Globe Life Official Site: Buy up to $350, 000 Mortgage Protection Insurance #emc #mortgage


#home mortgage insurance

#

Mortgage Protection Insurance

If you are a home owner, it is important to do all you can to protect your home and your family if an accidental death prevents you from paying your mortgage. Mortgage Protection Insurance from Globe Life is an accidental death and dismemberment insurance policy that gives your family security in their home for just a fraction of your monthly mortgage payment.

Don t Put Your Home At Risk

  • Choose your Mortgage Protection accidental death insurance coverage from $50,000 to $350,000.
  • Acceptance is guaranteed, regardless of health if you are between the ages of 18 and 69.
  • No health questions or medical exams.
  • The affordable monthly premiums will never increase for any reason.
  • Rates as low as $5.50 per month.

Your Mortgage Protection Insurance Also Includes These Additional Guaranteed Benefits At NO EXTRA COST

  • Inflation Benefit
    For every year the Policy remains continuously in force, primary insured s Principal Benefit will automatically be increased by 5% of the Initial Principal Benefit until the Principal Benefit is equal to 125% of the Initial Principal Benefit, or the primary insured turns age 70, whichever is earlier.
  • Education Benefit
    Upon the accidental death of the primary insured, pays an additional 10% of the death benefit for each dependent child who, on the date of the accident, is between the ages of 15 and 22. Available only on the Family Plan and limited to $10,000.
  • Seat Belt Benefit
    Pays 10% of the insured s Principal Benefit if the insured suffers an accidental death while operating or riding in a car and wearing a seat belt.
  • Common Disaster Benefit
    Pays 10% of the insured s Principal Benefit if the insured suffers an accidental death while operating or riding in a car and wearing a seat belt.
  • Dismemberment Benefit
    Pays for loss of a hand, foot or eye subject to a table of losses.
  • Paralysis Benefit
    Covers quadriplegia, paraplegia and hemiplegia subject to a table of losses.
  • Commercially Scheduled Airline Benefit
    Pays an additional benefit amount equal to the insured s Principal Benefit for each insured at the time of death from accidental bodily injury received as a fare-paying passenger on a commercially scheduled airline.

No-Risk 30-Day Money-Back Guarantee

Globe Life guarantees your satisfaction with a no-risk 30-day money-back guarantee. If you are not completely satisfied, simply return your policy within the first 30 days for a full refund without further obligation.

Insurance Selections

About Us

  • About Globe Life
  • Jobs
  • Contact Us

*$1 pays for the first month of children s coverage. Then the rate is based on your child s present age and is guaranteed to stay the same for the rest of their life. Policy Form # GWL20001 or GWLA001
*$1 pays for the first month s adult coverage. Then the rate schedule is based on your current age and is guaranteed for the life of the policy. Policy Form # SRTCV/SRTCV13 **A.M. Best Company rating as of 6/16. For the latest rating, access www.ambest.com.

Globe Life has been protecting America s families since 1951

Globe Life continues to receive an A+ (Superior)** rating
from A.M. Best Company (rating as of 6/16)

GMADW08 2005-2016 Globe Life And Accident Insurance Company, Oklahoma City, OK All Rights Reserved.
Licensed in the United States CA Certificate Authority #4140


Globe Life Official Site: Buy up to $350, 000 Mortgage Protection Insurance #equity #mortgage


#home mortgage insurance

#

Mortgage Protection Insurance

If you are a home owner, it is important to do all you can to protect your home and your family if an accidental death prevents you from paying your mortgage. Mortgage Protection Insurance from Globe Life is an accidental death and dismemberment insurance policy that gives your family security in their home for just a fraction of your monthly mortgage payment.

Don t Put Your Home At Risk

  • Choose your Mortgage Protection accidental death insurance coverage from $50,000 to $350,000.
  • Acceptance is guaranteed, regardless of health if you are between the ages of 18 and 69.
  • No health questions or medical exams.
  • The affordable monthly premiums will never increase for any reason.
  • Rates as low as $5.50 per month.

Your Mortgage Protection Insurance Also Includes These Additional Guaranteed Benefits At NO EXTRA COST

  • Inflation Benefit
    For every year the Policy remains continuously in force, primary insured s Principal Benefit will automatically be increased by 5% of the Initial Principal Benefit until the Principal Benefit is equal to 125% of the Initial Principal Benefit, or the primary insured turns age 70, whichever is earlier.
  • Education Benefit
    Upon the accidental death of the primary insured, pays an additional 10% of the death benefit for each dependent child who, on the date of the accident, is between the ages of 15 and 22. Available only on the Family Plan and limited to $10,000.
  • Seat Belt Benefit
    Pays 10% of the insured s Principal Benefit if the insured suffers an accidental death while operating or riding in a car and wearing a seat belt.
  • Common Disaster Benefit
    Pays 10% of the insured s Principal Benefit if the insured suffers an accidental death while operating or riding in a car and wearing a seat belt.
  • Dismemberment Benefit
    Pays for loss of a hand, foot or eye subject to a table of losses.
  • Paralysis Benefit
    Covers quadriplegia, paraplegia and hemiplegia subject to a table of losses.
  • Commercially Scheduled Airline Benefit
    Pays an additional benefit amount equal to the insured s Principal Benefit for each insured at the time of death from accidental bodily injury received as a fare-paying passenger on a commercially scheduled airline.

No-Risk 30-Day Money-Back Guarantee

Globe Life guarantees your satisfaction with a no-risk 30-day money-back guarantee. If you are not completely satisfied, simply return your policy within the first 30 days for a full refund without further obligation.

Insurance Selections

About Us

  • About Globe Life
  • Jobs
  • Contact Us

*$1 pays for the first month of children s coverage. Then the rate is based on your child s present age and is guaranteed to stay the same for the rest of their life. Policy Form # GWL20001 or GWLA001
*$1 pays for the first month s adult coverage. Then the rate schedule is based on your current age and is guaranteed for the life of the policy. Policy Form # SRTCV/SRTCV13 **A.M. Best Company rating as of 6/16. For the latest rating, access www.ambest.com.

Globe Life has been protecting America s families since 1951

Globe Life continues to receive an A+ (Superior)** rating
from A.M. Best Company (rating as of 6/16)

GMADW08 2005-2016 Globe Life And Accident Insurance Company, Oklahoma City, OK All Rights Reserved.
Licensed in the United States CA Certificate Authority #4140


Canada – s big banks cut prime rate after BoC move – The Globe and


#prime interest rate today

#

Canada s big banks cut prime rate after BoC move Add to.

Canada’s big banks followed the Bank of Canada’s interest rate cut, lowering their prime lending rates in a series of moves that nonetheless reinforce the reluctance of lenders to follow the central bank in lockstep.

Toronto-Dominion Bank initially decreased its prime rate – the benchmark for creditworthy borrowers – to 2.75 per cent, down 0.10 percentage points. Royal Bank of Canada, Bank of Montreal, Bank of Nova Scotia and Canadian Imperial Bank of Commerce responded on Wednesday evening, reducing theirs by 0.15 points to 2.70 per cent from 2.85 per cent. That’s a shallower reduction than the central bank’s 0.25-point cut. TD then matched the lower prime rates with an additional cut.

ECONOMY

The Canadian dollar took a nosedive after The Bank of Canada cut its key overnight lending rate by 25 basis points to 0.50 percent saying Canada’s weakening economy is in ‘significant and complex adjustment.’ BNN Video

Economy
ECONOMY

This marks the second time this year that Bay Street has taken a more cautious approach to their lending rates after the central bank has slashed its benchmark in response to disappointing economic activity.

Overall, banks have lowered their prime rates by a total of 0.3 percentage points this year, or nearly half the Bank of Canada’s total reduction of 0.50 points over the same period.

Bank of Canada Governor Stephen Poloz appeared unconcerned by the banks’ response, noting that lending rates can be affected by many factors beyond official monetary policy.

“That’s how financial markets work,” Mr. Poloz said at a press conference. “All we’re trying to do is have an influence on [the lending rate], as opposed to determine it.”

After the Bank of Canada cut its key rate in January, also by a quarter point, the big banks were slow in responding to the surprise move.

When they did react, they took a public drubbing over their refusal to respond with an equal reduction in their prime rates, decreasing them by just 0.15 points.

However, some observers have pointed out that the Bank of Canada may not mind the muted response from the banks.

House prices have soared as borrowing costs have fallen, raising concerns that prices may be overvalued by as much as 30 per cent, according to Bank of Canada estimates. As well, Canadian indebtedness has risen to new heights, making consumers vulnerable to rising unemployment levels or an eventual ramp-up in borrowing costs.

For the banks themselves, the response to the Bank of Canada comes as they attempt to shore up profits driven by their lending activities.

Since the banks make money by lending at higher rates than their own borrowing costs, substantially lower prime rates can compress the spread, or net interest margins.

“We are in such an unusually low-interest-rate environment that the traditional rules of one-for-one [reductions in the prime rate and the Bank of Canada’s key interest rate] don’t work,” Peter Routledge, an analyst at National Bank Financial, said in an interview.

He pointed out that the net interest margin for the Canadian personal and commercial banking operations of the Big Six banks have declined to a weighted average of just 2.48 per cent from 2.73 per cent in 2010. Less than a decade ago, the margin was a far more robust 3 per cent.

Although Canadian banks have increased their overall profits over this period, their share prices have recently been struggling to keep up with the broader market, reflecting investor concerns that earnings growth is being challenged.

“We anticipate that the market’s outlook for growth will moderate further in 2016, encapsulating an even greater slowdown in loan growth and incremental margin pressures,” John Aiken, an analyst at Barclays, said in a note.

Mr. Routledge thinks the banks may also be maintaining higher prime rates, relative to the Bank of Canada’s key rate, out of concerns about credit risk.

“If the economy is slowing so much that the Bank of Canada has cut its policy rate in half” – to 0.5 per cent from 1 per cent in January – “maybe households in particular are not as creditworthy as consensus believes,” he said.

“If that’s the case, you want to put in a little more spread for taking credit risk.”

Restrictions

Thomson Reuters 2012.

All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. Thomson Reuters is not liable for any errors or delays in Thomson Reuters content, or for any actions taken in reliance on such content. ‘Thomson Reuters’ and the Thomson Reuters logo are trademarks of Thomson Reuters and its affiliated companies.

Selected data supplied by Thomson Reuters. Thomson Reuters Limited. Click for Restrictions .

Copyright 2016 The Globe and Mail Inc. All Rights Reserved.

444 Front St. W. Toronto. ON Canada M5V 2S9
Phillip Crawley, Publisher

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Canada – s big banks cut prime rate after BoC move – The Globe and


#prime interest rate today

#

Canada s big banks cut prime rate after BoC move Add to.

Canada’s big banks followed the Bank of Canada’s interest rate cut, lowering their prime lending rates in a series of moves that nonetheless reinforce the reluctance of lenders to follow the central bank in lockstep.

Toronto-Dominion Bank initially decreased its prime rate – the benchmark for creditworthy borrowers – to 2.75 per cent, down 0.10 percentage points. Royal Bank of Canada, Bank of Montreal, Bank of Nova Scotia and Canadian Imperial Bank of Commerce responded on Wednesday evening, reducing theirs by 0.15 points to 2.70 per cent from 2.85 per cent. That’s a shallower reduction than the central bank’s 0.25-point cut. TD then matched the lower prime rates with an additional cut.

ECONOMY

The Canadian dollar took a nosedive after The Bank of Canada cut its key overnight lending rate by 25 basis points to 0.50 percent saying Canada’s weakening economy is in ‘significant and complex adjustment.’ BNN Video

Economy
ECONOMY

This marks the second time this year that Bay Street has taken a more cautious approach to their lending rates after the central bank has slashed its benchmark in response to disappointing economic activity.

Overall, banks have lowered their prime rates by a total of 0.3 percentage points this year, or nearly half the Bank of Canada’s total reduction of 0.50 points over the same period.

Bank of Canada Governor Stephen Poloz appeared unconcerned by the banks’ response, noting that lending rates can be affected by many factors beyond official monetary policy.

“That’s how financial markets work,” Mr. Poloz said at a press conference. “All we’re trying to do is have an influence on [the lending rate], as opposed to determine it.”

After the Bank of Canada cut its key rate in January, also by a quarter point, the big banks were slow in responding to the surprise move.

When they did react, they took a public drubbing over their refusal to respond with an equal reduction in their prime rates, decreasing them by just 0.15 points.

However, some observers have pointed out that the Bank of Canada may not mind the muted response from the banks.

House prices have soared as borrowing costs have fallen, raising concerns that prices may be overvalued by as much as 30 per cent, according to Bank of Canada estimates. As well, Canadian indebtedness has risen to new heights, making consumers vulnerable to rising unemployment levels or an eventual ramp-up in borrowing costs.

For the banks themselves, the response to the Bank of Canada comes as they attempt to shore up profits driven by their lending activities.

Since the banks make money by lending at higher rates than their own borrowing costs, substantially lower prime rates can compress the spread, or net interest margins.

“We are in such an unusually low-interest-rate environment that the traditional rules of one-for-one [reductions in the prime rate and the Bank of Canada’s key interest rate] don’t work,” Peter Routledge, an analyst at National Bank Financial, said in an interview.

He pointed out that the net interest margin for the Canadian personal and commercial banking operations of the Big Six banks have declined to a weighted average of just 2.48 per cent from 2.73 per cent in 2010. Less than a decade ago, the margin was a far more robust 3 per cent.

Although Canadian banks have increased their overall profits over this period, their share prices have recently been struggling to keep up with the broader market, reflecting investor concerns that earnings growth is being challenged.

“We anticipate that the market’s outlook for growth will moderate further in 2016, encapsulating an even greater slowdown in loan growth and incremental margin pressures,” John Aiken, an analyst at Barclays, said in a note.

Mr. Routledge thinks the banks may also be maintaining higher prime rates, relative to the Bank of Canada’s key rate, out of concerns about credit risk.

“If the economy is slowing so much that the Bank of Canada has cut its policy rate in half” – to 0.5 per cent from 1 per cent in January – “maybe households in particular are not as creditworthy as consensus believes,” he said.

“If that’s the case, you want to put in a little more spread for taking credit risk.”

Restrictions

Thomson Reuters 2012.

All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. Thomson Reuters is not liable for any errors or delays in Thomson Reuters content, or for any actions taken in reliance on such content. ‘Thomson Reuters’ and the Thomson Reuters logo are trademarks of Thomson Reuters and its affiliated companies.

Selected data supplied by Thomson Reuters. Thomson Reuters Limited. Click for Restrictions .

Copyright 2016 The Globe and Mail Inc. All Rights Reserved.

444 Front St. W. Toronto. ON Canada M5V 2S9
Phillip Crawley, Publisher

Add to Watchlist

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Low mortgage rates sticking around – The Boston Globe #home #loan #rate


#boston mortgage rates

#

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Low mortgage rates sticking around

Low mortgage rates are back. In fact, they never went away.

To the surprise of economists, lenders, and real estate professionals, home loan rates have steadily slipped, and Thursday hit 4.14 percent on average for a 30-year mortgage.

It should be a lot higher, said Ed McDonald, president of Salem Five Mortgage Co.

McDonald and many others in his industry expected mortgage rates to rise to about 5 percent by now, as the Federal Reserve continued to pare stimulus policies aimed at keeping long-term interest rates at low levels. Those policies focused on buying long-term bonds to the tune of $85 billion a month; since December the Fed has cut those purchases to $45 billion a month and plans to end them all together before the end of the year.

With the Fed buying less, the prices of bonds, including mortgage-backed securities, were expected to fall, which in turn drives up interest rates. As the Fed began its withdrawal, bond prices did fall and long-term rates, including mortgages, did rise, nudging above 4.5 percent at the beginning of the year.

But a series of worrisome geopolitical and economic events from tensions in Ukraine to weak growth in the United States, China, and Brazil spooked investors, prompting many to seek safer havens in the bond market. The flow of money back into bonds, particularly US Treasuries, pushed up prices and drove down interest rates.

The interest paid on 10-year Treasury notes, to which mortgages and other long-term rates are tied, fell to 2.48 percent by the end of May from 3 percent at the beginning of January. Mortgage rates have followed.

Even slight declines in mortgage rates translate into real savings for consumers. For example, on a $415,000 mortgage, a homeowner could have saved more than $1,142 annually borrowing at loan rates in late May as opposed to early January.

It s another bill to be paid, another month s worth of grocery shopping, said Amy Tierce, with Fairway Independent Mortgage in Newton.

Some homeowners who missed the chance to refinance more than a year ago are taking advantage of the lower rates, she said. Refinancing accounted for slightly more than half of all mortgage activity nationwide last week, a slight uptick from the previous weeks, according to the Mortgage Bankers Association.

But lower interest rates are providing little help to some buyers as housing prices in the Boston area rise quickly and affordable options remain slim.

Ed Giardina, a 34-year-old software engineer from Belmont, hopes to take advantage of the lower rates, but cannot find many homes in the Boston area for under $450,000. In recent months, he said, he and his wife have gone to several open houses only to find that the sellers already had offers.

It s definitely frustrating, said Giardina, who worries that homeownership is at this point unreachable.

Some real estate agents fret that lower rates and concerns that they will not last are doing more harm than good in some local markets, encouraging buyers to bid up prices beyond what they would otherwise be comfortable paying, said Greg Kiely, manager of Century 21 Commonwealth in Newton.

It s making an already pressurized market even more pressurized, Kiely said.

The median home price for April of this year in Greater Boston rose more than 9 percent during the same time in 2013 to $525,000, surpassing even the peaks of the last housing boom. In April 2005, the median price for a single family home was $484,450, according to the Greater Boston Association of Realtors.

Over the longer-term, mortgage rates are almost certain to rise, but it is still unclear when the climb will resume. Elizabeth Phelan, vice president for mortgage lending at Lowell-based Enterprise Bank, said she does not expect it to hit 5 percent in 2014.

They ll go up, because they are at historic lows Phelan said. But, I don t see a dramatic increase this calendar year.


Canada – s big banks cut prime rate after BoC move – The Globe and


#prime interest rate today

#

Canada s big banks cut prime rate after BoC move Add to.

Canada’s big banks followed the Bank of Canada’s interest rate cut, lowering their prime lending rates in a series of moves that nonetheless reinforce the reluctance of lenders to follow the central bank in lockstep.

Toronto-Dominion Bank initially decreased its prime rate – the benchmark for creditworthy borrowers – to 2.75 per cent, down 0.10 percentage points. Royal Bank of Canada, Bank of Montreal, Bank of Nova Scotia and Canadian Imperial Bank of Commerce responded on Wednesday evening, reducing theirs by 0.15 points to 2.70 per cent from 2.85 per cent. That’s a shallower reduction than the central bank’s 0.25-point cut. TD then matched the lower prime rates with an additional cut.

ECONOMY

The Canadian dollar took a nosedive after The Bank of Canada cut its key overnight lending rate by 25 basis points to 0.50 percent saying Canada’s weakening economy is in ‘significant and complex adjustment.’ BNN Video

Economy
ECONOMY

This marks the second time this year that Bay Street has taken a more cautious approach to their lending rates after the central bank has slashed its benchmark in response to disappointing economic activity.

Overall, banks have lowered their prime rates by a total of 0.3 percentage points this year, or nearly half the Bank of Canada’s total reduction of 0.50 points over the same period.

Bank of Canada Governor Stephen Poloz appeared unconcerned by the banks’ response, noting that lending rates can be affected by many factors beyond official monetary policy.

“That’s how financial markets work,” Mr. Poloz said at a press conference. “All we’re trying to do is have an influence on [the lending rate], as opposed to determine it.”

After the Bank of Canada cut its key rate in January, also by a quarter point, the big banks were slow in responding to the surprise move.

When they did react, they took a public drubbing over their refusal to respond with an equal reduction in their prime rates, decreasing them by just 0.15 points.

However, some observers have pointed out that the Bank of Canada may not mind the muted response from the banks.

House prices have soared as borrowing costs have fallen, raising concerns that prices may be overvalued by as much as 30 per cent, according to Bank of Canada estimates. As well, Canadian indebtedness has risen to new heights, making consumers vulnerable to rising unemployment levels or an eventual ramp-up in borrowing costs.

For the banks themselves, the response to the Bank of Canada comes as they attempt to shore up profits driven by their lending activities.

Since the banks make money by lending at higher rates than their own borrowing costs, substantially lower prime rates can compress the spread, or net interest margins.

“We are in such an unusually low-interest-rate environment that the traditional rules of one-for-one [reductions in the prime rate and the Bank of Canada’s key interest rate] don’t work,” Peter Routledge, an analyst at National Bank Financial, said in an interview.

He pointed out that the net interest margin for the Canadian personal and commercial banking operations of the Big Six banks have declined to a weighted average of just 2.48 per cent from 2.73 per cent in 2010. Less than a decade ago, the margin was a far more robust 3 per cent.

Although Canadian banks have increased their overall profits over this period, their share prices have recently been struggling to keep up with the broader market, reflecting investor concerns that earnings growth is being challenged.

“We anticipate that the market’s outlook for growth will moderate further in 2016, encapsulating an even greater slowdown in loan growth and incremental margin pressures,” John Aiken, an analyst at Barclays, said in a note.

Mr. Routledge thinks the banks may also be maintaining higher prime rates, relative to the Bank of Canada’s key rate, out of concerns about credit risk.

“If the economy is slowing so much that the Bank of Canada has cut its policy rate in half” – to 0.5 per cent from 1 per cent in January – “maybe households in particular are not as creditworthy as consensus believes,” he said.

“If that’s the case, you want to put in a little more spread for taking credit risk.”

Restrictions

Thomson Reuters 2012.

All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. Thomson Reuters is not liable for any errors or delays in Thomson Reuters content, or for any actions taken in reliance on such content. ‘Thomson Reuters’ and the Thomson Reuters logo are trademarks of Thomson Reuters and its affiliated companies.

Selected data supplied by Thomson Reuters. Thomson Reuters Limited. Click for Restrictions .

Copyright 2016 The Globe and Mail Inc. All Rights Reserved.

444 Front St. W. Toronto. ON Canada M5V 2S9
Phillip Crawley, Publisher

Add to Watchlist

We’ve run into a glitch. Please try again later.

We’ve run into a glitch. Please try again later.

Customize your reading font


Canada – s big banks cut prime rate after BoC move – The Globe and


#prime interest rate today

#

Canada s big banks cut prime rate after BoC move Add to.

Canada’s big banks followed the Bank of Canada’s interest rate cut, lowering their prime lending rates in a series of moves that nonetheless reinforce the reluctance of lenders to follow the central bank in lockstep.

Toronto-Dominion Bank initially decreased its prime rate – the benchmark for creditworthy borrowers – to 2.75 per cent, down 0.10 percentage points. Royal Bank of Canada, Bank of Montreal, Bank of Nova Scotia and Canadian Imperial Bank of Commerce responded on Wednesday evening, reducing theirs by 0.15 points to 2.70 per cent from 2.85 per cent. That’s a shallower reduction than the central bank’s 0.25-point cut. TD then matched the lower prime rates with an additional cut.

ECONOMY

The Canadian dollar took a nosedive after The Bank of Canada cut its key overnight lending rate by 25 basis points to 0.50 percent saying Canada’s weakening economy is in ‘significant and complex adjustment.’ BNN Video

Economy
ECONOMY

This marks the second time this year that Bay Street has taken a more cautious approach to their lending rates after the central bank has slashed its benchmark in response to disappointing economic activity.

Overall, banks have lowered their prime rates by a total of 0.3 percentage points this year, or nearly half the Bank of Canada’s total reduction of 0.50 points over the same period.

Bank of Canada Governor Stephen Poloz appeared unconcerned by the banks’ response, noting that lending rates can be affected by many factors beyond official monetary policy.

“That’s how financial markets work,” Mr. Poloz said at a press conference. “All we’re trying to do is have an influence on [the lending rate], as opposed to determine it.”

After the Bank of Canada cut its key rate in January, also by a quarter point, the big banks were slow in responding to the surprise move.

When they did react, they took a public drubbing over their refusal to respond with an equal reduction in their prime rates, decreasing them by just 0.15 points.

However, some observers have pointed out that the Bank of Canada may not mind the muted response from the banks.

House prices have soared as borrowing costs have fallen, raising concerns that prices may be overvalued by as much as 30 per cent, according to Bank of Canada estimates. As well, Canadian indebtedness has risen to new heights, making consumers vulnerable to rising unemployment levels or an eventual ramp-up in borrowing costs.

For the banks themselves, the response to the Bank of Canada comes as they attempt to shore up profits driven by their lending activities.

Since the banks make money by lending at higher rates than their own borrowing costs, substantially lower prime rates can compress the spread, or net interest margins.

“We are in such an unusually low-interest-rate environment that the traditional rules of one-for-one [reductions in the prime rate and the Bank of Canada’s key interest rate] don’t work,” Peter Routledge, an analyst at National Bank Financial, said in an interview.

He pointed out that the net interest margin for the Canadian personal and commercial banking operations of the Big Six banks have declined to a weighted average of just 2.48 per cent from 2.73 per cent in 2010. Less than a decade ago, the margin was a far more robust 3 per cent.

Although Canadian banks have increased their overall profits over this period, their share prices have recently been struggling to keep up with the broader market, reflecting investor concerns that earnings growth is being challenged.

“We anticipate that the market’s outlook for growth will moderate further in 2016, encapsulating an even greater slowdown in loan growth and incremental margin pressures,” John Aiken, an analyst at Barclays, said in a note.

Mr. Routledge thinks the banks may also be maintaining higher prime rates, relative to the Bank of Canada’s key rate, out of concerns about credit risk.

“If the economy is slowing so much that the Bank of Canada has cut its policy rate in half” – to 0.5 per cent from 1 per cent in January – “maybe households in particular are not as creditworthy as consensus believes,” he said.

“If that’s the case, you want to put in a little more spread for taking credit risk.”

Restrictions

Thomson Reuters 2012.

All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. Thomson Reuters is not liable for any errors or delays in Thomson Reuters content, or for any actions taken in reliance on such content. ‘Thomson Reuters’ and the Thomson Reuters logo are trademarks of Thomson Reuters and its affiliated companies.

Selected data supplied by Thomson Reuters. Thomson Reuters Limited. Click for Restrictions .

Copyright 2016 The Globe and Mail Inc. All Rights Reserved.

444 Front St. W. Toronto. ON Canada M5V 2S9
Phillip Crawley, Publisher

Add to Watchlist

We’ve run into a glitch. Please try again later.

We’ve run into a glitch. Please try again later.

Customize your reading font


Globe Life Official Site: Buy up to $350, 000 Mortgage Protection Insurance #second #mortgages


#home mortgage insurance

#

Mortgage Protection Insurance

If you are a home owner, it is important to do all you can to protect your home and your family if an accidental death prevents you from paying your mortgage. Mortgage Protection Insurance from Globe Life is an accidental death and dismemberment insurance policy that gives your family security in their home for just a fraction of your monthly mortgage payment.

Don t Put Your Home At Risk

  • Choose your Mortgage Protection accidental death insurance coverage from $50,000 to $350,000.
  • Acceptance is guaranteed, regardless of health if you are between the ages of 18 and 69.
  • No health questions or medical exams.
  • The affordable monthly premiums will never increase for any reason.
  • Rates as low as $5.50 per month.

Your Mortgage Protection Insurance Also Includes These Additional Guaranteed Benefits At NO EXTRA COST

  • Inflation Benefit
    For every year the Policy remains continuously in force, primary insured s Principal Benefit will automatically be increased by 5% of the Initial Principal Benefit until the Principal Benefit is equal to 125% of the Initial Principal Benefit, or the primary insured turns age 70, whichever is earlier.
  • Education Benefit
    Upon the accidental death of the primary insured, pays an additional 10% of the death benefit for each dependent child who, on the date of the accident, is between the ages of 15 and 22. Available only on the Family Plan and limited to $10,000.
  • Seat Belt Benefit
    Pays 10% of the insured s Principal Benefit if the insured suffers an accidental death while operating or riding in a car and wearing a seat belt.
  • Common Disaster Benefit
    Pays 10% of the insured s Principal Benefit if the insured suffers an accidental death while operating or riding in a car and wearing a seat belt.
  • Dismemberment Benefit
    Pays for loss of a hand, foot or eye subject to a table of losses.
  • Paralysis Benefit
    Covers quadriplegia, paraplegia and hemiplegia subject to a table of losses.
  • Commercially Scheduled Airline Benefit
    Pays an additional benefit amount equal to the insured s Principal Benefit for each insured at the time of death from accidental bodily injury received as a fare-paying passenger on a commercially scheduled airline.

No-Risk 30-Day Money-Back Guarantee

Globe Life guarantees your satisfaction with a no-risk 30-day money-back guarantee. If you are not completely satisfied, simply return your policy within the first 30 days for a full refund without further obligation.

Insurance Selections

About Us

  • About Globe Life
  • Jobs
  • Contact Us

*$1 pays for the first month of children s coverage. Then the rate is based on your child s present age and is guaranteed to stay the same for the rest of their life. Policy Form # GWL20001 or GWLA001
*$1 pays for the first month s adult coverage. Then the rate schedule is based on your current age and is guaranteed for the life of the policy. Policy Form # SRTCV/SRTCV13 **A.M. Best Company rating as of 6/16. For the latest rating, access www.ambest.com.

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Canada – s big banks cut prime rate after BoC move – The Globe and


#prime interest rate today

#

Canada s big banks cut prime rate after BoC move Add to.

Canada’s big banks followed the Bank of Canada’s interest rate cut, lowering their prime lending rates in a series of moves that nonetheless reinforce the reluctance of lenders to follow the central bank in lockstep.

Toronto-Dominion Bank initially decreased its prime rate – the benchmark for creditworthy borrowers – to 2.75 per cent, down 0.10 percentage points. Royal Bank of Canada, Bank of Montreal, Bank of Nova Scotia and Canadian Imperial Bank of Commerce responded on Wednesday evening, reducing theirs by 0.15 points to 2.70 per cent from 2.85 per cent. That’s a shallower reduction than the central bank’s 0.25-point cut. TD then matched the lower prime rates with an additional cut.

ECONOMY

The Canadian dollar took a nosedive after The Bank of Canada cut its key overnight lending rate by 25 basis points to 0.50 percent saying Canada’s weakening economy is in ‘significant and complex adjustment.’ BNN Video

Economy
ECONOMY

This marks the second time this year that Bay Street has taken a more cautious approach to their lending rates after the central bank has slashed its benchmark in response to disappointing economic activity.

Overall, banks have lowered their prime rates by a total of 0.3 percentage points this year, or nearly half the Bank of Canada’s total reduction of 0.50 points over the same period.

Bank of Canada Governor Stephen Poloz appeared unconcerned by the banks’ response, noting that lending rates can be affected by many factors beyond official monetary policy.

“That’s how financial markets work,” Mr. Poloz said at a press conference. “All we’re trying to do is have an influence on [the lending rate], as opposed to determine it.”

After the Bank of Canada cut its key rate in January, also by a quarter point, the big banks were slow in responding to the surprise move.

When they did react, they took a public drubbing over their refusal to respond with an equal reduction in their prime rates, decreasing them by just 0.15 points.

However, some observers have pointed out that the Bank of Canada may not mind the muted response from the banks.

House prices have soared as borrowing costs have fallen, raising concerns that prices may be overvalued by as much as 30 per cent, according to Bank of Canada estimates. As well, Canadian indebtedness has risen to new heights, making consumers vulnerable to rising unemployment levels or an eventual ramp-up in borrowing costs.

For the banks themselves, the response to the Bank of Canada comes as they attempt to shore up profits driven by their lending activities.

Since the banks make money by lending at higher rates than their own borrowing costs, substantially lower prime rates can compress the spread, or net interest margins.

“We are in such an unusually low-interest-rate environment that the traditional rules of one-for-one [reductions in the prime rate and the Bank of Canada’s key interest rate] don’t work,” Peter Routledge, an analyst at National Bank Financial, said in an interview.

He pointed out that the net interest margin for the Canadian personal and commercial banking operations of the Big Six banks have declined to a weighted average of just 2.48 per cent from 2.73 per cent in 2010. Less than a decade ago, the margin was a far more robust 3 per cent.

Although Canadian banks have increased their overall profits over this period, their share prices have recently been struggling to keep up with the broader market, reflecting investor concerns that earnings growth is being challenged.

“We anticipate that the market’s outlook for growth will moderate further in 2016, encapsulating an even greater slowdown in loan growth and incremental margin pressures,” John Aiken, an analyst at Barclays, said in a note.

Mr. Routledge thinks the banks may also be maintaining higher prime rates, relative to the Bank of Canada’s key rate, out of concerns about credit risk.

“If the economy is slowing so much that the Bank of Canada has cut its policy rate in half” – to 0.5 per cent from 1 per cent in January – “maybe households in particular are not as creditworthy as consensus believes,” he said.

“If that’s the case, you want to put in a little more spread for taking credit risk.”

Restrictions

Thomson Reuters 2012.

All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. Thomson Reuters is not liable for any errors or delays in Thomson Reuters content, or for any actions taken in reliance on such content. ‘Thomson Reuters’ and the Thomson Reuters logo are trademarks of Thomson Reuters and its affiliated companies.

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Canada – s big banks cut prime rate after BoC move – The Globe and


#prime interest rate today

#

Canada s big banks cut prime rate after BoC move Add to.

Canada’s big banks followed the Bank of Canada’s interest rate cut, lowering their prime lending rates in a series of moves that nonetheless reinforce the reluctance of lenders to follow the central bank in lockstep.

Toronto-Dominion Bank initially decreased its prime rate – the benchmark for creditworthy borrowers – to 2.75 per cent, down 0.10 percentage points. Royal Bank of Canada, Bank of Montreal, Bank of Nova Scotia and Canadian Imperial Bank of Commerce responded on Wednesday evening, reducing theirs by 0.15 points to 2.70 per cent from 2.85 per cent. That’s a shallower reduction than the central bank’s 0.25-point cut. TD then matched the lower prime rates with an additional cut.

ECONOMY

The Canadian dollar took a nosedive after The Bank of Canada cut its key overnight lending rate by 25 basis points to 0.50 percent saying Canada’s weakening economy is in ‘significant and complex adjustment.’ BNN Video

Economy
ECONOMY

This marks the second time this year that Bay Street has taken a more cautious approach to their lending rates after the central bank has slashed its benchmark in response to disappointing economic activity.

Overall, banks have lowered their prime rates by a total of 0.3 percentage points this year, or nearly half the Bank of Canada’s total reduction of 0.50 points over the same period.

Bank of Canada Governor Stephen Poloz appeared unconcerned by the banks’ response, noting that lending rates can be affected by many factors beyond official monetary policy.

“That’s how financial markets work,” Mr. Poloz said at a press conference. “All we’re trying to do is have an influence on [the lending rate], as opposed to determine it.”

After the Bank of Canada cut its key rate in January, also by a quarter point, the big banks were slow in responding to the surprise move.

When they did react, they took a public drubbing over their refusal to respond with an equal reduction in their prime rates, decreasing them by just 0.15 points.

However, some observers have pointed out that the Bank of Canada may not mind the muted response from the banks.

House prices have soared as borrowing costs have fallen, raising concerns that prices may be overvalued by as much as 30 per cent, according to Bank of Canada estimates. As well, Canadian indebtedness has risen to new heights, making consumers vulnerable to rising unemployment levels or an eventual ramp-up in borrowing costs.

For the banks themselves, the response to the Bank of Canada comes as they attempt to shore up profits driven by their lending activities.

Since the banks make money by lending at higher rates than their own borrowing costs, substantially lower prime rates can compress the spread, or net interest margins.

“We are in such an unusually low-interest-rate environment that the traditional rules of one-for-one [reductions in the prime rate and the Bank of Canada’s key interest rate] don’t work,” Peter Routledge, an analyst at National Bank Financial, said in an interview.

He pointed out that the net interest margin for the Canadian personal and commercial banking operations of the Big Six banks have declined to a weighted average of just 2.48 per cent from 2.73 per cent in 2010. Less than a decade ago, the margin was a far more robust 3 per cent.

Although Canadian banks have increased their overall profits over this period, their share prices have recently been struggling to keep up with the broader market, reflecting investor concerns that earnings growth is being challenged.

“We anticipate that the market’s outlook for growth will moderate further in 2016, encapsulating an even greater slowdown in loan growth and incremental margin pressures,” John Aiken, an analyst at Barclays, said in a note.

Mr. Routledge thinks the banks may also be maintaining higher prime rates, relative to the Bank of Canada’s key rate, out of concerns about credit risk.

“If the economy is slowing so much that the Bank of Canada has cut its policy rate in half” – to 0.5 per cent from 1 per cent in January – “maybe households in particular are not as creditworthy as consensus believes,” he said.

“If that’s the case, you want to put in a little more spread for taking credit risk.”

Restrictions

Thomson Reuters 2012.

All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. Thomson Reuters is not liable for any errors or delays in Thomson Reuters content, or for any actions taken in reliance on such content. ‘Thomson Reuters’ and the Thomson Reuters logo are trademarks of Thomson Reuters and its affiliated companies.

Selected data supplied by Thomson Reuters. Thomson Reuters Limited. Click for Restrictions .

Copyright 2016 The Globe and Mail Inc. All Rights Reserved.

444 Front St. W. Toronto. ON Canada M5V 2S9
Phillip Crawley, Publisher

Add to Watchlist

We’ve run into a glitch. Please try again later.

We’ve run into a glitch. Please try again later.

Customize your reading font