“Sticky” core inflation raises the odds of a January rate hike: economists

Ottawa New Listings Canada’s headline inflation reading continued to fall in November, but core inflation rose, increasing the potential for an additional Bank of Canada rate hike in January. The headline Consumer Price Index (CPI) continued to slow to an annual growth rate of 6.8% in November, just a tick down from 6.9% in October, […]

A $200,000+ income is now needed to qualify for an average mortgage in Toronto & Vancouver

Ottawa New Listings High home prices and rising interest rates over the course of 2022 have made it significantly harder for buyers to qualify for the average mortgage, driving RBC’s affordability measure to its worst-ever level. The bank’s aggregate affordability measure rose “an astounding” 14.5 percentage points over the past year to 62.7%, according to […]

The average rent in Canada has surpassed $2,000

Ottawa New Listings The cost of rent in Canada has been on an uptrend since the pandemic, and in November reached an average of $2,024. That’s a 12% jump since last year and up 2.5% since October alone, according to recent data from Rentals.ca. Average rents are now up nearly 21% since hitting a low […]

Home sales and prices fell further in November

Ottawa New Listings Home sales resumed their decline in November following a pause in October, while average home prices also continued their downward slide. Home sales fell another 3.3% in November compared to the month before, and are now down 38.9% year-over-year, according to data released by the Canadian Real Estate Association (CREA). “November’s housing […]

OSFI leaves mortgage stress test unchanged

Ottawa New Listings Canada’s banking regulator confirmed today it will leave the mortgage stress test for uninsured mortgages unchanged. In its annual review of the minimum qualifying rate (MQR) used by federally regulated lenders, the Office of the Superintendent of Financial Institutions (OSFI) said the MQR has provided a margin of safety to mortgage borrowers […]

OSFI unlikely to tweak the mortgage stress test tomorrow

Ottawa New Listings Canada’s banking regulator is set to announce the results of its annual review of the mortgage stress test’s minimum qualifying rate on Thursday morning. But despite some homebuyers now facing a qualifying rate of more than 8%, OSFI superintendent Peter Routledge recently hinted that borrowers shouldn’t expect major tweaks to the stress […]

“Much higher” interest rates will be needed if inflation sticks, says Macklem

Ottawa New Listings The Bank of Canada’s interest rate hikes this year have “begun to work” to cool Canada’s overheated economy and slow inflation, the central bank’s governor said on Monday. But with headline inflation still at about 7% today—five percentage points above the Bank’s target of 2%—Bank of Canada Governor Tiff Macklem said the […]

Long-term prospects for Canadian home prices are positive

Ottawa New Listings The decline in national home prices this year will not turn into a prolonged downfall like the one that happened in the early 1990s. Back then, home prices kept declining for several years. In the case of Toronto, prices fell for seven long years following the 1989 peak and eventually lost roughly […]

National Bank to bring back its mortgage portability feature this week

Ottawa New Listings National Bank of Canada made headlines last week after it was revealed it had quietly removed borrowers’ ability to “port” their existing mortgage to a new home. In an exclusive interview with CMT, Tarek Naguib, VP of Retail Financing Solutions, explained what prompted that decision, and also confirmed that the feature will […]

The Latest in Mortgage News: Bank of Canada “still prepared to be forceful”

Ottawa New Listings The Bank of Canada has indicated its future rate decisions will be driven by economic data, but that it is “still prepared to be forceful” should the need arise. Deputy Governor Sharon Kozicki made the comment during a speech on Thursday, in which she spoke about this week’s rate decision and the […]

Was this the Bank of Canada’s last rate hike?

Ottawa New Listings Despite delivering a half-point interest rate hike at its final rate decision meeting of 2022, the Bank of Canada offered borrowers a glimmer of hope that this could be among its last. On the heels of stronger-than-expected GDP growth in the third quarter and persistently high inflation, the Bank opted for the […]

November data show housing markets are still in “correction mode”

Ottawa New Listings The housing slowdown continued in November with home sales down over 50% year-over-year in some of the country’s biggest cities. Greater Vancouver led the way, with sales falling 53% year-over-year. The MLS Home Price Index benchmark price, however, was down just 0.5% to $1,131,600 compared to November 2021. In the Greater Toronto […]