Briefly:

(March 19, 2008) Canadians are increasingly aggressive in paying down their mortgages, according to a survey by Canada Mortgage and Housing Corporation. Just under 80% of new homebuyers said they plan to pay off the debt as quickly as possible.

“This study confirms that Canadians remain fundamentally cautious when it comes to their mortgage debt,” said Pierre Serré, vice-president, insurance products and development, CMHC. “The fact that new homeowners are working to pay down principal early and are accelerating payments is a good indication that this responsible behaviour will continue throughout the life of their mortgage.”

One-third of survey respondents said they have made a lump-sum payment toward their mortgage. More than half were making payments either weekly or biweekly, and 84% of this group were on an accelerated schedule, which can shave years off of the original amortization.

The use of mortgage brokers has become more common, with 33% of homebuyers availing themselves of the service, up from 27% in last year’s survey.

UBS seeks trust merger

(March 19, 2008) UBS Global Asset Management (Canada) Co. has announced a special unitholder meeting to vote on a proposal to merge UBS Global Allocation Trust (GAT) and UBS Total Return Trust (UTR).

The proposed merger would see the portfolio of UTR folded into GAT, with investors receiving GAT units on a tax-deferred rollover basis. The merger would create a portfolio of $92 million in assets, lowering management fees on a cost per unit basis.

The meeting is scheduled for May 15, 2008, with April 14, 2008, set as the date of record for unit ownership.

(03/19/08)

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.