TagBank of Canada

Posted January 27, 2022 Mortgage News

Don’t Fear the Rate Hikes

Last week, I came across an article with this headline:

“Bank Of Canada Will Raise Rates 500% This Year, To Start Within Weeks.”

Pretty scary headline right? The article claimed that there will be five rate hikes of 0.25% this year. Even worse, these hikes will start almost immediately – meaning the first hike will happen at the first Bank of Canada announcement of the year.

That announcement happened yesterday. No rate hike.

Posted January 7, 2022 Mortgage News

Will Lockdowns Have an Impact on the Housing Market?

Well, here we are again. Right back where we were last year. Provinces across the country have reintroduced restrictions that will no doubt leave a lasting impact on our economy. The housing market of course is no exception.

In my estimation, there will be quite a few similarities between our current situation and the one we faced last winter. However, there are some ways in which this lockdown could prove slightly different.

Posted December 10, 2021 Mortgage News

Surprise, Surprise: No Rate Hike From Bank of Canada

For months we’ve been warned by “experts” that rates are sure to shoot up. That the Bank of Canada will change their tune based on the state of the economy. That by year’s end, we’ll be well on our way to pre-pandemic rates that will make anyone with a variable rate mortgage regret ever buying a home.

It’s December. None of that has happened.

Posted October 5, 2021 Consumer Debt

Despite Uncertainty, Canadians Are Keeping Up With Mortgage Payments

You might have heard some sensationalist news stories over the past year about Canadian homeowners over-borrowing. With the employment rate so low, and mortgage debt so high, how could Canadians possibly keep up with their payments? Headlines spewed dire warnings that once payment deferrals expired, borrowers would default in droves.

Except that isn’t what happened at all.

Posted August 24, 2021 Mortgage News

The Bank of Canada’s Growth Forecast: What It Means For Homeowners

Last month, the Bank of Canada released their Monetary Policy Report – or in plain English, their economic forecast. It’s a document that lays out their predictions for the future of the Canadian economy including GDP growth and inflation rates. Of course, there’s a lot of interesting information here. But if you’re a homeowner that carries a variable rate mortgage, you might be concerned mostly with their inflation projections. Why? Inflation typically impacts interest rate movements.