By Jennifer Wells Business Columnist Fri., Oct. 26, 2018 “I think higher interest rates are always difficult when people haven’t seen them for a long time.” — Carolyn Wilkins, deputy governor of the Bank of Canada The pendulum continues to swing toward a more “normal” state of affairs, with the announcement this week from the Bank of Canada that it was raising its benchmark rate by 25 basis points, to 1.75 per cent, the fifth consecutive nudge upward. Prime lending rates at the big banks dutifully followed. Perhaps some mortgage holders will be number-crunching over brunch this Saturday morning, carrying out a self stress test just like Bank of Canada governor Stephen Poloz once advised. What if the bank raises again and then again? Does it relieve the pain at all to point out that my own mortgage once bore an interest rate of 12 per cent? I thought not. Article Continued Below I counted myself lucky, by the way, as … [Read more...] about Will higher mortgage rates dampen Canada’s economy?
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caption Bank of Canada Governor Stephen Poloz speaks during a news conference in Ottawa, Ontario, Canada, October 19, 2016. source Chris Wattie/Reuters The Canadian dollar climbed Wednesday after the country’s central bank raised its key rate by 25 basis points to 1.5%, marking the fourth hike since last summer. The loonie climbed 0.3% versus the dollar following the announcement. The policy meeting comes days after a strong jobs report. Canada added 31,800 jobs last month on a seasonally-adjusted basis, according to Statistics Canada, which beat economist expectations. Wages also picked up at a solid pace of 3.6% year-over-year. Stephen Brown, a senior economist at Capital Economics who specializes in Canada, said he expected policymakers to focus on a strong rebound in construction jobs. Earlier declines “were due to unseasonably cold weather rather than a sign of trouble in the housing market,” he said. June also saw a rebounding housing … [Read more...] about The loonie is climbing after the Bank of Canada raised its benchmark rate to 1.5%
caption Bank of Canada Governor Stephen Poloz takes part in a news conference upon the release of the Monetary Policy Report in Ottawa January 21, 2015. source REUTERS/Chris Wattie The Bank of Canada will announce its latest interest rate decision on Wednesday. The central bank is expected to hold its key rate steady at 1.25%. That’s amid NAFTA negotiations and disappointing housing market data. The Bank of Canada is expected to hold its key interest rate steady Wednesday morning as NAFTA negotiations look poised to drag into next year and amid concerns about a slowing housing market. Economists widely expect the central bank to hold its key interest rate at 1.25% during the 10 a.m. ET announcement and are instead watching for signals that monetary policy could tighten at its next meeting in July. The meeting will not include a new Monetary Policy Report, which typically accompanies rate hikes. … [Read more...] about Here comes the Bank of Canada…
By Tess Kalinowski Real Estate Reporter Thu., May 10, 2018 A shortage of supply and hot demand from downsizers is expected to boost the Toronto area’s luxury condo prices by 10 per cent in the next year, although high-end house prices won’t see the same lift, according to a luxury residential report by Royal LePage. It shows that the median house price at the top end of the market has dropped only about $6,000 to $3.52 million year over year in the first quarter of 2018. But that’s about where it’s expected to stay through the first quarter of 2019. Luxury condo prices, however, are forecast to rise 10.4 per cent to $1.85 million on average by the end of the first quarter next year — from $1.7 million this year — the largest predicted gain in both the house and condo segments, according to the report. Sales of luxury houses declined 68 per cent year over year, but only 18 per cent compared to 2016 in the first quarter. Condo … [Read more...] about High-end home sales hit by news rules: Report
Many consumers will soon find their debt loads heavier now that Canada’s central bank and the country’s biggest commercial lenders have raised their benchmark rates by one-quarter percentage point.The country’s biggest banks raised their prime rates after the Bank of Canada hiked its overnight lending rate earlier this month by a quarter of a percentage point to 1.25 per cent.It’s a challenge for Canadians still struggling to cope with the record amounts of consumer debt they amassed after the 2008 financial crisis because lenders use their prime rate as a benchmark for setting some other short-term rates including variable-rate mortgages and lines of credit. A hike is good news for savers as the prime rate also affects interest rates for savings accounts.If you’re contemplating how to best take advantage of the increased rates or avoid falling into further debt, personal finance expert and Ryerson University business professor Laleh Samarbakhsh shared her … [Read more...] about What to do about your debt and mortgages after the interest rate hike