“not sure we can be proud of consumer spending since it’s spending beyond our means”

I agree as I have a pretty strong feeling that most of that money is coming from home equity. We can’t be proud of being number one for rent increases either.

Norm, again, with out wage growth matching Alberta’s, not sure we can be proud of consumer spending since it’s spending beyond our means, and international trade is good, but year end we still have yet to beat Alberta, BC, Toba GDP wise.

Nationalize the insurance companies

Nationlaize the mortgage companies

Nationalize the financial banks

Nationalize the auto companies

Nationalize homeowners?

Would lead to a big devaluation of the US dollar and high inflation.

http://www.youtube.com/watch?v=3WyedeJzcXY&NR=1

totally agree with you. I love our Northern Lakes and would hate to see them destroyed for oil. With oil at low prices, more alternative energy choices and more environmental policies coming forth, I believe the oilsands development in Sask is dead…for now anyway. Until peak oil happens again, like in the 70’s,80’s and this past year:)

Obama does not like dirty oil.

http://www.marketwatch.com/news/story/CORRECT-Obama-energy-duo-boost/story.aspx?guid=%7BA79ABCA8%2D01B4%2D4A8D%2DA942%2D6E13697E4A1C%7D

Very similar to “Norm’s Oops graph”!

Interesting!

http://tinyurl.com/56kt2h

This cycle is a doozy, huh?

Isn’t this just fairly typical of the cyclical nature of the oil business? Whether it’s going up, or it’s going down, people always seem to think it’s going to go that way forever, yet it never does. All of these projects get delayed and production is cut by 800,000 barrels a day. Prices start to climb again and everybody rushes to get back in.

There will no longer be T&M contracts put out with huge budgets, instead they are being replaced with hard dollar contracts. This way the Oil Companies will be to have a firmer grasp on the actual costs of construction up here. If you ask me though I think this will cause the projects to be more expensive, but that’s just my theory.

Are far as Sask Oil Sands development I believe/hope they are dead in the water. Sask doesn’t need a place like Fort McMurray in the North, it will lead to way to much pollution and deterioration of Sask’s fresh water supply. I’m guessing they are already being polluted from Fort McMurray, but actually having production in Northern Sask will make the current pollution ten-hundred times more severe. Lets everyone hope that Oil Sands development never materializes in the Sask North.

“End of the oil sands’ building frenzy?”

http://www.financialpost.com/story.html?id=1068172

“as the sector struggles with its first downturn since the rush started 11 years ago, there’s increasing discussion this is not a short-term pullback, but the end of the oil sands’ building frenzy.

The economic crisis and collapse in oil prices have pushed the sector to the brink, resulting in the delay of some $40-billion in new projects, taking 800,000 barrels a day of expected production growth — about half of what had been expected — off the table, according to CIBC World Markets….

Industry watchers say companies that scaled back won’t be rushing to jump back in, even if oil prices recover above US$90, the level many say is required to build new projects.

Other problems would have to be resolved: mounting costs, tight financing and, of course, environmental challenges. The oil sands’ poor image could lead to even tougher environmental legislation.

The effects of those cancellations are already being felt. Contracts are being cancelled. Construction jobs in Fort McMurray are drying up. The construction industry slashed its workforce requirements estimate by half for 2010 — to 22,000 from 44,000 jobs — in what was to be a peak building year. Workers in Calgary are being sent home.”

So much for Saskatchewan’s oilsands, speculation of which contributed to the boom.

http://tinyurl.com/6kx5pn

Sask. car sales remain strong with at least one Saskatoon auto dealer claiming a 100% increase in units sales this year. Wow.

http://tinyurl.com/67mm9d

Rent increase bylaw now in effect.

http://tinyurl.com/5f2dsg

How high-risk mortgages crept north:

The untold story of how elements of the first Conservative budget in 2006 encouraged big U.S. players such as AIG to make a push into Canada, creating our version of subprime mortgages

http://tinyurl.com/5gs7xn

“New mortgage borrowers signed up for an estimated $56-billion of risky 40-year mortgages, more than half of the total new mortgages approved by banks, trust companies and other lenders during that time, according to banking and insurance sources. Those sources estimated that 10 per cent of the mortgages, worth about $10-billion, were taken out with no money down.

“Virtually unavailable in Canada two years ago, high-risk mortgages proliferated in 2007 and early 2008 and must now be shouldered by thousands of consumers at a time when the economy is sinking quickly and real-estate prices are swooning. Long-term mortgages – designed to help newcomers get into the housing market sooner – are the most expensive in terms of interest costs, and least flexible when mortgage-holders cannot meet their payments and need extensions.

The Bank of Canada this week warned that the perilous economy could lead to a doubling of so-called “vulnerable households” – those unable to meet their debts – and perhaps cost thousands of Canadians their homes. The central bank, which is always cautious with its words, said in a report that there is the potential for “a substantial increase in default rates on household debt.”

If you own a home but you’ve never had a mortgage, do you know something we don’t? What’s your secret?!

Here’s my 2 cents on your question. Your best option certainly depends on how and when you plan to use/repay the money, and how much you’re planning to borrow. I hate paying interest and fees, so I always do a little math (okay, spreadsheets) with my various borrowing scenarios to know I’m getting the best deal.

I think an unsecured line of credit is the best value for smaller amounts of borrowing (less than $20,000 or so), especially if you can repay it within a couple of years; the fees charged for setting up and closing out HELOCs can be larger than any interest savings over the unsecured LOC in situations like that. If you’re planning on spending a lot immediately after you move in a very short period and then taking a while to pay it back (like new furniture and major renovations) lumping it into your mortgage is best, while if you’re planning to borrow a lot but either not right away, or only very gradually, or to invest long-term (Smith manouver?), a HELOC might be your best option.

Since you’re moving, you might be able to negotiate a mortgage AND a small HELOC (your 10% equity above the 20% required to avoid CMHC fees) for no additional charge, as long as you set them both up at the same time. That way you’ll have the flexibility of the HELOC if you ever want it. However, there will probably be a fee (from the bank and possibly your lawyer) to close the HELOC the next time you move after this one (unless you manage to negotiate that up front with the bank, too). Before the credit crisis, at least, the interest rate on a mortgage was better than on a HELOC. Plus, sometimes you can get a extra discount if your mortgage is larger than a certain threshold, and most mortgages give you pretty generous freedom to pay them down if you can (20% lump payments annualy, and increase your regular payments by 20% annualy as well is common).

Good luck!

I’m not aware if it’s possible to obtain a HELOC with a fixed rate. Interest rates are now as historical lows, and if you’re looking lock in those low rates, you might want to get a fixed-rate mortgage. That being said, there are dozens of types of mortgages out there. The major banks have lots of information about them on their websites. If you just want to play out how different down payment amounts, amortizations, interest rates, and payment frequencies will affect your monthly payments and interest costs, there are lots of online mortgage calculators out there.

Here’s a link to one:

http://tinyurl.com/69frh2

Good luck!

I don’t have a great deal of expertise in the mortgage department. I think it’s really a matter of what your most comfortable with. I prefer the security of knowing what my payment will be for the longer term because income in my business can be unstable from one month to the next. Having said all of that, if your plan is to sell within a years time (give or take) you might be better off sticking with what you have. I assume that works on a variable rate. I’m under the impression that there is some consensus that rates will be lower over the short term. You may want to stick with the Heloc and reconsider your options when you do the move.

I have found this mortgage blog to be pretty good and I expect they’d even be happy to field your question.

http://www.canadianmortgagetrends.com/canadian_mortgage_trends/

Crikey,

Thanks for posting that link.

Thanks

Pam

Record rise for rent in city, 20 per cent hike in 12 month-span

http://tinyurl.com/5bjokw

Pam,

Do you mean you’re looking for information on pros and cons of a second mortgage vs. a HELOC?

Does anyone have a suggestions where to find good information on the various options for mortages and a discussion of their merits and weaknesses. We have always used a Home equity line of credit (and used it fairly responsibly). But we are wondering if it would be better to look at a mortage? Suggestions or comments?

Thanks to all

Seems we also have the unfortunate distinction of leading the country for rental rate increases. Can’t seem to find the story on their website, but that according to the Star Phoenix today.

Nick, since you have such extremely high standards for truthfulness I know you’ll want to set the record straight on your bench post that clearly implies Cameco is laying off 90 Saskatchewan workers.

sounds like more forecasts and plans to me, when right now, actual result is lay offs at Cameco and Agrium.

According to today’s newspaper the Agrium layoffs are also forecasts and planning. They say that they are hoping to avoid having any people out of work.

“a place that should occasionally come in first in something!”

Sask leads country in international exports.

http://tinyurl.com/67t8wv

“the fastest pace of employment growth so far in 2008 has been in Saskatchewan…”

http://tinyurl.com/67t8wv

Sask leads country for retail trade

http://tinyurl.com/6xpaas

we’re definitely priced like a place that should occasionally come in first in something!

once again alberta beats is the more desirable place to live

<>

Oh, only first place good enough for you Nick. You want numbers? Tell me where Sask stood this past 12 months, numbers wise, compared to all districts in North America, provincial and state. Pretty gloomy I bet. Also, as far as I know, Potash Corp’s stocks rose on the news they were cutting production. Apparantly, current global stockpiles of Potash have a lot more to do with short term financing issues than a lack of demand. It’s going to be pretty tough going, for the next few months. You are one sour puss buddy.

20 % drop in potash production for next year?

Sounds like right now, not doing so hot.

I remember a while ago when they predicted Saskatchewan would lead in wage and economic growth for 2007, both categories Alberta handily defeated us in.

I remember when Remax predicted we were in for another real estate “boom”

Right now, numbers don’t back up predictions, potash corp (according to Crikey who has more cred than Remax, or most media)is about to cut production, by a lot

So there may be plans to expand Potash Corp

Until it gets done, just another announcement with no results yet

And I’d argue any lost job from Saskatoon area, including 400 from Vanscoy, is bad for the local economy and provincial tax revenues, some probably commute from Saskatoon anyway