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Some not-so-great news from the Bank of Canada yesterday: the target rate was raised yet again by 0.25%. This one wasn’t a complete surprise. Rates have been climbing for the last year to battle red hot inflation. Inflation is now at 4.4%, which is huge progress from 8.1% this time last year. But last month’s Consumer Index Report logged an unexpected 0.1% jump in inflation from the previous month.
Continue reading “The Bank of Canada Does It Again”
Parents are helping their adult children buy homes now more than any other time in history. It makes sense: housing is unaffordable, so why wouldn’t baby boomer parents help lighten the load? There’s a similar trend picking up steam however that’s a little more surprising: parents and children buying multi-unit homes together.
It makes a ton of sense if you think about it. Two or three unit homes could solve a lot of problems for multigenerational families. Interestingly enough, as novel as it sounds, there’s nothing new about this idea. In fact, it’s been happening in Europe for centuries.
Continue reading “Multigenerational Housing: What We Can Learn From the Old Country”
It’s not everyday you get to sit on a video call with someone who used to run our country’s central bank. So when I was invited to be a part of a remote session with former BoC Governor Stephen Poloz, I made sure to take down as much as I could to share with you. Here’s what he thinks about inflation, interest rates, and what’s happening in Canada.
Continue reading “Exclusive Insights From a Former Bank of Canada Governor”
Some weird stuff is happening in the world of real estate. As you likely know, the Bank of Canada has steadily raised interest rates over the past year in hopes of cooling inflation. This was also supposed to cool the housing market. Conventional wisdom dictates that higher rates would result in more mortgage defaults, more housing supply, and lower home prices. Oddly enough, none of that is happening.
Continue reading “Home Prices Heat Up Despite High Interest Rates”
There’s one reason and one reason only that rates have skyrocketed by 4.25% in less than 10 months: inflation. The Bank of Canada has made it their mandate to bring inflation down to 2% – a far cry from the peak at 5.9%. Their plan is to jack up rates so that people will have less disposable income. The idea is that less disposable income will lead to less personal spending. Less personal spending will lead to lower demand for goods. Lower demand for goods will eventually lead to lower prices on those goods.
Essentially, for this plan to work, Canadians need to spend less money. It’s as simple as that. So why in the world does the Prime Minister keep giving Canadians more money to spend?
Continue reading “Free Money Will Cost Canadians”
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