Reopening Canada: The economy survived the crash, but making it thrive again will depend on all of us

Reopening Canada: The economy survived the crash, but making it thrive again will depend on all of us

[Financial Post - June 25, 2020] 'Fundamentally, humans are scrappy and resourceful when faced with crises,' one small-business owner says “We survived.” Chrissy Durcak, chief executive and founder of Montreal-based Dispatch Coffee, was talking about her company, but she could have been talking about the broader economy, too. In April, the COVID-19 crisis was so terrible that the Bank of Canada couldn’t rule out the possibility that we were in the early stages of a depression. While not its base case, the central [...]

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How to get around Canada’s harsh new mortgage rules – Come July 1, 2020, it will be a lot harder to get the feds to back your mortgage.

[Financial Post - June 16, 2020] The tighter lending rules coming into force July 1 will make it harder for some Canadians to buy homes, but mortgage pros say panicking won’t do you any good. The Canadian Mortgage and Housing Corporation (CMHC) announced plans in early June to reduce borrowing limits, demand higher credit scores and restrict down payments for anyone who needs default insurance from the agency. That kind of insurance is mandatory for “high-ratio” buyers putting less than 20% [...]

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Mortgage rule changes: CMHC tightens requirements for homebuyers

[Yahoo Finance - June 4, 2020] Qualifying for a mortgage is about to get harder for anyone who doesn’t have at least a 20 per cent down payment for a home, which is likely to have an outsized effect on first-time buyers. Canada Mortgage and Housing Corporation (CMHC) is tightening its rules to qualify for an insured mortgage. At least one applicant’s credit scores will need to be 680, up from the previous minimum of 600. To ensure borrowers can keep up [...]

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Major lenders begin to cut fixed mortgage rates

[Globe and Mail - April 16, 2020]   Fixed mortgage rates are creeping lower this week, as the funding markets that banks and other mortgage lenders use to raise money for loans have begun to normalize after weeks of outsized volatility. Toronto-Dominion Bank brought its five-year fixed rate down to 3.09 per cent from 3.24 per cent this week, and several other major lenders including Royal Bank of Canada and MCAP have also reduced their rates. Five-year fixed-rate mortgages ranged between 2.39 [...]

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Summer revival of pandemic-ravaged Canadian real estate seen by RBC economist Robert Hogue

[Georgia Straight - April 16, 2020] An RBC economist expects a possible summer resurgence of the real estate market in Canada. In a housing update, Robert Hogue of RBC Economics described the ravages being done by the COVID-19 pandemic on the residential property market as a “temporary shock”. “We expect stronger activity to resume once social distancing orders are relaxed though there’s great uncertainty as to when this will happen,” Hogue wrote. “Our baseline assumption is sometime in June,” Hogue continued in his [...]

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How will COVID-19 impact the real estate market in Canada?

[Money Sense - March 25, 2020] From cooling down sales to changing how available homes are shown, this global pandemic will change Canadian real estate in the short- and long-term. To say the events of the past few months have had an unprecedented impact on how our society functions would be an understatement. As the threat of the COVID-19 global pandemic grows across Canada and all levels of government enact policies to stop community spread via social isolation, millions of Canadians [...]

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Canada’s COVID-19 Economic Response Plan: Support for Canadians and Businesses

[Department of Finance Canada - March 18, 2020] Backgrounder The Government of Canada is taking immediate, significant and decisive action to help Canadians facing hardship as a result of the COVID-19 outbreak. On March 18, 2020, the Prime Minister announced a new set of economic measures to help stabilize the economy during this challenging period. These measures, delivered as part of the Government of Canada’s COVID-19 Economic Response Plan, will provide up to $27 billion in direct support to Canadian workers and [...]

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Trudeau unveils financial aid worth $82 billion to help Canadians weather coronavirus

[Financial Post - March 17, 2020] Prime Minister Justin Trudeau announced plans to roll out a fiscal package worth 3% of Canada’s economy as it grapples with fallout from the coronavirus pandemic. The measures will be worth a combined $82 billion (US$56.7 billion), Trudeau said Wednesday in Ottawa. This includes $27 billion in direct support for individuals and companies and $55 billion in temporary tax deferrals for both households and businesses. The outlook, however, seems to be deteriorating quickly. The price of [...]

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Canadian Housing Market Trends To Look Out For In 2020 – The slowdown seems to be over.

[Huffington Post - November 3, 2019] The floodgates have officially opened for Canadian housing market forecasts for the next year. We’ve already heard that interest rates will likely sink lower in 2020 as the housing market continues to rally through the first half of the year. There’s also speculation around how the Liberals’ October election win will impact housing affordability and whether the NDP will play a bigger role in setting the housing policy agenda within the new minority government. Now the Canada [...]

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Federal election 2019: Where do the parties stand on housing and real estate?

[Globe and Mail - October 1, 2019] Liberal Leader Justin Trudeau wasted no time making real estate an election issue. On the first morning of the campaign, he stood outside a townhouse development in Victoria and unveiled his policies on housing affordability. It was an acknowledgment that the issue is top of mind for many Canadians, especially those living in urban areas where home prices have soared. In big cities and suburbs, young people worry they’ll never be able to afford a [...]

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