1. Bank of Canada raises its overnight rate to 4.5% today

    With the unemployment rate at 5% in Canada and inflation at 6.3%, the Bank of Canada did not hesitate to raise the overnight rate today by a quarter percentage to 4.5%. In a recent interview, Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), said that 2023 will be “a tough year, tougher than […]

  2. Proceed with caution when giving your kids a boost to home ownership 

    A little while ago, I posted a blog titled “Helpful tips for first-time home buyers and their parents in a rising rate environment”. In it, I discussed well-meaning parents who gifted or loaned money to their children to help them with a down payment for a home and issued some stark warnings: Parents: Millennials and Gen Zs: Recent data […]

  3. Bank of Canada raises the key interest rate by one-half of a percentage point (0.50%), bringing it to 4.25%

    The Bank of Canada has raised its policy rate to 4.25% today, stating borrowing costs need to rise to bring inflation back to target of 2% from the current rate of 6.9%. This marks the seventh consecutive rate increase in 2022. “We’re expecting roughly zero growth (in the Canadian economy) for the next several quarters […]

  4. Is it smarter to invest in the stock market right now or pay down your mortgage? 

    With the recent Bank of Canada overnight rate increase to 3.75%, mortgage rates are anywhere at 6 to 7 per cent if renewing, and the TSX index is down substantially and typically will move even lower with more interest rate hikes and a looming recession.  So, the big question for many homeowners is: Do you […]

  5. Bank of Canada raises the key interest rate by half a percentage point, bringing it to 3.75%

    The Bank of Canada has raised its policy rate to 3.75%, stating borrowing costs need to rise to bring inflation back to target of 2% from the current rate of 6.9%. “We actually need to see some cooling in the labour market,” Bank of Canada Governor Tiff Macklem said this month. “Right now, it’s overheated. That’s also generating domestic price […]

  6. Don’t just shop for a mortgage rate!  There are so many things that matter other than just rates! 

    Choose a mortgage broker at either Invis or Mortgage Intelligence to offer you much more such as: ·      A mortgage broker is your guide to financial literary and has a legal obligation to explain the financial product(s) that is best for you while seeking the lowest mortgage rate based on your credit history, length of mortgage […]

  7. Planning the next move – whether in real estate or other investments

    Canadian TSX and real estate prices have dropped substantially in value in the first three quarters of 2022. American indexes fell into bear-market territory earlier this year, some shedding more than 25 per cent of their value Meanwhile, inflation, currently at 7.0%, has been putting the squeeze on our budgets, and the Bank of Canada just […]

  8. Do you have either parents, family members or trustworthy close friends to pool resources and purchase a home together given the high cost of real estate and cost of financing?

    Here’s what you need to consider when combining purchasing power and splitting carrying costs with either parents, friends, or other family members. All of the potential co-owners should have a discussion about their finances and life goals as this will impact how the partnership plays out. Do all of the co-owners have stable incomes and […]

  9. Bank of Canada raises the key interest rate by three-quarters of a percentage point, bringing it to 3.25 %

    The Bank of Canada has raised its policy rate five times in 2022, to 3.25 per cent today.  Bank of Canada has stated borrowing costs need to rise  to bring inflation back to target of 2% from the current rate of 7.6%.  In theory, higher interest rates discourage spending on goods and services, which reduces demand and lowers […]

  10. Bought a house within the last 3 years? – What to do now to keep it!

    For 14 years until 2022, Canadians enjoyed low interest rates and if you owned a house, it rapidly gained value. Facing a combination of higher living costs and rising debt payments, home-owning young families are the demographic with the most money stress today. Falling home prices could mean you may owe more on your mortgage […]