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 […]

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, […]

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 […]

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 […]

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 […]

Two key guide posts for the Canadian economy are pointing in the same direction.  Both the third quarter GDP numbers and November jobs figures suggest the Bank of Canada is unlikely to make any changes to its trendsetting interest rate in the coming days. Canada’s economy shrank at an annualized rate of 1.1% through July, […]