New Mortgage Rules – October 2016

11th October 2016

Why is the Department of Finance implementing these new changes? These new regulations are aimed at protecting the financial security of Canadians, supporting the long term stability of the housing market in Canada. CHANGE: MORTGAGE RATE STRESS TEST TO ALL INSURED MORTGAGES What is it? Until October 17, 2016, insured mortgages with a term of […]

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July GDP Rebounded Significantly

30th September 2016

Real Gross Domestic Product (GDP) in July was expected to continue its rebound from May’s steep, wildfire-driven decline, but the 0.5% monthly gain was better than many analysts had expected. The key driver was higher output in the mining, quarrying and oil and gas extraction sector. The rise in July followed a 0.6% increase in […]

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CANADIAN HOME SALES DECLINE AS LISTINGS PLUNGE FURTHER

19th September 2016

This morning, The Canadian Real Estate Board (CREA) released their national real estate statistics for August, which showed a further slide in home sales as new listings resumed their decline and home prices increased once again. For Canada as a whole, the number of homes trading on the MLS Systems fell 3.1% month-over-month in August–the […]

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Bank of Canada Hold Overnight Rate at 0.5%

9th September 2016

The Bank of Canada’s decision to hold rates steady once again was very much as expected, even though first half growth was well below the forecast in the July Monetary Policy Report. US growth in the first half of this year was also disappointing, reflecting weakness in business and residential investment. US consumer spending was […]

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What Exactly Is a “Reverse Mortgage”?

22nd August 2016

In a nutshell, a CHIP mortgage or “reverse” mortgage is a mortgage that is secured by the client’s principal residence and as long as one of the client’s lives in the house, it never has to be repaid, not even the interest. “CHIP” stands for “Canadian Home Income Plan” by the way; however the lender […]

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Payrolls Plummet in Canada and Surge in the U.S.

5th August 2016

Another woeful jobs report in Canada for the month of July triggers further pessimism. Following three consecutive months of stagnant employment, payrolls fell by a much-worse-than-expected 31,000 in July as the unemployment rate increased 0.1 percentage point to 6.9 percent. Gloomily, all of the loss was in full-time employment, which fell by 71,000 from June […]

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Fed Postpones Rate Hike Again

29th July 2016

To the surprise of no one, the Fed once again refrained from raising interest rates even though the U.S. economy has posted surprising strength in recent weeks. Following a very weak jobs report in May, the June figures showed a considerable bounce back. Retail sales and housing activity have also surprised on the high side. […]

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What Does Brexit Mean for Canada?

24th June 2016

The decision by British voters to leave the European Union (EU) has shocked markets and will no doubt lead to continued uncertainty for an extended period. Stock markets around the world are reeling, the British pound has taken an unprecedented nosedive, commodity prices with the exception of gold are plunging and interest rates are falling […]

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Bank of Canada Stands Pat Once Again

30th May 2016

In a short but not-so-sweet missive, the Bank of Canada left its target overnight rate unchanged at 1/2 percent as expected. The Bank, however, sharply reduced its forecast for second quarter Canadian growth owing to the devastating wildfires in Alberta. The Bank’s economists estimate that the fire-related damage and shutdown of oil production will reduce […]

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Before you sign that mortgage renewal offer, think carefully about your options

5th May 2016

Financial Post Garry Marr | May 1, 2016 There’s a one-in-four chance that, if you’re among the 5.7 million Canadian households with a mortgage, you’re going to receive a letter in the mail this year telling you it’s time to renew. TD Bank Financial Group said the number of renewals each year has climbed to […]

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Bank of Canada Cautious About the Outlook

14th April 2016

To no one’s surprise, the Bank of Canada left its target overnight rate unchanged at 1/2 percent. The Bank, however, reduced its forecast for the global economy and for the U.S. economy as well, suggesting that the outlook for Canadian exports is less favorable than earlier forecast. (Table 1 below shows the Bank’s current global […]

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Debt and real estate go hand in hand in new Equifax, Teranet partnership to assess homeowners’ credit worthiness

1st April 2016

Financial Post Garry Marr | March 29, 2016 4:39 PM ET   Debt and real estate may be the perfect marriage these days, so it should come as no surprise that credit rating agency Equifax Canada and land registry company Teranet Enterprises Inc. are partnering up. The two Toronto-based companies have signed a five-year agreement […]

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Budget 2016—Billed As ‘Growing the Middle Class’

23rd March 2016

  Today’s budget included everything I expected and nothing that I feared. The fears first—there is no change in the tax treatment of capital gains or stock options, despite continued rumours and speculation. Indeed, in a press conference in the lock-up, Minister Morneau said that stock options tax changes are off the table because they […]

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