All past and present clients of ours are able to enter monthly for a chance to win a $100 amazon gift card.
Oct. 15, 2024 - Inflation Sees a Slight Rise to 2.00%.
Inflation saw a rise in inflation in October with the unsurprising culprits being shelter (up by 4.80% annually) and food costs (up by 3.00% annually). The rise in these costs is heavily impacted by poor government planning in regards to immigration, which has fueled record increases in the cost of housing and rent, and demand for food products are accelerating more quickly than supply. The country also saw a 3.01% increase in health and personal care.
The Canadian dollar fell in comparison with the U.S. dollar over the past year, which is another contributor to inflation. The reason for this is that it raises the cost of imports from the U.S., which is Canada’s largest trading partner.
Overall this should not change the Bank of Canada’s intention to continue to lower the key interest rate, as 2.00% is the Bank's inflation target rate, however the Bank will react to economic events as they come, so nothing is set in stone.
Mortgage rate news and analysis
Oct. 23, 2024 - Bank of Canada lowers key interest rate by 50 basis points
The Bank of Canada lowered the overnight rate by 50 basis points as most economists expected, bringing the Prime Rate down to 5.95%. This move provides some relief to borrowers in variable rate mortgages as well as for those who have lines of credit
Oct. 7, 2024 - Bond Yields Rise With Oil Prices Due To Middle East Tensions
Government of Canada bond yields have spiked upwards due to an increase in the price of oil caused by Middle East Tensions.
The price of oil is generally the largest contributor to global inflation levels, and since the Middle East contains many large oil producing economies, potential damage caused by military aggression to oil extraction infrastructure which would reduce the production has caused investors to purchase oil futures in large amounts, leading to the rise in price.
Since inflation is the main driver of changes in Government of Canada bond yields, and Canadian fixed mortgage rates are based on these yields, we may see a slight rise in fixed rates, although the long term forecast still remains for yields to fall over the next couple of years.
Sept. 16, 2024 - Maximum Purchase Price for Insured Purchases Increased
The Federal Government announced today that it will be increasing the maximum purchase price for insured purchases from $1 million to $1.5 million, making it possible for home buyers to purchase homes of up to $1.5 million with less than a 20% down payment