TFSA limit rises to $7,000 for 2024, officially

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The TFSA contribution limit for 2024 has been officially released. That limit is $7,000, up from $6,500 in 2023 and $6,000 in 2022.

“This marks the first time that we have seen two consecutive years of increases on the annual TFSA limit,” said Aaron Hector, private wealth advisor with CWB Wealth in Calgary, in an email.

With Thursday’s TFSA limit announcement from the Canada Revenue Agency, the total contribution room available in 2024 for someone who has...

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The new Canadian Mortgage Charter explained

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In the Fall Economic Statement (FES), the Liberal government unveiled an initiative it calls the Canadian Mortgage Charter.

According to the statement, the charter builds on "existing guidance and expectations" regarding how financial institutions are expected to treat borrowers.

Deputy Prime Minister and Finance Minister Chrystia Freeland said Tuesday the charter is "one of the most important things" in the FES.


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Interest rates are 200 bps higher than they should be due to government spending: Scotiabank

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Canadian interest rate are about 200 basis points higher than it otherwise would be due to government spending at all levels, including billions spent on pandemic relief.

That’s the assessment from a new Scotiabank report that set out to put an exact figure on the impact government spending has contributed to higher interest rates.

“We could see rates stay higher for longer,” Bank of Canada says :

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Canadians must prepare for the possibility that interest rates remain “higher for longer,” the Bank of Canada’s Senior Deputy Governor said today.

While speaking in Vancouver Thursday morning, Senior Deputy Governor Carolyn Rogers outlined some of the reasons why “we could see rates stay higher for longer and why it’s important to adjust proactively to that possibility.”

“Globally, the adjustment to higher interest rates is well...

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Lenders cut select fixed rates by up to 30 bps

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Mortgage providers across the country have been dropping fixed mortgage rates throughout the week in response to a sharp decline in bond yields.

As we reported last week, the 5-year Government of Canada bond yield—which usually leads fixed mortgage rate pricing—slid nearly 30 basis points and continues to hover around 3.80%.

It’s now down more than 60 bps—or 0.60%—from its recent high of 4.42% reached in early October.

Over a dozen...

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Experts predict lower mortgage rates next week as bond yields plunge

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Mortgage shoppers and those with upcoming renewals may see some rate relief next week thanks to a steep drop in bond yields.

This week alone, the 5-year Government of Canada bond yield slid over 30 basis points to 3.79%. It’s now down more than 60 bps—or 0.60%—from its recent high of 4.42% reached in early October. 

Rate watchers say that should translate into some rate relief by next week given that bond yields typically lead fixed mortgage rate...

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BoC: Expected wave of mortgage renewals contributed to latest rate hold.

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The large number of mortgages coming up for renewal at higher rates is one reason why the Bank of Canada decided to leave its target rate unchanged at 5.00% last month.

Bank of Canada Governor Tiff Macklem made the comment Wednesday while testifying before the Standing Senate Committee on Banking, Commerce and the Economy.

“One of the important reasons why we held our policy rate at 5% is that we know that those renewals are coming…we know that there’s...

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Why a private mortgage needs an exit strategy

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As tougher lending requirements have more homeowners turning to the private mortgage market, brokers say having a strategy to eventually get out of the loan is crucial, or they risk falling into a debt trap that could eventually lead to a For Sale sign on the front lawn.

“Getting out is very difficult. And if you don’t plan for it, or at least acknowledge the difficulties and make that part of your risk determination, you can end up just paying money for the rest of...

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Housing a drag on the economy

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Looking at the details of the report, housing was once again one of the biggest drags on economic performance. Housing investment was down 2.1% quarter-over-quarter with new construction falling 8.2%.

StatCan said the decline in new construction activity was experienced in every province and territory with the exception of Nova Scotia. Renovation activity was also down 4.3%. 

“New construction and a lack of renovation activity weighed on the sector, as high...

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Weak GDP data means Bank of Canada rate hikes could be “over and done”

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Canada’s economy slowed more than expected in the second quarter, raising the likelihood that the Bank of Canada will leave rates unchanged at next week’s policy meeting.

Statistics Canada reportedthat real GDP dipped 0.2% in the second quarter, against estimates for a 1.2% rise. That’s also well below the Bank of Canada’s official GDP forecast for 1.5% growth in both Q2 and Q3.

“The small pullback in Q2 GDP lines up well with the recent rise...

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