Canadians making good progress on debt

More than half of Canadians say they are making good progress paying down their debt, still many fear it’s not enough, according to a new survey. Harris-Decima and CIBC polled more than 2,000 adults and found 72% are holding some form of debt. The good news is 61% say they are making good progress repaying […]

Putting Rates in Neutral

Neutral isn’t what it used to be—not with the Bank of Canada’s key interest rate anyhow. In the modern era of monetary policy, the neutral policy rate (NPR) has averaged about 4.20%, according to BMO. Today, BMO, TD, CIBC and others say it’s closer to 3.00%…or less. (Economists have lately been ratcheting down their estimates of the NPR.) If you hold […]

Housing correction coming: Sharp or slow?

The Canadian housing market is due for a correction, but it will likely be a slow decline rather than a sharp drop, says a report from the Canadian Imperial Bank of Commerce. “While house prices are likely to adjust as interest rates eventually climb, the national pace of any correction is likely to be gradual,” […]

Banks competing fiercely for borrowers

Canada’s banks are locked in a war of attrition this summer, grinding down mortgage rates and competing more fiercely for personal loans in an effort to steal customers from each other. Stuck in a market where the Canadian consumer is already highly leveraged and more concerned with paying down existing debt, the market for new […]

Lower Qualification Rates on Conventional Mortgages. A Trend?

One year after most banks started using posted rates to qualify conventional mortgages, we’re starting to see some loosening of those policies. Three weeks ago, Scotiabank lowered its conventional qualifying interest rates, and last week FirstLine (a division of CIBC) did the same. Lower qualification rates impact debt ratio calculations and make it easier for […]

Majority of Canadians still confident they can service mortgage payments: BMO

  Two in three Canadian homeowners believe they will still be able to service their mortgage payments if interest rates go up, according to a survey by Bank of Montreal (BMO) Financial Group. While some were unsure, another 18% of Canadians said they would not be able to afford higher payments, although the survey didn’t […]

Why buying U.S. real estate is still a gamble

The resurgence of the loonie and continued degradation of U.S. home prices are spurring more Canadians to invest in property south of the border. But while this might appear an opportune time to snatch up a retirement home or dream vacation property, experts warn that jumping into these major purchases without doing extensive research is […]

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