Michael Campbell on Interest Rates

The following is an excerpt from the VERICO Economic Report written by Michael Campbell The drastic change in the Bank of Canada’s stance regarding future increases in interest rates since October is a clear indication that the Bank and the Finance Department are surprised by the impact of rising rates on the real estate market […]

Fixed Mortgage Terms to Lower

Last week the Royal Bank of Canada (RBC) announced that they were lowering the interest rate of their five-year fixed-term mortgage. The rate drop went from 3.89% to 3.74% which represents a .15% cut. This is a result of the Canadian bond yield falling over 50 basis points over the past two months. This move […]

B.C. Provides Deadline For Exemption From Speculation Tax

Homeowners who live in their properties are exempt from paying the tax, but must complete an exemption form by 31 March. The Ministry of Finance expects that more than 99% of British Columbians will be exempt. Notices will be sent to homeowners in the Lower Mainland, Greater Victoria, Kelowna, and Nanaimo in the coming weeks. The […]

Bank of Canada Holds Steady

The latest statement from the Bank gives every indication it intends to continue raising rates, but it is in no hurry to do so. The key concern appears to be oil.  The low price of crude is seen as a weight on the entire Canadian economy, along with the slowdown in Canada’s property market due to […]

New Mortgage Rules – Update

With the new mortgage qualification rules coming into effect January 1, 2018, we’ve summarized how they’ll be implemented below: Real Estate If a legally binding Purchase and Sale Agreement is dated/signed prior to January 1, 2018, regardless of closing date, you will qualify under the old rules.  

OFSI Rule Changes Coming Jan 1, 2018

The Office of the Superintendent of Financial Institutions (OFSI) has released its finalized B-20 Update to the mortgage industry. Below is a quick summary of the new changes that will go into effect January 2018. 1. A new minimum qualifying rate, or “stress test” for uninsured mortgages

Principal Residence Tax Exemption: All home sales must be reported to CRA

Principal Residence Tax Exemption and Canadian Homeowners For the 70 per cent of Canadians who own a home, it is a place to live, raise our family, and it connects us to our community. Due to Canada’s tax system’s Principal Residence Tax Exemption, when we sell our homes, any increased value or “capital gains” are

US Federal Reserve Raises Interest Rates

US Federal Reserve Interest Rate Decision – March 15, 2017 The US Federal Reserve’s Open Market Committee (the Fed) raised its target overnight rate to between 0.75 and 1 per cent this morning. In a statement accompanying the Fed’s decision, it was noted that the labour market continues to strengthen and economic activity

Canada Expected to Hike Interest Rates Following the USA

The Bank of Canada has, once again, decided to maintain its policy rate at 0.5%, but the good news my be short-lived The Bank cites “significant uncertainties”, particularly in the United States, and “persistent economic slack” as the key reasons for holding the rate. But many see this as simply a placeholder until its The […]

CMHC to Increase Mortgage Insurance Premiums on March 17

CMHC (Canada Mortgage and Housing Corporation) will increase its homeowner mortgage loan insurance premiums effective March 17, 2017. Premiums are calculated based on the loan-to-value ratio of the mortgage being insured. Lenders typically require mortgage loan insurance when a homebuyer makes a down payment of less than 20 %. The premium can be paid in