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Posted by: Dean Kimoto
The likelihood of a rate cut next week has increased due to disappointing Canadian GDP growth. Real gross domestic product (GDP) only rose by 1.7% (seasonally adjusted annual rate) in the first quarter of this year, which is well below the expected 2.2% and the Bank of Canada’s forecast of 2.8%. Fourth-quarter economic growth was […]
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Canada’s banking regulator says high borrowing costs and a wave of expected renewals in the coming 18 months pose key risks to Canada’s financial system. With 76% of outstanding mortgages expected to come up for renewal by the end of 2026, OSFI says homeowners face the risk of payment shock, particularly those who took out […]
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The Consumer Price Index (CPI) rose 2.7% year-over-year (y/y) in April, down from 2.9% in March. This marks the fourth consecutive decline in core inflation. Food prices, services, and durable goods led to the broad-based deceleration in the headline CPI. The deceleration in the CPI was moderated by gasoline prices, which rose faster in April (+6.1%) than […]
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Canadian Home Buyers Remain On the Sidelines In April As New Listings Surge. The Canadian Real Estate Association (CREA) announced today that national home sales dipped in April 2024 from its prior month, as the number of properties available for sale rose sharply to kick off the spring housing market. Home sales activity recorded over […]
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Canada Mortgage and Housing Corp. says the annual pace of housing starts in April edged down one per cent compared with March. The seasonally adjusted annual rate of housing starts in Canada came in at 240,229 units for April, down from 242,267 in March, according to a report Wednesday by the national housing agency. The […]
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While Canada’s economy is still expected to enter a technical recession this year, Oxford Economics now believes the downturn will be less severe than initially thought. In a recent research report, the firm said it expects GDP growth will contract in the second and third quarters before turning positive again in the fourth quarter. “GDP […]
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In the complex world of home financing, a common concern among our clients involves the impact of credit inquiries on their credit scores. Often, the thought of a mortgage credit check can make potential borrowers hesitant and fear it might lower their overall credit scores. We’ve all heard it before… “Can’t you just use my […]
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As variable-rate mortgage holders eagerly anticipate the Bank of Canada’s first rate cut, fixed rates are heading in the other direction: up. After peaking in early October, Government of Canada bond yields—which lead fixed mortgage rates—plummeted by 125 basis points, or 1.25 percentage points, by early January. Since reaching that low, they’ve rebounded by approximately […]
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So, here’s a ‘coincidence.’ The day after we run a story on potential mortgage changes, JT plays coy when reporters ask him about 30-year insured amortizations: “On mortgages, we will have more to say between now and the budget date on April 16, and perhaps we will save it for April 16.”—Justin Trudeau at a news […]
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March’s Weak Jobs Report Sets the Stage for a June Rate Cut Today’s StatsCanada Labour Force Survey for March is much weaker than expected. Employment fell by 2,200, and the employment rate declined for the sixth consecutive month to 61.4%. Total hours worked in March were virtually unchanged but up 0.7% compared with 12 months earlier. The details […]
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