Rising interest rates have brought back the 5 per cent GIC

Rising interest rates have brought back the 5 per cent GIC

We’ve hit a milestone in conservative investing – a 5 per cent return from guaranteed investment certificates. Oaken Financial, an online player in financials services, says it will offer 5 per cent for a five-year term starting Friday. The new rate for the one-year term seems a milestone as well: 4.05 per cent. Rising interest … 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

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

Opinion: Bank of Canada would be wise to match US Federal Reserve’s plans for aggressive rate hikes

Opinion: Bank of Canada would be wise to match US Federal Reserve’s plans for aggressive rate hikes

Governor of the Bank of Canada Tiff Macklem speaks at a press conference in Ottawa on June 9.PATRICK DOYLE/The Canadian Press The US Federal Reserve has just raised the bar on using interest rates to attack inflation. Now, the Bank of Canada has a few short weeks to decide whether it will follow. It should … Read more

Bank of Canada likely to mirror 0.75% Fed hike next month, say economists

Bank of Canada likely to mirror 0.75% Fed hike next month, say economists

The Federal Reserve raising its key interest rate by three-quarters of a percentage point – its largest hike since 1994 – increases the odds of the Bank of Canada following suit next month, economists say. The US bank authority announced the Wednesday move will shift the country’s benchmark rate to a range between 1.5 per … Read more

US Federal Reserve hikes interest rate by largest amount since 1994

US Federal Reserve hikes interest rate by largest amount since 1994

US Federal Reserve Chair Jerome Powell speaks during a news conference on interest rates, the economy and monetary policy actions, at the Federal Reserve Building in Washington on June 15.OLIVIER DOULIERY/AFP/Getty Images The US Federal Reserve has announced its largest interest rate increase since 1994, and said that it would continue pushing borrowing costs higher … Read more

Wall Street braces for possible Fed interest rate hike not seen since 1990s

Wall Street braces for possible Fed interest rate hike not seen since 1990s

Traders work on the floor of the New York Stock Exchange in New York City on June 14.Spencer Platt/Getty Images Investors are betting the US Federal Reserve will announce its first 75 basis point interest rate hike since 1994 on Wednesday – a sharp shift in market expectations in recent days as inflation proves more … Read more

What is stagflation, and does it lead to a recession? What you need to know as global economic worries grow

What is stagflation, and does it lead to a recession?  What you need to know as global economic worries grow

There are growing concerns worldwide that ‘stagflation’ could push many countries towards recession.Christopher Katsarov/The Canadian Press The world economy is being hammered on all sides. Russia’s invasion of Ukraine, soaring inflation and rising interest rates are weighing on global growth and pushing many countries towards recession. That’s reviving concerns about “stagflation” – a noxious combination … Read more

Private mortgage lender Magenta suspends new loan applications until fall

Private mortgage lender Magenta suspends new loan applications until fall

A house is for sale in Ottawa, Ont., on April 13.Spencer Colby/The Globe and Mail Magenta Capital Corp., one of Canada’s largest private mortgage lenders, has suspended new loan applications until September, according to an e-mail to its broker clients viewed by The Globe and Mail. It’s an unexpected move for a lender that has … Read more

This cash parking spot for investors has never looked better

This cash parking spot for investors has never looked better

Last week’s increase in the Bank of Canada’s benchmark rate flowed directly to investors who park money in high interest savings ETFs, and the next central bank rate hike will likely do the same. High interest savings ETFs are exchange-traded funds holding deposits at banks. A recent report by CIBC Capital Markets pegs the after-fee … Read more