Financial Update

· TSX -18.31pts
· Dow +82.97pts
· Dollar -.07c to $94.05US
· Oil -$.99 to $115.01US per barrel.
· Gold -16.80 to $808.20US per ounce –

A recent report showed US foreclosures were up 8% in July compared to June and up 55% compared to July 07


National Post online article below says 17% of people surveyed do not understand the recent gov’t changes, including 25% of non-homeowners.
A great opportunity to contact your customers or to post information to your website to explain the changes.
Attached is the informative article that Merix provided at the end of July explaining the changes as well

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Many Canadians oppose tougher mortgage rules
But then again, many don't understand them, says survey

Eric Beauchesne, Canwest News Service
Published: Wednesday, August 13, 2008

OTTAWA -- Nearly one-quarter of Canadians do not agree with the federal government's mortgage lending crackdown, a proportion that rises to nearly a third among non-homeowners, survey results done for a mortgage lending firm suggest.

And only 45% agree with the tighter mortgage lending rules and that the federal government needs to protect Canadian homeowners, a level of support for the changes that falls even further to just one-quarter among non-homeowners, according to the online survey conducted by pollster Angus Reid for ResMor Trust Co.

In an effort to avoid a U.S.-style housing market meltdown, Finance Minister Jim Flaherty last month tightened up the rules governing mortgage lending practices in Canada, including limiting the amortization period for government insured mortgages to 35 years from 40 years, requiring a minimum down payment of 5% for such mortgages, virtually eliminating zero-down mortgages, and requiring that anybody with an insured mortgage have a minimum credit score.

Those who disagree with the measures said they reduce options for people wanting to buy a home.

However, the results also indicate that 17% do not understand the changes, including 25% of non-homeowners.

Further, the findings suggest that the higher the level of understanding, the lower the level of opposition to the new rules.

"I was surprised that 23% do not agree with the measures," Darren Thompson, vice-president of lending for ResMor Trust, said in an interview.

"This survey clearly demonstrates a need for industry professionals to educate Canadians about the new measures, specifically those entering the market for the first time," he said, adding that's something that the federally licensed trust company is doing.

"The measures are not seriously impacting the ability of consumers to get a mortgage," he said, citing as an example an industry finding that more than half of those who took out 40-year mortgages would have qualified for a 25-year mortgage. "It was just enabling them to get a lower monthly payment but at a much greater interest cost."

Mr. Thompson also disagreed with critics of the measures who have warned that the tighter rules will put an added chill on an already cooling housing market.

"There's still lots of financing out there," he said, adding that the measures protect the Canadian taxpayer from having to foot a large bailout if the market goes south as it has in the U.S.

The survey, meanwhile, also revealed a regional divide in the level of support for the tighter rules and the level of understanding of the rules.

Agreement with the new rules in the heated housing markets of the Western provinces and in Ontario is significantly higher than in the Eastern provinces and Quebec, the report said, noting support for the crackdown was 64% in British Columbia, 56% in Alberta, 47% in Saskatchewan and Manitoba, 46% in Ontario, but only 35% in the Atlantic provinces and 34% in Quebec.

The proportion indicating a lack of understanding of the new rules was highest in Quebec and Atlantic Canada, at 23% in both markets, and lowest in British Columbia at only 7%, followed by 13% in Manitoba and Saskatchewan, 18% in Alberta, and 16% in Ontario.

The online survey of at least 1,000 adults conducted last month following the release of the new rules is considered accurate within 3.1 percentage points 19 times out 20