Bank of Canada holds key interest rate, forecasts GDP decline

[CTV - July 15, 2020] OTTAWA -- The Bank of Canada will keep its key interest rate at 0.25 per cent until the national economic picture improves, which governor Tiff Macklem said Wednesday will take "a long time." Low interest rates are meant to help households and businesses recover from the COVID-19 pandemic by making borrowing relatively inexpensive. Macklem noted the unusual clarity the central bank provided on the path for its key rate, owing to the unusual level of uncertainty facing Canadians [...]

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Posthaste: Here are three promising data points that show the Canadian economy is ready to rebound

[Financial Post - June 3, 2020] Rays (plural) of good news are piercing through the gloom surrounding the Canadian economy. And not surprisingly, the country’s resilient housing sector is among the first to report a rebound. Home sales jumped 53.2 per cent in May month-over-month, suggesting that April’s dramatic plunge in sales may have been the market’s low point. Another crucial statistic was new listings that rose 47.5 per cent during May, compared to April, according to the Toronto Regional Real Estate Board. The [...]

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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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Canadian Real Estate and the New Mortgage Rules

[Re/Max - July 1, 2020] Canadian real estate has been a tough nut to crack for some homebuyers, and those with less than 20 per cent as a down payment now face another challenge, with Canada Mortgage and Housing Corp.’s (CMHC) tighter qualification rules for borrowers of high-ratio mortgages. This move is in response to the global pandemic that has left many Canadians vulnerable. The changes, which include lower debt thresholds and higher credit ratings, are in effect as of [...]

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REAL ESTATE: Home Sales Vital To Economic Recovery

[BC Local News - June 5, 2020] Having pushed the restart button and emerged into the “New Normal,” we discover that B.C.’s economic engine is but a shadow of its former self. Citizens and businesses must now face the long-term consequences of the national measures taken to combat the Covid-19 pandemic. No amount of government stimulus funding will make up for the loss of personal income, investments and business revenue incurred during the shutdown, and all the federal stimulus money [...]

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Reopening B.C.: Priorities changing as real estate market ramps up

[Vancouver Sun - June 26, 2020] Vancouver chiropractor Beverley Steinhoff is looking to swap views for gardens. She is listing her 1,700-sq.-ft. condo at the top of south Granville — which looks out on the city, mountains and ocean, and is close to several parks — so she can move into a townhome in Shaughnessy that has a beautiful garden. “We’ve always had a lot of access to green space where we live, but we wanted more privacy,” she said. As open houses [...]

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The pandemic has pushed many financially stressed households to the brink. Here’s a budgeting guide to navigate the crisis

[Vancouver Sun - April 29, 2020] The COVID-19 pandemic isn’t just a health crisis. It’s also a financial crisis affecting virtually every household in British Columbia in some way. With so many workers laid off, furloughed or having work hours reduced, a lot of individuals and families are faced with the need to radically cut spending. And many are likely struggling just to stay afloat. March data from the MNP Consumer Debt Index – providing an early snapshot of the pandemic’s impact [...]

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Forced Selling May Be Headed For Canada’s Housing Market – Some previously priced-out homebuyers might have a shot at getting into pricey housing markets right now.

[Huffpost - April 22, 2020] A sharp rise in joblessness, combined with the bust-out of the short-term rental market, will send Canadian house prices down in the short term, some market experts are saying. And for some homebuyers ― those who are still in decent financial shape in this crisis ― that presents a rare opportunity for bargains in some of Canada’s priciest cities. So far, experts aren’t predicting a huge price decline. Stephen Brown, senior Canada economist at U.K.-based Capital Economics, [...]

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‘COVID Clauses’ Await Buyers In Canada’s Housing Market

[Huffpost - April 20, 2020] TORONTO (Reuters) ― In Canada’s typically busy home-selling season, wary buyers are donning masks and gloves to view properties while realtors offer virtual tours and coronavirus clauses as the real estate industry copes up with the outbreak. Canadian home resales are forecast to fall by about 30 per cent to a 20-year low this year, Royal Bank of Canada estimates. Home sales slumped 14.3 per cent in March from February. Armed with new COVID clauses, some agents are still trying. The COVID clauses include confirming [...]

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Buying and selling during the COVID-19 pandemic

[Synergy Mortgage -  May 6, 2020] The spring market is an active time for home buying and selling but this year it will be quieter. This is due to the safety measures taken to slow the spread of the COVID-19 virus. If you are planing to make a move this spring, it is possible, however please consider the following information.   The BC Government declared real estate an essential service on March 26, 2020. But it is far from business as usual. [...]

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