Canadian Capitalist

1. Tightening credit spreads are affecting the discount on posted rates for fixed-rate mortgages and off prime for variable-rate mortgages. The discount from prime for new variable-rate mortgages have shrunk from 0.9% to as low as 0.6% and could go down further, says Rob Carrick in The Globe and Mail.
2. The Financial Post reported today that CMHC is now allowing Canadians to buy a rental (or second) property with no down payment for a steep mortgage insurance fee of 7.25%. Earlier, CMHC required investors to put down at least 15%.
3. Jon Chevreau wrote in The Financial Post today (link not available) that hedging foreign equity exposure now is like closing the barn door after the horses have bolted.
4. Speaking of a high loonie, a caller to a talk show in one of the popular Ottawa radio stations pointed out that shopping in the US is an even greater deal if you tank up your car at one of the gas stations south of the border. Gas seems to be at least $1 per gallon cheaper in the U.S.
5. A good buying opportunity in our banks? James Daw notes that analysts are lukewarm to Royal Bank (RY), TD Bank (TD) and Bank of Montreal (BMO).
6. James Daw has a test on taxes and personal finance.
7. According to a CBC report, a surprising 46% of Canadians said they carry their SIN card in their wallet.

Blog Roundup

1. The Dividend Guy offers his thoughts on the new S&P/TSX Canadian Dividends Aristocrats Index.
2. Canadian Financial DIY sorts out the sense and nonsense in Fidelity’s retirement math.
3. Larry MacDonald says that the soaring loonie might crimp economic growth in Canada.
4. In an earlier column, Rob Carrick pointed out that a grand total of 5 mutual funds managed to beat the iShares CDN Composite Index ETF. Investing Intelligently and Four Pillars blogged about the findings in Rob’s column.
5. Million Dollar Journey offers landlords some tips for screening tenants.

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