Mortgages could get tougher soon = buy sooner
Boring data below – and we also have *secret* data that the government is going to make things harder for home buyers = buy sooner if you can before the program you may need no longer exists. This is true ESPECIALLY for SELF EMPLOYED people.
Jim Flaherty vows to intervene in housing market again if needed
Canada’s finance minister says he’ll intervene in the housing market for a fifth time, if that’s what’s needed, to head off any bubble.
“We have to watch out for bubbles – always – in markets around the world, including our own Canadian residential real estate market, which I keep a sharp eye on,” Jim Flaherty said today in Edmonton, where he unveiled his fall economic and fiscal update, The Globe and Mail’s Carrie Tait reports.
“And I’ve intervened four times in the last several years, and I’ll intervene again if I have to to make sure we don’t create a housing bubble.”
Mr. Flaherty’s latest move came in the summer of 2012, when he tightened mortgage insurance rules and deliberately sparked a slump in the residential real estate market.
The effect of that has faded, however, and, as The Globe and Mail’s Tara Perkins has reported, sales have rebounded, at least partly because of expectations of higher interest rates.
Canada’s housing market is seen by some groups as among the frothiest in the world, though most economists do not expect a U.S.-style meltdown.
Mr. Flaherty’s comments highlight the continuing concern among policy makers over the strength of Canada’s real estate market as families continue to juggle record debt burdens.
Indeed, the Canadian Real Estate Association is expected later this week to report another month of strong home sales in October, somewhere in the area of 12 per cent.
Canada revises its numbers
As for his fall update, Mr. Flaherty now forecasts a budget surplus of at least $3.7-billion for fiscal 2015-16, the year of the next election, The Globe and Mail’s Bill Curry reports.
Spending cuts, control of public sector wages and asset sales helped push the government to that projection from an initial forecast of just $800-million.
The government now also forecasts a 2013-14 deficit of $17.9-billion and a 2014-15 shortfall of $5.5-billion.
Going forward, the 2015-16 surplus would widen to $5-billion in 2016-17, $5.7-billion a year later and $9.8-billion in 2018-19.
“The emphasis placed on responsible fiscal management has made Canada a recognized leader on the international economic stage,’ the government said in the document.
“Canada’s total government net debt level, which includes the federal, provincial/territorial and local governments as well as the net assets of the Canada Pension Plan and Quebec Pension Plan, is the lowest of any G7 country, standing at less than half the G7 average in 2012, at 34.7 per cent of GDP.”
The Canadian government relies on private sector forecasts for its economic assumptions, the average of which calls for economic growth of 1.7 per cent this year, 2.4 per cent next and 2.6 per cent in 2015. Mark Herman, Calgary Alberta Mortgage Broker.
Calgary top-rated market for overall real estate prospects
Calgary top-rated market for overall real estate prospects
This is great news for buyers … you are buying a home and a great investment – not the case for other provinces.
As we have always been saying … Alberta’s in-bound migration and strong job market will support home prices.
Did you know that Alberta is short 25,000 jobs in the oil field right now? That is going to continue for the medium term! – Mark Herman
Strong economic and employment growth forecast
CALGARY – For the second year in a row, Calgary is the top-rated market in Canada for overall real estate prospects, according to a survey of industry experts.
Calgary kept the top spot with the highest ratings for prospects in three categories – investment, development and homebuilding, said the Emerging Trends in Real Estate report by PwC and the Urban Land Institute.
“The Calgary economy continues to post solid gains, despite the disruption caused by summer flooding,” said the report. “The energy industry, primarily oil, remains strong and will continue to benefit from economic growth around the world.
“Locally, energy and energy service companies have dominated office demand. Economic activity is being supported by growth in both the goods and services sectors. Manufacturing and construction will lead the goods sector, and personal services and transportation and warehousing are the key drivers on the service side.”
The report is based on a survey of over 1,000 industry experts including investors, fund managers, developers, property companies, lenders, brokers, advisers and consultants.
The ratings of other Canadian cities in order following Calgary are: Edmonton, Saskatoon, Vancouver, Toronto, Winnipeg, Ottawa, Halifax and Montreal.
The report said economic activity in Calgary is projected to grow at a 3.3 per cent rate in 2013 and a 3.4 per cent rate in 2014. Employment growth is expected to slow but remain good through the end of this year and into 2014, growing at 2.4 per cent and 2.8 per cent, respectively.
#Mortgage RATES to stay low for a while yet – that is great news!
Below is the technical, boring stuff we read to see where rates are going for you. Just ask us for the short version.
Short version is that the Bank of Canada is going to leave the rates the same for a while yet – like a year.
Long boring version is below.
Canadian Dollar Down in Wake of BOC Dropping Tightening Bias
TORONTO–The Canadian dollar is lower Thursday morning as it struggles with the implications of the Bank of Canada’s erasure of its tightening bias amid a broader retreat in commodity currencies.
The U.S. dollar was at C$1.0409 Thursday, from C$1.0384 late Wednesday, according to data provider CQG.
Its high for the session so far at C$1.0419 fell just shy of resistance around the C$1.0420 area.
The Australian and New Zealand dollars are also lower Thursday amid concerns about monetary policy and banking system liquidity in China. Any threat to economic growth in China puts pressure on commodities and commodity-linked currencies because Chinese demand for commodities is a key support for the asset class.
But the Canadian dollar is also grappling with the implications of the Bank of Canada’s decision on Wednesday to drop its 18-month-old tightening bias, a move some analysts believe could prompt a new round of weakness in the Canadian unit as it undermines the perception the Bank will raise interest rates before other advanced economies.
Currency strategists at UBS said in a report the Bank’s move derailed a rally they had expected to see in the currency.
“Having felt conditions were ripe for a CAD rally, we were taught a harsh lesson on Wednesday by the BOC: never ever underestimate the determination of a small, open economy’s central bank to defy expectations for a positive outlook,” they said.
The tightening effect on the Canadian economy from any gain in the Canadian dollar is simply too big for the Bank of Canada to risk, and the bank wanted to keep policy steady in order to retain maximum policy flexibility, UBS said.
Write to Don Curren at don.curren@wsj.com
Calgary’s home prices continue to climb in September
Another article showing that the underlying fundamentals of continued in-migration and job growth – of quality jobs – supports the Calgary home market.
Calgary housing market sizzles in September
MLS sales and prices continue to climb
CALGARY — Calgary’s red-hot housing market continued to sizzle in September as MLS sales and prices followed an upward trend.
According to the Calgary Real Estate Board, total MLS sales in the city of 1,923 during the month were up 19.44 per cent from a year ago.
The average sale price rose by 8.27 per cent to $454,352 while the median price was up 8.78 per cent to $402,500.
Calvin Buss, involved in real estate marketing and sales, said job creation and in-migration are fuelling the current market.
“The international in-migration is getting stronger and stronger. And if you look at the number of people that came out of Ontario over the last six months into Alberta, it’s just staggering,” said Buss who has his home for sale in Edworthy Park at $4.49 million. The home is situated in the middle of a forest overlooking the Bow River and the downtown.
“In Calgary we have a tight market. We’ve had good markets over the last two years. And that’s tightened everything up. And then you get all that in-migration coming based on jobs. You start to get things really tightening up. Like the vacancy rate downtown doesn’t have any elasticity to help absorb these people so they’re forced into the marketplace. And the marketplace only has a certain capacity.”
Calgary is in a sellers’ market which is good news for people like Buss who have their homes for sale.
In September, there were 2,796 new listings in the Calgary market, up 4.33 per cent from a year ago but active listings at the end of the month were down by 23.08 per cent to 3,922.
Scott Bollinger, broker for the ComFree Commensense Network, said the jump in prices isn’t too surprising when you look at the underlying factors, which include a tight inventory, a close-to-zero-vacancy rental market converting many would-be renters into potential buyers, and the fact the economy’s humming along.
“What is a little surprising is that the numbers of new listings aren’t keeping pace with big jumps in prices and sales,” said Bollinger. “I think Calgarians know this is a seller’s market. It has been for months. So that tells me that population growth and demand are simply outpacing supply. Speculators who sat for years on second and third properties, waiting for a hot market, have already sold.”
Days on the market to sell in September fell from 45 a year ago to 36, which represented a 20 per cent decline.
“The economy continues to support factors that are driving housing demand forward,” said Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp. “Employment in Calgary has trended up, with many full-time jobs also created.
“Latest reports also show that net migration to Alberta has been strong as well. After two quarters, net migration in Alberta has increased over 40 per cent from last year. Sales thus far are up compared to 2012 levels, and that is not expected to change by the end of the year.”
Ben Brunnen, a Calgary economic consultant, said the local real estate market should perform well this fall with a favourable economic outlook, a tight rental market and strong population growth the key factors.
“Alberta has been one of the most resiliant economies in Canada, and this gives buyers confidence,” said Brunnen.
“At the same time, supply remains tight with limited inventory to meet demand and builders trying to catch up. For the economy as a whole, strong real estate prices give homeowners confidence, and this could help boost consumer spending in Alberta.”
CREB said single-family home sales in September of 1,354 were up 20.25 per cent from last year while the average price rose by 9.25 per cent to $512,359. Condo apartment sales increased by 17.39 per cent to 324 with the average price up by 4.38 per cent to $298,765. Condo townhouse sales were up 17.79 per cent to 245 while the average sale price increased by 2.95 per cent to $339,534.
“Tight market conditions have supported price growth in the Calgary market,” said Ann-Marie Lurie, CREB’s chief economist. “But the pace of unadjusted monthly growth has eased in September.
“While prices show strong year-over-year gains, if the level of new listings continues to improve relative to sales activity, prices should level off for the remainder of the year.”
Why Alberta Does NOT have a housing bubble; or What is supporting Alberta home prices …
The article below echoes the theme of many of my posts – Inbound migration to Alberta is supporting home prices. Our growth at 6% is 1% less than India – the world leader. My new favorite quote is below, “Alberta actually has the dynamics or properties you’d normally see in emerging economies.”
Lamphier: Hot air can’t bust a housing bubble that doesn’t exist
EDMONTON – If I’ve read one story about a possible U.S.-style housing bust in Canada, I’ve read a hundred.
Indeed, the Toronto-centric national media, whose world view apparently extends from the Don Valley Parkway to Highway 427, seem absolutely obsessed by the topic. Barely a week goes by without another breathless warning from some Toronto economist, columnist or TV news anchor about a looming price collapse.
It’s complete nonsense, in my opinion. For starters, there is no national housing market. Prices vary wildly from place to place, and always will. So while Toronto or Vancouver look pricey, many other cities — including Edmonton— simply don’t.
Of course, I’m just a newspaper scribbler. But when one of the world’s top economic forecasters says the gloom and doom crowd is out to lunch, well, that’s not as easy to dismiss.
Stefane Marion, chief economist and strategist at Montreal-based National Bank, was recently ranked among the top 20 forecasters in the world by U.S.-based Bloomberg Markets magazine. He’s the only Canadian to make that prestigious list.
In Marion’s view, those who insist that Canada’s house prices are “bubbly” — as Britian’s Economist magazine recently argued, and as The Globe and Mail dutifully reported — simply don’t understand what drives housing in the first place.
It’s simple demographics, he says. Canada’s population grew by 1.2 per cent in 2012, versus just 0.8 per cent in the U.S., and 0.2 per cent in the eurozone. Japan’s population, on the other hand, has shrunk for six straight years.
The big reason? Immigration. Newcomers accounted for fully 60 per cent of Canada’s population growth last year, he says, far more than the U.S. or Europe.
What’s more, 55 per cent of those newcomers are between the ages of 20 and 44, when many are launching careers, getting married, starting families, and yes, buying new homes.
Japan is at the opposite end of the spectrum. Its aging population, low birth rate and aversion to immigration curbs demand for housing. Yet the same Economist article that slammed Canada’s housing market as bubbly argues that Japan’s house prices are “undeservedly flat,” Marion says.
“If you don’t have household formation where are your home prices going to go? That’s the key right there. That’s where Canada really, really is different from other countries,” he says, notably in high-growth provinces like Alberta.
“It does explain why the new housing market or home resale market in Alberta seems to be so tight all the time. This is key. Household formation is just surging,” he says. “So it fascinates me that we have economists coming out and taking a shot at Canada and not taking that into account.”
That was one of several key insights Marion offered to local bank clients and advisers at a packed luncheon that was organized by Angus Watt, managing director, individual investor services at National Bank Financial.
Marion’s generally upbeat outlook for the Canadian and Alberta economies jives with the positive tone of Bank of Canada governor Stephen Poloz’s latest comments.
“We are now close to the tipping point from improving confidence into expanding capacity,” Poloz told a Vancouver Board of Trade audience on Wednesday.
Looking ahead, Marion says he expects those demographic trends to continue over the next five years. In the key 20-to-44-year age cohort, he expects India to lead all nations in population growth, at seven percent, followed by Canada, at four per cent. On the flip side, countries like Germany, France, Italy, Russia, China and Japan will show marked declines.
“Alberta would be just behind India, at six per cent. So that shows you how potent this growth is for Alberta. Alberta actually has the dynamics or properties you’d normally see in emerging economies.”
Turning to the oil markets, Marion says despite declining U.S. consumption, falling imports and soaring production — up an astounding 47 per cent in the U.S. since 2006 — Canada’s exports south of the border remain strong.
The biggest loser? OPEC, whose share of U.S. imports has declined from 55 per cent in 2008 to just 46 per cent last year, he says.
“By next year the U.S. will produce as much crude as it did in the 1980s, so we have to cope with this energy revolution in the U.S. . . . but Canada is shipping as much oil and petroleum products to the U.S. as all of OPEC put together. I never thought this would happen anytime soon, so that’s a big, big deal.”
As for TransCanada’s proposed $12 billion Energy East oil pipeline, which would carry Alberta bitumen to refineries in Quebec and New Brunswick, Marion says the potential economic upside for Canada is big, since it would displace higher-priced Brent crude imports from unstable countries like Algeria, Kazakhstan and Angola.
© Copyright (c) The Edmonton Journal
Calgary ranks #17 on the list of top global financial centres!
AGAIN – this will cause more head offices to move here, creating or supporting continued housing demand and price support. Once a city hits about one million people the influx of in-bound migration continues.
CALGARY — Calgary continues to draw attention globally as a financial centre.
The city has moved up 11 spots to 17th overall in the London-based Z/Yen Group’s Global Financial Centre Index (GFCI) — the only well-established index measuring global financial centres. The index ranks 77 of the world’s major financial centres in terms of competitiveness.
The index has been in existence since 2007.
Calgary made the list for the first time in March 2012.
“Calgary continues to make strong progress as a financial centre having joined the Global Financial Centres Index one year ago,” said Mark Yeandle, GFCI author, Z/Yen Group, in a statement. ”The Economist Intelligent Unit rates Calgary highly in its Business Environment Index and its Operational Risk Rating, The Fraser Institute rates Canada highly in its Economic Freedom of the World index and Standard & Poor rate Canada very highly in its measure of Banking Industry Country Risk. Additionally the Milken Institute ranks Canada very highly in its Capital Access Index. Respondents to our questionnaire continue to recognize the significant growth in financial services within Calgary as a result of the success of the energy sector.”
Bruce Graham, president and chief executive of Calgary Economic Development, said the city’s 11-point improvement in the past year supports the organization’s goal to build Calgary’s reputation as a global financial centre and demonstrates the growing strength and confidence in the sector.
“Building on the strength of the energy sector, Calgary is well-positioned to see sector diversification and continued growth in the financial services sector,” he said. “Through our Calgary. Be Part of the Energy campaign, our inclusion in the index will help elevate the international profile of Calgary in the attraction of financial institutions and qualified talent needed in this sector.”
According to Calgary Economic Development, Calgary’s finance and business industry is experiencing huge growth with 8,100 new jobs created over the past 10 years, an increase of 47.6 per cent (2003-2012). A result of the success of the energy sector is that most major Canadian financial institutions and lenders have a presence in Calgary, along with a growing list of international financial groups, says the organization. Examples of international financial institutions in Calgary include the Bank of America, Citigroup, Barclays Capital, Deutsche Bank, Bank of China, Goldman Sachs, HSBC, ICICI Bank, JP Morgan, Merrill Lynch, Royal Bank of Scotland and Société Générale.
Rachel Yin, business development manager for financial services at Calgary Economic Development, said the index is important for Calgary in attracting investment and talent in the industry.
She said several factors led to Calgary’s improvement in the global ranking including: Canada’s strong banking system; Calgary’s economy; investment into Canada and Alberta in the resource sector; and support from different industries and levels of government.
“We have the financial sector advisory committee that’s led by CED and in that committee we have a lot of experts from the industry so they promote Calgary. They are a good promoter for Calgary,” said Yin.
“Calgary has always been famous for energy. An energy hub. We see a lot of deals going on.”
She said 12 per cent of the city’s global energy deals are conducted in Calgary.
mtoneguzzi@calgaryherald.com
Twitter.com/MTone123
Calgary ranked top Canadian city in which to live
Thanks to this kind of press Calgary has a high in-migration rate. All those people moving here need to live somewhere. Rents are high and that causes people to buy, supporting home prices. High quality jobs and high employment will keep this trend going.
Calgary is ranked as the top city in Canada to live.
CALGARY — Calgary has overtaken Ottawa as the best place to live in Canada, according to an annual survey by MoneySense magazine in a ranking based on hard data such as employment, housing prices, crime, weather and household income.
In releasing its results of 200 Canadian cities on Wednesday, the magazine said “high incomes and an abundance of jobs fuelled by the boom in the energy sector are among the reasons it jumped from No. 14 last year to No. 1 this year.”
In addition to being the top city, it was also named the top city in which to raise kids.
Alberta has five places listed in the top 10 this year.
St. Albert is second with Strathcona County fourth, Lacombe eighth, and Lethbridge ninth.
Other top 10 places are Burlington third, Oakville fifth, Ottawa sixth, Saanich seventh, and Newmarket 10th.
In a list of the top large cities in Canada, Calgary is first followed by Ottawa and Edmonton.
In a list of top small cities in Canada, St. Albert was first followed by Strathcona County as second and Lacombe third.
It is cheaper to buy than rent in Okotoks!
This is my guest blog post for Karen Salmon, a superstar realtor in Okotoks. The numbers are surprising. Also note the tax savings at the bottom apply to ALL those who have a roommate!
Is it Cheaper to Rent or Buy in Okotoks?
March 19, 2013
Have you ever wondered if maybe you’d be better off buying than renting? I had Mark Herman of Mortgage Alliance run the numbers on buying either a starter home in Cimarron or a two bedroom condo in the Mesa.
Payments on a 2 story home at $305,000 would be $1,392 a month … that is lower than rent of $1,800 for the same home. Add in other costs of owning: property tax of $146, utilities of $250, and fire / home insurance at $40 a month, your monthly total would be $1828 a month! Only a difference of $28 a month ALL IN between renting and owing the same home! And now you can paint, hang pictures and make it your own place without a land lord getting fussed, or selling it on you and causing you to move again.
Payments on a condo at $220,000 would be $1,020 a month for the mortgage plus $318 condo fees, $125 property tax and say $150 for other utilities not covered by condo fees (totally realistic) then payments would be $1613 a month vs. renting at $1450. AND you own it and have stopped throwing rent funds out the window and are building equity. All this for only $163 more a month to own and not rent BUT ADD in this data below:
Tax Breaks on a Roommate: This condo is a 2 bedroom. If you have a renter then you can deduct ½ of the mortgage interest for the year and ½ of the condo fees and utilities as it is the cost of running an “investment property” that you just happen to live in. So in the end that would save you:
Half of the total yearly mortgage interest of $6183 /2 = $3091 + half the condo fees ($318 x 12 months /2 = 1908) = $4999 tax refund at the end of the year! Just for having a roommate. $4999/12 months = $416 in tax savings a month so then $1,613 a month, all in, to run the condo – $416 in tax savings = a total cost of $1,196 a month ALL IN or $250 / month LESS than renting the same place!
If you’d like more information about a mortgage, feel free to email mark at mark.herman(at)shaw.ca . If you’d like help buying a home in Okotoks, contact me!
Calgary listed as an “out-performer” in Canadian real estate market
Calgary listed as an “out-performer” in Canadian real estate market
Pace predicted to be moderately lower for the rest of Canada
Calgary realtor Kaitlyn Gottlieb of Century 21 Bamber Realty Ltd.
Photograph by: Colleen De Neve Colleen De Neve, Calgary Herald
CALGARY — Canada is expected to embark on a gradual, modest, downward housing market adjustment over the next three years with a “measly” two per cent annual price gain over the next decade, says a study released Monday by TD Economics.
But the bank has also listed Calgary as an “out-performer” in Canada for the long-run rate of return on Canadian real estate. Compared with the national picture, Edmonton, Vancouver, Victoria and Toronto were also listed as out-performers for the future.
“With the slowdown in the Canadian housing market well entrenched, many are worried about the future value of their homes. This is not surprising as real estate is the largest financial asset most Canadians have in their possession,” said TD Economics.
“The housing market is prone to cyclical ups and downs and we should embark on a gradual, modest, downward adjustment over the next three years. We project a 3.5 per cent annual rate of return on real estate to prevail beyond 2015 – this is the long-run rate of increase for home prices in Canada. However, this pace will be moderately lower than they have been historically (5.4 per cent).”
Derek Burleton, vice-president and deputy chief economist with TD Economics, said Calgary had a run-up in prices before the recession and then a sharp decline during the recession.
“I guess prices didn’t come back too much but certainly sales fell back and now you’re getting a bit of a cyclical bounce,” he said, adding a long-term forecast takes into account key economic drivers like population growth and the potential of the economy to generate income.
“Based on some of the key drivers of growth, Calgary ranks right up there at the top and that should stand the housing market good stead. At least continue to drive above average price gains over the long run.”
The average MLS sale price in Calgary was $180,420 in 2000. That climbed to a peak of $423,770 in 2007 before dipping to $394,064 in 2009. From then, it has steadily climbed, reaching an all-time record of $428,644 in 2012.
Becky Walters, president of the Calgary Real Estate Board, said the Calgary market is really strong this year due to the in-migration it has been getting over the past 12 months.
“It’s not maybe as strong this year as it was last year but it’s certainly strong,” said Walters. “We’re seeing a nice steady growth. We’re seeing prices starting to come up a little bit not tons.”
For example, according to CREB, year-to-date until March 10, there have been 3,595 MLS sales in the city, up 4.66 per cent from the same period a year ago, and the average sale price has jumped by 9.23 per cent to $451,189.
However, at the national level, TD said a string of lacklustre performances over the next few years will mean that the annual rate of return for real estate in nominal terms will be a “measly” two per cent over the next decade, meaning home price gains should simply match the pace of inflation.
“Our research at REIN Canada is showing that for the coming five years, outperforming markets will be those based not in speculation or foreign investment, they will be those markets supported by underlying economics,” said Don Campbell, senior analyst and founding partner of the Real Estate Investment Network. “The Canadian real estate market is too broad and too diverse to paint with one story or byline and will become an increasingly regional story. Supporting economics such as increasing jobs, increasing population through migration — especially those areas which are attracting a younger, working age cohort — and increasing incomes will play a larger role in market demand and value than it has in the last five years.
“Despite Calgary and Edmonton’s value moves already experienced, they are both rated in the most affordable major centres in the country because average incomes are also higher than in most other regions. This, along with the younger age of in-migrants to these cities from other parts of the country, will be strong and supporting factors for these market for the coming years.”
Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp., said in the Calgary region the average price in 2013 is expected to reach $423,000, up 2.6 per cent from 2012.
“The rate of growth is anticipated to be higher here than in many other areas of the country as the average resale price in Canada is forecast to increase by only one per cent in 2013,” he said. “Supply of homes in Calgary’s resale market has come down from a year earlier while sales have been fairly stable. The resale price in 2014 is forecast to continuing rising in Calgary, averaging $434,000.”
mtoneguzzi@calgaryherald.com
Twitter.com/MTone123
How the Bank of Canada just affected your Mortgage.
This is a great article by broker in Toronto.
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With a movement towards lower rates for a longer period of time what should you do? This Newsletter will explain what the Bank of Canada said at this morning’s meetings and aid you in your mortgage decision making process. The Bank of Canada and most economic indicators suggest that our economy is struggling and we need low rates and economic stimulus to support it well into the future. Whether you have a Fixed or Variable Rate Mortgage right now, or have an impending mortgage decision to make in the next 6 to 8 months reading this newsletter could really help. There are few lines from the Bank of Canada’s meeting today that strike us as important enough to quote for you. This is a change from the previous Bank of Canada message, and to us signals that low rates will be the norm for a while. The Bank of Canada had been indicating that the low rates we are experiencing were to be removed in 2013. However, now there is no expected removal date. Secondly: “With continued slack in the Canadian economy, the muted outlook for inflation, and the more constructive evolution of imbalances in the household sector, the considerable monetary policy stimulus currently in place will likely remain appropriate for a period of time, after which some modest withdrawal will likely be required,” The outlined comments signal to us that the Bank of Canada remains comfortable with rates being as low as they are and keeping them there for some time. It should also be noted that the Bank of Canada is now less concerned with the amount of our consumer debt. 1. Be wary of the low fixed rate mortgage offers coming from the Banks, they come with horrible penalties!
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