Canada needs 5.8 million new homes by 2030 to bring prices down to affordable levels, CMHC says

Canada needs 5.8 million new homes by 2030 to bring prices down to affordable levels, CMHC says

New homes are built in a housing construction development in the west-end of Ottawa on May 6, 2021.Sean Kilpatrick/The Canadian Press Canada needs an additional 5.8 million homes by the end of the decade to help lower average home costs and ensure households are not spending more than 40 per cent of their disposable income … Read more

As the housing market slows, costly bridge mortgages are an increasingly common last resort

As the housing market slows, costly bridge mortgages are an increasingly common last resort

The average Canadian home has shed 12.9 per cent of its value in just three months, according to the latest Canadian Real Estate Association report. That’s almost 1 per cent a week. If you’re selling a home and not getting any bites, your blood pressure is probably rising – especially if you need the equity … Read more

Bank of Canada says high inflation ‘keeping us up at night’

Bank of Canada says high inflation ‘keeping us up at night’

Bank of Canada Senior Deputy Governor Carolyn Rogers said on Wednesday that inflation in Canada was much too high and did not rule out a 75-basis-point increase at the central bank’s July decision. “We know inflation is keeping Canadians up at night. It’s keeping us up at night,” Rogers said at an event organized by … Read more

Higher rates but less inflation panic: What CIBC’s Benjamin Tal is predicting for stocks, home prices and the economy

Higher rates but less inflation panic: What CIBC’s Benjamin Tal is predicting for stocks, home prices and the economy

Benjamin Tal, deputy chief economist at CIBC Capital Markets, in Toronto on June 7, 2019.Tijana Martin/The Globe and Mail Mounting fears of a recession have gripped equity markets, with the S&P/TSX Composite Index now firmly in correction territory. The S&P/TSX is down 13 per cent from its record closing high of 22,087, reached on March … Read more

Monthly payments on variable-rate mortgages could increase as borrowers near their ‘trigger rate’

Monthly payments on variable-rate mortgages could increase as borrowers near their ‘trigger rate’

An obscure feature of variable-rate mortgages may push up the monthly payments for an increasing number of borrowers as the Bank of Canada aggressively hikes interest rates. It’s called the “trigger rate” – the interest rate level that, when surpassed, causes a mortgage holder’s monthly payments to change. The trigger rate has been largely ignored … Read more

Why housing costs are driving up inflation, despite the real-estate downturn

Why housing costs are driving up inflation, despite the real-estate downturn

A house for sale in Ottawa on June 15.Spencer Colby/The Globe and Mail Canada’s housing market is plunging as higher interest rates scare off potential buyers. Even so, the effects of the slowdown are not showing up in the country’s red-hot inflation numbers. As the real-estate sector cools, the cost of owning or renting a … Read more

Freeland defends budget after Scotiabank accuses feds of ‘doing nothing’ on inflation – National

Freeland defends budget after Scotiabank accuses feds of ‘doing nothing’ on inflation – National

A cut in planned government spending could help tame rampant inflation and reduce pressure on the Bank of Canada to hike interest rates, according to a report from Scotiabank. The report from the bank’s chief economist Jean-Francois Perrault and modeling director René Lalonde claims that Canadian fiscal policymakers are “doing nothing of any significance to … Read more

Can the Liberal Party really replace Justin Trudeau?

Can the Liberal Party really replace Justin Trudeau?

The next election is supposed to be three years away, but we’re seeing a lot of predictions of Justin Trudeau’s political demise. But for his Liberal Party, there is no easy way to leave him behind. Predicting Mr. Trudeau’s next three years seems like a mug’s game when you consider the surprises of his first … Read more

Rampant inflation means Bank of Canada must raise rates above 3%: economist – National

Rampant inflation means Bank of Canada must raise rates above 3%: economist – National

Rampant inflation in the Canadian economy means the Bank of Canada will have to raise rates above three per cent to bring things back under control, suggests one economist. Don Drummond, an economist and fellow with Queen’s University, spoke with The West Block‘s Mercedes Stephenson and said while the Bank has been clearly signaling an … Read more

Looking for bargains amid the selloff? Consider bonds

Looking for bargains amid the selloff?  Consider bonds

Bonds haven’t been getting as much attention from investors as stumbling technology stocks and bitcoin during this year’s bout of financial market volatility, but some observers are now pondering opportunities in this beaten-up asset class. A key reason: Bond yields have soared to levels where they are now challenging dividend-paying stocks, offering investors a level … Read more