Category: News

Bank of Canada reduces policy rate by 25 basis points to 4¼%

The Bank of Canada today reduced its target for the overnight rate to 4¼%, with the Bank Rate at 4½% and the deposit rate at 4¼%. The Bank is continuing its policy of balance sheet normalization. The global economy expanded by about 2½% in the second quarter, consistent with projections […]

Market volatility could drive some mortgage rates lower. Here’s why

Global News ~ August 7th, 2024 Canadians gearing up for a run at the fall housing market and existing homeowners with a mortgage renewal looming might see interest rates heading down in the weeks ahead thanks to recent market volatility, experts tell Global News. Stock markets around the world largely […]

First-time homebuyers can now apply for a 30-year mortgage.

CBC News ~ August 1st, 2024 The 30-year amortized mortgages announced in the 2024 federal budget are kicking in on Thursday. First-time homebuyers who are purchasing newly built homes can now qualify for a 30-year mortgage, giving them five additional years to pay off an insured mortgage. For other mortgages […]

Bank of Canada’s June rate cut was like bringing a butter knife to a gunfight

Financial Post ~ July 4th, 2024 Canadian real estate and overleveraged borrowers need a bigger saviour. A measly 25-basis-point drop in average mortgage rates only translates into a little more than two per cent improvement in payment affordability (home buying power). Hence, the psychological boost from the bank’s initial cut […]

Are longer mortgage terms the solution to Canada’s payment shock challenges?

Canadian Mortgage Trends ~ June 23rd, 2024 Payment shocks at renewal due to shorter mortgage terms have become a growing concern for many Canadians. This has led some to question whether adopting longer mortgage terms, similar to those in the United States, would provide greater financial stability. While Canadian lenders […]

Can a single rate cut make waves in Canada’s housing market? What to know

Global News ~ June 6th, 2024 The Bank of Canada’s first interest rate cut in over four years on Wednesday will have a “psychological” impact on the Canadian housing market, but will likely not be enough to meaningfully improve affordability, experts say. The Bank of Canada cut its key policy […]