Buy or sell first? Softening housing market gives owners options

[Globe and Mail - August 4, 2022] Last summer, when the Salters sold the Calgary home they had been renting out since their move to the quiet Cariboo region of British Columbia a few years earlier, the Calgary market was hot. This year, when they decided to move back to the city, the COVID-19-inspired buying spree in rural Canada had increased the value of their Cariboo property significantly, while the Calgary real estate market was decidedly cooler. “The market drastically slowed after [...]

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How does the Bank of Canada’s interest rate hike affect variable rate mortgages?

[Globe and Mail - July 13, 2022] The Bank of Canada increased its benchmark rate by a whole percentage point on Wednesday, the most aggressive rate hike since 1998 and an even bigger jump than investors and Bay Street economists were expecting. This is the fourth consecutive interest rate hike since March, as central banks around the world attempt to curb runaway inflation and slow the pace of consumer price growth. The Bank of Canada’s policy rate now sits at [...]

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Bank of Canada overnight rate rises by 100 basis points to 2.50%

Invis - July 13, 2022 The Bank of Canada has raised its policy rate for the fourth consecutive time in 2022, bringing it to 2.50% from a pandemic low of 0.25%. The Bank has stated borrowing costs need to rise quickly to more normal levels to bring inflation back to a target of 2% from its current high of 7.7%. Raising interest rates is a move intended to force Canadians to spend more on interest repayments as opposed to spending [...]

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Rising interest rates mean Canadians need the right mortgage advice

[Globe and Mail - June 8, 2022] Homeowners and buyers should seek advice as they adjust their strategies and look for more ways to save The changing landscape around interest rates is having a cooling effect on Canada’s scorching real estate market, giving Canadians an opportunity to slow down and explore their options. Three out of four homeowners polled by CIBC this spring say they intend on staying put in the short-term. While about 22 per cent of homeowners expect to buy [...]

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The Tax-Free First Home Savings Account (“FHSA”) explained

[Invis - May 5, 2022] If you or someone you know is saving for a downpayment on their first home, the Federal government announced a new program aimed at first-time buyers in their recent budget. The First Home Savings Account combines the features of an RRSP and TFSA to give prospective homeowners some tax relief and a boost toward their homeownership goals.   Here are the highlights: Account holders can contribute up to $8,000 annually, up to a lifetime maximum of $40,000. [...]

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B.C. property owners face $52K in real estate fees even though sale never happened

[CTV - May 1, 2022] When Mike Armstrong and his wife Jessica set out to sell two cabins nestled in the trees at Lake Errock east of Mission, they had planned to use the proceeds to move to Vancouver Island to be closer to family. He never expected five years later they would be left facing tens of thousands of dollars in real estate commission fees without having sold either of the properties. “Never. No, no. I mean, who would?” he said. [...]

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New tax-free home savings account, foreign buyer ban top budget plan to tackle housing affordability

[CBC - April 7, 2022] Government pledges to double pace of new home construction to 400,000 annually to target supply issues The federal government outlined its plans to tackle sky-high housing costs in Thursday's budget — including a temporary ban on foreign buyers, a crackdown on speculators, a pledge to double the pace of new home construction and a new tax-sheltered way for Canadians to save up to buy a home. The government is moving ahead with something it floated on the [...]

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Higher interest rates are here. What does that mean for you?

[Synergy Mortgage - March 3, 2022] The Bank of Canada has been signaling for a while now that they will respond to inflation by raising interest rates. Sure enough, on March 2nd they announced a hike in the overnight rate by 0.25%. Here are answers to the most commonly asked questions. How does this affect my current mortgage? It depends if your mortgage is fixed or variable. A rate hike will impact variable-rate mortgage holders immediately as more of your monthly payment [...]

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Bank of Canada hikes rates for first time since 2018

[BNN - March 2, 2022] OTTAWA -  The Bank of Canada raised its overnight lending rate by 25 basis points to 0.50 per cent on Wednesday, marking the first time the central bank has tightened monetary policy since 2018, while highlighting how Russia's attack on Ukraine could weigh on global growth and lift commodity prices further. The central bank cited strong recent economic growth in Canada, resilient household spending despite the surge of the Omicron COVID-19 variant and inflation figures that are "well above" the [...]

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Mortgage Rates as of January 26, 2022 – BoC Announcement

[Invis - January 26, 2022] No change to the Bank of Canada overnight rate at .25% The Bank of Canada announced today that it will continue to hold the overnight rate steady, noting that the recovery continues to require extraordinary monetary policy support. While Canada's economy showed a higher-than-expected resiliency in 2021, new lockdowns and the spread of new variants have put a pause on further expected economic growth. Canada's central bank has ended the bank's provision of monetary stimulus through quantitative easing [...]

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