25 May

Reduction In Qualifying Rate from Bank of Canada

General

Posted by: John Dunford

The Bank of Canada is set to reduce its qualifying rate ten basis points, from 5.04 to 4.94 percent, sources tell Mortgage Broker News. After the decrease, which is expected to be announced by Monday, the five-year fixed mortgage rate will have inched another step closer to a level not seen since 2016, when it […]

Read More
25 May

Update from CMHC

General

Posted by: John Dunford

In comments delivered to the Standing Committee on Finance on Tuesday, Canadian Mortgage and Housing Corporation CEO Evan Siddall laid out a potentially bleak scenario for the country’s homeowners. Siddall told parliamentarians that by September, if Canada’s economic recovery fails to generate enough momentum, 20 percent of mortgages could be in arrears. “A team is […]

Read More
20 May

Latest Mortgage & Real Estate News

General

Posted by: John Dunford

Record Declines in Canadian Home Sales and Listings in April The pandemic shutdown has put every sector of the economy into a medically induced coma, so, of course, the housing sector is no exception. Data released this morning from the Canadian Real Estate Association (CREA) showed national home sales fell a record 56.8% in April, […]

Read More
12 May

Pandemic Batters Canadian Jobs Market

General

Posted by: John Dunford

Pandemic Batters Canadian Jobs Market A Recession Like No Other The Canadian economy has been put in a medically induced coma. Never before in modern history have we seen a forced shutdown in the global economy so, not surprisingly, the incoming data for April is terrible. There is a good chance, however, that April will […]

Read More
16 Apr

Bank of Canada Stands Ready To Do Whatever It Takes

General

Posted by: John Dunford

On the heels of a devastating decline in the Canadian economy, the Bank of Canada is taking unprecedented actions. With record job losses, plunging confidence and a shutdown of most businesses, this month’s newly released Monetary Policy Report (MPR) is a portrait of extreme financial stress and a sharp and sudden contraction across the globe. […]

Read More
16 Apr

The Bank of Canada Will Maintain The Overnight Rate

General

Posted by: John Dunford

The Bank of Canada announced that it will maintain the overnight rate at 0.25%, which it considers its “effective lower bound.” The BoC has lowered its target for the overnight rate an unprecedented three times in March to support an economy reeling from the impact of the COVID-19 pandemic. “For its part, the Bank of […]

Read More
14 Apr

Canada Loses Over a Million Jobs in March

General

Posted by: John Dunford

Employment in Canada collapsed in March, with over one million jobs lost, wiping away over three years of job creation in a single month and highlighting the economic pain the coronavirus pandemic has swiftly delivered. The decline in jobs in Canada, on a proportional basis, was steeper than in the U.S. The record plunge was […]

Read More
31 Mar

Updates: Banks Slash Prime Lending Rate & Why Are Mortgage Rates Rising?

General

Posted by: John Dunford

2 recent updates below: Canada’s largest banks have slashed their prime lending rate to 2.4% from 2.95%, matching last week’s move by the Bank of Canada to slash the overnight rate by another 50 basis points. RBC Royal Bank, Scotiabank, Toronto-Dominion Bank (TD Bank), BMO Bank of Montreal, and CIBC have announced that the new […]

Read More
30 Mar

Bank of Canada Moves to Restore “Financial Market Functionality”

General

Posted by: John Dunford

The Bank of Canada today lowered its target for the overnight rate by 50 basis points to ¼ percent. This unscheduled rate decision brings the policy rate to its effective lower bound and is intended to provide support to the Canadian financial system and the economy during the COVID-19 pandemic (see chart below). Strains in […]

Read More
27 Mar

Bank of Canada Cuts Overnight Rate 50 Basis Points

General

Posted by: John Dunford

For the third time this month, the Bank of Canada cut to the overnight rate, this time slashing off 50 basis points to a new level of .025%. The Bank Rate is correspondingly 0.50% and the deposit rate is .025% percent. In a press statement, the central bank said this “unscheduled rate decision brings the […]

Read More