Mortgage Logic

Economics

Bank of Canada raises its Key Rate by 0.75% today

Today the Bank of Canada has increased its key overnight lending rate to 3.25%, a 0.75% increase.  Overall, this year the BoC has raised its key rate by 3.0% since March, rivaling the mid-1990s in rate increases.  Per the BoC: “The Governing Council remains resolute in its commitment to price stability and will continue to …

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June 1 2022 – Bank of Canada Raises Key Rate – How To Survive and Thrive Post Recession.

June 1 2022, the Bank of Canada raises Key Rate. Today the Bank of Canada (BoC) decided to raise its key rate by 0.50% to 1.50%, which will cause the Prime Rate at major Financial Institutions (FI’s) to increase the same to 3.70%.  Economists are now mentioning the word “stagflation” which we have not heard …

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Annual Surtax on High Value Houses…A Really Bad Idea for the Canadian Housing Market & Economy

Taxes have never achieved anything good for an Economy or a Society and certainly have never achieved the objective that they were originally dreamt up for.  They are punitive and negative and discourage raising the overall standard of living for all. A new report backed by Canada’s national housing agency is calling for a home …

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Bank of Canada Holds Benchmark Rate the Same in Their Final Decision of 2021

The Bank of Canada (BoC) made its eighth scheduled and presumably final interest rate decision for the calendar year. Economists and financial markets were on high alert for signs of changes to come next year and clues as to when. As expected again no change was made to the benchmark rate. It remains at 0.25% …

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Bank of Canada Holds On Key Overnight Lending Rate and Continues With Large Scale Asset Purchases

Earlier today, the Bank of Canada (BoC) made its eighth interest rate decision of the year. In a normal year there are eight interest rate announcements in total but this is far from a normal year, and there will likely be ten announcements. The news is generally positive, considering we are in the midst of …

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Good News, CMHC Competitors Decide Not to Tighten Rules, Maintain Home Shopping Affordability

In a news releases today Genworth Canada and Canada Guaranty have both confirmed that they will not follow suit with Canada’s main mortgage insurer, CMHC, in tightening lending guidelines for mortgages. Genworth MI Canada Inc. (TSX: MIC) said: “it has no plans to change its underwriting policy related to debt service ratio limits, minimum credit …

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Further Reason Not To Fear Rising Interest Rates

Canada’s income tax rates have become uncompetitive, and the economy will pay the price. Jamie Golombek: High tax rates, which reduce the reward of earning more income, discourage people from engaging in productive economic activity…(read more)