Canadian mortgage borrowers are going to be paying much higher rates soon. Desjardins’ latest consumer interest rate forecast shows the 5-year fixed rate mortgage climbing — a lot. Over the next few quarters, it can hit up to 7% — a rate that would have seemed impossible back in 2019. Elevated inflation may push borrowing […]
Canadian interest rates are on the rise and households apparently took that as a warning to borrow as much as possible. Filings with the Office of the Superintendent of Financial Institutions (OSFI) show home equity line of credit balances surged higher in February. Over 28 days, Canadians borrowed $2 billion more in HELOC debt — […]
From low-for-long to high-for-longer, Canada may not have inflation under control. A new report from BMO Capital Markets forecasts the Consumer Price Index (CPI) for Canada, and the US will taper into next year. Despite US inflation being much higher, it’s expected to fall below Canada’s rate and start 2024 at a more stable level. […]
Canadian real estate developers are being squeezed by inflation, and it’s turning ugly. The Hazleton Development Corporation obtained Companies’ Creditor Arrangement Act (CCAA) protection on April 20, 2022. The developer cited rising costs as one of the primary issues putting a 265-home project at completion risk. In this particular case, costs rose less than typical […]
High inflation has become such a risk to the economy, the central bank will do anything to slow it. That might include raising interest rates higher than already aggressive forecasts have called. This was the message from the Bank of Canada (BoC) at the Standing Committee on Finance today. The central bank Governor made it […]
Canadian households were in a mad dash to borrow debt before the recent rate hikes. Bank of Canada (BoC) data shows outstanding mortgage credit hit a new high in February 2022. Over the past year, households grew mortgage debt at the fastest rate since 2008. Canadian Mortgage Debt Hit A New Record High The BoC’s […]
Canadian real estate is approaching a game changing environment, according to the country’s biggest bank. RBC Economics notified customers they’ve made downward revisions to their home sale forecast, as rates rise higher than expected. The Bank of Canada (BoC) tries to cool potentially destabilizing inflation, it’s expected to reduce budgets. Lower budgets following record demand […]
Canadian real estate investors are about to face higher hurdles to enter the market. The Office of the Superintendent of Financial Institutions (OSFI), Canada’s bank regulator, confirmed new rules being rolled out in Q2 2023. The rules are a part of international Basel III guidelines, designed to reduce risk in the system. One critical change […]
Canadian inflation is hitting multi-decade highs and is projected to get worse. Derek Holt, Scotiabank’s head of Capital Markets Economics, argues the pace of inflation will force interest rates to double by the summer. The Bank of Canada (BoC) is now so behind controlling inflation that raising the overnight rate by an entire point at […]
Canadian households were hit with the fastest rise in living expenses in over 3 decades. Statistics Canada (Stat Can) data shows the Consumer Price Index (CPI) annual growth for March was the highest in over 31 years. High crude oil prices have been the focus of most media attention, but the issue is much more […]
