27 Sep

Has Montreal market overheated?

General

Posted by: John Burgess

According to Canada Mortgage and Housing Corporation analyst Lukas Jasmin-Tucci, while there is evidence in the last two quarters that price acceleration in the Montreal market is problematic and that there is now moderate overheating of the market, overvaluation of the market remains low.  There is a caveat to this statement in that house prices […]

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10 Sep

Bank of Canada holds target overnight rate steady

General

Posted by: John Burgess

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 […]

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27 Aug

Residential real estate is a hot market

General

Posted by: John Burgess

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 […]

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16 Jul

Interest rates to stay low : Bank of Canada

General

Posted by: John Burgess

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.”    

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15 Jul

Bank of Canada maintains overnight rate target

General

Posted by: John Burgess

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 […]

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6 Jul

Major banks extend loan relief programs

General

Posted by: John Burgess

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 […]

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29 Jun

Lack of inventory in eastern cities keeping prices strong

General

Posted by: John Burgess

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 […]

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19 Jun

TD announces CMHC policy changes will have no effect

General

Posted by: John Burgess

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 […]

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15 Jun

Dave Larock’s excellent article on hidden cost of low rates

General

Posted by: John Burgess

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 […]

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