Just a decade ago if you wanted a personal loan you headed to your local bank branch and received your loan. Now with technology lending as went from your local bank to accessing loan offers from around Canada. With banks becoming much more strict with who they lend it to it made room for smaller online lenders to come in and take some of the banks business.
It is now possible to get a loan online and receive the money within the same business day. With many new lending sites popping up every week the consumer as to be very vigilant when applying for a loan online. LoanOrCredit is only affiliated with the most reputable lenders in Canada. When applying for a personal loan in Canada you can always trust LoanOrCredit with the security of your application and remember we don’t charge any application fees.APPLY NOW
Struggling with too much debt? Over 70% of the entire population is too. Luckily there are many solutions available to you. Many people find themselves overspending when it comes time for gifts or holidays. Creating a budget is the best thing to do however many people only realize that after. Once you are in debt it can be much harder to get out of once interest starts accumulating. Plus if you were to make just minimum payments it could sometimes take you a lifetime to get out of. Once you start to fall behind you may start receiving collection calls from debt collectors, keep in mind they must follow strict guidelines on when and how they can communicate with you.
In Canada, you have four different options when it comes to debt relief. The first being a debt consolidation, which is essentially combining all your unsecured debts into one monthly payment. The second is a debt settlement program which is essentially settling with your creditors for a lesser amount than you owe. The third being a consumer proposal which is repaying a portion of your debts with the help of an insolvency trustee. Finally, the last resort option is bankruptcy which eliminates all your unsecured debts so you can start off life from scratch financially. Below is the pros and cons of all four options.
GET RID OF MY DEBTS
Getting a personal loan online in Canada is relatively easy nowadays. You can essentially apply for a loan online and receive your cash the same business day. Many people don’t like to go to a loan retail store because they are afraid of being judged. Now with modern technology, you can sit on your couch and get a loan even quicker than getting dressed and going into a loan store.
Now with getting a loan online comes some risk. How do you trust the website? Always look for a Better Business Bureau logo to make sure the website has credibility. Secondly, never make any upfront fees before receiving your loan. Thirdly, always make sure the website has a toll free number so you can speak with a representative if you have any questions.
It is now much easier to get a loan online versus getting in your car and driving to the nearest loan store. On the other hand, many people get scammed every day when getting a loan online. So please be careful.
Being a couple often goes hand in hand with the merging of many things, some of which include hearts (of course), living spaces, families, and—for many—finances. Unfortunately, merging finances can be confusing and overwhelming; it’s not always a pleasant experience, especially if one or both partners have been struggling with their credit.
Janet Alvarez, personal finance expert at Wise Bread, explains that “while developing and maintaining a strong credit score is a lifelong process, there are some viable actions you can take in the short term to help boost your score quickly.” Read on for her expert advice to improve your score and take control of your credit.
While raising your credit limits can be bad news for over-spenders, those looking to boost their scores can benefit in doing so. This is because of something called your “credit utilization ratio.” Alvarez explains this as “a measure of the percentage of your available credit being actively used.” Essentially: “The more credit you have—and the less of it you use—the better the ratio and your credit score.”
Rental payments and rental history can tell an important story about making on-time consecutive payments. Unfortunately, these often go unreported. Alvarez advises using RentReporters, RentTrack, or a similar service that can make sure your payments get reported to credit agencies. She says, “By proactively signing up for one of these services, you can see a boost to your score in the vicinity of 50 points in a few months of on-time payments.”
While it may sound counterintuitive, it’s important to have a range of credit types within your profile, so taking on new types of credit (like gas or store cards) can help as long as they are used responsibly. “Having a variety of accounts that you pay on time (ranging from mortgages to student loans or credit cards) strengthens your score,” explains Alvarez.
The first step in repairing or improving your credit begins with knowing your score and ensuring it is accurate. Any signs of fraud or identity theft, inaccurate reports, or out-of-date information needs to be remedied. To tackle this, Alvarez says, “Go to annualcreditreport.com to—at minimum—check it for free once a year, and if you want to be especially prudent, consider the free or low-cost credit-monitoring services offered by many credit-card companies in order to diligently track any changes.”
Alvarez warns against closing accounts, as it can damage your credit for a few reasons. “First, it reduces your credit utilization ratio, because you now have less credit available to your name. Second, it reduces the average age of your account history, which also lowers your score. The better bet is to simply pay off an existing account and use it only sparingly—and responsibly,” she says. Conversely, opening too much new credit can also damage your score and raise some red flags that you might be needing more credit for the wrong reasons. If you find yourself needing some more credit, “The better bet is to ask for credit-line increases on existing accounts,” says Alvarez, “or only open new ones judiciously.” Too many hard credit inquiries can lower your score.
Student loans are never fun, but defaulting on them is a huge mistake. If you find yourself in arrears with federal student loans, Alvarez says, “Uncle Sam can garnish your tax refunds or wages and prevent you from taking out any future student loans. It’s also a major credit blemish.”
Canadian real estate leverage has been an increasing concern, and it it’s growing. Filings from Office of the Superintendent of Financial Institutions (OSFI), the federal regulator for banks, show that loans secured by real estate showed huge growth in September. In fact, these loans are now at a record high, and are printing record growth.
The total of loans secured against residential real estate for business and non business purposes is booming in 2017. Analysis of OSFI data shows $279.64 billion in loans in September, up $25.4 billion from the same month last year. That’s 9.92% growth, which is just off the peak of 12.10% established in June 2017. This year is the first year to see growth above 5%, in the 5 years of filings OSFI provided. The huge growth represents a significant increase, but some of these loans are being used for productive purposes. Let’s break it down.
When people say “good debt,” this is the kind of debt they are typically referring to – borrowing for business. In September, banks held $31.68 billion of loans for business purposes, secured by residential real estate. That’s a massive 51.58% growth from the year before, which is just off peak growth established earlier this year. While the growth is huge, it is just a fraction of the total debt here.
Personal loans secured by real estate are experiencing record growth. These are the loans that we have no idea what they did with the money. These can be anything from renovation financing, to buying second homes, or even possibly using home equity to buy bitcoin – no one’s quite sure. At the end of September, banks held $248.95 billion in personal loans secured by residential real estate, a 6.91% increase from last year. This is the highest annual growth observed in the OSFI filings.
Home prices fluctuating is normal and most people just weather the storm, stay put and then sell later if at all…i.e. I am a middle class person and my retirement is tied to my house because I got fleeced in the last bad recession. I took some change out to help the kiddies if there is looming price depression won’t everyone have a collective freakout and accelerate a drop in housing prices? Thoughts?
Typically leverage capitulates movements, so the drop would be further down than it would naturally be. Expected, since market prices regress to the mean, and never actually sit on the mean. The longer it takes new buyers to capitalize however, may delay a recovery.
Housing in a big city isn’t usually a balance sheet loss, but an economic loss carried over time. If your house is the same price 10 years down the line, you could have rented and banked the difference. Then bought it with your fresh gains.
Could, should, would. Those that argue for renting and banking the difference, then buying when the market is down is just a convoluted way of trying to time the market, and that’s not possible to do. If your house is the same price 10 years from now, that’s unfortunate, however you only have 15 years of mortgage payments left while the newcomer is paying exactly what you did 10 years ago but has 25 years of payments to look forward to. In the interim, you’ve enjoyed 10 years in a home of your own, customizing and living on your own terms, while the renter has been dealing with cockroaches, mice, rats, bedbugs, noisy stinky apartment dwellers, landlords that don’t fix anything, and drafty windows.
As well, renter will be paying more monthly every year the rent increases. The buyer could be paying the same or less than previously for mortgage interest when the mortgage is renewed which maintains the same monthly cost or lowers it.
No, not the same. The issue in the US was related to sub-prime borrowers; the dregs (yes I’m a prick) who shouldn’t have been able to get a mortgage at all. The primary mortgage,not secondary debt, was the fatal flaw. This is much worse. There are many people with great credit and a ‘path to retirement’ who thought helping out their children/grandchildren was a good idea and if they can’t get out it will have huge ramifications.
Bitcoin touched US$15,000 for the first time on Thursday, extending its advance this month to more than 50 per cent as concerns mounted the cryptocurrency’s rapid rise masks risks.
The world’s biggest cryptocurrency is surging on expectations that new bitcoin derivatives products expected to begin trading this month will boost mainstream demand. Some of the world’s biggest brokerages criticized those plans on Wednesday, telling regulators the contracts have been rushed to market without enough due diligence.
Bitcoin jumped as much as 18.4 per cent to US$15,797 on Friday, before paring gains to US$14,818 at 12:20 p.m. in London. That takes the digital currency’s surge this year to more than 1,400 per cent and its market capitalization to US$257 billion.
“This is irrational exuberance,” Royal Bank of Scotland Chairman Howard John Davies said in an interview on Bloomberg TV on Thursday. “This is a very, very unusual market, that shows we’re not in a normal two-way trading market.”
Davies agreed with the brokerages’ concerns that exchanges which are set to offer bitcoin futures and options have failed to get enough feedback from market participants on margin levels, trading limits, stress tests and clearing. Those warnings were laid out in an open letter via the Futures Industry Association on Wednesday.
Cboe Global Markets Inc. has said it will start trading bitcoin futures on Dec. 10, while CME Group Inc.’s contracts are set to debut on Dec. 18. Nasdaq Inc. is planning to offer futures in 2018, according to a person familiar with the matter. Cantor Fitzgerald LP’s Cantor Exchange is creating a bitcoin derivative, and startup LedgerX already offers options.
ASX Ltd., the main exchange operator for equities and derivatives in Australia, on Thursday said it will start using blockchain, the technology that underlies bitcoin, to process equity transactions. The digital currency also got a boost from a successful test of a technology that will attempt to ease congestion in purchases of the digital currency.
Lightning Network, the company behind the technology, is trying to move some transactions away from the blockchain by allowing buyers and sellers to transact privately and later broadcast their activity to the public network.
The price of bitcoin cash fell on the news, slumping 9.1 per cent to US$1,342.86, according to prices on coinmarketcap.com. The cryptocurrency rival offers a separate solution to bitcoin’s congestion issue.
Certainly, the picture is improving. Canada has finally dipped below a key level on an early-warning indicator reported by the Bank for International Settlements, a body made up of the world’s central banks.
That key level is 10, above which a country is considered at risk of huge strain on the banking system within three years. Known as the credit-to-GDP gap, Canada had been above that mark for some time, but had a better showing of 9.4 in the second quarter, the BIS said in its latest report, released Sunday.
The gap measures the ratio of debt to gross domestic product, compared to its long-term trend. So Sunday’s measure means Canada is now 9.4 percentage points above the long-term average.
In measuring all credit to the non-financial sector, it takes in everything from loans to debt securities, and is aimed as a guide for the strength of capital buffers among commercial banks.
Over the past five years, the gap in Canada has run from a low of 6.9 in 2012 to a peak of 16.9 in the third quarter of last year, after which it began to decline.
So the threat has eased, but it hasn’t gone away. Consider a BIS reading above 10 as flashing red, and anything between 2 and 10 as flashing yellow.
Not only that, Canada’s 9.4 is still high among the countries measured.
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Swollen household debt and fast-rising home prices have been a source of angst in Canada for quite some time, prompting federal and provincial governments, along with the commercial bank regulator, to bring in a series of measures. Consumers have also been leaning heavily on home equity lines of credit, or HELOCs.
The key measure of household debt to disposable income has been at or near record levels as Canadians borrowed ever more to pay those high prices, with growth in credit outstripping that of incomes. It stands now at 167.8 per cent, which means Canadians owe $1.68 for each dollar they have to spend.
The Bank of Canada warned again just last week that this is a major threat to the financial system, though it expects the problem to ease along with the new measures. One of those measures, for example, will make it more difficult to qualify for a mortgage.
Another part of the BIS report puts Canada in a noteable category for household debt alone. This includes countries whose household debt as a percentage of GDP is “high and rising” since the 2008 global meltdown.
Unlike the credit-to-GDP gap, reported for the second quarter, this study looks at household debt over a longer timeframe.
And the potential impact is high.
“Elevated levels of household debt could pose a threat to financial stability, defined here as distress among financial institutions,” BIS economist Anna Zabai said in the report.
“Contrary to the U.S., Canadians have been increasing leverage since the [Great Financial Crisis],” said Citigroup economist Dana M. Peterson, noting that about two-thirds of this borrowing is mortgage debt and much of the non-mortgage credit is in the form of HELOCs.
High home prices are largely behind the elevated debt-to-disposable income measure, she said, attributing the housing market’s run-up to low interest rates, rising incomes, strong commodity prices before the oil shock, migration and immigration, land restrictions, HELOC-friendly policies, speculation and foreign money.
Canadian Prime Minister Justin Trudeau delivered an official apology for his country’s past persecution of LGBTQ public servants on Tuesday.
The address delivered in the House of Commons comes just over a week after Trudeau announced he would apologize for Canada’s dehumanizing treatment of LGBTQ service members and other government employees throughout the second half of the 20th century.
“Imagine, if you will, being told that the very country you had willingly laid down your life to defend doesn’t want you, doesn’t accept you, sees you as defective, sees you as a threat to our national security,” Trudeau said Tuesday, speaking in both French and English.
“Not because you can’t do the job or because you lack patriotism or courage, no, but because of who you are as a person and because of who your sexual partners are.”
From the 1950s until 1992, many public servants that Canada’s government suspected of being gay were interrogated, forced to sit through humiliating tests that sought to expose their sexual orientation, and expelled from their Canadian government positions.
That treatment happened on “a timeline more recent than any of us would like to admit,” Trudeau said Tuesday, calling the oppression “an often overlooked part of Canada’s history.”
One of the most egregious tools used was the “fruit machine,” a device he mentioned by name Tuesday that claimed to reveal a person’s sexual orientation based on their response to various sexual stimuli.
“It is my hope in talking about these injustices, in vowing to never repeat them, acting to right these wrongs, we can begin to heal,” Trudeau said.
Throughout his two years in office, Trudeau has also issued apologies for Canada’s past treatment of indigenous peoples and for the 1914 “Komagata Maru incident,” in which Canada rejected hundreds of Sikh, Muslim and Hindu passengers attempting to seek refuge in the country, forcing them to return to a violent situation back in India.
Hackers reportedly altered Equifax’s credit report assistance page so that it would send users malicious software disguised as Adobe Flash.
Equifax Inc. is reporting that a third-party vendor the credit rating agency uses to collect performance data on its U.S. Equifax website was serving malicious content.
“Since we learned of the issue, the vendor’s code was removed from the webpage and we have taken the webpage offline to conduct further analysis,” an Equifax spokesperson said in an emailed statement Thursday.
“Equifax can confirm that its systems were not compromised and that the reported issue did not affect our customer dispute portal.”
Equifax says 100,000 Canadians may have been in data breach
Earlier Thursday, Equifax Canada said its U.S. parent company was temporarily taking down one of its customer services pages amid reports that hackers had allegedly altered Equifax’s credit report assistance page so that it would send users malicious software disguised as Adobe Flash.
“We are aware of the situation identified on the equifax.com website in the credit report assistance link,” Equifax Canada spokesperson Tom Carroll said in an emailed statement.
“Our IT and security teams are looking into this matter, and out of an abundance of caution have temporarily taken this page offline.”
Carroll did not respond to direct questions about any potential breach to Equifax Canada’s website.
The news comes as Equifax Inc. continues to deal with the aftermath of a cyber breach earlier this year which allowed the personal information of 145.5 million Americans, and 8,000 Canadians, to be accessed or stolen.
The massive data breach has also led to a number of high-profile departures at the Atlanta-based consumer credit reporting agency, including its chief executive, chief information officer and chief security officer.
In early October, Equifax revised the number of consumers potentially impacted in the breach — bumping up the total in the U.S. to 145.5 million and reducing the number in Canada from an estimated 100,000 to 8,000.
For these Canadian consumers, Equifax says the information that may have been accessed includes name, address, social insurance number and, in “limited cases” credit card numbers.
On its website, Equifax’s Canadian division says it has not yet mailed out any notices and made clear it would not be making any unsolicited calls or emails about the issue.
In September, Equifax reported that its investigation had shown that hackers had unauthorized access to its files from May 13 to July 30. Equifax Canada said at the time it was working closely with its parent company Equifax Inc. and an unnamed, independent cybersecurity firm conducting the ongoing investigation.
The cyberattack occurred through a vulnerability in an open-source application framework it uses called Apache Struts. The United States Computer Readiness team detected and disclosed the vulnerability in March, and Equifax “took efforts to identify and to patch any vulnerable systems in the company’s IT infrastructure.”
Add another group to the growing list of organizations trying to convince the federal banking regulator to back down from its plan to tighten the reins on consumers borrowing with low ratio loans.
The Fraser Institute said Wednesday the changes to consumers with 20 per cent down could make it harder for them to access mortgages, especially in higher-priced markets. Those buyers could turn to less regulated finance companies or perhaps turn to shorter, more volatile variable loans to meet qualification criteria.
“The proposed stress test for financially sound homebuyers is unnecessary and will do more harm than good,” said Neil Mohindra, a public policy consultant and author of the Fraser report, Uninsured Mortgage Regulation: From Corporate Governance to Prescription.
The Office of the Superintendent of Financial Institutions’ (OSFI) will release final changes to its mortgage lending guidelines, also known as B-20, by the end of the month and they will go into force two or three months later.
Key among the changes is a stress test for consumers borrowing with 20 per cent or more down – a level previously not heavily regulated — requiring them to qualify at a rate 200 basis points or two percentage points above their contract. In 2016, the government forced borrowers with less than 20 per cent down, and whose loans are backed by Ottawa, to qualify based on the five-year Bank of Canada posted rate which is now 4.89 per cent.
Some economists have questioned whether the changes from OSFI are needed at a time when the country’s hottest market, the Greater Toronto Area, has already cooled off and seen average sale prices on a non-seasonally adjusted basis drop about 31 per cent from the April peak.
Real estate groups have also heavily opposed the changes but those in favour of a crackdown point to a massive increase in debt, including mortgage debt. Statistics Canada said in September that household debt as a percentage of disposable income had a reached a record 167.8 per cent in the first quarter.
“We clearly see the potential risks caused by high household indebtedness across Canada, and by high real estate prices in some markets,” Jeremy Rudin, the head of OFSI, said this month. “We are not waiting to see those risks crystallize in rising arrears and defaults before we act.”
More importantly, the group says the rate of arrears, made up of borrowers more than 90 days behind in their payments, is basically the same as it was in 2002. The rate hasn’t exceeded 0.45 per cent and that includes 2009 financial crisis when the rate rose to five per cent south of the border.
“OSFI’s emphasis on corporate governance worked well during the financial crisis. Shifting towards more prescriptive rules is an ominous sign,” Mohindra said.