Over the 2010-2012 period, a huge part of mortgage origination came from home patrons trying to refinance their current mortgages to profit from record-low rates and as well as from government-led initiatives. While the refinancing channel seriously drying up over subsequent months with very few mortgage eligible for refinancing still remaining, rates began rising towards the end of Q2 2013 because of which refinancing the mortgages no longer remained a profitable option for homeowners.
With the era of “easy refinances” in the past, lenders have started working to increase their purchase-mortgage origination. For example, in Canada, three out of five homeowners are saddled with mortgages. Historically, Canadians have been very practical borrowers, and the best indication of this is the mortgage-in-arrears statistics in Canada, which track the number of households that have not made mortgage payments in three or more months.
Statistics Canada found out that a significantly larger percentage of renters are overextended than homeowners in this country. That's one of the more noteworthy findings in its National Household Survey (NHS) data released this week. See mortgage rates in Canada online for detailed information.
The Canadian mortgage market has changed substantially in the past 20 years: trust companies have been taken over by banks; small virtual banks have offered new mortgage products; and brokers now play an important role in matching borrowers and lenders. But in many ways it’s harder being a renter.
The government has changed mortgage requirements several times over the last few years which affect how people may qualify for government-backed insured mortgages. As the regulatory environment changes, banks in Canada continue to offer very competitive mortgage products and services to millions of Canadians.
Less than half of one per cent of all mortgage holders with the country's largest banks are in arrears. This number has been stable for more than two decades, in times of high and low unemployment, high and low interest rates, and a strong or weak Canadian dollar. The findings of the research conducted by The Bank of
Canada recently are consistent with a model where consumers have different preferences and skills when shopping and bargaining for a mortgage and where lenders maximize profits based on observing these preferences and skills. The results indicate that high-income borrowers pay more for their mortgages, as do loyal consumers, consumers who search less, and those that value large branch networks. However, the unobserved bargaining ability still appears to play an important role in determining mortgage rates.
Identifying the best purchasing opportunities in unpredictable markets can be quite challenging and requires a lot of time and informational resources. However, there are many services offering to complete the pre-investing work for you. May you be searching for a Delhi Mobiles or a vacation rental service, you no longer need to go out and do it physically, call friends and relatives, or other members of your reference groups for opinion and experience- these all can be found at once, and you only need a proper device with internet connection for it.
Despite many companies are offering paid assistance, there are free online platform of classifieds available as well, performing with the same success. For those who are new to the online trading or don't understand all the stock market jargon, these platforms boast with intelligent and intuitive features, keeping all necessary information handy so you don't have to painstakingly browse multiple windows and take well-informed and timely decisions effortlessly.
You could be anywhere, anytime and still manage to place your trades through the internet or by using, trade on phone facilities. With the three main advantages, including convenience, available information and reviews and wide price selection, there is no simpler alternative to solve the complications involved in selling, buying, trading, discussing, organizing, and meeting people near you than doing it online. As mentioned above, one of the great benefits of online decision-making is the ability to read product reviews, written either by experts or fellow online shoppers, and these “consulting service” is completely free. Knowing that the reviews are provided by ordinary people, just like you, and are driven by the pure experience, and not the economic benefits, makes them more credible to the reader’s eye.
In addition to online reviews, peer recommendations on online shopping pages or social media websites play a key role for online shoppers when they are researching future purchases. The fact that 40% of online shoppers indicate that they would not even buy a thing without consulting online reviews first, the free online platform of classifieds have definitely moved to the next level.
As internet usage figures continue to rise, the internet is becoming increasingly important as a marketing channel. eMarketer, a market research firm that monitors digital media and internet marketing data, announced that digital ad revenues exceeded $102 billion in 2012 with this number expected to increase in 2013 and beyond.
Digital marketing budgets in 2013
Following impressive performance in 2012, many businesses are preparing to increase their online marketing budgets in 2013.
Market research firm ‘C.I. Marketing’ recently released a report stating that 35.7% of marketing managers at a number of large and medium sized businesses are planning to increase their online marketing budgets in 2013 compared to 10.8% in 2012.
Naom Raz, C.I. Marketing’s owner, also stated that marketing budget allocations are being moved from traditional forms of advertising to direct advertising on social networks and other online advertising channels.
2012 was the year that social networks made their mark as effective marketing channels. Youtube, Facebook and other social networking sites experienced unprecedented success with many businesses eschewing traditional advertising in favour of advertisements on these social networking sites.
In their report, C.I. Marketing stated that social network spends increased from 28% to 38% between 2010 and 2012, a trend that is unlikely to reverse any time soon. The report also stated that, of the 42 managers surveyed for the report, 28.6% will be increasing their social network budget for 2013.
Pay Per Click
Another key marketing channel in 2012 was pay per click advertising, or ‘PPC’ for short. According to C.I Marketing’s report, PPC advertising accounted for 32% of online advertising budgets in 2012 compared to 21% in 2010. It’s likely that PPC advertising will account for even higher percentages of online advertising budgets in 2013.
Rising digital ad budgets
Less than 20 years ago, digital ad media budgets were non-existent. Today, online advertising accounts for one fifth of all marketing dollars.
eMarketer expects this meteoric growth to continue unabated with double digital percentage increases in digital ad spends until 2015, at least. By 2016, eMarketer believes that online advertising spends will account for one quarter of all marketing dollars.
Unsurprisingly, eMarketer believes that most online advertising will focus on North America and Western Europe. These two areas already command the lions share of online marketing dollars with $168 being spent to market to each North American internet user in 2012 and $112 being spent to market to each Western European internet user in 2012.
eMarketer expects digital marketing to surge in Asia and Latin America in the future, too, with Indonesia, Mexico and India, in particular, experiencing a great deal of growth.
2012 was the biggest year for online advertising yet. As internet usage figures continue to grow, this figure will, without a doubt, continue to rise as increasing numbers of businesses make use of the new opportunities afforded to them through online advertising on social network sites and PPC networks.
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