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 […]

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 […]

Mortgage Rate Expectations fading fast

Canadian Mortgage Rate Forecast (from http://www.canadianmortgagetrends.com) Over the past few months, major economists have backpeddled on their rate hike predictions. Not long ago, the consensus of economists was projecting a July 19 increase. Now, those same analysts aren’t looking for a rate bump until this fall…or later. Here’s a chart from BMO illustrating how fast rate […]

Interest Rates to Rise Slowly….

Benjamin Tal is one of Canada’s most quoted domestic economists. In some recent comments,  Tal outlined why interest rates may take the slow road higher: Echoing words from the U.S. Federal Reserve, Tal said we’re in an “unusually uncertain market.” Canadian and U.S. central bankers would be the “first to admit” they don’t know what to […]

Bank of Canada maintains key overnight rate again

The Bank of Canada again maintained it key overnight rate at 1% yesterday citing the persistent strength of the Canadian dollar as the main reason for holding back rate increases despite stronger economic growth signals around the world. “For those hoping for discernable hints of hawkishness in the Bank of Canada’s policy statement, those hopes […]

Bank of Canada maintains overnight rate target

As expected, the Bank of Canada today announced that it would maintain it’s key overnight rate at 1.0%, leaving the retail Prime Rate for customers with variable rate mortgages steady at 3.0%. Among the factors influencing the decision, the bank noted the recent strength in the Canadian dollar and the continued lack of persistent inflation […]

Bank of Canada Report – “Discounting in Mortgage Markets”

The Bank of Canada (BoC) undertook an extensive Study titled “Discounting in Mortgage Markets” on mortgage discounting. A draft of that study was released this month and it’s conclusion are, while not surprising to us, are very telling. Obviously, we believe that the most important factor is the use of a Mortgage Broker, but there are […]