As expected, in fact telegraphed by the Bank of Canada itself, the target overnight rate remains unchanged at 0.25%. This is where it is likely to stay in the near term as the Bank has stated that negative interest rates are not a tool they will use and it expects the recuperation phase to be […]

Canada’s residential housing market has exploded as the pandemic’s confinement measures have eased across the country. All the transactions that were put on hold during the traditionally busy spring market have shifted to summer and the strong volume and prices seen in July are expected to continue through August and September. What happens next? As […]

In an interview with BNN Bloomberg the Bank of Canada’s Governor Tiff Macklem says “There’s a lot uncertainty around that scenario, but I think the message is pretty clear,” he said. “Interest rates are going to be very low for a long time.”    

As expected, the Bank of Canada has maintained the target for the overnight rate at 1/4 percent (Bank of Canada press release). With most banks offering a discount of 30bp (0.30%) to their prime rate (generally target +220bp (2.20%), variable rates will remain in the vicinity of 2.15% or slightly lower until the Bank of […]

For those still under financial stress due to job loss, diminished hours and financial uncertainty caused by the ongoing pandemic measures some relief has been extended by the a few of the major Canadian banks. The Royal Bank of Canada and Toronto-Dominion Bank have each extended the deadline to apply for deferrals – payment pauses […]

A lack of inventory is keeping real estate prices squarely in the sellers favour as buyers compete for the housing that is available in Montreal and Toronto.  Vacation properties are also seeing brisk activity as traditional summer travel plans are disrupted by ongoing pandemic.  Is this situation temporary?  Lauren Haw, CEO of Zoocasa talks with […]

If the recent announcements by CMHC regarding mortgage insurance underwriting requirements has caused concern, Toronto Dominion has announced that TD Conventional Lending Policies as well as TD High Ratio Mortgage policies insured by Genworth Canada and Canada Guaranty remain unchanged. What exactly does this mean and how does it affect you as a borrower? First […]

Dave Larock has written an excellent post about the hidden costs sometimes found in the fine print of mortgages.  In mortgages, and life insurance, there is a price to any ”deal” that you find. ”There is an annual tradition in the Canadian mortgage market whereby a large bank grabs the headlines with an eye-catching rate […]

Robert Kelly past chair of Canada Mortgage and Housing Corporation talks with BNN.  Housing prices will respond to the unemployment rate.