The US Federal Reserve has maintained its policy rate, citing progress towards its 2% inflation target. The Fed now anticipates only one rate cut in 2024, a decrease from the previously projected three cuts. Fed Chair Powell stressed the importance of robust data to support sustainable inflation. Meanwhile, the Bank of Canada is expected toRead more
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Buyers should consider the number of residents; each person ideally needs 600 sq ft. The tiny house movement promotes living in small homes, usually under 400 sq ft.Read more
Canada's largest financial co-operative suggests introducing more mortgages with longer renewal terms. Longer-term mortgages could mitigate "payment shocks" for households amidst interest rate increases.Read more
Bank of Canada warns mortgage renewal rates will rise over 60% by 2026. Households with mortgages from 2021-2022 face highest financial pressure due to low initial rates.Read more
Borrowell's new initiative in Ontario allows renters to include past rental payments in their credit scores, aiding in homeownership. The program aims to help Canadians build credit earlier in life, especially immigrants looking to apply for mortgages. Borrowell's CEO states the program recognizes responsible financial behavior and aims to make the credit system fairer forRead more
Canada's banking regulator acknowledged an "imbalance" in the application of the mortgage stress test for certain homeowners renewing their terms. The stress test requires borrowers to qualify at a rate of 5.25% or two percent above the contract rate. Homeowners renewing with the same lender are exempt from re-passing the test, but those changing lendersRead more
BOC states a limit on diverging from US monetary policy, but currently, they're not close to that limit. Differential between BOC and Fed rates expected to pressure Canadian dollar, influencing inflation and policy decisions.Read more
Bank of Canada Governor suggests interest rate cuts due to declining inflation. Home demand slows with cooling labor market.Read more
ON's total mortgage balance in "severe delinquency" exceeded $1B for the first time. Mortgages in severe delinquency are double the pre-pandemic levels.Read more
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
