30 Oct

Bank of Canada rate announcement

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Posted by: Aneta Zimnicki

Bank of Canada holds the rate steady. Your variable rate mortgage remains unchanged. Bleak outlook. “The Bank continues to monitor the evolution of financial vulnerabilities in light of lower mortgage rates and past changes to housing market policies. Governing Council is mindful that the resilience of Canada’s economy will be increasingly tested as trade conflicts and uncertainty persist.” Next announcement is Dec 4.

23 Oct

The election is over. What does this mean for mortgages?

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Posted by: Aneta Zimnicki

The election is over. What does this mean for mortgages? Some good insights (summarized from source Mortgage Professional Canada):

Mortgage rules and related policy will not be a top priority for Trudeau government.

Most likely Liberals will implement their national tax on vacant residential properties owned by non-Canadians who don’t live in Canada, likely in spring budget.

The promised increases to the FTHBI (first time homebuyer incentive) in Toronto, Vancouver, Victoria would be welcomed but may not be immediately forthcoming. Push and pull between various levels of policy makers, with fear of increasing housing demand and therefore prices.

Not expected Liberals to consider insurable 30-year amortizations as policy independently, but in a minority government, opposition allegiances can set the agenda of the day.

It is also possible that the FTHBI could be replaced by 30-year amortization, but for now, forsee FTHBI surviving through this Parliament, at least.

Proposal of removal the mortgage stress test on renewals or switches (note, not on purchases or refinances) on the table, seems like all 3 party caucus members generally supportive of this, but nothing certain yet.

Recent announcement of the regionalized adjustments to FTHBI for Toronto and Vancouver may point to government being open to more regionalized policies, not just a “one-size-fits-all” national policy.

While many Canadians will want to see action, minority governments last longest when they keep it simple, and not act too boldly. No party wants another election so soon. Regardless, the mortgage industry will not wait and continues discussions with all parties.