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Posted by: Dean Kimoto
Home sales surged in most of Canada’s large metro areas in December, despite total 2023 activity being the slowest in over two decades. In Toronto, for example, December sales were 11.5% higher compared to a year ago, while total 2023 sales were down over 12%. Calgary saw December sales surge nearly 14% year-over-year, while 2023 […]
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For nearly four decades, Canadians have turned to an investment strategy of writing off the interest from mortgage payments as tax-deductible. Known as the Smith Manoeuvre—after its creator, financial planner Fraser Smith—the strategy involves getting a readvanceable mortgage, which includes a line of credit. After paying the mortgage every month, a homeowner then borrows the […]
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Despite anticipated Bank of Canada interest rate cuts later this year, mortgage borrowers will continue to face higher debt-servicing costs for several years. That’s according to a research report released by the Bank of Canada that did a deep-dive on mortgage debt and payments, taking into account some of the intricacies of the mortgage market, […]
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A recent report has found Canadian seniors are choosing to age in their homes for longer, with many not selling their home until their 80s and 90s. The findings were revealed in the Housing Market Insight Report by the Canada Mortgage and Housing Corporation (CMHC), which explored some of the expected implications on housing supply in the […]
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The Bank of Canada’s six-member Governing Council believes the odds have increased that interest rates are now high enough to bring inflation back to target. That’s according to a summary of the council’s deliberations from its December 6 monetary policy meeting. “Members agreed that the likelihood that monetary policy was sufficiently restrictive to achieve the inflation target […]
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There was little fanfare earlier this year as financial institutions started making the new First Home Savings Account (FHSA) available to their clients. But now that the product is better understood, it’s being hailed by some as “the greatest deal in the history of Canadian savings.” At least that’s according to David Chilton, the bestselling […]
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Canada’s banking regulator confirmed it will leave the mortgage stress test for uninsured mortgages unchanged. In its annual review, the Office of the Superintendent of Financial Institutions (OSFI) said the minimum qualifying rate (MQR) used by federally regulated lenders will remain the greater of 5.25% or the mortgage contract rate plus 200 basis points (2%). […]
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In its third-quarter earnings call, Scotiabank said it was undertaking a strategy of “customer de-selection at renewal” as part of its efforts to slow its mortgage growth and be more selective of its client base. “I think this is a good time to drive that standard higher here because it’s a softer, slower housing market,” said Dan […]
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Alternative lender Equitable Bank revealed today that a majority of its residential mortgage clients have already renewed at higher interest rates and have largely absorbed the increases. In the bank’s fourth-quarter earnings call, President and CEO Andrew Moor said over 80% of its uninsured single-family mortgage customers have either originated or renewed their loans at […]
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The Bank of Canada today held its target for the overnight rate at 5%, with the Bank Rate at 5¼% and the deposit rate at 5%. The Bank is continuing its policy of quantitative tightening. The global economy continues to slow and inflation has eased further. In the United States, growth has been stronger than […]
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