BoC signals that rates will rise gradually

The recent jump in Canada’s inflation rate should be temporary and price levels will remain subdued even with a gradual reduction in monetary stimulus, the Bank of Canada said on Wednesday. Despite putting an interest rate hike firmly back on the table for the second half of the year on Tuesday, the bank suggested in…


Private Lender Saves Winnipeg Couple from Losing Their Home

The Hopewell’s (not their real names) were only weeks away from losing their home to bank foreclosure. The Hopewell’s efforts to re-finance their mortgage were futile as the majority of banks, credit unions and finance companies will not knowingly finance an individual that is in foreclosure. The Hopewell’s managed to secure private financing through a…


Banks hike mortgages by up to 25 basis points

TD Canada Trust and RBC are raising some of their fixed-term mortgage rates by as much as one-quarter of a percentage point, beginning Wednesday. Both bank’s five-year mortgages, one of the most commonly chosen by homeowners in Canada, will rise 0.25 of a percentage point to 5.44%. “Mortgage rates typically go up when bond yields…


Rate hike likely after economy grows most in decade

The Canadian economy posted better-than-expected growth in the first three months of 2010, marking the best quarterly performance in over a decade, Statistics Canada reported Monday — and all but cementing the likelihood of a Bank of Canada rate hike this week. Strong domestic demand and a robust manufacturing sector helped the Canadian economy record…


Canada won’t fall victim to foreclosure wave

Canada’s housing market won’t fall victim to the type of foreclosure wave the United States saw, according to a new report by debt-rating firm DBRS Ltd. DBRS said in the report that Canada will continue to fare well in comparison with its neighbour to the south when the Canadian housing market corrects itself and interest…


Central banks must raise interest rates

There is an urgent need for industrialized economies to begin cutting their debt-laden budgets and central banks to hike interest rates — or else face the risk that inflation gets unwieldy, the OECD warned Wednesday in its latest global economic outlook. “Exit from exceptional fiscal support must start now, or by 2011 at the latest,…