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 […]

Introduction Interest rates play a pivotal role in the housing market and the broader economy. The recent decision by the Royal Bank of Canada (RBC) to lower its interest rate for the five-year fixed-term mortgage has made waves in the financial sector. This article seeks to provide a comprehensive analysis of this decision, the context […]

Introduction The housing market in British Columbia has, for years, been a topic of discussion among policymakers, economists, and residents. In response to the rising housing prices and the challenge of housing affordability, the provincial government introduced a new tax mechanism aimed at addressing the issue of vacant properties. This article elaborates on this tax, […]

Introduction The economic landscape in Canada is continuously evolving, shaped by various domestic and global factors. The latest statement from the Bank of Canada, the nation’s central bank, sheds light on its future monetary policy direction. This article delves into the Bank’s statement, providing a clearer understanding of the forces driving its decisions and the […]

Introduction The mortgage landscape in Canada underwent a pivotal change at the start of 2018. New mortgage qualification rules were introduced, aiming to ensure the stability of the market and protect both lenders and borrowers from potential financial pitfalls. This article offers a comprehensive look at how these new rules were implemented, particularly concerning real […]

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. Introduction In recent years, there has been a […]

Introduction The notion of owning a home extends beyond just having a roof over our heads. For many, it represents family, community, and a significant financial asset. In Canada, the tax system provides some relief to homeowners in the form of the Principal Residence Tax Exemption, which can be especially beneficial when it’s time to […]

Introduction The decision by a country’s central bank to adjust interest rates is always of profound significance, affecting everything from consumer spending to business investments and even international markets. On March 15, 2017, the US Federal Reserve’s Open Market Committee (the Fed) took a pivotal step in this direction. In this article, we’ll explore the […]

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 […]

Introduction The Canada Mortgage and Housing Corporation (CMHC) has announced an increase in its homeowner mortgage loan insurance premiums, set to take effect on March 17, 2017. Mortgage loan insurance plays a pivotal role in the Canadian housing market, ensuring that homebuyers, especially those with a smaller down payment, can secure their dream homes with […]