Latest news with #TD
Vancouver Sun
5 hours ago
- Business
- Vancouver Sun
Young families are shrinking their mortgages. But does this mean they are priced out?
Younger Canadian families are bucking the national trend and reducing their overall mortgage debt , figures from Statistics Canada suggest, but the decrease may not be all good news. After hitting a peak in the third quarter of 2022, average mortgage balances among families where the primary income earner is aged 35 or younger have fallen by about $15,500, according to a report out Tuesday from Toronto-Dominion Bank citing data from Statistics Canada. Even accounting for any seasonal variation, when comparing the first quarter of 2023 to this first quarter of 2025, there was an 8.5 per cent decline (or about $10,400 less on average) in mortgage balances among younger Canadians, said Maria Solovieva, TD economist and author of the report. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. All other age groups have seen a steady increase in household mortgage debt since the second quarter of 2020, Statistics Canada data show. It is likely many younger households are unable to access the housing market altogether due to affordability challenges , Solovieva said. After home prices hit their peak in March 2022, following the frenzy of homebuying amid lower interest rates during the COVID-19 pandemic, the Bank of Canada started raising interest rates and home sales began to soften. Solovieva said younger Canadians have been prioritizing reducing their debt obligations in the face of rising borrowing costs. About 35 per cent of young adults are likely to rent, compared with less than a quarter of older age groups, according to Statistics Canada's 2024 Canadian Social Survey. There may also be other reasons for the drop in mortgage balances among young people. It is possible some younger Canadians are purchasing cheaper homes or own their homes outright, especially if they have received financial gifts from their parents, Solovieva said. Since the total value of real estate assets for younger Canadians has grown since the third quarter of 2022, it suggests more people in this age group are receiving financial help to buy homes than those who may be buying less expensive homes, Solovieva said. In the meantime, older Canadians are taking on more debt, although there is no sign they are taking on more investment properties or renovations to account for this, she said. In fact, Statistics Canada reported recently that households aged 55 to 64 years increased their mortgage balances by more than eight per cent from the first quarter of 2024 to the same period in 2025, while those aged 65 years and older increased their mortgage balances by nearly nine per cent. Older Canadians are expected to pass down $1 trillion to their heirs over the next few years, according to the most recent data from the Chartered Professional Accountants Canada. Many wealth advisers have reported these wealth transfers are already arriving in the form of early inheritances; in most cases to help adult children purchase their first homes. A 2024 Bank of Canada report also found more than 20 per cent of first-time home buyers received gifts to help make their down payments. Younger first-time home buyers were even more likely to receive gifts when purchasing their homes. This could exacerbate an existing trend, Solovieva said. Data show the lowest-income young households have seen their debt-to-income ratio balloon from 244 per cent before the pandemic to 446 per cent in Q1 2025. 'A lot of wealth (is) built through real estate, (so) somebody who is not in the market is left out,' said Solovieva, noting existing homeowners have largely benefited from rising real estate values over time. 'It's basically going to continue on as long as we still have this dynamic of unaffordability.' Solovieva does not expect this trend of waning mortgage balances to entirely reverse in the near future but does anticipate it to level off as immigration levels decline, which could cool growth in housing prices. The latest report from the Canadian Real Estate Association revealed the national average sale price was down 1.3 per cent year-over-year to hit $691,643 in June. • Email: slouis@
Yahoo
5 hours ago
- Business
- Yahoo
TD names next board chair
This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Dive Brief: TD Bank has tapped John MacIntyre as the chair of its board, effective Sept. 1, the lender said Monday, as it continues making changes to reassure investors. MacIntyre will replace Alan MacGibbon, who became chair of the board in February 2024. MacGibbon will retire, which the bank announced in January. MacIntyre has served as an independent director on the board since 2023 and chairs its human resources committee. Dive Insight: The Toronto-based lender's latest appointment aligns with its strategy to hire executives with strong regulatory experience, as the bank has started overhauling its leadership team amid an anti-money laundering scandal that resulted in more than $3 billion in penalties and a $434 billion asset cap on the bank's U.S. retail operations. MacIntyre has had a 30-year career in capital markets. Prior to joining TD, he retired as a partner emeritus from Birch Hill Capital Partners, which he co-founded in 2005. He has also served on public, private and nonprofit boards, including those of Park Lawn Corp., HomeEquity Bank, Maple Leaf Sports and Entertainment, YMCA Toronto and the University Health Network Foundation. TD aims to benefit from MacIntyre's 'deep understanding of financial services, global capital markets, technology, and risk management,' the bank said in the press release. 'Alongside my fellow directors and in concert with our strong leadership team, I look forward to supporting TD's strategy, further strengthening governance, and delivering long-term value,' MacIntyre said in a statement Monday, thanking MacGibbon for his contribution to the board and the bank. Earlier this month, TD hired Andrew Jensen, a veteran of the Treasury Department, as head of financial crime risk management in Canada, effective July 14. He replaced Stephen Joyce, who had been serving as the interim head of the unit. In January, TD's now-CEO Raymond Chun, who at that time was soon to replace outgoing CEO Bharat Masrani, said the bank 'rebuilt' its AML team in the U.S. with a new head of U.S. financial crimes and risk management. Chun stressed the importance of lessons learned from the debacle, including the significance of experienced staff. 'You need to have talent that is commensurate with the size and complexity of a bank [like] TD,' Chun said in January. 'Talent at the most senior levels in AML is absolutely one of the top priorities that we have as an organization.' Following the AML scandal and the penalty, TD expedited its CEO succession date to February — two months before Masrani's scheduled departure in April. In April, TD named four new members to its board of directors: Elio Luongo, Nathalie Palladitcheff, Frank Pearn and Paul C. Wirth. Pearn has served as a compliance and risk executive at JPMorgan Chase, while Wirth has been a finance and accounting executive at Morgan Stanley. As part of its broader restructuring move, TD announced in May that it would cut roughly 2% of its workforce and wind down a $3 billion portfolio tied to its U.S. point-of-sale financing business. Recommended Reading Making the case for women-owned banks
Global News
a day ago
- Business
- Global News
Will the Bank of Canada and U.S. Fed cut interest rates this week?
This week is sure to be a nail-biter for many Canadians and Americans watching whether central banks in both countries will hold their current interest rates in place. On July 30, both the Bank of Canada and the United States Federal Reserve will announce the status of the benchmark or overnight interest rate. This is the floor that most commercial banks and other lenders use to build their own interest rates, or prime rates for customers and clients. Interest rates set by the central banks are a crucial factor in shaping how much consumers pay for things like auto loans and mortgage rates, and the pending decision by both banks on Wednesday comes amid a broader cost-of-living crunch for consumers. But experts believe the chances of a rate cut happening are slim — especially given the current trade war. Story continues below advertisement Based on the current and future state of the economy and labour market, most experts believe the Bank of Canada will make no changes to interest rates on Wednesday, although nothing is guaranteed at this point. 2:02 Bank of Canada warns about higher mortgage payments With mortgages, for example, a bank like TD or CIBC bases its prime mortgage rate off of the overnight criteria set by the Bank of Canada, which is currently 2.75 per cent, and as of publication, virtually all of the big Canadian commercial banks have a prime rate of 4.95 per cent. Those who are looking to apply for a mortgage very soon, or currently have a variable rate mortgage, are likely paying very close attention for an update. If the Bank of Canada changes its lending policy, then their expected costs will likely change as well. Get weekly money news Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday. Sign up for weekly money newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy This means that if a client of a commercial bank applies for a mortgage, their interest rate on that loan could be as low as 4.95 per cent. But, if the Bank of Canada changes its overnight benchmark, then commercial banks will usually change theirs for clients as well. Story continues below advertisement If someone has a variable rate mortgage, it changes based mainly on these fluctuations by the Bank of Canada. In order to tame multi-year inflation highs in 2022, the central bank raised interest rates. One of its key methods as part of its mandate to maintain economic stability. The Bank of Canada did this gradually over the course of several months to a peak of five per cent. Once economic data showed inflation was falling within its target range, the Bank of Canada began lowering its interest rate to a 'neutral' level — meaning the rate is high enough to keep prices stable, while also low enough to allow for economic growth. The last time interest rates were cut was in March from three per cent to 2.75 per cent and it has stayed the same since. Part of this rate-hold period has to do with economic data the central bank uses to make an informed decision, including monthly updates on consumer inflation (CPI), overall economic growth (GDP), as well as employment data and surveys of sentiments from both consumers and businesses. However, on several occasions since, the Bank of Canada said its decisions would be 'less forward looking' due to several 'layers of uncertainty' surrounding the trade war. Story continues below advertisement 3:32 'It may seem like it's a long way (off)': Carney says Canada needs 'right' trade deal with U.S. 'The effects of trade wars on supply chains may remain at a nascent stage of forcing companies to preserve higher than normal inventories, build them further, and bring chains closer and tighter together away from production markets with higher border risks,' says Derek Holt, vice-president and head of Capital Markets Economics at the Bank of Nova Scotia. 'All of that means higher costs, borne by consumers and other businesses. The lagging effects of the Canadian dollar's depreciation over recent years may be another incremental factor, so might competition and concentration in some sectors that have pricing power.' Holt cites other factors that could contribute to the central bank's decision to continue to hold rates. This includes recent reports showing Canada's seemingly strong job market, as well as the federal government working towards a major budget in early fall, as additional reasons the Bank of Canada may continue to take a wait-and-see approach. Story continues below advertisement South of the border, the U.S. central bank, the Federal Reserve, will also be setting monetary policy, and although the Fed and the Bank of Canada operate separately and serve two different economies, there are some similar sentiments in their current approach. Holt describes how current economic data in the U.S., including that of the CPI report on inflation, GDP, as well as recent reports on the job market 'have remained resilient.' 'No change (is expected) at this (Wednesday's) meeting. Two key issues will keep the FOMC (Federal Reserve) on hold,' says Holt. 'One is that the Fed is data dependent and recent data has not supported easier monetary policy up to this point. Second is that the debate over how trade, fiscal, immigration and regulatory policies may affect the Fed's dual mandate going forward in future date remains open.' On Wednesday, the Bank of Canada's monetary policy announcement is scheduled for 9:45 a.m. EDT, with a press conference shortly after at 10:30 a.m. EDT. At 2 p.m. EDT on Wednesday, the Federal Reserve will do the same, with a speech followed by a media question period at 2:30 p.m. EDT.
Cision Canada
2 days ago
- Business
- Cision Canada
TD Bank Group Names New Board Chair Français
TORONTO, July 28, 2025 /CNW/ - TD Bank Group ("TD" or the "Bank") (TSX: TD) (NYSE:TD), is pleased to announce the appointment of John B. MacIntyre as Chair of the Board of Directors, effective September 1, 2025. His deep financial expertise and governance experience will support the Board as it continues to prioritize strong oversight and long-term value creation. John has served as an independent director of the Board since 2023 and currently chairs the Board's Human Resources Committee. Alan MacGibbon, currently Chair of the Board, will retire from the Board on September 1, 2025. "I am grateful for the Board's confidence. Alongside my fellow directors and in concert with our strong leadership team, I look forward to supporting TD's strategy, further strengthening governance, and delivering long term value." said Mr. MacIntyre. "On behalf of the Board, I would like to thank Alan for his leadership of the Board and service to the Bank." John has had a distinguished 30-year career in capital markets and is the retired Partner-Emeritus of Birch Hill Capital Partners, which he co-founded in 2005. As Chair of TD's Board of Directors, the Board will benefit from John's deep understanding of financial services, global capital markets, technology, and risk management. John is a veteran director, having served on public, private and not-for-profit boards, including the Boards of Park Lawn Corporation, HomeEquity Bank, Softchoice Corporation, COM DEV International, Maple Leaf Sports and Entertainment, YMCA Toronto, and University Health Network Foundation. Mr. MacIntyre is a Fellow of the Institute of Chartered Accountants of Ontario, a Chartered Business Valuator and holds a Bachelor of Commerce (with honours) from Queen's University. About TD Bank Group The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by assets and serves over 27.9 million customers in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Retail, including TD Bank, America's Most Convenient Bank®, TD Auto Finance U.S., and TD Wealth (U.S.); Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among the world's leading online financial services firms, with more than 18 million active online and mobile customers. TD had $2.1 trillion in assets on April 30, 2025. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto Stock Exchange and New York Stock Exchange.
Cision Canada
2 days ago
- Business
- Cision Canada
NEW TD SURVEY REVEALS 76% OF NEWCOMERS POLLED FEAR MAKING FINANCIAL MISTAKES Français
TORONTO, July 28, 2025 /CNW/ - As Canada looks to encourage greater economic growth amid shifting economic and geopolitical forces, new research from TD reveals that many newcomers polled feel there is an information gap preventing them from achieving their financial goals and building a successful life in Canada. TD conducted surveys among both newcomers to Canada and the Canadian general population to uncover financial needs, barriers and opportunities. According to the survey, 55% of newcomers polled say it was/is difficult managing their finances since arriving in Canada. A key barrier is understanding Canada's financial system, which the survey revealed is a common challenge for all demographics, regardless of their age, income, country of origin or general financial literacy level. 38% of newcomers reported little to no understanding of the banking system in Canada and how to manage their money – compared to 25% of the general Canadian population. 51% of newcomers reported little to no understanding about investing money in Canada – compared to 35% of the general Canadian population. 41% of newcomers reported little to no understanding of the state of the Canadian economy – compared to 26% of the general Canadian population. "Building a life in a new country can be both exciting and overwhelming. Newcomers face the pressure of adapting to a new way of life in Canada, while quickly getting on the right foot financially – from understanding banking products and services, to budgeting for living costs and future goals, while maintaining financial ties to family living abroad." Janice Farrell Jones, SVP, Everyday Banking, Savings & Investing at TD. "This important research highlights the critical need to provide enhanced financial education, tools and resources, so newcomers can feel confident at all stages of their journey and make informed decisions to achieve their financial goals and succeed in Canada." Newcomers and general Canadian population polled fear making a financial mistake While newcomers polled reported lower confidence in understanding the Canadian financial landscape and economy, both newcomers and the general Canadian population alike feel anxious and overwhelmed about their finances. This underscores the additional barriers that newcomers may face while navigating a new financial system in a new country. 76% of newcomers and 68% of the general Canadian population fear making a financial mistake. 35% of newcomers and 31% of the general Canadian population feel embarrassed or judged when they seek financial support or advice. 56% of newcomers and 44% of the general Canadian population say they do not feel they have enough money to live comfortably in Canada. When it comes to their top financial goals and priorities, newcomers polled are primarily concerned about financial stability and planning for the future: Feeling prepared for uncertain financial and economic situations (40%) Investing money effectively (37%) Saving for retirement (36%) Being debt free (32%) In addition, 50% of newcomers polled said they are interested in starting a business in Canada. Despite this entrepreneurial ambition, 62% say they are not well informed about the financial products available to support business owners. "Financial confidence is a key part of the journey for those who are looking to build their lives in Canada.," Farrell Jones adds. When newcomers feel financially secure, save and grow their wealth, and put their entrepreneurial energy to work, it makes the country more resilient, competitive and prosperous for all Canadians. Canadian banks can play a critical role in creating an inclusive financial future for newcomers Farrell Jones also says: "Immigration will continue to be a vital economic driver for Canada. TD is committed to leveraging our experience and resources across the bank to help support newcomers, build welcoming communities, and contribute to the broader effort to help advance Canada's growth and resilience. However, we recognize that we cannot do this alone. We believe that there is an opportunity for the financial industry and corporate Canada at large to help set up new and established newcomers for success. As Canada determines its path to economic prosperity, now is the time to strive towards creating an inclusive financial future for everyone who calls Canada home." TD is dedicated to supporting newcomers at all stages of their financial lives and in their Canadian journey, with product offerings to help drive financial knowledge and confidence. This includes multi-language support in TD branches, by phone and ATMs, and online; strategic relationships with CanadaVisa, HDFC Bank, and MPOWER Financing; and funding to support organizations including Prosper Canada's Benefits Wayfinder online tool to search for government benefits, ABC Life Literacy's Money Matters' free introductory financial literacy program and Futurpreneur's Newcomer Entrepreneurship Program. Through the financial access pillar of TD Pathways to Economic Inclusion, TD's social framework announced in 2022, TD seeks to improve access to banking through financial education and advice, as well as enhance or develop products, services and processes to remove barriers and help build financial health and resilience for customers, communities and colleagues. About the TD Survey Edelman Data & Intelligence conducted an online quantitative survey on behalf of TD among 1,021 newcomers to Canada who arrived within the past 10 years. The survey, available in both English and French, was conducted between January 31 and February 10, 2025, with respondents who were members of the Angus Reid Forum panel. The sample included 510 individuals who arrived in the past 0–5 years and 511 who arrived in the past 6–10 years. For comparison purposes only, a probability sample of this size would carry a margin of error of +/- 3 percentage points, 19 times out of 20. Additionally, Edelman Data & Intelligence conducted a separate online quantitative survey on behalf of TD among a nationally representative sample of 1,507 Canadians. This survey, also available in both English and French, was conducted between March 31 and April 2, 2025, with respondents who were members of the Angus Reid Forum panel. For comparison purposes only, a probability sample of this size would carry a margin of error of +/- 2.5 percentage points, 19 times out of 20. The Angus Reid Forum is Canada's most well-known and trusted online public opinion community, made up of engaged residents from across the country who regularly participate in surveys on topics that matter to Canadians. About TD Bank Group The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by assets and serves over 27.9 million customers in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Retail, including TD Bank, America's Most Convenient Bank ®, TD Auto Finance U.S., TD Wealth (U.S.); Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among the world's leading online financial services firms, with more than 18 million active online and mobile customers. TD had $2.1 trillion in assets on April 30, 2025. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges.
