Canadian households are facing difficulties in repaying their growing debt, with delinquencies on the rise, particularly in costly regions such as Ontario and British Columbia. Household credit hit $2.46 trillion in Q1 2024, primarily due to mortgage debt. Over 1.26 million Canadians missed credit payments in the same quarter, with higher rates in pricier regions.Read more
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The Bank of Canada is expected to cut rates by 0.25%, leading to lower rates on variable mortgages and HELOCs. Three rate simulations are discussed, with one scenario predicting multiple rate cuts by the Bank. Another scenario suggests a slower rate cut path, while a third scenario predicts a breakeven situation with inflation forces balancingRead more
Buyers assume sellers' mortgages for affordability amidst high rates, benefiting from lower rates. The seller's 2% mortgage was assumed, contrasting sharply with typical rates of 5-6%.Read more
The Canadian Mortgage Charter outlines principles for mortgage lending by federally regulated financial institutions (FRFIs).FRFIs must provide tailored mortgage relief to Canadians facing financial challenges with their primary residence.Read more
Even with low credit, you can still buy a house in Canada, the housing market is expected to rebound in 2024.To build a strong mortgage application, focus on improving your credit score; understanding how credit score is calculated is key.Read more
The GTA housing market saw stability in May with 7,013 transactions, a 21.7% drop from last year. OREA CEO calls for rate cuts due to unaffordability affecting transaction volume. Average home price decreased to $1,165,691. New listings increased by 21.1%, leading to a buyer's market. Interest rate cuts may attract more buyers but could alsoRead more
Interest rate cuts are expected by summer 2024, but won't significantly impact most fixed mortgages. 70% of Canadians have fixed mortgages secured at historically low rates, ~ 1.39%.Read more
The Bank of Canada's governing council is split on when to start lowering interest rates. While some members advocate waiting given robust economic performance and lingering inflation risks, others push for swifter action.Read more
An argument is being made for the Bank of Canada to reduce interest rates. Canada's economic situation and controlled inflation are reasons given in favor of a rate cut.Read more
Fitch Ratings stated that Canada's mortgage market remains resilient despite challenges from inflation and high interest rates, leading to increased mortgage payments for half of homeowners. Factors like employment stability, wage growth, and personal savings play a crucial role in managing mortgage debt. The majority of mortgage borrowers in Canada have maintained satisfactory payment records,Read more
