2 Oct

Tories Plan to Make B-20 Election Issue

General

Posted by: John Dunford

The Conservative Party of Canada will make B-20 a hot button issue during next year’s election. The party’s Deputy Shadow Minister for Finance has already tabled two motions, both of which were rejected by the Liberals, to study B-20’s effects. Refusing to go quietly, MP Tom Kmiec has vowed to put the mortgage stress test […]

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24 Sep

OECD Warns of Housing Correction if Outlook Changes

General

Posted by: John Dunford

If NAFTA talks fail or Canada’s inflation runs above acceptable levels, there could be a knock-on effect for the housing market, with a correction possible. That’s according to the latest outlook from the OECD global policy forum which has updated its outlook to reflect changes since the last report in May. The outlook for the […]

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18 Sep

These May Be the World’s 10 Riskiest Housing Markets

General

Posted by: John Dunford

Housing market dangers are “especially acute” in Australia, Hong Kong, Canada and Sweden, Oxford Economics said, noting this has historically posed a threat to economic activity. “In all four, valuations are very elevated, there has been a lengthy housing boom, debt levels are high and there is a significant share of floating rate debt,” Adam […]

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11 Sep

Canadian Jobs Plunge in August As Unemployment Rises

General

Posted by: John Dunford

In a real shocker, Statistics Canada announced this morning that employment dropped by 51,600, retracing most of the 54,100 gain in July. Economists had been expecting a much stronger number, but the Labour Force Survey is notoriously volatile, and job gains continue to average 14,000 per month over the past year. Full-time employment growth has […]

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11 Sep

BoC: Economy Adjusting Well to Higher Rates, Stress Tests

General

Posted by: John Dunford

Canada’s economy is adjusting well to higher borrowing rates and tighter mortgage lending restriction. That was one of the key messages from the Bank of Canada’s senior deputy governor Carolyn Wilkins in a speech to the Saskatchewan Trade & Export Partnership on Thursday. She spoke about the BoC’s decision this week to keep interest rates […]

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6 Sep

Bank of Canada Holds Interest Rate for Now, Puts More Focus on NAFTA

General

Posted by: John Dunford

OTTAWA _ The Bank of Canada’s decision to leave its interest rate unchanged Wednesday could be just a brief pause that comes as it carefully follows the unpredictable twists in the country’s trade talks with the United States. The central bank kept its benchmark at 1.5 per cent, but many experts predict another increase could […]

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6 Sep

Interest Rate Rise this Week? Here’s What the Economists Say

General

Posted by: John Dunford

Improvements in the economy have led to the Bank of Canada’s governor Stephen Poloz vowing to increase interest rates but will September see a hike? Unlikely, according to two leading economists. Avery Shenfeld from CIBC Economics says that the BoC will typically announce an increase following strong economic data but that early signs for Q3 […]

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3 Sep

Why isn’t the government controlling unsecured debt?

General

Posted by: John Dunford

Croft Axsen recently had to inform a client wanting to buy a $300,000 house that he didn’t qualify, so the client instead decided to buy a $95,000 truck. According to Axsen, it is but one example of how easily credit debt can accrue, and how it’s more detrimental to Canadian households than mortgage debt. “I […]

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3 Sep

Q2 Canadian Growth Rebounded to 2.9%

General

Posted by: John Dunford

This morning, Stats Canada released the second quarter GDP figures indicating a sharp rebound in growth to its most robust pace in a year. Real gross domestic product growth accelerated to 2.9% (all figures quoted in annual rates), up sharply from the 1.4% pace in Q1. The Q2 result is only slightly above the Bank […]

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14 Aug

Canada’s Jobless Rate Returned to a Four-Decade Low in July

General

Posted by: John Dunford

Statistics Canada announced this morning that employment increased in July and the jobless rate fell .2 percentage points to 5.8%–returning to its lowest level since the 1970s posted earlier this year. The economy added a stronger-than-expected 54,100 net new jobs last month–its most significant advance this year. This gain, however, was driven by increases in […]

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