The Bank of Canada today lowered its target for the overnight rate by 50 basis points to 1 ¼ percent. The Bank Rate is correspondingly 1 ½ percent and the deposit rate is 1 percent. While Canada’s economy has been operating close to potential with inflation on target, the COVID-19 virus is a material negative shock to the Canadian and global outlooks, and monetary and fiscal authorities are responding. Before the outbreak, the global economy was showing signs... [read more]

I wanted to share a bit more information with you on what we see happening with interest rates; the article is below.  It appears to be a story of stability, which is long over due after all the regulatory mortgage changes and the ensuing 5 interest rate hikes, all of which put a bit of a wet blanket on the housing market. Residential Market Commentary – Bank of Canada holding steady against headwinds The Bank of Canada has not just stepped to the interest rate sidelines, it... [read more]

The Bank of Canada has been easing off on interest hike chatter in the last number of weeks.  I just wanted to share this article with you, which I thought is a good read and forecasts what you can expect in January.    Residential Market Commentary - A softened stance on future rate hikes  Back in October it was all “clear sailing and full steam ahead”.  Now the forecast is calling for “headwinds and choppy seas with poor... [read more]

Just a quick update on the mortgage market as we head towards another regular interest rate announcement by the Bank of Canada on Dec 5th.   The Bank of Canada gets one more chance to raise interest rates before the end of the year but market watchers are betting against a Christmas increase.  The October inflation numbers, which came in above expectations, would normally be seen as a green light for the Bank to go ahead with another quarter-point increase.  Headline... [read more]

October 17, 2018 Just a quick update for you on the mortgage market on this rather dreary and wet start to Fall. Currently we are experiencing upward pressure on mortgage rates…now is a great time to get your pre-approvals done and hold today’s rates for up to 120 days.  A reasonable rule of thumb for you to utilize as you figure out your monthly mortgage carrying costs, would be $500/month for each 100k borrowed. Residential Market Commentary – Increases in... [read more]