It is important to take the time to plan and review your mortgage options, terms and conditions and prepare yourself for managing your mortgage in the future.
As was unanimously expected, the Bank of Canada maintained its target for the overnight rate at 1.75% for the fourth consecutive time. The central bank also removed any mention of the need for future rate hikes, which is a relief to many homeowners.
‘In Canada, growth during the first half of 2019 is now expected to be slower than was anticipated in January” said the bank, noting how weaker-than-expected housing and consumption also weighed on the economy.
Many economists expect the bank to leave the interest rate untouched until at least late in the year.
The bank expects growth to pick up, starting in the second quarter of this year. Housing activity is expected to stabilize, given continued population gains, the fading effects of past housing policy changes and improved global financial conditions. Consumption will be underpinned by strong growth in employment income. Outside of the oil and gas sector, investment will be supported by high rates of capacity utilization and exports will expand with strengthening global demand.
Housing Market details in the April Monetary policy report
While housing is expected to stabilize at the national level, the Bank is aware of the risks to the outlook, particularly in the Greater Vancouver Area. For instance, the effects on growth of the revised B-20 guideline are expected to dissipate in many markets, although they could persist longer in areas with high house prices and that have been subject to other changes to housing policies. The stabilization of expectations for house prices in BC and Ontario may indicate a forthcoming stabilization and subsequent increase in resale activity.
Changes to local and provincial policies to address speculation, combined with the B-20 revisions, are having more pronounced effects in the Greater Vancouver Area than in the Greater Toronto Area. Thus, while stabilization of activity is expected this year in the base-case projection, there is a risk that it could be delayed in the Greater Vancouver Area. Read more…..
Original Article: www.dominionlending.ca
