No change to the Qualifying Rate or Stress Test Rate 5.25%

General Gemma Riley-Laurin 20 Dec

Having introduced a much-publicized hike to the qualifying rate for uninsured mortgages at the beginning of June, Canada’s banking regulator announced no further changes in its December update. The Office of the Superintendent of Financial Institutions (OSFI) said in a press release that it was holding the stress test rate at 5.25% or the contract […]

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Inflation Surge Is No Need For Hysteria

General Gemma Riley-Laurin 17 Nov

  StatsCanada today reported that consumer price inflation rose to 4.7% from year-ago levels in October, compared to 4.4% in September. This is in line with market expectations and is well below the US’s 6.2% pace reported for the same period. Inflation is rising all over the world, the direct result of extreme weather events […]

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Home Sales Surge in October

General Gemma Riley-Laurin 15 Nov

  Today the Canadian Real Estate Association (CREA) released statistics showing national existing-home sales rose a whopping 8.6% in October, its most robust month-over-month pace since July 2020, when the first lockdown eased briefly. This was on the heels of a modest uptick in September–the first gain since March of this year.Sales were up month-over-month in about three-quarters […]

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Renewing Your Mortgage.

General Gemma Riley-Laurin 12 Nov

  Did you know? Close to 70 percent of mortgages never make it to the end of their term! This means that, for a variety of reasons, homeowners are ending their mortgages early. However, that still leaves a solid 30 percent of home buyers who keep their mortgage until the term is up and it […]

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A More Normal Jobs Report In October

General Gemma Riley-Laurin 5 Nov

View this email in your browser   Statistics Canada released the October Labour Force Survey this morning, reporting a slowdown in employment growth from the blockbuster pace of recent months. While some commentators were disappointed in the results, I have a more positive take. Canada returned its pre-pandemic level of employment in September ahead of […]

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Prices are Rising Everywhere–Transitory Can Last A Long Time

General Gemma Riley-Laurin 21 Oct

  Today’s release of the September Consumer Price Index (CPI) for Canada showed year-over-year (y/y) inflation rising from 4.1% in August to 4.4%, its highest level since February 2003. Excluding gasoline, the CPI rose 3.5% y/y last month. The monthly CPI rose 0.2% in September, at the same pace as in the prior month. Month-over-month CPI growth […]

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Canadian Home Prices Continued to Rise As Insufficient Supply Creates Excess Demand

General Gemma Riley-Laurin 15 Oct

  Today the Canadian Real Estate Association (CREA) released statistics showing national existing-home sales rose 0.9% between August and September 2021, posting the first monthly gain since March (see chart below). On a year-over-year (y-o-y) basis, the number of transactions last month was down 17.5%. Nevertheless, it was still the second-highest sales figure ever for the month […]

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