Finhabits’ Post

Dear lenders, add in all possible income even when you’ve reached the point of qualification! Higher income often means lower debt to income ratios and that may also mean lower PMI premiums! #nationalmi #mortgagetips#incomecalculation

Do you know how the February cash rate cut could affect your finances? 🤔 With predictions of a 25 basis point reduction in the cash rate, it’s important to understand what this means for homeowners, borrowers, investors, and savers. Our latest article breaks down the potential impact and how it could open doors to lower home loan costs, increased borrowing capacity, and more investment opportunities. Stay informed and ensure you’re ready to take advantage of the changes ahead. Read more here 👉🏼 https://lnkd.in/gKBuBJcq #realestate #banking #property #investment #cashrate #mortgagebroker #rba #reservebank #bank #lender #lending #interestrate #rates

PART 1: Starting January 1, 2025 banks will have to enact 4.5 LTI (loan-to-income) limitations on their portfolios. This will not be judged based on an individual's income, but rather the weighted average of a lender's entire portfolio. Meaning, a lender with multi-millionaire clients taking out relatively small mortgages compared to their incomes will have more lending capacity than those with average income borrowers or average debts. High-net-worth borrowers will likely have doors opened for them because they'll bump the income side and have less of a (relative) impact on the debt side. What this means for the average Canadian earning ~$100,000 is that they *should* qualify for $450,000 in debt. But if millionaires bring added capacity, they could qualify for more at that particular lender. My fear will be those OSFI regulated lenders that will de-prioritize the lower-net-worth borrowers in order to maintain that income buffer. Bear in mind many lenders have a fiscal year end of Oct 31 so this change can be enacted as early as Nov 1, 2024.

The Hidden Truth About Rising Credit Card Debt | Explained Discover the alarming rise in credit card debt and the impact it's having on individuals and the economy. Learn about the hidden strategy people are using to manage their debt. #CreditCardDebt #PersonalFinance #DebtManagement #FinancialHealth #EconomicImpact #HomeEquityLoan #SecondMortgage #CreditCardDefaults #DebtExplained #FinancialTips

The bond market just finding out it needs to "consume" $119B in new Treasury Debt next week. 👇🏻 Let's hope the trajectory of new debt gets flattened out. The bond market will suffer with indigestion if it must consume an "Old 96er" every two weeks. Unsustainable. Bonds hate more bonds. Tabrasa mortgage market guide

The media is pumping negative info about increasing debt, and potential real-estate #market #crash. Here, some interesting #data from the NY #fed: Left, credit card and auto #debt are visibly increasing. Right, credit card and auto loans are a small slice of total private debt and don't change much. The discordance is due to normalization. #Mortgage debt which is the majority of debt seems to be still low in delinquencies - compare that to 2008. Nevertheless total debt is increasing! source video and discussion: https://lnkd.in/gvgJPrxM source slides NY Fed: https://lnkd.in/gKN8bXCu

At Axos Bank, we understand that residential transition loans “RTLs” and multifamily bridge loans can be problematic. That's why we're here to help. Don't sell your loans at a loss, especially if you need more time to execute your exit strategy. With our support, you can take title to the property and get the time you need. Don't wait, call us today. #realestate #nonperformingloans #pastmaturitydate #privatecredit #bridgelenders

Over the next two years, more than $1 trillion in commercial real estate (CRE) loans will come due. Small banks (assets of $100 million to $1 billion) and midsize banks (assets of $1 billion to $10 billion) have CRE loan values far exceeding risk-based capital levels at 158% and 228%, respectively, However, only the largest banks are reporting increases in nonperforming loans and charge-offs.  CRE loan losses for the largest banks spiked to 0.6% in early 2024, while other banks are reporting virtually zero losses. By comparison, such losses topped 1.4% in 2010. #Bankers

Companies going bust, mounting credit card debt, higher mortgage bills. The highest interest rates in years are taking a toll worldwide, creating cracks in economies despite low unemployment and booming stock markets. Check out this global team effort on Bloomberg News ! #news #businessjournalism #interestrates #debt #markets https://lnkd.in/g3-Bz-rS