How bond ratings feed straight into mortgage quotes 5-year fixed mortgages are funded from the 5-year GoC bonds. Banks add a predictable margin to that yield for credit risk and profit margin, then post the retail rate. Many global reserve managers, insurers, and pension funds must hold only the safest paper—they begin with the shrinking […]

    High hopes for a brisk spring housing market are being tempered by the trade fight between Canada and the United States. The Canadian Real Estate Association is showing a sharp drop in February sales of existing homes on both a month-over-month and year-over-year basis. Resales fell 9.8% compared to January and 10.4% compared […]

The on-again, off-again tariff torment from the United States is reinforcing opinions about which direction the Bank of Canada’s interest rate policy is going … down. Market watchers say there is a 75% to 85% chance of another quarter-point drop this week. That would bring the central bank’s policy rate to 2.75%. It is more […]

    The Canadian economy is facing a permanent “negative structural change” if threatened U.S. tariffs become a long-term reality as per First National Bank reports. Bank of Canada Governor Tiff Macklem issued the warning during a recent speech to business groups in Mississauga.  He also cautioned that an all-out trade war with the Americans […]

The first significant economic report of the new year landed on Friday and it is raising speculation about the Bank of Canada’s next rate move. Statistics Canada’s December employment numbers show nearly 91,000 new jobs were added for the month, nearly four times more than had been expected.  Most of the jobs (56,000) are full […]

With the arrival of the new year comes a new round of predictions about what is ahead for interest rates, mortgages and real estate. Generally, the mood among realtors is up-beat as First National report mentions. The Canadian Real Estate Association has tempered its forecasts but continues to forecast increases for sales and home prices […]

    The latest employment numbers have more forecasters calling for a 50 basis-point (0.50%) cut in the Bank of Canada’s benchmark Policy Rate on December 11.  It will be the Bank’s final rate setting for this year as First National Bank reports. The November unemployment rate rose to 6.8%, up from 6.5% in October, […]

    The October inflation report caused a minor commotion but it does not appear to have upset things enough to see the Bank of Canada change course as per First National’s Bank report. Statistics Canada reports headline inflation, also known as the Consumer Price Index, rose to 2.0%, on a year-over-year basis, up from […]

The Bank of Canada gave no indication in its March announcement that interest rates are set to fall soon – but the central bank is still likely to cut in June, according to CIBC deputy chief economist Benjamin Tal (pictured) as mentioned by Canadian Mortgae Professionals, CMP. Yesterday’s statement saw the Bank maintain its benchmark […]

Global financial markets faced unprecedented disruption when economies shut down in response to the global COVID-19 pandemic. To support financial markets, the Bank of Canada launched 10 liquidity facilities and asset purchase programs. As markets recovered from the initial shock, the central bank refocused their operations from ensuring that markets functioned to using these tools […]