Save! Find a savings plan that works for you. A lot of employers will deposit your pay to more than one bank account. Saving $200 biweekly, in just over 3 years you would accumulate approximately $17,500. This number equates to 5% of a $350,000 purchase price, which could be a perfect starter home. Put your…
The Canadian and US economies are tightly integrated, and tend to provide similar data for their central banks to move together. That’s no longer the case, as Canada’s economy grinds to a halt and inflation spirals back towards target. Meanwhile, the US economy continues to outperform expectations. Will economic divergence result in diverging monetary policy?…
#1. Think about financing early Canadian banks are very conservative when it comes to issuing mortgages for rental property investment. You’ll want to think about financing fairly early on to account for the likelihood that getting approved won’t be as easy as it was for your primary residence. Prime lenders will typically want to see…
The Bank of Canada (BoC) isn’t expected to cut its policy rate, so the focus this time will be for hints on the timing of when the first one will occur. Bond-market investors expect the BoC to start cutting in April, although the actual timing will depend on what happens with inflation, which is still…
Consumer debt in Canada has reached $20,739 per person, on average. Credit card spending and balances in Canada are trending upwards compared to recent years and more concerning, there’s an uptick in credit card accounts with missed payments. If you’re a homeowner, you might be wondering whether you can use the equity in your home to reduce your…
Real estate professionals say the Bank of Canada’s decision to hold interest rates at 5% is a positive sign for mortgage holders with loans tied to prime interest rates, though the high cost of borrowing will remain a challenge. Recently, Canada’s central bank decided to stay with its key policy rate 5% for a 3rd…
Borrowers across the country may be waiting for the first indication that the Bank of Canada is readying interest rate cuts in 2024 – but there’s been much-needed good news on the rate front in recent weeks with a sharp drop in five-year Government of Canada bond yields. Perched just below 3.80% at time of…
This weeks’ federal fiscal update unveiled Ottawa’s plans for a “mortgage charter” aimed at assisting distressed borrowers – something stakeholders and experts say could impact bank earnings as well as providing relief for stretched Canadian homeowners. MORTGAGE CHARTER EXPLAINED The charter will build on existing guidance and expectations for how financial institutions work with borrowers, the government…
As a new immigrant, navigating the Canadian real estate market can feel daunting, especially if it differs significantly from that of your home country. Whether you’re contemplating buying a home, this brief guide will help you get a better lay of the land so you know what to expect. I’ll outline some of the most…
The Bank of Canada delivered its second straight rate hold, but signalled that it remains concerned about inflationary risks and price pressures. As was widely expected, the Bank left its overnight target rate at 5.00%, which means prime rate will stay at 7.20% for variable-rate mortgage borrowers. In its statement, the Bank noted it is…
