Mortgage Penalty Calculators

The Canadian government now requires federally regulated mortgage lenders to (among other things that have been in discussion for some time) access to online calculators to estimate the pre-payment penalty on their mortgage.   We’ve summarized the links to access these calculators on our website here. While this is a great step forward, caution should […]

Finance Moves Again on Mortgages

In a surprise move Finance announced recently that it is again making changes to mortgage borrowing practices in Canada. The surprise is in the timing of the announcement given that the housing market is already starting to soften. The move probably reflects the realization that interest rates will remain unchanged for longer than previously expected, […]

Former BofC Governor Plays Down Household Debt Warnings

Canada’s current and former central bankers seem at odds over the country’s soaring consumer debt, with former Bank of Canada governor David Dodge playing down warnings by his successor, Mark Carney. “I don’t think it’s in trouble,” he said, noting most consumers aren’t overexposed. In areas where employment levels remain high (such as Alberta, which Statistics […]

GDP News could Delay Potential Interest Rate Hikes

Canadian GDP falls 0.2% in February – See the Statistics Canada Report – The Canadian economy unexpectedly shrank in February due to a slowdown in the mining and manufacturing sectors, dampening expectations that the Bank of Canada will raise interest rates soon. From the Globe and Mail “Get used to this. There is no consensus about when […]

Inflation Dips – Pressure to Raise Prime Rate Decreases!

Canada’s annual inflation rate dipped to 1.9% in March from 2.6% in February, largely due to slower year-over-year increases in prices for food and energy, Statistics Canada said on Friday.  The Bank of Canada uses interest rates to reach its target inflation rate of 2%.  With the current inflation rate coming in at below target, […]

Bank of Canada Maintains Prime , Hints at Future Increases

The Bank of Canada yesterday maintained it’s key overnight lending rate at 1%, holding the Prime rate on which Variable rate mortgages are based at 3%. In their press release, they listed several factors being considered in the decision…. “Overall, economic momentum in Canada is slightly firmer than the Bank had expected in January.” “…The […]