Canada’s banking regulator says high borrowing costs and a wave of expected renewals in the coming 18 months pose key risks to Canada’s financial system. With 76% of outstanding mortgages expected to come up for renewal by the end of 2026, OSFI says homeowners face the risk of payment shock, particularly those who took out…
On April 11, 2024, Deputy Prime Minister/Finance Minister Chrystia Freeland announced several new housing affordability measures designed to help first-time buyers and current homeowners. In light of the federal restrictions on foreign home buyers last year (more on that later), newcomers to Canada may be curious if they are eligible for any of the recently…
The federal government is looking at making Islamic home financing increasingly accessible to help more Canadians break into the housing market. As part of the 2024 federal budget that was released last week, Ottawa said it is “exploring new measures to expand access to alternative financing products, like halal mortgages.” Last month, the federal government started consulting financial services…
Canadians are frequently told that a strong credit score is a great way to get a reduced mortgage rate. But, what about the individuals who have poor credit? Is it possible to get a mortgage with bad credit in Canada? While it’s not easy, it’s also not impossible. There are several steps you can take that can boost…
The rapid run-up in mortgages during the pandemic represents a “pocket of risk” to the financial system but Canadian lenders are starting to get the problem of ultra-long home loans under control, according to the country’s bank watchdog. “During the Covid years, the principal unintended consequence of what we went through was this buildup in…
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…
