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Posted by: Adriaan Driessen
The Bank of Canada has announced a reduction in its target for the overnight rate to 2.75%, with the Bank Rate set at 3% and the deposit rate at 2.70%. Prime lending rate is currently at 5.20%. Following the Bank of Canada’s recent decision to lower its target rate 1/4 percent, commercial banks will likely […]
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Bank of Canada Cuts Policy Rate By 25 BPs The Bank of Canada (BoC) reduced the overnight rate by 25 basis points this morning, bringing the policy rate down to 3.0%. The market had anticipated a nearly 98% chance of this 25 basis point reduction, and consensus aligned with this expectation. The Federal Reserve is […]
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Stress-Test-Free Transfers/Switches for Renewal or Mid-Term Transfers Until recently, switching to a new lender for a better rate—whether at renewal or during the term—required borrowers to requalify under the federal stress test. This meant qualifying at either 5.25% or the contract rate plus 2%, whichever was higher. With today’s elevated interest rates, this created a […]
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Mortgage Insurance Rule Changes to Enable Homeowners to Add Secondary Suites Many homeowners have unused spaces, such as basements or garages, that they might consider transforming into rental units. In the past, the high costs of renovations and complicated municipal regulations have made these projects challenging and costly. However, recent changes to zoning laws in […]
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The Canadian Housing Market Ends 2024 On a Weak Note Home sales activity recorded over Canadian MLS® Systems softened in December, falling 5.8% compared to November. However, they were still 13% above their level in May, just before the Bank of Canada began cutting interest rates. The fourth quarter of 2024 saw sales up 10% […]
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The Canadian Housing Market Strengthens Further Home sales activity recorded over Canadian MLS® Systems rose again in November, building on October’s surprise jump. Sales were up 2.8% m/m in November compared to October and now stand a cumulative 18.4% above where they were in May, just before the first interest rate cut in early June. […]
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Regulatory changes applicable from December 15, 2024 by OSFI aimed at benefiting First Time Home Buyers, and Home Owners with mortgages Maturing for Re-Negotiation. These updates reflect the federal government’s expanded eligibility criteria for for high-ratio insured mortgages allowing first time home buyers to purchase with less than 20% down payment, and are designed to […]
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The Surge In Canadian Unemployment Keeps Another Jumbo Rate Cut In Play In December The BoC slashed the overnight rate by 50 bps this morning, bringing the policy rate down to 3.25%. The market had priced in nearly 90% odds of a 50 bp move, where consensus coalesced. The combined slower-than-expected GDP growth and a sharp rise […]
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INTEREST RATE CUTS FUEL NOVEMBER REAL ESTATE MARKET INCREASE In November, the average sale price in the real estate market was $640,198, reflecting a 5.9% increase compared to the same month last year. This rise in prices highlights the ongoing demand and value in the market. Sales activity also saw a significant boost, with 614 […]
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October Inflation Rose to 2.0% As Gasoline Price Declines Were More Muted The Consumer Price Index (CPI) rose 2.0% year-over-year in October, up from a 1.6% increase in September. Gasoline prices fell to a lesser extent in October (-4.0%) compared with September (-10.7%). The all-items CPI, excluding gasoline, rose 2.2% in October, the same growth […]
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