The Bank of Canada Has Been On a Rate-Hiking Tear. Is That About to Change?
The Bank of Canada, once focused on raising interest rates, may now be considering a pause due to changing economic conditions. In response to high inflation, the central bank had aggressively increased rates in 2022, but the economy has shown signs of deceleration. If the economy continues to weaken, the Bank of Canada could reverse its rate-hiking strategy and lower interest rates in early 2024. This potential shift could impact various financial aspects, including mortgage rates and savings account returns, making it important for individuals to stay informed about the changing economic landscape.
When are interest rates going down? And how did Canada get here?
The article explores the consequences of rising interest rates in Canada, leading to concerns among homeowners and businesses facing higher borrowing costs. Political leaders have criticized the Bank of Canada’s rate hikes, attributing increased inflation to these actions. Bank of Canada Governor Tiff Macklem expressed concerns about inflation progress. Interest rates influence economic behavior and are tied to the Consumer Price Index (CPI). Economists predict rates to stay at five percent until at least Q3 2024, with further increases in 2025.
Greener Homes Grants: making the most of new home energy retrofit programs
Canadian homeowners can access government programs for greener home retrofits, including interest-free loans of up to $40,000 over ten years (Canada Greener Homes Loan), grants of up to $5,000 (Canada Greener Homes Grant), and a 25% mortgage insurance premium reduction (CMHC Eco Plus). These retrofits help improve energy efficiency and can lead to significant long-term savings, with potential reductions of up to 78% in energy costs over ten years, making them a wise investment amid rising energy prices.
Why private mortgages are becoming so popular in Canada
As it becomes more difficult to secure a mortgage traditionally through a bank, Canadians are turning to the private mortgage option. Increasing more people are using private mortgage brokers to finance homes for various reasons. The high interest rates are putting pressure on homeowners and some people simply aren’t able to get a mortgage at their bank. Private mortgages in dollar value are at $22.4 billion in Ontario alone.
How to eliminate your mortgage payments with a reverse mortgage in Canada
Amidst the rising interest rates in Canada, homeowners, especially those with large loans like mortgages, are facing financial concerns. The unexpected hikes have resulted in higher monthly payments, posing challenges to stay in their homes. However, there are solutions to ease the burden during this economic climate. For eligible homeowners, a reverse mortgage offers a viable option, allowing them to eliminate mortgage payments and securely remain in their homes.
What Will Home Prices Look Like in 2023? Here’s What the Experts Say
With the real estate market in flux, many Canadians are wondering what to expect from home prices in 2023. If you’re thinking about buying a new house, or you’re considering getting the equity out of a home you already own, it can help to know what the experts are saying.
4 Big Ways Rate Increases Are Impacting Real Estate (& Why They Matter)
As the Bank of Canada works to keep inflation under control, rate increases are making home ownership decisions increasingly difficult. Here’s a brief look at what prospective home buyers and sellers should know about the impact of rising interest rates on real estate in Canada.
How to Secure Easy Financing through a Private Mortgage Lender in Canada
If you have bad credit, have irregular income, depend on foreign income, or are new to Canada and don’t have employment history, a private mortgage is well suited to you.
Are we in a buyer’s market? April 2023 Edition
While interest rates have gone up, there are some things that contribute to it being a good time to buy. Many Canadians know that home ownership is a great long-term investment. However, they also acknowledge the higher interest rates may have a negative effect on their ability to buy or sell a home. At this point, 67% of Canadians wouldn’t consider purchasing a home in the early part of 2023.
Tips on paying down debt in retirement
In a perfect world, we’d all retire debt free. But the majority of Canadians today are retiring with some debt. In fact, the Financial Post reports a sharp increase in the number of seniors seeking debt relief, and it’s understandable. Carrying debt can be overwhelming, especially on a reduced income. Fortunately, there are tools and resources you can use to help you get your debt situation under control, no matter what stage of life you’re in.