Prime Rate Holding, July 1st Expected Reduction & Real Estate Economic Data
The Bank of Canada cited the ongoing risk of inflation for its decision to maintain its overnight benchmark interest rate at 5.0%.
Below are the Bank of Canada’s observations, including its forward-looking comments on the state of the economy, inflation and interest rates.
The End of Prime Rate Increases, January, 2024, Canada
Horray, today The Bank of Canada didn’t just put rate hikes on the back burner today; it unplugged the stove!
The Bank is now “confident enough” that inflation is on the right track to not publicly dwell on rate hike risk any longer. That was today’s message from Senior Deputy Governor Carolyn Rogers after the BoC left its overnight rate at 5%.
Update: Using Return-To-Work Income while on Maternity Leave and Self-employed: 2024
Here are the details of how to use maturnity leave pay (for a t4'ed job) and self employed income to qualify for a mortgage.
Using Disability Income to Qualify for a Canadian Mortgage: 2024
CAN I USE DISABILITY INCOME TO QUALIFY FOR A CANADIAN MORTGAGE?
YES, YOU CAN use DISABILITY INCOME to get a pre-approval leading to a full mortgage approval if you are on disability or have disability income.
Underlying Economic data on BoC holding Prime rate the same, December 5, 2023
Bank of Canada holds its policy interest rate steady, updates its outlook
Against the backdrop of a decelerating economy and growing calls for less restrictive monetary policy, the Bank of Canada made its final scheduled interest rate decision of the year today.
That decision – to keep its overnight policy interest rate at 5.00% – was broadly expected. What was not entirely expected (or welcome) was the Bank’s statement that it is “still concerned” about risks to the outlook for inflation and “remains prepared to raise” its policy rate “further” if needed.
Canadian Mortgage Data – Nov 14
There has been a little relief for mortgage shoppers in recent days.
- Fixed-rates have come down slightly, led by declining yields for government bonds.
- Variable-rate mortgages appear to be maintaining their discounts and most market watchers believe the Bank of Canada has reached the top of this rate-hiking cycle.
The Bank, however, continues to warn that Canadians should be preparing for interest rates to remain higher for longer. Senior Deputy Governor Carolyn Rogers made that point again during a recent speech in Vancouver, saying it is important to adjust proactively to that possibility. Rogers cited a number of global considerations for higher rates including: China and other developing nations joining the worldwide economy; a decline in attractive investment opportunities for businesses; and an overall, international, adjustment to higher rates.
Data on those negative amortization mortgages
Queston 1: What about all these (negative amortizing) mortgages that will now take 71 years to pay off?
Answer:
Yes, they are called VRMs – Variable rate Mortgages – and we don’t really offer/sell /even talk about them for that exact reason – what if the rates rates jump? And they did.
Winning Variable Rate Strategy: end-2023
Here are the current Canadian mortgage rates and the Variable looks to be the best for these reasons ...
When Will Canadian Mortgage Rates Begin to Fall?
Last week, the Bank of Canada held its policy rate at 5%. The decision was expected given slowing in the economy and modest improvement to core inflation measures.
The Bank is likely at the end of its tightening cycle. How soon it eases rates – and how low will rates go in the near to medium term – is the question #1