The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 percent. The Bank Rate is correspondingly 3/4 percent and the deposit rate is 1/4 percent. Economic data suggest that global economic conditions have strengthened, as the Bank anticipated in its October Monetary Policy Report (MPR). However, uncertainty,…
CMHC Report: A new report was published today confirming that foreign ownership in Canada remains low. This confirms what we have been talking about over the last couple of months and shows the federal government holding a smoking gun pointed directly at the Canadian Real Estate Market and the heads of first time homeowners. It is…
CMHC recommended this week that the minimum down payment is increased. Evan Siddall CEO of CMHC gave a speech last week at the Bank of England’s offices. He recommended that the government take further action and increase the minimum down payment required for someone to buy a home. This recommendation was made on the heels of recent policy…
On the heels of the new mortgage policy changes and a recent announcement by the Bank of Canada to keep the key overnight rate at .50%. The TD bank will increase its spread over the overnight rate by raising the prime rate to 2.85% This means that TD is now at 2.35% above the Overnight rate that…
Lender stock prices plunge as investors pull money out of monoline lending channels. In the early 1900’s miners, when they would descend into a mine. Would bring with them a small caged bird such as a Canary. The technology did not exist back then to tell them if dangerous gases such as carbon monoxide were present…
Over the last few days, we have been covering news stories pertaining to the new mortgage rule changes that are being put in place. I am not one to run screaming that the sky is falling, but if you live long enough you get to see history repeat its self. In a recent interview with…
Written by VERICO Economist Michael Campbell: The Ghost of the Sub Prime Mortgage Crisis Haunts the Finance Minister By now you will have seen the details of the significant changes to the mortgage market announced by the Finance Minister but how will they impact the market? In a nutshell – it will be big. The…
The Canadian Real Estate Market has been put into a tailspin. It has been induced by overzealous and misguided government officials. The latest mortgage rules that are being put in place are nothing short of pure stupidity and a lack of fundamental understanding of how the market is structured. The two major markets that are…
New rules hit housing market in Canada. Once again in an attempt to protect the already fragile banking sector in Canada, the liberal government has passed new rules that will impact and impede most people’s ability to purchase and refinance mortgages. Some of the new rules will be put in place as early as October…