About Me

My photo
GTA, Ontario, Canada
A New Sales Record Has Been Achieved By The Jackie Goodlet Team Who Work Out Of The Whitby Office And Specializes In High End Resale And New Home Sales. According To Broker Dave Pearce The Jackie Goodlet Team Wrote More Transactions Than Anyone Else In The 30 Year History Of Our Firm. Their 255 Transactions Had A Total Volume Of More Than $185,000,000 (185 Million). With Over 25 Years Experience In The Business The Jackie Goodlet Team Has Acquired A Wealth Of Knowledge In All Areas Of Real Estate Including Resale, New Builds, Cottages, Lease, Condos, Vacant Land, Investment And Commercial Properties. With Exceptional Negotiating Skills We Are Confident We Can Save You Time And Money On All Your Real Estate Endeavours. We Look Forward To Hearing From You And Your Referrals Are Always Welcome And Rewarded!

Sunday, December 11, 2016

Bank of Canada, economist address mortgage rules

The recent mortgage rule changes will materially impact the economy, according to one leading economist.

The Bank of Canada snuck a little statement about the recent mortgage rule changes into its latest mortgage rate announcement, published Wednesday.

“While household imbalances continue to rise, these will be mitigated over time by announced changes to housing finance rules,” it said.

The Bank may be downplaying the potential of the actual impact, however.

“According to the October Monetary Policy Report, the housing initiatives were expected to dampen 2016 GDP growth by 10 basis points and by 30 basis points next year. Government sources say they expect the growth in housing re-sales to decline 8 percentage points in 2017 from the forecasted 6.0 percent growth pace this year,” Dr. Sherry Cooper, chief economist for Dominion Lending Centres, wrote in a research note. “Private estimates of the negative impact of the new housing measures on overall economic growth vary, but most expect the contractionary effect to be roughly a 30-to-50 basis point reduction in growth over the next twelve months.

“Given that baseline potential growth is less than 2 percent, this is a very material dampener.”

The Bank held its benchmark rate at ½% Wednesday, and it remains to be seen what it will target in 2017.

“Some have suggested that the Bank of Canada might cut interest rates again next year, particularly if housing slows too much. Judging from comments made by the CEO of the CMHC, a slowdown in housing is the intended result of the new rules,” Cooper wrote. “Clearly, Governor Poloz sees the enhanced mortgage stress tests and changes in the insurability of mortgages as mitigating his concerns of overextended homebuyers.

“It would take a material negative shock to growth for the Bank to cut rates.”

CREW

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!

Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)