The Roberts Group - Dominion Lending Centres

03/08/2023

The Bank of Canada has paused its rate hikes while the US Federal Reserve promises to push higher. Economic growth has slowed, but employment remains strong. The next scheduled date for announcing the overnight rate target is April 12, 2023.

With the pause in rate hikes, businesses and consumers alike are left wondering what's next. Keep an eye out for more updates and analysis.

DLC's Chief Economist Dr. Sherry Cooper dives deeper into the details if you are interested in learning more. Please read here:

The Bank of Canada Holds Rates Steady Even As the Fed Promises to Push Higher As expected, the central bank held the overnight rate at 4.5%, ending, for now, the eight consecutive rate increases over the past year. The Bank is also continuing its policy of quantitative tightening. This is the first....

01/23/2023

Good news for Canadian home buyers! The housing market is showing signs of stabilizing with an increase in activity in December. However, buyers may face fewer options if the dip in new listings continues. Keep an eye on the market for updates.

Want to know more? Check out the full article for a detailed analysis of the Canadian housing market in 2023:
https://www.canadianmortgagetrends.com/2023/01/what-can-we-expect-from-the-housing-market-in-2023/

Housing activity picked up across the country in December after plummeting for much of 2022 due to climbing interest rates.

10/26/2022

The Bank of Canada has increased the policy interest rate by 0.50% today, going from 3.25% to 3.75% (Prime Lending Rate from 5.45% to 5.95%).

This is the 6th increase since March and the BOC states the effects of COVID-19 outbreaks, ongoing supply disruptions, and the war in Ukraine continue to dampen growth and boost prices.

For anyone in a variable rate or line of credit product - expect your payments to increase. Please reach out to our office if you'd like to review your personal situation.

The next scheduled date for announcing the overnight rate target is December 7th, 2022. DLC's Chief Economist Dr. Sherry Cooper dives deeper into the rising interest rates and what they may mean for the future. Please read here:

https://dominionlending.ca/economic-insights/bank-of-canada-slows-pace-of-rate-hikes

The Bank of Canada Slowed the Pace of Monetary Tightening The Governing Council of the Bank of Canada raised its target for the overnight policy rate by 50 basis points today to 3.75% and signalled that the policy rate would rise further. The Bank is also continuing its policy of quantitative tighte...

09/07/2022

The Bank of Canada has increased the policy interest rate by 0.75% today, going from 2.50% to 3.25% (Prime Lending Rate from 4.70% to 5.45%).

This is the 5th increase since March and the BOC states the effects of COVID-19 outbreaks, ongoing supply disruptions, and the war in Ukraine continue to dampen growth and boost prices.

For anyone in a variable rate or line of credit product - expect your payments to increase.

Please reach out to our office if you'd like to review your personal situation.

READ THE OFFICIAL STATEMENT HERE:
https://www.bankofcanada.ca/2022/09/fad-press-release-2022-09-07/

The Bank of Canada today increased its target for the overnight rate to 3¼%, with the Bank Rate at 3½% and the deposit rate at 3¼%.

08/11/2022

Finally some good news on inflation!

https://dominionlending.ca/economic-insights/finally-some-good-news-on-the-inflation-front

It was widely expected that US consumer price inflation would decelerate in July, reflecting the decline in energy prices that peaked in early June. The US CPI was unchanged last month following its 1.3% spike in June. This reduced the year-over-year inflation rate to 8.5% from a four-decade high of...

07/13/2022

The Bank of Canada has increased the prime lending rate by 1.00% today going from 3.70% to 4.70%.

This is the 4th increase since March and the biggest one-time increase since 1998. The BOC sites that inflation is more persistent than the bank expected, with the war in Ukraine and supply disruptions being the biggest drivers.

For anyone in a variable rate or line of credit product - expect your payments to increase.

Please reach out to our office if you'd like to review your personal situation.

READ THE OFFICIAL STATEMENT HERE:
https://www.bankofcanada.ca/2022/07/fad-press-release-2022-07-13/?fbclid=IwAR19nSP93ok62TusOC_PUlHhBdJAE2v9aruFHfhNA5iYKGtJF82Gjjx7KXA

The Bank of Canada today increased its target for the overnight rate to 2½%, with the Bank Rate at 2¾% and the deposit rate at 2½%.

06/01/2022

"The Governing Council of the Bank of Canada raised the overnight policy rate by a full 50 basis points once again today, marking the third rate hike this year. The two back-to-back half-point increases are without precedent, but so were the dramatic pandemic rate cuts in the spring of 2020..."

As a reminder, Bank of Canada's overnight policy rate has a direct effect on the mortgage interest rates available to you. Please let us know if you would like to know more or if you have any questions.

To read more about Bank of Canada's announcement please click here:
https://dominionlending.ca/economic-insights/the-bank-of-canada-hikes-rates-again-by-50-bps

05/08/2022

Happy Mother's Day 💕

04/13/2022

While no one likes seeing interest rates rise, breaking down the actual impact that it has on a mortgage payment helps put things into a better perspective.

While a 0.50% bump to the overnight rate is significant, that is only a payment increase of approximately $24 per $100,000 Mortgage balance over a 25-year amortization period. So for a mortgage with a $500,000 balance, the mortgage payment just went from $2,047/m to $2,168/m ($121 increase).

If you would like to read more on this topic, please visit this article from DLC's chief economist Dr. Sherry Cooper: https://dominionlending.ca/economic-insights/out-sized-jump-in-bank-of-canada-policy-rate

The next Bank of Canada interest rate announcement will be coming on June 1st, 2022.

03/23/2022

Determine your budget!

When it comes to homebuying, knowing how much you can really afford is a critical first step to take. As a general rule of thumb, your mortgage expenses should take up a maximum of around 35-39% of your total gross income. However, not only do we have to account for the new mortgage and property expenses, but also all of your other current debts and day-to-day living expenses.

Come speak with a mortgage professional to help determine how much of a mortgage you can comfortably carry. This will help you assess your financial fitness and also help you set realistic goals on an achievable timeline!

-