Cba profits top 2b in Canada, despite declines in retail
Toronto – The Toronto-Dominion Bank continues to be bullish on Canadian mortgage-backed securities market and is expecting residential mortgages to contribute the majority of residential mortgage income next year, as home prices continue to recover from the global economic recession that led to the economic meltdown and ensuing economic recovery.
«The Bank’s expected contribution will be from residential mortgage loans – at least 25 per cent of total mortgage originations in the third quarter of 2015,» commented CEO Michael Cox. «This is good news for Canadian consumers with lower affordability and interest rates, and it also reflects the positive impact of the stronger global economy and the low Canadian dollar and its relative lack of inflation.»
In particular, he notes that the Bank’s expectation of a 25 per cent share of all originations from the third quarter will contribute the largest share of total mortgage income, as the Canadian economy continues to expand while demand from other regions and overseas continues to fall, resulting in a growing number of residential mortgages.
According to a December 20, 2013, presentation to the Securities and Exchange Commission (SEC), the Toronto-Dominion Bank is currently expecting residential mortgage loans to contribute around 25 per cent of the mortgage originations in the third quarter of this year. The first quarter saw a record number of home loans on record terms being issued in the United States and Canada, thanks to a strengthening U.S. economy, and a continuing strength in the Canadian housing market. However, many Canadians have difficulty in paying high interest rates.
«As interest rates continue to rise across the board, Canada’s financial institutions are increasingly looking to deal in more secure, lower-cost mortgages to help them manage their financial risks and achieve their business objectives. While these new mortgage rate전주출장안마s are good news for consumers and for the economy, our expectation is that Canadian mortga전주출장안마ge financing, in particular, will remain at the current level.
«Our continued efforts to support mortgage lending in Canada over the past two years have been a win for the Bank of Canada, but they h창원안마ave also helped to put pressure on mortgage lending across the country, and in particular have driven down the cost of mortgages that the Bank uses.»