Category: News

Why rising interest rates haven’t flattened the housing market

Why rising interest rates haven’t flattened the housing market

So much for the housing market being crushed by rising interest rates.

The Bank of Canada cranked up its trendsetting overnight rate for the third time in four months on Wednesday and the impact will be felt by a wide range of borrowers. But home buyers? Not so much.

Bank of Canada

Bank of Canada boosts overnight lending rate

Bank of Canada governor Mark Carney raised the overnight lending rate a quarter percentage point on Wednesday morning, in line with most analysts’ expectation.

Carney raised the trend-setting rate from 0.75 per cent to an even 1 per cent.

BMO

BMO cuts mortgage rate to spur home buying

The Bank of Montreal cut its special five-year fixed rate mortgage by 20 basis points Wednesday, bringing it down to 3.59% from 3.79%.

BMO said in a statement that the move was an effort to provide potential home buyers an incentive as the fall season rolls around.

House

Doom and gloom predicted for Vancouver house prices

A new doomsday report warns Vancouver’s housing market could be hit by a burst bubble — and a drop in prices by as much as 30 per cent.

The threat of a giant, synchronized real estate bubble looms over all six of Canada’s major cities, says the report released by the Canadian Centre for Policy Alternatives.

Chinese Tourist

B.C. braces for Chinese tourist invasion

British Columbia is bracing for a Chinese invasion to boost tourism as the first group of travellers arrived in Vancouver after China granted Canada Approved Destination Status.

Three hundred and fifty people from Mainland China were greeted by Premier Gordon Campbell and federal Minister Stockwell Day at Vancouver International Airport Wednesday.

The granted status means that Chinese tourists are now permitted to travel in large groups to the country for leisure travel, and tourism companies in China can actively promote Canadian tours.

ICBC

ICBC to lower car insurance rates

For the first time in more than a decade, motorists in B.C. could see their car insurance go down slightly, following an announcement Tuesday by ICBC.

Citing a significant drop in the number of claims, the insurance corporation said it has asked the the B.C. Utilities Commission for permission to reduce basic insurance rates by 1.9 per cent.

BC and Ontario housing markets feel effects of HST in July

BC and Ontario housing markets feel effects of HST in July

The Canadian Real Estate Association (CREA) says national home sales activity continued to trend down in July 2010. The decline was almost entirely the result of fewer sales in British Columbia and Ontario. A slowdown in demand in these two provinces had been widely expected in July, as many purchases were brought forward into the first half of the year in advance of the introduction of the HST.