Interest rate announcement from Bank of Canada governor Tiff Macklem

Bank of Canada’s Interest Rate Announcement: Rate Holds Steady at 5%

The Bank of Canada held its overnight rate at 5% in Wednesday morning’s interest rate announcement, which was widely expected as the economy shows signs of slowing down. The Bank did leave the door open to the possibility of further interest rate hikes in the future, noting the “persistence of underlying inflationary pressures.“

CPI inflation eased back to 2.8% in June, before rising to 3.3% in July, which is somewhat in line with the Bank’s 3% projection. “The longer high inflation persists, the greater the risk that elevated inflation becomes entrenched, making it more difficult to restore price stability,” according to the Bank’s interest rate announcement.


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Interest rate announcement from Bank of Canada governor Tiff Macklem

Bank of Canada’s Interest Rate Announcement: Increase of 0.25%

The Bank of Canada‘s overnight rate continues its upward trend. In this morning’s interest rate announcement, the Bank increased its key rate by 0.25%, to 5%, bringing the cost of borrowing up for a second straight month, to the highest interest rate since 2021. This marks the tenth rate increase since the Bank started its aggressive campaign to tackle inflation in March 2022. The Bank cited strong economic growth and the stubbornly high inflation rate as the reason for the increase. While inflation came down to a more-tepid 3.4% in May, compared to its peak of 8.1% last summer, the rate still sits above the Bank’s 2% target.

Rising interest rates through the last year have impacted…

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Interest Rate Announcement_Bank of Canada Governor Tiff Macklem

Bank of Canada’s Interest Rate Announcement: Increase of 0.25%

The Bank of Canada‘s overnight rate is back on the upswing, per June 7th interest rate announcement. The Bank raised its key rate to 4.75 per cent, marking the first increase since January and the highest rate we’ve seen since April 2001. Why the upward movement? The Bank cited stronger-then-expected economic activity as the reason for its decision, driven by consumer demand and consumption. Gross Domestic Product grew by 3.1 per cent in the first quarter of 2023. Inflation is expected to come down to three per cent this summer, well below its high point of 8.1 per cent reached last June, but it still sits above the Bank’s two-per-cent target.

Bank of Canada’s 2023 Policy Interest…

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Ontario real estate market aerial view

In the aftermath of the coronavirus pandemic, homeowners in the Ontario real estate market witnessed incredible gains. After a modest slowdown in the first two months of the global health crisis, many aspects of the Ontario housing sector – particularly detached and semi-detached homes – soared and recorded all-time highs, from sales activity to price growth.

But has an adjustment phase commenced? In fact, the provincial housing sector is already in one.

The Ontario housing industry has been witnessing a slowdown, despite an environment of tight inventory, sky-high prices, and changes to the mortgage stress test. Conditions peaked at the end of 2021 and have been facing a downward trend ever since, with average prices falling from roughly $1.1…

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Interest rate announcement Bank of Canada

Bank of Canada Puts Pause on Interest Rate Hikes After 8 In a Row

As was widely anticipated, the Bank of Canada has announced that it is holding its trend-setting interest rate at 4.5 per cent. This undoubtedly comes as welcome news to homebuyers and those who have a variable-rate mortgage. It is the first time in more than a year that the Bank has maintained its rate, following an aggressive series of eight consecutive increases in an effort to tamp down sky-high inflation. The inflation rate hit a high point of 8.1 per cent in June, but has since eased back to 5.9 per cent in January, due to lower prices for energy, durable goods and some services. However, the rising cost of food and shelter remain prohibitive for many Canadians, the Bank noted.…

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2023 Market Outlook & 2022 Year in Review

Executive Summary

2023 Market outlook

Higher immigration levels and increased borrowing costs are two forces that will impact the housing market in 2023. TRREB is forecasting:
• A total of 70,000 sales. This is below the 2022 result, but we will see marked improvement in the second half of 2023.
• The average selling price will reach $1,140,000 for all home types combined. This is up compared to the average price in the second half of 2022, but down by 4% when compared to 2022 as a whole.

2022 Year in Review

The housing market started off strong in 2022, but GTA home sales trended lower in the spring and summer. In 2022, the GTA housing market had:
• 75,140 home sales.
• 152,873 new listings.

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Selling prices for condominium apartments bucked the overall downward trend in the housing market during the fourth quarter of 2022. The average selling price in Q4 2022 stayed in line with the average in Q4 2021.

"While condo market conditions have become more balanced over the past year, there has been enough demand relative to supply to support selling prices. On average, the condo market segment is the most affordable. Therefore, it makes sense that we didn't see the same type of price adjustment, in the face of higher borrowing costs, compared to other more expensive segments like detached homes," said Toronto Regional Real Estate Board (TRREB) President Paul Baron.

Total condo apartment sales amounted to 3,582 in Q4 2022 3 down…

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Average condominium apartment rents continued to increase by double-digit annual rates in the fourth quarter of 2022. However, while market conditions remained tight enough to support very strong rent growth, there was more balance in the rental marketplace compared to the same period a year earlier in 2021.


The number of condominium apartment rental transactions reported through the Toronto Regional Real Estate Board9s (TRREB) MLS® System was down on a year-over-year basis by 19.9 per cent in the fourth quarter of 2022. The number of rental listings was also down over the same period, but by a lesser annual rate of 11.8 per cent. The fact that the number of units leased was down by more than the number of units listed suggests that…

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More Homes, Built Faster Ontario 

The Ontario government announced housing changes this month that will override municipal zoning laws in some situations and allow for the construction of up to three units on each residential lot. The government tabled a bill Tuesday--called the More Homes, Built Faster Act--including a number of legislative changes and proposals they say will help “build housing faster and bring costs down,” allowing the Progressive Conservatives to meet their goal of building 1.5 million homes in 10 years. 

Under the legislation, up to three units will be allowed on a single residential lot without any bylaw amendments or municipal permissions. An example provided by the government shows a basement apartment and garden or…

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Ontario Non-Resident Speculation Tax rate rises to 25 per cent

As of October 25, 2022, the Non Resident Speculation Tax rate (NRST) will be increased from 20% to 25% and continues to apply to all regions of the province. The NRST applies to the transfer of “designated land,” which is considered land that contains at least one and no more than six single family residences.

The provincial rationale behind the new increase to 25% is to deter foreign speculation in the housing market.

How the NRST is applied 

The NRST will continue to apply to individuals who are not Canadian citizens or permanent residents of Canada or by foreign corporations or taxable trustees.

Note: The NRST applies if any one of the transferees is a foreign entity or taxable…

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