While the Canadian real estate market remains vigorous in large part due to robust market activity (especially in the higher-end segments), the International Monetary Fund has warned of potential headwinds that could affect housing values – and might even trigger a domino effect that would ultimately harm the national economy. Noting that real estate prices […]

OTTAWA — Canada’s housing market and high levels of consumer indebtedness remain the top vulnerabilities for the financial system but both have shown signs of easing, according to the Bank of Canada. The central bank said in a report that worries about the amount Canadians owe have begun to pull back, but it remains a […]

Today’s May employment report showed the jobless rate dropping unexpectedly even further to 3.8%–considerably below the level the Fed once considered to be full employment. It wasn’t long ago that the Fed estimated the long-run equilibrium jobless rate in the range of 4.3%-to-4.7%. Economic theory tells us that very tight labour markets can generate inflation […]

OTTAWA _ The Bank of Canada kept its key interest rate target on hold Wednesday, but hinted that rate hikes could be coming as it noted the Canadian economy was a little stronger than expected in the first quarter. The central bank held its target for the overnight rate _ a key financial benchmark that […]

Canadian home sales fell to the lowest in more than five years in April, as tougher mortgage qualification rules deterred buyers. The number of homes sold last month declined 2.9 percent from March, the Canadian Real Estate Association said Tuesday from Ottawa. Declines were recorded in about 60 percent of cities tracked including Vancouver, Calgary, […]

An important number that affects the ability of millions of Canadians to qualify for a mortgage has changed. The Bank of Canada has raised its conventional five-year mortgage rate from 5.14% to 5.34%. The rate is the one used for stress tests under the B-20 mortgage lending guideline so any borrower with less than a […]

According to one brokerage owner, the bureaucrats who determine mortgage lending rules are leading us down a path of reckoning. “I think if they continue on with the restrictive policies they’ve been putting in place, they’ll get what they want: A housing collapse in Toronto and Vancouver. Then what are they going to do?” said […]

The Federal Open Market Committee (FOMC) met this week for the second time under the chairmanship of Jerome Powell. In a unanimous decision, the Committee left the target range for the federal funds rate unchanged at 1-1/2 to 1-3/4 percent. Unlike the Bank of Canada, which has a single objective of targeting inflation at roughly […]

Canadians have amassed a $2-trillion mountain of household debt that’s casting a big shadow over the timing of the Bank of Canada’s next interest rate hike, governor Stephen Poloz said in a speech Tuesday in Yellowknife. To Poloz, the “sheer size” of debt burden also means its associated risks to endure for a while, although […]

The indefatigable ability of Canadians to shoulder an ever increasing mountain of debt is being tested. The country’s biggest banks began raising key borrowing rates last week, just as the busy season for residential real estate gets underway. In addition, the mortgage market looks set for a particularly heavy year of renewals in an environment […]