Oct

27

Future of Canadian Interest Rates and Bond Rates

Filed Under Mortgages | 1 Comment

New homeowners have different options as of October 15 and the new rules put in place by the federal government. Under the new rules homeowners need 5% as a down payment. This can come in the form of their personal savings or a gift from a family member. The maximum amortization is 35 years from the 40 years previously. Most new home owners are looking at having a cosignor to help with the qualification.

Canadian mortgage rates are directly affected by the actions of the Bank of Canada. By monitoring the interest rate on bonds issued by the Bank, anyone can get an indication of interest rate directions. The bond market is essentially a reflection of investors’ interest rate expectation for the future of the Canadian economy.

Purchasers who do their homework know that bond rates have been declining. The decline in bond rates results in lower interest rates on mortgages in Canada. The Bank of Canada has backed away from increasing rates due to recent unrest in the market. However, there is speculation the Bank of Canada may slightly raise interest rates in the coming months, but time will tell.

For any of your mortgage needs please contact Michael Grabmuller at michael.grabmuller@td.com

Oct

24

What A Mortgage Really Is…

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We had some questions regarding mortgages, and wanted to explain exactly what a mortgage is…

The most important thing you must realize about a mortgage is that what you believe it to be is actually wrong. Often referred to as a mortgage home loan, they are not a loan in the traditional meaning of the word. The mortgage is a legal contract between the mortgagor who is buying the property and the mortgagee, the person supplying the finance and security against the property. However, it is easier to explain it as a legally binding document where the lender is protected from loss by using the property as security for the debt.

Mortgages have in fact changed the face of house buying because they provide the facility for the purchase without the buyer paying the full cost upfront. The way this process works is presented in brief detail during the rest of this article. Being the financier, the mortgagee is the person who lends funds to the mortgagor or borrower. The document itself produces a lien on your property which is not cleared until the debt is paid.

The property you are buying does in fact become collateral for the finance that has been sought to pay for it and is the protection a mortgagee needs if he is going to continue financing house purchases. Records of this are normally kept in the public records section of the county courthouse or a similar establishment. While the property is owned now by the mortgagor, the lien cannot be reversed until the amount specified in the debt is paid off. So how this works is that the mortgagor (you) owns the property completely even though the mortgagee has possession of the mortgage but not the title.

The only right the mortgagee has over the property now is if payments are missed and the property needs to be sold so the mortgagee can recoup his funds. If in the unfortunate event this happens, the process whereby the funds are reclaimed is called foreclosure. This is done in order for it to be considered legal; this type of foreclosure is referred to as a judicial foreclosure. This is the subject in brief and while there is a great deal more to it, perhaps this will help to clear up any ambiguities you may have previously experienced.

Oct

22

Condo Projects Outside Calgary

Filed Under Buying, Selling, calgary condos | 1 Comment

Below are all the ‘Out Of Town’ condo projects around the Calgary area as of Sept. 20 2008

AIRDRIE

  • BREEZE AT AIRDRIE:  By Generations Group of Companies. Three-bedroom townhomes or one-, two- or three-bedroom apartment-style condos from low $200,000s. At 2370 Bayside Rd. S.W., Airdrie.
  • COURTYARDS OF KING’S HEIGHTS:  Gardenside condos from $194,900, plus GST. At Kingsland Road in Airdrie.
  • COPPERSTONE VILLAGE:  By Jade Landing Holdings. One- and two-bedroom suites on the developing west side of Airdrie, across from Creekside Crossing.
  • CROWN SHORES:  From $212,900. Sales centre 405 Airdrie Rd.
  • PATIOS OF SAGEWOOD:  By Beattie Homes. Two-storey three-bedroom units.
  • ZEN:  By Avalon. Two- and three-bedroom townhomes. From the mid-$250,000s. Show homes at 102 2445 Kingsland Rd. S.E.

BLACK DIAMOND

  • MOUNTAIN VIEW MANOR:  Marketed by Ken Placsko Realty. Two-bedroom adult-condo units from $195,000.
  • (Adult) WINCHESTER, THE:  By Prairie Dog Development Inc. Eco-friendly, 33-unit luxury development near Sheep River. At 415 4A St. N.W., Black Diamond.

CANMORE

  • BLACKSTONE MOUNTAIN LODGE:  By Assured Developments. Fully-furnished condos from $414, 900 to $539,900. At 170 Kananaskis Way, Canmore.
  • FAIRHOLME VILLAGE:  By Devonian Properties. From 1,151 1,343 square feet. Sales centre at 743 Railway Ave.
  • LODGES AT CANMORE:  By Devonian Properties. Condos from mid-$200,000s.
  • MOUNTAINEERS VILLAGE:  By Alpine Homes. From $490,000. Show suite at 104 Armstrong Pl. (Three Sisters Mountain Village.)
  • SERENITY RIDGE:  By Swan Group Inc. Maintenance-free townhomes from 1,000 to 1,200 square feet. At Three Sisters Mountain Village.
  • SOLARA CANMORE:  One-, two- and three-bedroom apartment-style condos. Fractional ownership. Show suite at 1205 Bow Valley Tr.
  • TIMBERLINE LODGES:  By Alpine Homes. From 1,000 to 3,200 square feet. From $400,000s to $1.6 million. Show suite at 104 Armstrong Pl. (Three Sisters Mountain Village).

CARSTAIRS

  • VILLAS AT STONEBRIDGE GLEN, THE:  By Gold Seal Homes. Executive villas next to the Carstairs Golf Course. From 1,225 to 1,700 sq.uare feet. From $290,000 to $450,000. Show suite open.

CHESTERMERE

  • BROWNSTONES OF RAINBOW FALLS:  Two-storey townhouse condos at 203 Rainbow Falls Dr.
  • CHALETS OF RAINBOW FALLS:  By Lionsworthe Homes. Two- and three-bedroom units. From 1,400 to 1,600 square feet. Show home at 164 Lavender Link. From $330,000 to $400,000, plus GST.
  • GEORGIAN VILLAS AT RAINBOW FALLS:  By Urban Escapes by Truman. Bungalows starting at $436,000. At 300 Westcreek Blvd.
  • WESTMERE GARDENS:  By Reid Built Homes. Semi-attached estate homes at 147 Springmere Rd., Chestermere. Show home open.

CROSSFIELD

  • ARCHES, THE:  By Crossfield Affordable Housing Inc. Apartment-style condos. One-bedroom, $154,900; two-bedroom, $189,900. At Main Street, Crossfield.

COCHRANE

  • ALORA IN SUNSET RIDGE:  Aspire Condo Living by Jayman. Four phases. At 201 Sunset Dr.
  • LAREDO PLACE:  By Trico Homes. At 28 Heritage Dr. in Cochrane. From 1,253 to 1,669 square feet. Two- to three-bedroom unit from $299,900, plus GST.
  • RANCHEROS:  By CalBridge Group Inc. Maintenance-free bungalow villas at 89 Sunset Square, Cochrane. Starting from $412,800. Sales centre at 101 Sunset Dr., Cochrane.
  • SUNSET POINTE:  By CalBridge Group Inc. An exclusive maintenance-free enclave of townhomes at 307 Sunset Point, Cochrane. Three floor plans available. Show suite open Sept. 18. Walkouts starting from $390,000s.
  • VILLAGE, THE:  By CalBridge Group Inc. Maintenance-free, luxury apartment-style condos from the low $200,000s. From 710 to 1,434 square feet, and loft penthouses. Variety of floor plans. At 15 Sunset Square, Cochrane.

HIGH RIVER

  • MURALS OF HIGH RIVER, THE:  Three-bedroom townhomes in Montrose, High River. Sales centre at 1403 Montrose Ter. S.E. (in Greenboro show home). From $320,000s.
  • (Adult) VIEW AT SUNRISE, THE:  By Enzo Developments. Adult-lifestyle condos in two-bedrooms and one-bedroom-plus-den. From $199,900. At 43 Sunrise Loop, High River.

OKOTOKS

  • (A) CALVANNA VILLAGE:  By Calvanna Developments. Maintenance-free living for 50-plus lifestyle. Located on Woodgate Road, behind Safeway.
  • DRAKE’S COVE:  By Rockford Ventures. From $280,000s. At 105 Drake Landing Common in Okotoks.
  • HARVEST GATE:  By Trico Homes at 27 and 29 Cimarron Vista Gardens in Okotoks. Three-bedroom units from 1,235 to 1,499 square feet. From $310,000 to $344,00, plus GST.
  • PENNCROSS:  By Streetside Development Corp. Apartment condos starting at $226,000s. At 129 1 Crystal Green Lane, Okotoks.
  • VILLAS OF CIMARRON ESTATES, THE:  By Crossley Homes. Executive villa bungalows from 1,200 to 1,600 square feet. From $395,000. At 10 Cimarron Estates Gn., Okotoks.
  • TUCKER HILL:  By Streetside Development Corp. Bungalow villa duplexes and triplexes, From the $290,000s. At 200 and 202 Tucker Blvd., in Westmount, Okotoks.

OLDS

  • CORNERSTONE VILLAGE:  ByLeaside Development Corp. One- and two-bedroom condominium apartments from 856 to 1,310 square feet. From $217,900 to $332,900. At 4403 67A Ave. in Olds. Sales centre on site.

STRATHMORE

  • (Adult) RANCH ESTATES:  Gated, land-lease community for manufactured homes. From $75,000 to $200,000. Sales office at 100 Ranchwood Lane.

Source

Oct

21

New Condos in NE Calgary

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Below are the condos projects in the NE quadrant of Calgary as of Sept. 20, 2008

NORTHEAST CONDOS

  • ADORA, THE:  By Sokol Developments. Starting at $339,900. At 725 4th St. N.E.
  • (A) CALVANNA VILLAGE WHITEHORN:  By Calvanna Developments. Apartment-style condos at 52nd Street and 44th Avenue N.E.
  • CRESCENT MANOR:  By Rainbow Homes Ltd. At 110 12th Ave. N.E., in Crescent Heights. This three-storey building has executive condos from $399,900. Show suite open.
  • GREENVIEW ON THE PARK:  One-, two- and three-bedroom condos in four refurbished buildings from 700 to 1,200 square feet. From $220,888. Sales centre at 4455 Grenview Dr. N.E.
  • LIGHTHOUSE LANDING OF COUNTRY HILLS:  By Cardel Lifestyle. Sales centre at 12025 Coventry Hills Blvd. N.E. From low $200,000s.
  • MEREDITH PLACE:  Condo conversion in Bridgeland. At 644 Meredith Rd. N.E.
  • RED WILLOW:  By Rockford Ventures. Townhomes from the mid-$200,000s at 504 Saddlecrest Blvd. N.E.
  • REFLECTIONS:  By Rockford Ventures. One- and two-bedroom apartments from the $250,000s. Sales centre at 161 Country Village Ld. N.E.
  • SIENNA, THE:  By Sokol Developments. From $499,000. At 41 6th St. N.E.
  • VERANA, THE:  By Sokol Developments. From $429,900. At 41 6A St. N.E. Sales centre at 20, 4th St. N.E.
  • VU:  By Luxe Developments. Two-bedroom suites from 1,086 to 1,253 square feet. Show suite open at 414 Meredith Rd. N.E.

Oct

21

New Condos in SE Calgary

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Below are the 11 condo projects in the SW quadrant of Calgary as of Sept. 20, 2008

SOUTHEAST CONDOS

  • ARRIVA:  By Torode Residential. One-bedroom units from 828 square feet and two-bedroom units from 1,162 square feet. At corner of 3rd Street and 11th Avenue.
  • BELLA CASA CONDOS:  By Prism Developments. This four-storey building with units from $188,500 to $338,500. At 5430 17th Ave. S.E.
  • BORDEAUX OF CRANSTON:  By Avalon Master Builder. Three-bedroom townhomes. Information centre at 70 Cranleigh Dr. S.E.
  • (Adult) CHAPARRAL, THE:  Pointe of View Developments. Mature, adult-living with suites from 821 to 1,302 square feet. Presentation centre at 428 Chaparral Ravine Vw. S.E.
  • GALA IN APPLEWOOD:  By Luxe Developments. At 1720 68th St. S.E. On-site sales centres/show suite for Phase 1 opening soon.
  • KEYNOTE:  Keynote Development Corp. One- and two-bedroom units. Sales centre at 1119 1st St. S.E.
  • MOSIAC MONTAGE IN AUBURN BAY:  By Hawthorne Homes. From mid-$200,000s. At 625 Auburn Bay Blvd. S.E. Presentation centre open.
  • MOTIF NEW BRIGHTON:  By Hawthorne Homes. From the low $200,000s. At 55 New Brighton Gardens. S.E.
  • PRESTWICK PLACE:  By Cardel Lifestyles. Sales centre at 114 Prestwick Villas S.E. Prices from low $200,000s.
  • RIVERSIDE QUAYS:  By Statesman. Apartment condo and townhome village in Inglewood. Sales centre at 1640 17A St. S.E.
  • SOLEA:  By Luxe Developments. At 15304 Bannister Rd. S.E. in Lake Midnapore. Two-bedroom suites.

Oct

20

New Condos in NW Calgary

Filed Under Buying, News Articles, Selling, calgary condos | 2 Comments

Below are the 18 condo projects that are happening in NW Calgary as of Sept. 20, 2008

NORTHWEST CONDOS

  • BLUE SKY:  By Streetside Development Corp. Townhouses with mountain views starting at $299,000. At 2 164 Rockyledge View N.W. (weekend) or 118 30 Royal Oak Plaza N.W.
  • EDGE ON 17TH, THE:  By Strathridge Apartments Inc. At 1231 17 Ave. N.W. One-bedroom and two-bedroom units from $239,900 to $369,900. Show suite open.
  • KENSINGTON, THE OXFORD:  Townhouses on 12th Street. From $599,900.
  • ORCHID IN TUXEDO, THE:  Three-storey condominium building has one-bedroom-plus-den and two-bedroom units available. Starting at $319,900. At 2012 1 St. N.W.
  • PANORAMA POINTE:  By Pointe of View Developments. From 579 to 1,243 square feet. Presentation centre at 60 Panatella St. N.W.
  • PANORAMA HEIGHTS:  By Rockford Ventures. From the low $300,000s. Show home at 398 Panatella Blvd. N.W.
  • PLAZA AT ROYAL OAK:  By Streetside Development Corp. Townhouses starting in the $320,000s. At 118-30 Royal Oak Plaza N.W. Show suite open.
  • PROVIDENCE AT KENSINGTON:  By Providence Development Corp. From 1,024 to 1,101 square feet. From $487,900. Two-storey townhomes from about 1,600 square feet. Presentation centre at 1321 Kensington Cl. N.W.
  • RANCHVIEW VISTAS:  By Cardel Lifestyles. At 6315 Ranchview Dr. N.W. One- and two-bedroom apartment-style condos from the low $240,000s.
  • RED HAUS:  By Streetside Development Corp. Apartment condos from $199,000. At 118-30 Royal Oak Plaza. N.W.
  • SWAN LANDING AT ROCKY RIDGE:  By The Swan Group. At 525 Rocky Vista Gardens N.W. Bungalow-style villas from $449,900 to $599,900. Apartment condos from $269,900. Show suite open.
  • TUSCANY POINTE:  By Cedarglen. At 104 Tuscany Ravine Heights N.W.
  • URBAN VIEW BY THE RIVER:  Urban View Projects. $408,000 — $512,000. Presentation centre at 204 8 Parkdale Cres. N.W.
  • VIDA:  By Luxe Developments. At the corner of 17th Avenue and 3rd Street N.W.
  • VILLAGE AT WEST SPRINGS:  By Landstar Development Corp. Terrace townhomes and patio homes. At 73rd Street and Old Banff Coach Road.
  • VILLA D’ESTE:  By Knightsbridge. Apartment-style condos south of Tuscany Boulevard. Show home open.
  • THE VUE:  Two-bedroom apartment-style condos in Hillhurst from $332,900. At 429 14th St. N.W.
  • WEST BY STONECROFT:  Luxury condos from the mid-$300,000s. At 88 Arbour Lake Rd. N.W., near Crowfood Crossing. Furnished show suites open for viewing.

Oct

20

New Condos in SW Calgary

Filed Under Buying, News Articles, Selling, calgary condos | 1 Comment

Below are all 51 condo projects in Calgary in the SW quadrant with location and info as of Sept. 20, 2008.

SOUTHWEST CONDOS

  • ACCESS COUGAR RIDGE:  Birchwood Properties Corp. From low $300,000s. Discovery centre and show homes located at 5 Cougartown Cir. S.W. in Cougar Ridge.
  • ASCENT:  Aspire Condo Living by Jayman. At 2727 28th Ave. S.E. Pricing from $209,900, plus GST.
  • ASTORIA ON TENTH:  By Arcus Developments. Thirty-five-storey tower on 900-block of 10th Avenue S.W., with one- ,two- and three-bedroom floor plans from 580 to 2,157 square feet, and a 4,400-square-foot penthouse. From $300,000s to $10 million. Presentation centre at 110 999 8th St. S.W.
  • AURORA AT CHINOOK:  By Condo Condo Development Group. From $259,900. At 790 Kingsmere Cres. S.W
  • BANKVIEW, THE:  By Westscape Investment Corp. At 2137 17th St. S.W. Concrete conversion with balconies, storage and parking. Unrenovated for cost-conscious do-it-yourselfers. From $169,800 to $234,900.
  • BENTLEY IN LOWER MOUNT ROYAL:  By Eden Group of Companies. Four-storey building with units from 678 to 1,728 square feet. Lofted units have extra 240 to 450 square feet. From $350,000 to $850,000. At 1726 10th St. S.W.
  • BRIDLECREST POINTE:  By Pointe of View Developments. From 900 to 1,135 sq. ft. Presentation centre at 2109 16969 24th St. S.W.
  • BROWNSTONES OF WENTWORTH ESTATES:  By Beattie Homes. Two-storey estate homes with elevators. At 87 Wentworth Terrace S.W.
  • BROWNSTONES AT BANKVIEW:  By The Eden Group of Companies. One unit available, at $469,900. At 2408 17A St. S.W. Visit the New Home Gallery, 100 1414 8th St. S.W. Show suite open.
  • CANVAS AT MILLRISE:  By Medican Developments. Sales gallery at 23 Millrise Dr. S.W.
  • CASEL:  By Niklas Group. At 17th Avenue and 24th Street S.W. Nine-storey building with units from 676 to 1,243 square feet. From $299,900 to $649,900. Show home at 1935 35th St. S.W.
  • CASTELLO:  Homburg-Centron Teamworks. Castello is a 19-storey building with units from the $500,000s. At 530 12th Ave. S.W. Sales gallery open.
  • CENTURIA ON THE PARK:  By Lake Placid Developments. At 301 13th Ave. S.W. From $450,000.
  • CHURCHILL ESTATES:  By Homburg-Centron Teamworks.Sales Gallery on site at 701 3rd Ave. SW. One-bedrooms from $690,000; two-bedroom from $820,000.
  • COLOURS BY BATTISTELLA:  By Battistella Developments. Loft-style spaces at 192 15th Ave. S.W. From $290,000 to mid-$500,000s.
  • CRAFTSMAN BUNGALOWS:  By Burntwood Homes. At 21 Bridle Estates Manor S.W. Adult community. From $399,900. Showhome open.
  • EIGHTWELVE:  Show suites at 812 14th Ave. S.W. One-bedroom, one-bedroom-plus-den and two-bedroom units available, starting from the mid-$200,000s.
  • ELEMENT:  Bachelor units downtown, starting at $179,900. At 827 12th Ave. S.W. Show suite open.
  • EVERGREEN GROVE:  By Today’s Communities. Now open. At 24th Street and Eversyde Avenue.
  • GINGER PARK:  By Streetside Development Corp. Townhouses with mountain views starting from $399,000. At 8720 9th Ave. S.W. Show homes open Aug. 16.
  • HIGHBURY TOWER 2:  By Perera Developments. Homes from 698 to 1,358 square feet. Views of Fish Creek Park, Rocky Mountains or downtown skyline. Sales centre at 14359 Macleod Tr. S.W.
  • LONDON AT HERITAGE:  Westcorp. Condominiums at Heritage Station. At 8835 Macleod Tr. S.
  • (Adult) LAS BRISAS DEL SUR:  By Gran Sabana Developments. Maintenance-free bungalow villas for 50-plus adults in Springbank Hills. At Elysian Crescent S.W.
  • LA CAILLE FIVE WEST, THE:  By The La Caille Group. From $385,000 to $2.8 million, plus GST. Show suite at 924A 5th Ave. S.W. Project at 910 5th Ave. S.W.
  • MANCHESTER STATION:  By Source Development Corp. At 5320 2nd St. S.W. One-bedrooms starting at $322,000; two-bedrooms starting at $387,000. Show suite at 341 17th Ave. S.W.
  • MADRID, THE:  By Kalzen Property Group. One-bedroom apartment condos from $234,900. Show suite at 1815 16th St. S.W.
  • MISSION CROSSING, THE:  By Tricor Development Corp. Three-bedroom townhomes with more than 2,400 sq. ft. of developed space. From $1,499,000. At 540 21 Ave. SW. Sales centre open.
  • MONTECITO IN MARDA LOOP:  By The Eden Group of Companies. At 1725 to 1733 34th and 35th Ave. S.W. From 1,400 to 1,900 square feet. From $499,900 to $599,900. Show suite open. Visit New Home Gallery at 100 1414 8th St. S.W.
  • MONTANA, THE:  By Procura. At 817 15th Ave. S.W. Show suite open. Discovery centre at 803 15th Ave. S.W.
  • TOWNHOMES IN MOUNT PLEASANT:  By Rainbow Homes Ltd. At 407 28th Ave. N.W., in Mount Pleasant, These executive, 1,850-square-foot homes have three bedrooms and are priced from $699,000. Two units available. Showhome open.
  • MOSAIC ASPEN HILLS:  By Hawthorne Homes. From mid-$300,000s. At Aspen Hills Green S.W. Show homes open.
  • NEWBURY:  Aspire Condo Living by Jayman. Townhouses from $576,900 to $622,900. Show suite at 3000 Dallaire Ave. S.W.
  • NEWS:  By Today’s Communities. Show suites open. From the $280,000s. At 400 Village Gdns. S.W.
  • NUERA:  By Cove Properties at 1410 1st St. S.E.
  • OSCAR LIVING AT EAU CLAIRE:  By The Eden Group of Companies. From 808 to 1,756 square feet. From $499,900 to $1,599,000. At 735 2nd Ave. S.W. Presentation centre at 100 1414 8th St. S.W. Show suite open.
  • OSLO:  By Homburg-Centron Teamworks. A 32-storey tower with suites from $350,000. Sales gallery at 1324 11th Ave. S.W.
  • RIVERFRONT POINTE:  By Pointe of View Developments. Suites from 622 to 1,540 square feet. At Riverfront Avenue and 3rd Street S.E.
  • ROBSON:  By Streetside Development Corp. Apartment condos from $259,000. At 26 Val Gardena View S.W. unit 102.
  • SANDERSON RIDGE:  By Medican Developments. Luxury living in Fish Creek Park. At 2330 Fish Creek Blvd. S.W.
  • SILVER SKY COURT:  By Vertical Properties. At 7 Silverado Range Heights S.W. Two-storey town homes.
  • SITRO:  One-bedroom units starting from $199,900. At 2411 29 St. S.W. Show suite open.
  • TERRACES OF ERLTON, THE:  By Del Rich Homes Ltd. Townhomes are 2,100 square feet and priced from $995,000 (includes GST). At 2707 Erlton St. S.W.
  • TWEED:  From 700 to 1,600 sq. ft. At 1734 5A St. S.W.
  • THE VILLAGES AT WEST SPRINGS:  By Landstar Development Corporation. Old Banff Coach Road and 73rd Street S.W.
  • UPLAND ESTATES:  Executive townhomes and condos in Marda Loop. From the $450,000s. Sales centre at 3 2120 35th Ave. S.W.
  • UNION SQUARE:  By Apex City Homes. At 1325 1st St. S.W. Units from $340,900 to $749,900.
  • WATERFRONT:  By Anthem Properties. Units are 581 to 2,518 square feet. From the $319,900. Show suite at 104 2nd St. S.W.
  • WEST 17TH LOFTS:  By Pacer Signature Homes. From $1.1 million to $1.6 million. Presentation centre at 53 Aspen Ridge Way S.W.
  • WINDSOR, THE:  One- and two-bedroom suites from $215,000 and $310,000. Located within walking distance of Stanley Park, Chinook Centre and public transit. Show suite at 315 50th Ave. S.W. Immediate occupancy.
  • VALMONT AT ASPEN STONE:  By Today’s Communities. At the corner of 85th Street and 17th Avenue S.W. Two-bedrooms from $357,900, plus GST.
  • XENEX:  By Bucci. Presentation centre at 1226 8th St. S.W.

Oct

17

Smaller Oil Producers may Sell Out

Filed Under News Articles, Oil Exports, Oil Sands | Leave a Comment

Right now with some economic uncertainty, some smaller players in the oil industry may look at selling vs. pushing through this time.  We may see take-overs starting to happen more frequently in the months ahead.  Some of these companies who would rely on outside investment and capital to run their business, might need to look for funds elsewhere.

But overall, Canada’s oilpatch comes out of the market meltdown relatively unscathed with the exception of some battered share prices.

That’s because the industry has traditionally relied on internally generated cash flows to fund growth.

Hal Kvisle, president of pipeline giant TransCanada Corp. said “If you go back to the start of my time in this job, we were generating about $1 billion a year in cash flow, of which the first $400 million went to the payment of debt. Now we generate $3 billion and the first $700 million or $800 million goes to the payment of a dividend, so we have five or six times as much available financial strength.”

There is a ton of money in the larger companies right now.  The revenue they have generated over the last couple of years, plus having majority of budgets based on the $70-$90 per barrel price, they will be able to weather the economic uncertainties in the coming months.

Oct

16

Canadian Rules will Prevent U.S.-Style Crisis

Filed Under Canadian Economy, News Articles, US Economy, US Housing Market | Leave a Comment

We’ll (Canada) feel some ripple effects, but growth here should remain positive…

Canada’s banking system is not only number one in the world right now, but rather we do things a bit different than the US as well… Our banking system is made up of what is called Deposit Banks, where the banks that do investments also are the same ones that you and I, as Canadians hold our chequing and savings accounts in.  The banks are much, much more regulated and supervised here in Canada vs. the US.

In Canada and most other industrial nations, investment banking — which can include stock trading, packaging and selling securities, corporate advice on mergers, and making investments for profit — is mostly done by the same commercial banks that offer savings and chequing accounts through branches on every street corner.

Commercial banks are closely supervised by government regulators and their leverage — the amount of borrowed money they use to do business — is limited to a fraction of that formerly found in the lightly regulated U.S. investment banks.

That means they can never earn the fabulous profits reaped by the U.S. investment banks in good years. But it also means that they have much less risk in bad years. Better still, they are cushioned by profits from their more stable consumer and business lending, and their large pool of depositors’ money means they’re less dependent on borrowing in bond markets to do business.

————

The good news for Canada is that this country doesn’t have serious problems with its financial system or a collapse of home prices. We’ll be hurt by the U.S. slowdown, but our internal strength means that growth here should remain positive.

Oct

15

Oil Country Boom Ain’t Over…

Filed Under Alberta, Education, Mexico, News Articles, Oil Exports, Oil Sands, World News | Leave a Comment

Jeff Rubin has a simple message for Albertans worried about plunging oil prices: CHILL OUT!

This was the opening line of a great newspaper article posted in Vancouer Sun on Sept. 20, 2008.  The odd thing about this, is that the articles that talk about the positive things this economy are brining are found tucked away in papers… prime example, this was on page I6 !

Here is what it had to say…

But for Canadians, the key tidbits are that the U.S., our primary export market, is going to become even more dependent on us. Not only is their ability to supply their own demands diminishing as well-known basins such as the Gulf Coast begin to show diminishing returns, but projected replacement supplies from places such as the Arctic National Wildlife Reserve are decades away from becoming a reality.
At the same time, other key U.S. suppliers such as Mexico and Venezuela have, to put it politely,
issues. Within the next four or five years, for example, Rubin predicts Mexico “will no longer be exporting oil to the United States.” As for America’s relationship with Venezuela, suffice to say it’s not likely to improve so long as strongman Hugo Chavez is calling the shots — and there is no reason to believe that is about to change anytime soon. What does it all mean? Good things for the oilpatch by and large. Without a doubt, demand for production from the oilsands will continue to grow in the United States and elsewhere — even if, as a result of the credit crunch that is sure to follow this week’s machinations in the investment-banking world, some projects are temporarily shelved.
And in triple-digit prices, conventional explorers will also be chomping at bit, so to speak, to find more oil. Which is why - as difficult as it may be - we need to be sanguine about what lies ahead for the oilpatch.

BOTTOM LINE . . .

We Canada, provide USA our southern friends, SECURITY in the future…

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