Is a Canadian recession becoming a reality? A recent rate cut from the Bank of Canada, and lacklustre economic data point point to a downturn. So why won’t our top bankers use the “R word”?
How will consumers fair in a post rate cut reality? From your savings to your mortgage, here’s what you need to know.
The Canadian government recently unveiled plans to implement a bail-in, which would force creditors to forgive some of the biggest corporate debts. It’s good news for taxpayers, who no longer need to foot the bill – but such a move has dinged our country’s overall credit rating.
This week, Federal Finance Minister Joe Oliver stated fears of a possible Canadian credit cut, should Ontario continue to carry a deficit. Should Canadians be wary of a potential hit to their cost of borrowing – or is this just a pre-election political play?
Mortgages Spotlight: Speculation abounds that the Bank of Canada would have cut its interest rate in last week’s announcement rather than just their rate bias, if it hadn’t been for household debt fears. Fears also arise that prolonged low rates will prompt Finance Minister Flaherty to impose new mortgage rules, but he says he won’t interfere in the market – for now.
Jim Flaherty has announced there will be a balanced federal budget by 2015 and a hefty surplus to boot – but are too many public services and jobs being sacrificed through balancing spending cuts?
The days of 30-year high ratio mortgages are over as the mortgage rule changes announced June 21st by the Department of Finance go live today. While the changes have been put in place to cool an overly aggressive housing market and curtail Canadians’ debt to income ratio levels, it’s the short term implications that have everyone from first time home buyers to brokers wondering – what’s it going to cost?