Money
Economy
With Third Interest Rate Hold, Economists Predict BoC Cuts To Start In Springtime
The Bank of Canada's decision to hold interest rates at 5% for a third consecutive announcement has reinforced economists’ view that rate cuts will begin in the first half of 2024.
Dec 07, 2023
Economy
Bank Of Canada Holds Interest Rate At 5%
This is the third pause in interest rate hikes the bank has chosen to exercise as more Canadians grapple with decreased affordability and fears of mortgages renewing at much higher rates.
Economy
Economists Say It’s “Too Early” For BoC To Talk Rate Cuts
“Developments this week support our forecast that the BoC is done with rate hikes. However, it is too early for the BoC to lean too dovish at next week's meeting and say anything about rate cuts or their timing.”
Mortgages
“Worst-Off Borrowers” Could See Mortgage Payments Spike Upwards Of 70%
While some borrowers will look to extend the amortizations of their mortgages, others will opt to make lump-sum payments — however, both options “come with their own costs,” an expert says.
$1M Industrial-Chic Toronto Condo Touts Sweeping Treetop Views
The unit itself is bright, big, and beautiful, but the location is what makes this property really shine.
Mortgages
'Not A Lot Of New Content' In Feds’ Mortgage Charter, Expert Says
However, a spokesperson for Mortgage Professionals Canada says that it is a step in the right direction.
Economy
“One Month Is Not A Trend”: BoC Says Not Time To Think About Rate Cuts
Tiff Macklem said that the BoC may be able to cut interest rates before inflation falls to 2%, but simultaneously warned that if high inflation persists, the bank is prepared to raise its policy rate even further.
Economy
Despite Jump In Property Taxes, Rent, Canada's Inflation Rate Slowed In October
Canada's Consumer Price Index rose 3.1% year over year in October, a slowdown largely driven by falling gas prices.
Mortgages
October Brings “Widespread Improvement” In Canadian Housing Affordability
“Home prices have indeed decreased by a large enough margin to ease [mortgage] qualification for many buyers in October, with affordability improving in eight of the 10 markets studied.”
Mortgages
Over 2M Mortgage Holders Expected To Face "Interest Rate Shock" In Next 24 Months
The worst effects of interest rate hikes may be yet to come for millions of Canadian mortgage holders who face renewal in the next two years, with the potential of 30% to 40% increases in their average monthly payments.
Economy
Another Rate Hike Possible As Housing 'Stands In The Way' Of Disinflation: BoC
Despite the fact that the economy showed clear signs of slowing as of last month, the Bank says that any “progress” was complicated by several factors, housing included.
Mortgages
Wave Of Forced Home Sales Looms As Canadians Turn To Non-Traditional Lenders
“While non-bank lenders stepped in to help these borrowers earlier this year, they may be less inclined to do so now that falling house prices are further eroding borrowers’ equity and the economy has entered recession.”
Mortgages
Canadians Are Spending A “Record Share” Of Disposable Income On Mortgage Payments
Canadians are putting 8% of their disposable incomes towards their mortgages. In the US, that same metric is just 4%.
Mortgages
60% Of Canadian Mortgages Are Set To Renew In The Next 3 Years
“Variable-rate mortgagors are set to see significant payment shock, perhaps as high as 84% by 2026 if interest rates do not decline.”
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