Anyone who is eager for the Bank of Canada to start lowering interest rates will probably be happy with what Governor Tiff Macklem has been saying.  But it comes with a caveat. Appearing in front of the Commons Finance Committee, last week, Macklem told MPs the central bank is getting closer to cutting rates as […]

Some advocates are praising Ottawa’s move to lengthen the amortization period on insured mortgages for certain homebuyers, but say expanding the policy to all Canadians would help make home ownership more affordable. Speaking in Toronto on Thursday, Finance Minister Chrystia Freeland announced the federal government will allow 30-year amortization periods on insured mortgages for first-time […]

Canada’s realtors are hinting that home prices may have found their bottom. The February numbers from the Canadian Real Estate Association show price, as measured by the Aggregate Composite MLS Home Price Index (seasonally adjusted), was flat compared to January.  That ends a five month slide in prices, which dropped 1.3% between December and January. […]

Some good news from Statistics Canada.  Canadian households were wealthier in the 4th quarter of 2023. The federal number-crunchers say household net worth rose by 1.8%, largely because of stronger financial markets.  Both bonds and stocks rallied from slumps experienced in the third quarter.  Net worth is the value of all household assets, minus all […]

We are back from a brief holiday hiatus and there are a few things to update. Home sales and prices both continued downward according to the Canadian Real Estate Association.  Sales dipped 0.9% compared to October and year-over-year figures showed the same decline.  Prices came down 1.6% month-over-month, but the national average price is 2.0% […]

The Bank of Canada has held its trendsetting interest rate at 5.0% for a third straight setting and talk of further increases has been all but silenced. In the statement that came with the most recent rate announcement, The Bank offered a number of reasons for the decision to hold steady: higher rates are “clearly […]

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, […]

The Fall Economic Statement from the federal government concentrated closely on Canada’s housing situation.  Most of the new spending is meant to address the need for adequate, affordable shelter, rather than increasing housing stock to quench the “desire for ownership”.  But there was one item that seemed designed to get the attention of most homebuyers. […]

There has been a little relief for mortgage shoppers in recent days.  Fixed-rates have come down slightly, led by declining yields for government bonds.  Variable-rate mortgages appear to be maintaining their discounts and most market watchers believe the Bank of Canada has reached the top of this rate-hiking cycle. The Bank, however, continues to warn […]

An interesting difference of opinion has developed between the economists and the people who deal in the bond markets.  The economists do not expect to see any rate cuts by the Bank of Canada until the middle of next year.  But the markets see things changing sooner.  And there may be benefits for mortgage shoppers. The Bank of […]