Connect with us

News

Trudeau Offers No Relief to Canadian Home Owners on Mortgage Rates

Published

on

Trudeau Offers No Relief to Canadian Home Owners

Only three years ago, Justin Trudeau was being challenged about the expense of carrying all that extra debt when the Prime Minister interrupted the reporter, CTV’s Glen McGregor, to reprimand him about how low interest rates were.

“Interest rates are at historic lows, Glen,” Trudeau added, a smug smile on his face.

Since then the Trudeau Liberals have boosted expenditure by 55% since gaining office, from $317 billion in 2016 to $490 billion presently. The government deficit increased from $29 billion to $40 billion, and the national debt increased from $648 billion to $1.2 trillion.

And the cost of debt service has risen from $25.7 billion in 2016 to $43.9 billion presently, and it is only going to rise further.

Cash-strapped Canadians who recently purchased homes with long-term variable rate mortgages may be paying up to $1,700 extra each month as a result of this year’s rate hikes.

Now, heavily indebted Canadians seeking for relief from a sharp spike in mortgage rates are in for some disappointment, as recent bond market moves indicate that interest rates will remain elevated for longer than originally thought due to tenacious inflation.

In comparison to the 30-year duration that is prevalent in the United States, nearly all Canadian mortgages have a period of five years or less. According to the Canada Mortgage and Housing Corporation (CMHC), home mortgage debt stood at C$2.08 trillion ($1.53 trillion) as of January 2023.

It implies that when around 20% of Canadian mortgages come up for renewal in the next year, many borrowers will be in a worse financial situation than they could have anticipated just a few months ago. Mortgage rates tend to lag after bond market movements.

“With each passing month, as rates rise, we discuss with consumers how much mortgage they can qualify for, and that’s been decreasing as rates rise,” said James Laird, co-CEO of Ratehub.ca.

Thanks to Trudeau the 5-year mortgage rate offered by major Canadian banks has risen to its highest level since November 2008, according to Bank of Canada data.

When it comes time to renew, homeowners who want to search for lower interest rates may have fewer options because they will have to re-qualify for the stress test at the newest interest rates with their new lender.

Read:  Trudeau Now Blames Canada’s International Students for Housing Shortage

In 2021, Canada modified its stress test laws, forcing borrowers to demonstrate their ability to handle mortgage repayment 200 basis points above their contracted rate, and consumers will have to re-qualify if switching to a different lender at the time of renewal.

“That is a flaw in a stress test that hopefully will be fixed at some point.” “You’ll see more consumers than usual sticking with their lenders,” Laird said.

The likelihood of another interest rate hike in September has only increased as inflation has returned to above the Bank of Canada’s target range, while robust economic growth, particularly in the United States, has fueled concerns that rates will remain higher for longer.

With no promise of a rate drop in the near future, worried homeowners are increasingly struggling to make their monthly mortgage payments and, in some circumstances, being forced to sell their homes.

Daniel Foch, director of economic analysis at Toronto-based RARE Real Estate, cited Toronto Regional Real Estate Board statistics showing that power of sale – a clause that permits lenders to sell a borrower’s house if they default on mortgage payments – had increased in recent months.

According to the data, power of sale was used for 48 to 80 properties in the Greater Toronto Area in the last three months, up from 14 to 32 a year ago. According to Foch, that number is on course to reach 75 by the end of August.

With interest rates at a 22-year high, mortgage growth in Canada has fallen to its worst pace in about four years, according to KBW analysts, which is expected to weigh on banks’ quarterly earnings beginning this week.

“Whereas consumers may have had some strong income growth in the last 12 months to offset higher debt payments, that is not going to be the case in the next 12 to 24 months,” said Stephen Brown, deputy chief North America economist at Capital Economics.

“It will undoubtedly be problematic for the Canadian economy if interest rates remain at this level.”

Geoff Thomas is a seasoned staff writer at VORNews, a reputable online publication. With his sharp writing skills and deep understanding of SEO, he consistently delivers high-quality, engaging content that resonates with readers. Thomas' articles are well-researched, informative, and written in a clear, concise style that keeps audiences hooked. His ability to craft compelling narratives while seamlessly incorporating relevant keywords has made him a valuable asset to the VORNews team.

News

Israel Finds The Body Of A Teen Whose Disappearance Sparked A Deadly Settler Attack In The West Bank

Published

on

israel

Al-Muhayyir, West Bank – Israel’s army announced Saturday that the body of a missing Israeli adolescent was discovered in the West Bank after he was slain in a “terrorist attack,” as violence erupted across the Israeli-occupied area, where tensions have been building for months.

israel

Israel Finds The Body Of A Teen Whose Disappearance Sparked A Deadly Settler Attack In The West Bank

The disappearance of 14-year-old Binyamin Achimair prompted Israeli settlers to launch raids on Palestinian towns on Friday and Saturday. The attack on al-Mughayyir hamlet on Friday killed one Palestinian and injured 25 others, according to Palestinian health officials. According to witnesses, Israeli troops held up the ambulance transporting the 26-year-old man’s body for burial for several hours on Saturday.

On Saturday, dozens of Israeli settlers returned to the village’s outskirts, burning down 12 homes and many cars. The Palestinian Health Ministry reported that three persons from the community were hurt, one gravely. Border police sprayed tear gas at the gathered locals, attempting to disperse them.

Israeli settlers set fire to many homes in the nearby village of Douma, according to the official Palestinian news agency Wafa. The Palestinian Red Crescent reported six persons hurt by gunshots but did not specify who fired.

Since the Israel-Hamas conflict in nearby Gaza broke out on October 7 as a result of a Hamas assault on southern Israel that claimed the lives of about 1,200 people and kidnapped 250 more, tensions in the West Bank have been particularly high. According to Gaza health officials, the Israeli offensive has killed more than 33,000 Palestinians.

Since then, Hamas has attempted to spark new fronts, especially in the West Bank, to increase pressure on Israel. Even though Israeli fire has killed more than 460 Palestinians in the West Bank since October 7, the majority of them in clashes sparked by army operations, but some by vigilante settlers, such efforts have largely failed.

There was no immediate claim of blame for the death of the Israeli teenager.

israel

Israel Finds The Body Of A Teen Whose Disappearance Sparked A Deadly Settler Attack In The West Bank

According to Israeli media, the teenager was last seen leaving Malachi Shalom, a settlement outpost, early Friday to care for cattle nearby. According to reports, the sheep returned to the outpost many hours later without him.

According to Israel’s Channel 13 TV, a drone spotted Achimair’s body. The broadcaster stated that he was not shot but did not clarify.

Israeli Prime Minister Benjamin Netanyahu has denounced the incident. “We will get to the murderers and their accomplices as we do to anyone who harms the citizens of Israel,” he said in a statement released by his office.

The kidnapping and execution of three Israeli teenagers in the West Bank in 2014 fueled tensions, resulting in a 50-day Israel-Hamas war in Gaza, the deadliest phase of conflict between the two sides to date.

Consecutive Israeli governments have increased settlement construction in east Jerusalem and the West Bank, places where Palestinians hope for a future state alongside Gaza. Some are well-developed and resemble Israeli city suburbs, but other outposts may have a few caravans.

isarel

Israel Finds The Body Of A Teen Whose Disappearance Sparked A Deadly Settler Attack In The West Bank

While Israel has constructed numerous settlements throughout the occupied West Bank, the outposts are not allowed, despite the government’s tacit support. The international world regards all West Bank settlements as unlawful and impediments to peace.

Over 700,000 Israelis now live in the occupied West Bank and East Jerusalem, regions acquired by Israel in 1967.

SOURCE – (AP)

Continue Reading

News

Posthumous Memoir By Russian Opposition Leader Alexei Navalny To Be Published Oct. 22

Published

on

navalny

NEW YORK — Alexei Navalny’s memoir, which he began working on in 2020, will be released this fall. “Patriot,” which publisher Alfred A. Knopf describes as the late Russian opposition leader’s “final letter to the world,” will be released on October 22.

Navalny’s widow, Yulia Navalnaya, said in a statement released Thursday by the publisher, “This book is a tribute not just to Alexei’s life, but to his unshakeable devotion to the battle against dictatorship—a war for which he devoted everything, even his life. Through its pages, readers will learn about the guy I adored—a man of tremendous integrity and unwavering courage. Sharing his tale will not only respect his legacy, but will also motivate others to fight for what is right and never lose sight of the most important ideals.”

navalny

Posthumous Memoir By Russian Opposition Leader Alexei Navalny To Be Published Oct. 22

Navalny, 47, died in February while serving a 19-year prison sentence on extremism charges, which he saw as politically motivated. He was imprisoned after returning from Germany in January 2021, where he was recovering from the 2020 nerve agent attack, which he blamed on the Kremlin, and has since received three prison sentences.

He perished in a distant correctional colony located above the Arctic Circle. Russian officials have categorically denied participation in both the poisoning and his death.

According to Knopf, Navalny began working on the book in Germany and continued to write it in Russia, both inside and outside the prison.

navalny

Posthumous Memoir By Russian Opposition Leader Alexei Navalny To Be Published Oct. 22

“In vivid, page-turning detail, including never-before-seen correspondence from prison, Navalny recounts, among other things, his political career, the many attempts on his life, and the lives of the people closest to him, and the relentless campaign he and his team waged against an increasingly dictatorial regime,” according to Knopf’s press release.

“Written with the passion, wit, candor, and bravery for which he was justly acclaimed, ‘Patriot’ is Navalny’s final letter to the world: a moving account of his last years spent in the most brutal prison on earth; a reminder of why the principles of individual freedom matter so deeply; and a rousing call to continue the work for which he sacrificed his life.”

In a post on X, formerly Twitter, Navalnaya claimed Thursday that she had hoped her husband would write a memoir much later in life when they were both “around 80” and had grandchildren.

navalny

Posthumous Memoir By Russian Opposition Leader Alexei Navalny To Be Published Oct. 22

She recalled that many people encouraged Navalny to begin writing after the poisoning, but he initially dismissed these suggestions: “What kind of memoir is it when you’re 44?” It’s just been slightly more than half (his) life. He wasn’t rushing because there was so much more to come. But things came out as they did. Horrible and extremely unjust. “It turned out there was no other half ahead.”

She stated that the memoir was translated into 11 languages and would “definitely” be released in Russian. It is unclear from her words whether the book will be published in Russia, where Navalny was convicted as a leader of an extremist group and his foundation and offices were prohibited.

SOURCE – (AP)

Continue Reading

News

The Masters Gets Underway With Nicklaus, Player And Watson Hitting Ceremonial First Shots

Published

on

masters

AUGUSTA, Georgia—The Masters began Thursday after a 2 1/2-hour weather delay, with wind still whipping beneath an overcast sky. It marks the first time golf’s top players have competed on the same course since the British Open in July.

With his wife Barbara on the bag, six-time champion Jack Nicklaus joined three-time winner Gary Player and two-time champion Tom Watson as hundreds of spectators gathered around the first tee to witness them take the ceremonial first shots.

masters

The Masters Gets Underway With Nicklaus, Player And Watson Hitting Ceremonial First Shots

“It’s not so easy to put the ball on the tee now, is it?” The player inquired of the others before stripping one down the fairway.

“Watch out on the left and right,” Nicklaus said before driving it straight down the middle.

Erik van Rooyen and Jake Knapp were the first participants to tee off, with the PGA Tour and LIV Golf strong hitters spread out in highlighted groups throughout the day. Those with later tee dates, such as Tiger Woods, Jordan Spieth, and Dustin Johnson, would likely finish after dusk, forcing them to return on Friday to complete their first rounds.

This year’s tournament features 13 players from Saudi-funded LIV Golf, including defending Masters champion Jon Rahm, who quit the PGA Tour late last year for millions in guaranteed money. That’s down from 18 a year ago when people were still determining how the split between the breakaway league and the long-established PGA Tour would play out at Augusta National.

However, the ongoing schism is just one of many topics this year.

masters

The Masters Gets Underway With Nicklaus, Player And Watson Hitting Ceremonial First Shots

Scottie Scheffler, the 2022 champion and world’s number one player, has been the 4-1 betting favorite since Woods ruled nearly two decades ago, according to FanDuel Sportsbook. Rory McIlroy, who missed the cut last year, is attempting to complete the career grand slam for the tenth time. Woods is only playing for the second time this season due to illness and injury.

Scheffler and Sam Burns both have wives who are expecting their first children. Both players have stated that they would retire if they heard their wives were in labor, which is difficult to believe given their advantage on Sunday’s back nine.

masters

The Masters Gets Underway With Nicklaus, Player And Watson Hitting Ceremonial First Shots

Last year, the rain stretched the third round to Sunday, and Rahm entered the long day four shots behind Brooks Koepka. He had halved it at the start of the final round, and Rahm became the fourth Spaniard to win a green jacket with a four-shot triumph against Koepka and Phil Mickelson, who finished with a 65 at the age of 52.

SOURCE – (AP)

Continue Reading

Trending