On Wednesday January 24th at their regular policy meeting, the Bank of Canada (BoC) again decided to keep their Policy Rate at 5 per cent. This means that lenders will hold their consumer Prime Rate steady at 7.20 per cent and there will be no changes to the payment amounts for variable rate mortgages or Lines of Credit. This is… Read More »

The Bank of Canada (BoC) will not offer any predictions about future rate cuts, for fear that investors and consumers will take any such talk as a green light to ramp up spending and work against the goal of reducing inflation. But that being said, here is our argument for why you might reasonably expect the BoC will start easing… Read More »

On Wednesday December 6th at their regular policy meeting, the Bank of Canada (BoC) once more decided to keep their Policy Rate steady at 5 per cent. This means that most lenders will hold their consumer Prime Rate steady at 7.20 per cent and there will be no changes to the payment amounts for variable rate mortgages. It’s the third… Read More »

Last week, the CMHC published their fall 2023 edition of the Residential Mortgage Industry Reporthttps://www.cmhc-schl.gc.ca/blog/2023/rising-rates-homeowners-greatest-shocks-lie-ahead In it, the author Tania Bourassa-Ochoa draws from the CMHC’s national mortgage data to put specific figures to the coming wave of mortgage renewals in 2024 and 2025. In the first half of 2023 about 290,000 mortgages were renewed into the higher rates of today,… Read More »

On Wednesday October 25th at their regular policy meeting, the Bank of Canada (BoC) again decided to keep their Policy Rate steady at 5 per cent. This means that most banks will hold their consumer Prime Rate steady at 7.20 per cent, and there will be no changes to the payment amounts for Variable rate mortgage holders. This is the… Read More »

On Wednesday, September 6th at their regular policy meeting, the Bank of Canada (BoC) decided to keep their Policy Rate steady at 5%. This means that most banks will hold their consumer Prime Rate steady at 7.20%, and there will be no changes to the payment amounts for Variable rate mortgage holders. This was expected by most banks and economists,… Read More »

Statistics Canada released it’s July inflation report yesterday, and the CPI headline inflation rate rose from 2.8% in June to 3.3% for July. To put it bluntly, that’s not good news for mortgage rates. However, a closer look at the data shows that mortgage interest, energy and grocery prices are the 3 culprits in pushing headline inflation up. If you… Read More »

After announcing a “pause” back in January and 2 consecutive meetings where rates held steady, the Bank of Canada (BoC) today announced it is increasing it’s Policy Interest rate by 0.25% (up to 4.75%). This means that most banks will immediately increase their consumer Prime Rate from 6.7% to 6.95%. In its announcement, the BoC indicated that “excess demand in… Read More »

The data in the last couple of weeks has not been great regarding the fight against inflation. In the U.S., the PCE (Personal Consumption Expenditures) index rose slightly from March to April and services inflation jumped substantially as month over month. It’s looking very likely the Fed is going to have to continue raising this summer, with an expected 0.25%… Read More »