What mortgage owners need to know about the Bank of Canada’s second rate pause
The Bank of Canada’s decision to hold rates for a second consecutive time should act as a stabilizing force to Canada’s mortgage market, according to experts. Canada’s central bank elected to hold the overnight rate at 4.5 per cent Wednesday, reaffirming economists’ expectations. Last month, the Bank of Canada became the first major central bank to pause interest rate hikes. “For many mortgage holders, what this actually means is that there’s likely to be a period of stability in the next little bit, before things [interest rates] start coming down,” Leah Zlatkin, a mortgage broker and expert with LowestRates.ca, said …
How to take advantage of the new tax-free first home savings account
April 1, 2023 marked the official launch date of the tax-free first home savings account (FHSA), Canada’s newest registered savings plan. As financial institutions start offering these in the weeks and months ahead, here are five things you need to know to take full advantage of these new plans. Tax-free in; tax-free out The 2023 federal budget description of “tax-free in; tax-free out” succinctly summarizes the attractiveness of the FHSA, which gives prospective first-time homebuyers the ability to contribute up to $40,000 and save on a tax-free basis towards the purchase of a first home in Canada. The …
RBC sees sluggish start to Canada’s spring housing market
Canada’s largest bank is expecting a slow start to the spring housing market as higher interest rates keep many buyers out, despite a drop in prices. “It’s sunny outside, but I don’t think just because it’s sunny, you’re going to see a real spring-back in mortgage originations,” Neil McLaughlin, head of personal and commercial banking at Royal Bank of Canada, said at a conference Wednesday. The benchmark home price is down about 16 per cent in the past year in Canada, but at $704,000 (US$519,000), it’s still nearly 30 per cent higher than three years ago. Prices may have to fall further, …
Loans grow for 20% of Canadian bank’s mortgage holders due to high interest rates
In a recent update to its shareholders, CIBC provided a glimpse of how a growing proportion of Canadian mortgage holders are overburdened by the impact of the escalation in the Bank of Canada’s interest rates. CIBC has indicated that mortgage holders holding a combined value of $52 billion worth of the bank’s mortgages have monthly mortgage payments that currently do not cover the interest portion of their loans. The proportion of mortgage holders in such a predicament is about 20% of CBC’s total mortgage portfolio worth $263 billion. The bank states that this segment “relates to mortgages in which all …
RBC doesn’t see Canada’s housing markets going into ‘free fall’
Mortgage book of Canada’s biggest bank in good shape despite higher rates and uncertain economy. Canada’s real estate market could be more resilient than people think, says the chief financial officer of the country’s biggest bank. Royal Bank of Canada’s Nadine Ahn described the bank’s mortgage book as healthy even as home prices buckle under the weight of higher interest rates and a possible recession. High immigration levels driving demand amid a supply crunch means the country will still be grappling with an imbalance. “We’re actually in a situation where we don’t think the housing market is going to go …
Bank of Canada raises interest rate again — but hits ‘pause’ on any more for now
The Bank of Canada reinforced its commitment to keeping interest rates at historical lows over the next few years to support an economic recovery that’s being hampered by a second wave of COVID-19 cases. In a policy statement Wednesday, officials led by Governor Tiff Macklem held the central bank’s overnight rate at 0.25 per cent, which they believe is the lowest it can go without disrupting the financial system, and said they will likely keep it there until 2023. They also pledged to continue buying government bonds to suppress longer-term borrowing costs and retain current levels of stimulus, even as …
These Stores Have the Best Return Policies in Retail
L.L.Bean ended its legendary lifetime return policy to clamp down on customers who were taking heavily worn products. …
How to Construct a New Invisible Hand
We consider all the drivers of change – from the ground up and we’ll motivate and support you to make the change. …
Putin, Trump, and the Nuclear Danger
The idea that a low-yield nuclear weapon would be seen as different from a higher-yield nuclear weapon shows a complete lack of understanding of how information promulgates in the world. …
Seeking Reader Sightings on the State of Flyover
The US is a large and often very disparate country, yet the parts we hear about the most are the parts that are most the same. …
