciary capacity
amounts owing to secured creditors registered against your assets, such as a mortgage or car loan. Any amount still owing after the asset is sold, if any, is an unsecured claim which is discharged in a bankruptcy
Bankruptcy must be your last option
Bankruptcy could be your ideal choice if the amount of your debt and the amount you can realistically repay will not settle it. If you have few possessions to lose in bankruptcy, then a bankruptcy filing may be your best choice. By meeting with a Trustee early to discuss your options, you will get a good understanding of what may be possible.
I always advise every person or company never file for bankruptcy without first striving to solve a case without bankruptcy. Bankruptcy must be your last option, not your very first – avoid bankruptcy if you can.
Think about all readily available options prior to determining that bankruptcy is genuinely the best decision for you and your situation. If you find you are in too deep and can’t dig out fast enough, then you do need professional help.
Seek the advice of a professional trustee
Many people and companies facing serious financial issues don’t know where to go for professional help or are too embarrassed. There’s no shame in seeking professional, financial help. Licensed insolvency trustees evaluate your situation and help you to arrive at the best possible solution for your problems.
Ira Smith Trustee & Receiver Inc. is here to help. We’re federally regulated and subject to a strict code of ethics. We offer a depth of expertise and provide a high quality and cost-effective service. I understand your pain and we can end it. You will find that we use a friendly, non-judgmental method.
Mortgagees rely upon the provincial land registry system to decide what obligations are secured against real property and in what order of priority. When it comes to mortgage lending criteria self employed, a recent Court decision has proven that when it comes to a self employed person’s mortgage, if there is a deemed trust claim by Canada Revenue Agency (CRA), you cannot solely rely upon the registry system.
Mortgage lending criteria self employed: The Court case
The Court case I am referring to is Canada v. Toronto-Dominion Bank, 2018 FC 538 (CanLII) which was heard in Federal Court. In this matter, the Crown on behalf of Her Majesty looked to recover funds Toronto-Dominion Bank (TD) obtained from one of its clients who repaid a loan secured by a home mortgage upon the sale of his house. The client was a self employed person.
The Crown claimed that there was an outstanding deemed trust claim for collected but unremitted GST. The Crown further claimed that the proceeds from the sale of the home collected by TD was subject to the CRA deemed trust claim, was property of Her Majesty and that TD had to pay it over. TD did not take the position that it had a registered first charge and can keep the funds. It argued that as a “bona fide purchaser for value” it is not subject to the deemed trust claim and does not have to pay over the money.
Mortgage lending criteria self employed: The undisputed facts
The borrower carried on a landscaping business as a sole proprietor. In 2007 and 2008, he collected and did not remit GST totaling $67,854. TD held both a registered mortgage and a home equity line of credit (HELOC) against the borrower’s home. The home was sold in 2011. The borrower repaid the mortgage and HELOC in full from the sale of the home.
Almost two years later in April 2013, CRA made demand on TD for repayment of $97,327, revised in 2015 by amended demand for $67,854. TD refused to pay.
Mortgage lending criteria self employed: What the Court said
The Federal Court reviewed the legislation. The Court decided that the funds paid to TD were proceeds of sale of his property. Therefore, it is covered by the deemed trust CRA claim. So the Court found that the requirements of Section 222 of the Excise Tax Act were met.
The Court agreed with the Crown’s position that the deemed trust Canada claim covered the debtor’s house. This is in spite of there was no registration on title and that the Bank had proper valid registrations. The Court further agreed that according to Section 222(3) of the Income Tax Act, the Bank has an obligation to pay over the proceeds it received which were impressed with the deemed trust.
The Judge disagreed with TD’s position. TD stated that the payment of proceeds only applied if a secured creditor enforces its security. This was not the case in this situation. The Court further disagreed with TD’s position that it was a bona fide purchaser for value. The Court agreed that money could be considered property available in such a defence. However, it stated that a secured creditor facing a deemed trust claim could not use that defence. TD also offered certain public policy issues in its defence, but the Court was not swayed.
TD is liable to pay over the amount of $67,854, interest and costs.
Mortgage lending criteria self employed: So what is the biggest myth?
The biggest myth is as follows. To find out what claims against the real property, you only have to perform a title search.
This is an important decision for mortgage lending criteria self employed people. Now TD is in the position of having to make demand on and possibly sue in 2018 its borrower who ostensibly repaid the loan in full in 2011! It would be suing as an unsecured creditor.
What this means for mortgagees is that they can no longer just accept funds from a self employed person who wishes to pay off a loan, be it a mortgage or other type of loan, from the sale of property. It also cannot merely accept funds to pay off a loan from a self employed individual’s business bank account.
Mortgage lending criteria self employed: So what is the fix?
Rather, the lender also must now get a true copy of a statement from CRA showing that there are no amounts owing by the self employed person on account of either HST or source deductions as the employer of others.
Lenders would also be well advised to add language to their loan term sheet, loan documents and any other documents issued when a loan is repaid. The new language would be an attestation by the self employed borrower that there are no amounts owing to any government authority that would be considered or deemed to be a trust claim.
Further, the language would have to make it clear that in the event there were any such amounts owing, even if the loan was fully repaid, the lender had the right to demand and sue the borrower for any amounts proven to be a deemed trust claim that the lender was required to pay over to the government at some later date.
Mortgage lending criteria self employed: Does your business need HST and source deductions you collected to stay afloat?
Does your business need HST and source deductions you collected to stay afloat? Can your business not afford to pay over to the government deemed trust claim amounts collected? If so, then your business is in trouble and requires restructuring immediately. You need the advice of a professional trustee now!
The Ira Smith Team have decades of experience in complex corporate and other business financial restructurings. We first look at how we can reorganize and restructure your business to rescue it. You are worried because your business is facing significant financial challenges. The stress placed upon you because of your business’s financial challenges are enormous. We understand your pain points, and we know how to relieve them for you.
If you or your company cannot survive without a restructuring, contact Ira Smith Trustee & Receiver Inc. NOW for a free consultation. You are just one phone call away from getting back on the road to financial health and reducing your stress levels, Starting Over, Starting Now.
Poor credit personal loans guaranteed approval Canada: Introduction
Legit companies do not give poor credit loans guaranteed approval Canada. If you’re experiencing significant economic problems and declined for a financing by conventional banks, do not be seduced by advertising that states “… poor credit personal loans guaranteed approval Canada …” even if you have bad credit or no credit.
Poor credit personal loans guaranteed approval Canada: They try to trick you with seductive marketing slogans
They use catchy marketing tag lines such as:
100% Free, Bad or No Credit, Great Terms, $0 Down, Fast, Apply Now!
Borrow Up To $5,000 With Affordable Payments. Find out more & Get Started!
Or they send either an email or letter in the mail offering you a bad credit loan, student loan, mortgage, negative credit score loan, or a fantastic bad credit, credit card offer.
Poor credit personal loans guaranteed approval Canada: Beware of the scammers!
They may seem to be genuine yet beware! They will certainly ask you for your personal ID and financial info; and that is where your issues will certainly begin.
These are rip-offs! They are victimizing you because they know you are desperate and will not stop until you get the funding from someone for a bad credit loan.
Poor credit personal loans guaranteed approval Canada: What the Canadian Anti-Fraud Centre has to say
According to the Canadian Anti-Fraud Centre, advertisements that promise guaranteed approval loans generally show up online or in city and national newspapers, magazines and tabloids. Remember, just by advertising through reputable media outlets does not make the business behind the ad honest or legitimate.
Poor credit personal loans guaranteed approval Canada: The up-front fee scam
These companies usually ask you to pay an up-front fee before they will start work. This fee might vary from hundreds to thousands of $$$. You rarely get your funding after paying the up-front fee. If you do, it is on the most onerous terms. You can never get your money back.
poor credit personal loans guaranteed approval canada
Poor credit personal loans guaranteed approval Canada: How to fix your bad credit and debt issues
If you have actually been declined for a loan through a normal lender, then that is a signal that you have debt concerns that have to be handled. Companies that advertise poor credit personal loans guaranteed approval Canada are scams. They are not the solution to your troubles; expert help is.
Contact Ira Smith Trustee & Receiver Inc. today. We are professional trustees. As such, the Canadian government licenses and supervises us. First, we will assess your situation and help you to come to the very best possible solution for your troubles.
When you come to us for your free consultation, we first check and figure out with you if one of the bankruptcy alternative choices is best for you. These include credit counselling, debt consolidation or a consumer proposal. If none of those options are available to you, only then will we discuss the bankruptcy route. Starting Over, Starting Now we can help recover you to financial health.
poor credit personal loans guaranteed approval canada
“I will certainly not invest one red cent in your shop … no severance, no sale,”
A (typical comment) posted on the Sears Canada Facebook page before the company blocked new comments and made old ones vanish.
Well there has been a lot of Sears Canada News today and in the last month. The company sought bankruptcy protection only last June 22, 2017. It has been only a little over 1 month, but there has been so much media attention it seems a lot longer.
Sears Canada news today: Social media backlash
We’ve seen on social media that Sears Canada is facing a backlash when it comes to how they’re handling this liquidation. Notice that I am using the word liquidation, as opposed to restructuring. This is in spite of they are currently operating under the Companies’ Creditors Arrangement Act (Canada) (CCAA). This statute is designed as a restructuring statute.
Sears Canada news today: Why KVETCH about a KERP?
It comes just as the company began its liquidation sales at those fifty-nine stores they’re looking to close. There is a boycott in Canada that is gaining some traction on social media. People are upset with Sears Canada’s senior management. They obtained on the first Court application, approval from the Court on their plan to pay themselves retention bonuses. These bonuses would be paid under the terms of what is commonly called in complex corporate restructurings a “Key Employee Retention Plan” (KERP).
The retailer introduced that, as part of a Court-supervised restructuring procedure. It is shutting 59 of its 255 shops and letting go 2,900 workers. None of them will get severance pay. Sears also will stop payments to the employees’ defined benefit pension plan. The retailer recently accepted to delay that pension plan payment issue till September 30th.
Sears also accepted the compromise with the former employees to maintain paying health benefits for an extra 3 months until the end of September. This is so the people could have that time to get alternate coverage. It is still not great though. The employee pension plan will remain underfunded. The employees will have to look for a new health plan. To date, there is no provision for former staff to receive any sort of package.
Sears Canada news today: What exactly is a KERP?
It is normal in complex corporate restructurings to set up a KERP. The concept of a KERP began in US corporate restructurings in the 1990’s. The theory is that to have a successful restructuring, senior management have specific knowledge and ability. If they walked away from the company in bankruptcy protection, such as to accept a senior position elsewhere, the company would have a much more difficult and costly time in restructuring. Hence the idea was born that those essential managers should be promised a bonus to create the most value possible in the restructuring for the stakeholders. This is in addition to their normal compensation.
Often KERPs are now viewed as either:
a standard item that senior management expects to receive; or,
a greedy money grab negatively affecting other stakeholders.
I have not yet read any material to show why the Sears Canada bankruptcy protection case is so complex. I have not read how Sears Canada could not liquidate without existing senior management. It is earlier and current senior management who have not created a retail vision niche for Sears Canada for years.
Sears Canada news today: Time to “come back”
Thankfully, all CCAA protection orders have a standard “come back” clause. The reason for this is that not every stakeholder receives notice of the company applying for the bankruptcy protection order. Any stakeholder can come back to Court to oppose any part of the original order they did not receive notice of. They could not tell the Court of their position, and now want to come to Court with their complaints.
The Court appointed a law firm to represent the interests of the employees and former employees. As part of their motion material filed with the Court, they are asking the Court to amend the Sears Canada KERP. They state:
the amounts are excessive under the circumstances; and
the KERP does not incentivize senior management to enhance the value of Sears Canada.
It will be very interesting to follow this.
Sears Canada news today: It didn’t have to be this way
You may recall that Target Canada took a slightly different route towards its former employees when it decided to liquidate and leave Canada. It also liquidated under the CCAA. In our blog “TARGET CANADA CLOSING: $5.4 BILLION AND COUNTING”, we told you about the liquidation and that Target US established a trust fund for payment of the Target Canada obligations to its employees. For sure personal hardships occurred. At least they tried to soften the blow.
So now, while Sears Canada wants customers to come and buy at the liquidation sale, they have a PR nightmare on their hands.
Sears Canada news today: No comments please
It is so bad, that Sears Canada is not permitting public messages on its Facebook page. Most the messages from the public so far are negative against the company. CBC News recently noted that Sears Canada’s Facebook page was riddled with remarks from Canadians objecting exactly to what was happening to the company’s employees. Sears Canada has removed those comments from its Facebook page as well as blocking new comments.
Picture courtesy of CBC News
Sears Canada news today: Certainly a funny way to stay in business
You must wonder if Sears Canada really wants to restructure, or if they are just liquidating their inventory. They are also trying to sell whatever other assets they can. If it was a true restructuring, you would think that senior management would want to see more customers who would be loyal to (the new) Sears Canada when it would exit bankruptcy protection.
So instead of growing a loyal customer base, Sears Canada’s actions have spawned a strong and growing “Boycott Sears” momentum. They’re going to have to deal with that. It’s going to be interesting to see exactly how this plays out while Sears Canada currently is shopping for a buyer.
According to Sears Canada, the unhappy remarks did not motivate it to close the public articles or to remove many of the bitter statements. Regardless, the former employees are still faced with now with the question “how do you collect salary owed to you from an employer that goes out of business”.
Sears Canada news today: What to do if you or your company have too much debt
If your company or you are experiencing financial problems, contact Ira Smith Trustee & Receiver Inc. We’re here to tell you on your restructuring and other options to avoid bankruptcy. If necessary, we can also talk to you about your bankruptcy options.
We can help you put your financial house back in order and set you on a path to debt free-living. You’ll be amazed at the difference one phone call to Ira Smith Trustee & Receiver Inc. can make.
Contact us today. We are a licensed insolvency trustee and will listen to your issues and offer compassionate, professional assistance to aid you to avoid bankruptcy.
With our help, you can regain control of your life, Starting Over, Starting Now.
Sales of brand-new cars and trucks in Canada struck an all-time high earlier this year. It’s been a constant wonderful market in the car business since interest rates have remained so low. With so many people buying new vehicles financed by debt, that is what has led to Moody’s downgrades Canadian banks.
Exactly what’s great for Canada’s auto dealerships isn’t so excellent for Canada’s most significant financial institutions. Fears stay and are growing about the overheated Canadian real estate market.
Moody’s downgrades Canadian banks: Moody`s concerned over Canadian consumer debt
Credit monitoring company Moody’s fears Canadians have as well too much automobile and credit card debt and home mortgage and home equity loans. Moody’s states those variables have the financial institutions prone to losses.
As you include more consumer debt in the Canadian economy, it ends up being riskier. Moody`s fears that the Canadian banks will be less able to soak up any more shocks to the economy. Simply put, there’s a high danger of funding defaults that would harm the Canadian financial institutions. That’s why the reduction in the debt ranking.
Moody’s downgrades Canadian banks: Don`t worry, they are still extremely highly ranked
The financial institutions affected are all the large ones: Toronto-Dominion, Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank as well as the National Bank of Canada. Every one of those huge 6 had their standard credit score ranking devalued by one notch. Still excellent, yet lower to where they’ve been.
The large 6 financial institutions in Canada are still extremely highly ranked establishments. On an international basis, they would certainly stay in the leading 10 percent. This is not a dangerous situation yet; it is a warning for one sector of Canada’s population.
Moody’s downgrades Canadian banks: The Canadian government can`t do anything more
Moody`s states the federal government has done exactly what they could to cool the hot real estate markets. To reduced credit danger further there are only just 2 points that would help: (i) a more powerful Canadian economic climate; or (ii) much less loaning and borrowing.
Moody’s downgrades Canadian banks: What to do if you have too much debt
Packing up on too much financial debt is never ever a great suggestion. Are you bewildered by financial debt? CallIra Smith Trustee & Receiver Inc. today so we can give you a clear road map on how you can navigate through your financial debt. Our licensed professionals will help you reduce your debt and allow you to reduce stress and regain control and peace of mind. Starting Over, Starting Now you could be on your way to debt free living.
Everyday we’re inundated with stories in the newspapers, on television and online about the average home prices in Toronto and in the rest of Canada. Many are left wondering what they can possibly do to get into this very hot market. Unfortunately as a result there’s been a surge in mortgage fraud.
Average home prices Toronto: What is mortgage fraud Canada?
Mortgage fraud takes place when fraudulent information is used to qualify for a mortgage. A classic example of mortgage fraud is a prospective home buyer submitting fake or altered employment letters, bank statements or tax returns to qualify for a large mortgage.
Average home prices Toronto: How prevalent is mortgage fraud Canada?
The number of mortgage applications flagged as potentially fraudulent has risen 52% since 2013
About 90% of all mortgage applications flagged for potential fraud have come from banks and not other types of mortgage lenders, largely because banks have become better at spotting fraud attempts
13% of Canadians told Equifax it was okay to tell “little white lies” on their mortgage applications
Roughly 67% of mortgage applications flagged for fraud came from Ontario
Approximately 12% of suspected mortgage fraud came from British Columbia
Only 8% admitted to actually falsifying information on their own credit applications
Average home prices Toronto: Why are typically law-abiding Canadians being driven to commit mortgage fraud in Canada?
It’s no secret that home prices are continuing to rise. The latest federal legislation has made it more difficult to qualify for an insured mortgage. Many Canadians are realizing that home ownership is beyond their reach. In fact according to an online survey by Equifax, 84% of Canadians felt the country’s housing market had become too expensive for first-time buyers. Of those who didn’t own a home, 20% said they worried they may never be able to save enough for a down payment. Clearly desperate times are calling for desperate measures and a surge in mortgage fraud is the result.
Average home prices Toronto: What should you do if you have too much debt?
Committing a crime is never the answer. And make no mistake, mortgage fraud is a crime. It can be punishable by hefty fines and/or jail. If your goal is to buy a house, we can’t do anything about the real estate prices, but the Ira Smith Team can help you get your debt issues under control so that home ownership may be in your future. Give us a call today so that Starting Over, Starting Now you can conquer debt and start saving for your future.
Retirement’s a hot topic these days, but most people don’t get it that retirement security starts at home. Will we be financially able to retire? How can we fund a retirement that may last 30+ years? How much money will we need to retire? Is there such thing as retirement security?
Retirement security starts at home: Global Retirement Index
The latest Global Retirement Index delivered good news and bad news for Canadians. The good news is that when comparing the state of retirement security in 43 countries around the world, Canada ranked 10th, up from 12th last year. In case you’re wondering what countries were in the top three spots, they were Norway, Switzerland and Iceland. Our neighbour to the south, the U.S. ranked 14th.
Retirement security starts at home: How long will my savings last in retirement
Canadians are asking themselves “how long will my savings last in retirement”. The bad news is that Canadians are underestimating how much they should be saving for retirement.
72% of Canadians surveyed identified retirement saving as their highest financial priority, however many believed they would need to replace only 60% of their income after retirement. Planning professionals typically work on the assumption that you need to replace 75-85%.
Canadians reported setting aside an average of 10.5% of their annual income for retirement. The international average is 12.2%.
Only 55% of Canadians take part in workplace-based savings programs.
The reality is that many Canadians are underestimating how long they’ll need their savings to last. It’s not uncommon for Canadians to live well into their 90s and some will even reach 100. This means that you may be funding a 30+ year retirement. For many Canadians there will be no such thing as a retirement security plan.
Retirement security starts at home: Do you have too much debt to think of retirement savings?
So as you can see, it really is true that retirement security begins at home. You can’t have a secure retirement if your house is full of debt. If you’re struggling with debt, now is the time to see a professional trustee. We can help you free yourself from debt, so that you can start saving for your retirement. Contact the Ira Smith Team today so that Starting Over, Starting Now you can work towards retirement security.
Average household debt in Canada: the average of the amount of money that all Canadian adults in the household owe financial institutions.
Statistics Canada said that total household consumer debt, which includes consumer credit card and mortgage and non-mortgage loans, increased 1.2 per cent to $1.923 trillion at the end of last year. The total included $573.6 billion in consumer credit debt, including credit card debt, and $1.262 trillion in mortgage debt.
The growth helped drive the ratio of household debt to disposable income to a new peak of 165.4 per cent in the fourth quarter of 2015, up from 164.5 per cent in the third quarter.
It’s unbelievable but true – average household debt in Canada continues to rise! Unfortunately it seems that nothing has so far been able to stem this tide, particularly as already sky-high housing prices continue to reach new heights. We’ve reported on this very alarming situation in a series of blogs and the situation continues to worsen.
Move to a less expensive home and use the money to fund retirement
Sell the home and use the money to fund retirement
Borrow against the home equity
What is the top financial priority for Canadian home owners?
More than anything, Canadian home owners want their average household debt in Canada at a manageable amount and ultimately zero; i.e. be debt free. If you’re like many Canadian home owners struggling with alarming levels of household debt, seek help as soon as possible. A professional trustee can help you deal with your debt problems, and believe me they are not insurmountable. With immediate action and the right financial plan the Ira Smith Team can help you realize your dream of living a debt free life Starting Over, Starting Now. We’re only a phone call away. Book your free consultation today.
Toronto condo market report: Introduction
Average home prices Toronto: Introduction
