Interest rates need to keep rising to fight inflation, Tiff Macklem tells MPs

Interest rates need to keep rising to fight inflation, Tiff Macklem tells MPs

Bank of Canada Governor Tiff Macklem waits to appear before the House of Commons finance committee in Ottawa on Nov. 23.Adrian Wyld/The Canadian Press Parliamentarians questioned Bank of Canada Governor Tiff Macklem about inflation and historic financial losses at the central bank on Wednesday, with top opposition politicians looking to frame the bank’s continuing dilemmas … Read more

Number of variable-rate mortgage holders hitting trigger rate will climb to 65 per cent next year, BOC warns

Number of variable-rate mortgage holders hitting trigger rate will climb to 65 per cent next year, BOC warns

Homes on Sherman Brock Circle in Newmarket, Ont. on Mar 30, 2021.Fred Lum/the Globe and Mail Canada’s financial system should be able to weather a period of heightened stress, but many recent home buyers could experience a “painful” squeeze as interest rates continue to rise, the Bank of Canada’s second-in-command said Tuesday. In a speech … Read more

Bank of Canada poised to lose money for the first time on rising interest expenses

Bank of Canada poised to lose money for the first time on rising interest expenses

The Bank of Canada is expecting total losses of between $5-billion and $6-billion over the next few years, spokesperson Paul Badertscher says.Adrian Wyld/The Canadian Press The Bank of Canada will report its first financial loss in its 87-year history in the coming weeks, a development that risks further denting the central bank’s reputation and inviting … Read more

Despite interest rate hikes, Canadians have been slow to ditch variable mortgages. Here’s why

Despite interest rate hikes, Canadians have been slow to ditch variable mortgages.  Here’s why

Canadians have been slow to turn away from variable-rate mortgages despite a slew of central bank interest rate hikes since March. It’s an unusual trend that mortgage brokers chalk up to economic uncertainty, regulations and – for some borrowers – a need for flexibility. As of August, variable-rate mortgages still accounted for 44 per cent … Read more

Growing number of mortgage loans have amortization periods of more than 30 years

Growing number of mortgage loans have amortization periods of more than 30 years

At Royal Bank of Canada, Bank of Montreal and Canadian Imperial Bank of Commerce, the percentage of mortgages with an amortization of more than 30 years recently doubled in a three-month span, according to company filings.Evan Buhler/The Canadian Press A growing share of mortgage loans made by major Canadian banks have amortization periods of more … Read more

Real estate influencers, Canada’s unfair recession and the UK crisis: Must-read business and investing stories

Real estate influencers, Canada’s unfair recession and the UK crisis: Must-read business and investing stories

Canadians who have been able to keep a stockpile of cash are better prepared for the impending recession.Denis Pepin/Getty Images/iStockphoto Getting caught up on a week that got away? Here’s your weekly digest of The Globe’s most essential business and investing stories, with insights and analysis from the pros, stock tips, portfolio strategies and more. … Read more

As rate hikes continue, is it time to lock in your variable rate mortgage?

As rate hikes continue, is it time to lock in your variable rate mortgage?

With the Bank of Canada widely expected to announce another outsized rate increase next week, a growing number of variable-rate mortgage holders ask themselves a dreaded question: Is it time to lock into a fixed rate? The answer usually boils down to the state of the homeowners’ household finances, said James Laird, co-CEO of online … Read more

Former Toronto public school board leader had financial stake in for-profit private school

Former Toronto public school board leader had financial stake in for-profit private school

Donna Quan attends a trustees public meeting at the Toronto District School Board building in Toronto on Dec. 17, 2014.Mark Blinch/The Globe and Mail Donna Quan, the former executive director of the Toronto District School Board, was part owner of a private school while she was running Canada’s largest public board. Ms. Quan, who presided … Read more

Banks warn clients about variable-mortgage trigger rate, signaling higher payments ahead

Banks warn clients about variable-mortgage trigger rate, signaling higher payments ahead

Homes for sale in Ajax, Ont. on Sept 7.Fred Lum/the Globe and Mail Banks are contacting many clients with variable mortgages to inform them that they’re reaching their trigger rate, signaling higher monthly costs for a growing number of homeowners and a longer payback period. Soaring interest rates are punishing homeowners with variable mortgages, which … Read more

Opinion: Canadian Tire’s rise in past-due accounts might be a big red flag

Opinion: Canadian Tire’s rise in past-due accounts might be a big red flag

Canadian Tire’s namesake retail business has made up just 40 per cent of profits so far this year.Christopher Katsarov/The Globe and Mail When Canadian Tire Corp. ltd. CTC-A-T said that its second-quarter profits got dinged because it was setting aside more money for possible bad debt in the future, the iconic retailer said it was … Read more