Found 7 blog entries tagged as rate hike.

housing shortage affordability crisis

The Canadian real estate market is experiencing a correction period. While many industry observers are stopping short of calling this downturn a crash, it is clear that the once-sizzling housing sector is being doused by rising interest rates and broader uncertainty surrounding market conditions. So, are we still experiencing an affordability crisis?

In September, the national average home price tumbled 3.9 per cent from the same time a year ago to $637,673, according to the Canadian Real Estate Association (CREA). Even when Toronto and Vancouver – two of the hottest housing markets in Canada – are eliminated from the equation, the typical residential property in the country sold for more than $500,000. While this is…

285 Views, 0 Comments

Read Full Post

What the Bank of Canada’s Interest Rate Hikes Mean for Homeowners

In 2022, the Bank of Canada (BoC) has been raising interest rates at the fastest and most significant pace since 1998. In July, the organization increased the benchmark rate to 2.5 per cent for the first time since 2009, when the global economy was coming out of the financial crisis. Here’s what the Bank of Canada’s interest rate hikes mean for homeowners.

The central bank is trying to bust inflation, with the consumer price index (CPI) hovering around eight per cent. The Canadian economy has not witnessed inflation this high since the early 1990s, driven by a wide range of factors, from expansionary pandemic-era fiscal policy to surging commodity prices.

While inflation has eased this summer on the back of falling crude…

285 Views, 0 Comments

Read Full Post

Bank of Canada Interest Rate Announcement: Supersized Rate Hike of 100 Basis Points on July 13

The Bank of Canada was widely expected to make an increase in this morning’s interest rate announcement, but the central bank surprised everyone with a supersized hike of 100 basis points, bringing its target for the overnight rate up to 2.5 per cent. This is the Bank’s biggest move since 1998, and the fourth in a series of increases expected for 2022 as the Bank tries to tamp down the soaring inflation rate. Inflation is expected to hover around eight per cent for the next few months – well above the Bank’s two-per-cent target.

  1. What is the Bank of Canada’s current policy interest rate?
  2. When does the Bank of Canada announce its overnight rate?
    3. …

512 Views, 0 Comments

Read Full Post

Bank of Canada Interest Rate Announcement Raises It Another 0.5% on June 1

This morning’s interest rate announcement by the Bank of Canada reveals another 50-basis-point hike to the key rate, bringing it up to 1.5 per cent. This is the third in a series of increases expected in 2022, with the year kicking off at a low of 0.25 per cent, followed by a 0.25-per-cent bump in March and another 0.5-per-cent increase in April. Today’s increase makes the second time in the last 25 years that the Bank has implemented back-to-back increases of 50 basis points. The move appears to be having a cooling effect on hot Canadian housing markets, with Toronto and Vancouver sowing some signs of cooling. The Bank said it will use its monetary policy tools to ease…

433 Views, 0 Comments

Read Full Post

* How Will Higher Interest Rates Impact My Mortgage

How will higher interest rates impact my mortgage? It’s a question more homebuyers and homeowners are asking, in the wake of the Bank of Canada’s recent interest rate hikes. We consider many variables in life before making any big decision, and one of the most important ones to think about when buying a home is the current state of interest rates. While a low interest rate is desirable for a prospective buyer, as it means they have more purchasing power, lower rates may not be all they are cracked up to be.

Interest rates fluctuate. They rise and fall in response to the economy and world events, and can significantly impact the amount you pay for your home over the lifespan of your mortgage.

Typically, mortgage loans are…

384 Views, 0 Comments

Read Full Post


Photo by Linda McCann on Unsplash

In recent years, it’s likely you’ve heard the media, your colleagues and even politicians speak about “inflation.”

You also may have noticed prices for regular everyday items including food, gas, or larger purchases such as homes, furniture and vehicles have risen sharply since the start of the COVID-19 pandemic.

Up until a few months ago, when government officials and the media spoke about the current rise in inflation, they often defined it as “transitory”. Now, officials at the Bank of Canada are stating inflation may actually be more persistent, and have signaled the future path for Canadian interest rates may be a series of rate hikes to help bring inflation back down to within its target range of 1% to 3%.…

649 Views, 0 Comments

Read Full Post

DECEMBER 11, 2021

One of Canada’s “Big Six” banks is declaring next year to be “The Year of The Hike.” National Bank of Canada (NBC) chief strategist (and poet-in-residence) Warren Lovely is calling the first interest rate hike in just a few months. He sees the Bank of Canada (BoC) making its hike in March, way ahead of schedule. Over the next year, the overnight rate is forecast to recoup much of the ground lost during the pandemic. However, Canada’s real estate bubble will prevent it from going much further. Since the country went all-in on housing, it can’t pursue more aggressive policies like healthier economies. 

The Bank Of Canada Will Hike Rates In March

Canada is expected to wind up its overly easy monetary policy pretty fast.…

478 Views, 0 Comments

Read Full Post