Bank of Canada Archives - Page 2 of 3

Crack the Code to Effective Home Evaluation in Today’s Competitive Real Estate Market!

06/29/23 5:48 AM

When it comes to purchasing a home, understanding the intricacies of home evaluation is crucial. It plays a vital role in securing a mortgage and determining the value of a property. In this article, we’ll delve into the two key aspects that shape home evaluation: how mortgage lenders utilize evaluation results and the benefits of utilizing comparative market analysis (CMA). Additionally, we’ll explore the advantages and limitations of online tools in the evaluation process. By gaining insights into these factors, you’ll be equipped to make informed decisions and navigate the real estate market with confidence.

How Mortgage Lenders Use Home Evaluation Results

As you embark on your home buying journey, obtaining a mortgage is often a pivotal step. Lenders assess the value of the property you wish to purchase to determine the loan amount and interest rate. This evaluation also influences eligibility for specific loan programs and the need for private mortgage insurance. To ensure a favorable outcome, it is essential to provide comprehensive information to the appraiser and maintain the home in good condition. A thorough home evaluation benefits both the lender and the borrower, saving time, money, and potential frustration.

Benefits of Using Comparative Market Analysis for Home Evaluation

Determining the true value of a home requires considering various factors. Comparative market analysis (CMA) is a process that real estate professionals rely on to provide accurate valuations. By analyzing recent sale prices of similar properties in the area, along with details like size, age, and location, a CMA offers a more holistic assessment compared to solely evaluating features in isolation. This data-driven approach equips buyers and sellers with a clear understanding of the market, facilitating fairer and more informed transactions.

Exploring Online Tools for Home Evaluation – Benefits and Limitations

In the digital era, numerous online tools are available to aid in home evaluation, from mortgage calculators to virtual tours. These resources can be invaluable for buyers and sellers alike. However, it’s important to acknowledge their limitations. Online tools may not account for the specific property or financial details that can impact the evaluation. Hence, while leveraging online resources is advisable, consulting with qualified real estate agents or appraisers is crucial to gaining a comprehensive understanding of your home’s value. By combining professional expertise with online tools, you can make well-informed decisions about your home.

Home evaluation is a complex process that demands attention to multiple factors. By adopting a comprehensive approach and utilizing the expertise of appraisers, realtors, and online resources, you can gain a deeper understanding of your home’s value in today’s market. Remember, in-depth knowledge of location, property type, remodeling history, and current real estate conditions is instrumental in a successful evaluation. By considering these insights and conducting additional research, you’ll be better positioned to navigate the world of home evaluation and make informed decisions tailored to your unique circumstances.

What government can do to tackle the housing problem in Canada?

06/5/23 9:38 AM

Do you feel like buying a house in Canada has become an unreachable dream? With real estate prices continuing to skyrocket, it’s easy to feel overwhelmed and disheartened when considering entering the housing market. The good news is that Canada’s government can take measures to tackle the rising cost of real estate, leading to more affordable options for home buyers across the country. In this blog post we will explore what exactly the government can do to reduce costs in Canada’s current housing market and make homeownership a viable option for more Canadians. So if you’ve been dreaming about buying your first home but don’t know where or how to start, then keep reading!

The affordability crisis in Canada’s housing market

The affordability crisis in Canada’s housing market has been a topic of concern for many. With rising home prices and stagnant wages, many individuals and families find it challenging to own a home. The dream of homeownership is slowly becoming out of reach for the average Canadian. However, this is not just an individual concern, but a nationwide crisis. The increasing cost of homes is not only making it difficult for those looking to purchase a home but is also limiting the economic growth and development of the country. The government needs to take a stand and implement measures to tackle this crisis to ensure all Canadians have access to affordable housing, as it is the right of every citizen to have a safe and secure place to call home.

Suggestions for increasing the supply of affordable housing units

As housing prices continue to skyrocket, it’s becoming increasingly difficult for many people to find affordable places to call home. In order to combat this growing issue, we must take action. One solution is to increase the supply of affordable housing units. Whether it’s through the construction of new buildings or the creation of programs to incentivize landlords to offer affordable rents, we need to prioritize this issue. Affordable housing is not a luxury, it’s a necessity. It’s time for us to come together and find creative solutions to ensure that everyone has access to a safe and affordable place to live.

Invest in public housing projects and initiatives

Investing in public housing projects and initiatives is not only a morally sound decision but also a smart financial move. Providing safe and affordable housing to the most vulnerable in our society is crucial for social cohesion and economic growth. Moreover, public housing investments can have a ripple effect on local economies, creating jobs and boosting local businesses. By investing in public housing, we can ensure a better future for all, while also promoting economic stability and growth. Therefore, it is imperative that we prioritize public housing initiatives and take the necessary steps to make them a reality.

Increase the development of rental units

Rental properties are essential for individuals and families who are searching for a comfortable place to call home. The demand for rental units has never been higher, and it’s time for real estate developers to take notice. Increasing the development of rental units is not only essential for housing security but also for economic growth. By constructing more rental properties, we are not only providing individuals with an affordable and comfortable place to live, but we are also creating job opportunities and generating revenue for local businesses. Therefore, it is crucial for real estate developers to focus their efforts on expanding the availability of rental units to meet the rising demand.

Provide incentives for builders to create more affordable units

It’s no secret that the cost of housing is skyrocketing and causing considerable financial stress for many families. The local government can address this issue by providing incentives for builders to create more affordable units. With the right incentives, builders can be encouraged to take on affordable projects that will provide much-needed housing for low and middle-income individuals. The creation of affordable housing units is not only beneficial for the residents, but it can also increase economic growth in the area. By offering incentives such as tax breaks and subsidies, the local government can help to alleviate the housing crisis while promoting a robust economy. It’s time for action, and these incentives can be the first step toward creating a brighter and more affordable future for all.

Suggestions for improving demand for affordable housing units

It is no secret that affordable housing is in high demand but low supply. As a result, it is crucial to come up with innovative ways to increase the availability of affordable housing units. By endorsing government-backed policies and partnerships between public and private entities, we can make a significant impact on this issue. Additionally, community involvement can play a crucial role in improving demand for affordable housing. Advocacy groups, neighborhood associations, and grassroots organizations can help to educate and inform residents about the importance of affordable housing and its many benefits. By taking a collaborative approach, we can work towards a future where affordable housing is not a privilege but a right for all.

Offer tax benefits to lower-income households

Offering tax benefits to lower-income households is not just a compassionate act, but a smart economic move. By providing relief to those who need it most, we can help stimulate local economies and promote social equality. It’s no secret that people who struggle financially often have to make tough choices between basic needs like food, shelter, and healthcare. By reducing their tax burden, we can help these families make ends meet and free up resources to spend on necessities. Furthermore, boosting the purchasing power of lower-income consumers can help local businesses flourish, contributing to both economic growth and job creation. So, let’s not hesitate to offer tax benefits to those who are truly in need. It’s a powerful way to build a stronger, more equal society for all.

Create rent assistance programs for low-income individuals and families

It is abundantly clear that low-income families and individuals often struggle to make ends meet, particularly when it comes to housing expenses. Many are forced to choose between putting food on the table and paying for a roof over their heads. As a society, we have a responsibility to assist those in need and ensure that everyone has access to safe and affordable housing. That’s why creating rent assistance programs for low-income individuals and families is not only the right thing to do, it’s also the smart thing to do. By providing targeted support to those who need it most, we can help lift families out of poverty and create a more equitable society for all. Let’s make sure that no one has to choose between shelter and sustenance, and instead provide the support necessary for all individuals and families to thrive.

Master the Art of Real Estate Negotiations: Getting the Best Deal on Commercial Properties

05/29/23 10:16 AM

Congratulations, you’ve found the dream commercial real estate for sale! But hold on, don’t sign that contract just yet. Now we help you to save money with some sort of negotiation tips. Fear not, because we’re about to offer you some top tips for real estate negotiations that will help you ace the process like a pro!

Tip 1: Work with an Experienced Broker

Successful real estate negotiations are only possible with experienced brokers who know the ins and outs of the industry. Our team at Re/Max Real Estate Centre Team Arora Realty has a proven track record of 15+ years of experience, making us the #1 Re/Max Team in Canada in 2018. 3 years ago, under the competition of 53,000 agents Team Arora maintained its position among the top 10 agents, and it’s all happened with our experience in the GTA market. With our team, you’ll be in competent hands.
Read what our happy clients have to say on our Google 5-star rating:
“This team is incredible. They heard our needs, found exactly the kind of property we were looking for, and skillfully negotiated on our behalf. We couldn’t be happier with the outcome!” – John Smith

Tip 2: Know Your Market

Understanding the market conditions and trends in your area will help you make informed decisions when it’s time to negotiate. Our dedicated and professional team of 30 individuals specializes in catering to various ethnic groups and can communicate in 10 different languages, making sure no aspect of the market is left uncovered.

Tip 3: Be Prepared to Make Concessions

As with any negotiations, it’s essential to strike a balance between what you want and what the other party is willing to offer. By showing flexibility, you can find common ground and secure a better deal in the process.

Tip 4: Use Unrivaled Marketing Techniques

We take pride in our unique and aggressive marketing campaigns, which include advertising on more than 30 print and online mediums. By opting for a cutting-edge marketing strategy that distinguishes your property from the competition, you’ll be able to attract more potential buyers and close at a higher price.

The Importance of Expertise in Real Estate Negotiations

Entering into negotiations for commercial real estate for sale can be intimidating, especially if you’re new to the industry. However, enlisting the help of our certified and experienced brokers can make all the difference in securing the best possible deal. With over 15 years of experience, our team is here to help guide you through every step of the negotiation process.

Accurate Time To Invest In Commercial Properties

The current market conditions are ripe for both buyers and sellers alike. By leveraging our significant experience, understanding the market conditions, and coupled with our unrivaled marketing campaigns, you can expect the most attractive deal for your commercial property.

Your Success Starts Here: Choose Our Expert Real Estate Brokers Today

Whether you’re a first-time buyer or an experienced seller, our team of dedicated professionals at Re/Max Real Estate Centre Team Arora Realty is here to help you secure the best deal on commercial real estate for sale. Don’t settle for mediocrity; choose the experts and experience the benefits of a smooth and successful negotiation process.

**Ready to get started? Contact our team today and set yourself up for success

Team Arora: Your Trusted Real Estate Partner in Canada

05/12/23 9:52 AM

In the world of real estate, finding the right property dealer can make all the difference in ensuring a smooth and successful transaction. When it comes to buying or selling a home, condos, pre-construction properties, or land, Team Arora is a name you can trust. With a proven track record of excellence and a commitment to providing exceptional service, Team Arora has earned its place as one of the best real estate property dealers in Canada. In this blog, we will explore why Team Arora stands out from the rest and how they can help you achieve your real estate goals.

Unparalleled Expertise

As experienced real estate agents, the team at Team Arora possesses extensive knowledge of the Canadian real estate market. Whether you are a buyer or a seller, they understand the intricacies of the industry and can guide you through the entire process. Their expertise covers a wide range of property types, including residential homes, condos, pre-construction properties, and land sales.

Accolades and Recognition

Team Arora’s commitment to excellence has not gone unnoticed. In 2018, we were awarded the prestigious title of #1 Remax Team in Canada, a testament to their outstanding performance and exceptional service. These accolades serve as a testament to their dedication to their clients and their ability to deliver results.

Getting the Best Prices

When it comes to selling your property, Team Arora is known for their skill in negotiating the best and higher prices. They understand the local market trends, assess the value of your property accurately, and utilize their extensive network to attract potential buyers. Their expertise and experience allow them to maximize the selling price of your property, ensuring you get the most out of your investment.

Finding the Right Property

On the other hand, if you’re in the market to buy a home, condos, pre-construction properties, or land, Team Arora is there to help you find the perfect match. They take the time to understand your needs, preferences, and budget to identify properties that align with your requirements. With their extensive network and access to a wide range of listings, they can provide you with a diverse selection of options to choose from.

Exceptional Customer Service

One of the key factors that set Team Arora apart is their dedication to providing exceptional customer service. They understand that buying or selling a property can be a complex and emotional process, and they strive to make it as seamless as possible for their clients. Their team of professionals is always available to answer your questions, address your concerns, and provide guidance throughout the entire real estate journey.

When it comes to buying or selling real estate in Canada, Team Arora is the name to trust. Their proven track record, industry expertise, and commitment to exceptional service make them the best real estate property dealers in Canada, but in some cities like GTA, Mississauga and Kitchener are our priorities. Whether you’re looking to sell your property at the best price or find your dream home, condos, pre-construction property, or land, Team Arora has the knowledge and experience to guide you every step of the way. Contact Team Arora today and experience the difference of working with a top-tier real estate team.

KWC Are The Top 3 Areas To Invest In The GTA! Now What Is KWC!

05/4/23 9:43 AM

GTA is one of the most sought-after cities for real estate investment. Kitchener, Waterloo, and Cambridge are the top three cities in the GTA that provide an excellent opportunity for investors.

Kitchener With Potential Investors

Kitchener has been making headlines lately with its United Taxi initiative that offers to drive dialysis patients to Grand River Hospital free of charge when they can’t get there any other way. This demonstrates how this city takes care of its citizens and could be an attractive option for potential investors.

Meanwhile, Waterloo small businesses have adapted their payment system technology to keep up with modern trends, making it a great choice for entrepreneurs looking to start their businesses or existing companies wanting to expand.

Cambridge Best Investment Along With Neighbour

Cambridge takes it a step further by expanding its program that provides $500 a month to low-income families. This helps support the local economy and gives an additional incentive for investors who are looking for potential returns while helping the community at the same time.

Overall, Kitchener, Waterloo, and Cambridge have a lot of potentials when it comes to real estate investments. With their various initiatives and news updates, these cities are growing each day and offer great opportunities for anyone looking to invest in the GTA. Investing in any of these three cities could be a wise decision for any prospective investor. to expand.

Cambridge stands out because of its program that provides low-income families with $500 a month. This shows the city’s dedication to helping those in need and could be an attractive option for investors who are looking to make a positive impact on the community while making money.

With these great initiatives and the cities’ continued growth, Kitchener, Waterloo, and Cambridge remain excellent choices for real estate investment in the GTA. Investing in any one of these regions could be highly lucrative, so be sure to look into them as soon as possible!

Right Now Investment

Investing in any one of these regions could be highly lucrative, so be sure to look into them as soon as possible! These cities are continuously growing and offer great potential for real estate investors. With their various initiatives and news updates, Kitchener, Waterloo, and Cambridge remain excellent choices for anyone looking to invest in the GTA. Don’t miss out on this amazing opportunity – invest now and reap the benefits of your wise decision!

Eager to start investing in the GTA? Kitchener, Waterloo, and Cambridge are three of the best cities in the GTA that offer excellent opportunities for real estate investors. With their various initiatives and news updates showing consistent growth, these cities remain some of the top choices when it comes to real estate investments. Kitchener’s United Taxi initiative is just one example of how this city takes care of its citizens and could be an attractive option for potential investors. Meanwhile, small businesses in Waterloo have adapted their payment system technology to keep up with modern trends, making it a great choice for entrepreneurs. Cambridge’s initiative to provide $500 a month to low-income families not only helps the city’s economy but could also be an additional incentive for investors. Investing in any of these three cities could be highly lucrative – don’t miss out on this amazing opportunity! Start investing now and reap the benefits of your wise decision!

Thanks for reading! We hope you found this information helpful and make sure to stay tuned for more real estate investment tips. Good luck!

Top 3 Towns to Invest Based on The Latest Average Price Analysis

05/1/23 8:27 AM

The Canadian real estate market is a diverse landscape full of potential investment opportunities. In this blog post, we will examine the top three towns for investing in property based on the latest national average price analysis. Our top contenders are Windsor, Kingston, and Simcoe, each boasting impressive growth rates over the past three years. Let’s dive in and explore these towns and the reasons behind their success in the real estate market.

Windsor: The Diamond in the Rough with a 73% Growth in the Last Three Years

Why Windsor is the Best Town to Invest

Windsor has experienced a staggering growth of 73% in the past three years, making it the top town for property investment in this analysis. This impressive growth can be attributed to several factors:

Affordability: Windsor’s property prices are $174,000 less than the national average, making it an attractive option for investors and homebuyers alike.
Strategic Location: Windsor’s proximity to the United States and major highways provides excellent opportunities for commerce and economic growth, drawing in businesses and families alike.
Diverse Economy: Boasting a strong manufacturing sector and a growing tech industry, Windsor offers a diverse and flourishing economic landscape that attracts both residents and investors.

Windsor’s Heart: A Perfect Balance of Cultural and Commercial Living

Windsor is a city that offers the perfect balance between cultural and commercial living, which adds to its real estate appeal. The heart of Windsor, defined by its downtown area, is divided into five distinct neighborhoods: Ouellette Avenue, Pitt Street, University Avenue, and Chatham Street. Each of these neighborhoods is family-friendly and offers a variety of housing options to suit all budgets and preferences.

Furthermore, the downtown area borders the Detroit River to the North, Giles Boulevard to the south, Janette Avenue to the west, and Glengarry Avenue to the east, offering beautiful views of the river and ample green spaces like parks and trails.

Residents and tourists alike can enjoy a plethora of attractions, including vibrant art galleries, exciting events, and an abundance of shopping, dining, and entertainment options.

Kingston: The Rising Star with a 64% Growth in Three Years

Kingston comes in second place in our analysis, with an impressive growth rate of 64% in the past three years. With a minimum property price of $200,000 less than the national average, Kingston is also an affordable option for investors.

The city is known for its rich history, beautiful architecture, and bustling cultural scene. It’s also an important hub for education and healthcare, which adds to the attractiveness of the real estate market. With strong job opportunities and relatively lower living costs, it’s no surprise that Kingston has experienced such rapid growth in recent years.

Simcoe: An Emerging Town with 70% Growth in the Last Three Years

• Simcoe is a vibrant area with centuries of rich history and beautiful waterfront views.

• The local community is full of culture, with activities to keep everyone entertained, from camping and fishing to shopping in boutiques and attending shows.

• Nightlife options include wineries and restaurants for indulging in delicious meals with friends.

• Year-round, visitors can experience the charm of Norfolk parishes and create unforgettable memories.

Though not as well-known as Windsor and Kingston, Simcoe is an up-and-coming town that has seen a 70% growth in the past three years, making it the third-best town to invest in. With property prices $174,000 below the national average, it’s an attractive option for those looking to invest in an emerging market.

Simcoe is the largest community within Norfolk County and has vibrant agriculture and manufacturing industries. With a small-town charm, beautiful scenery, and an affordable housing market, there

Invest in Canadian Real Estate With Team Arora – Get the Best Price and No Stress!

04/24/23 9:31 AM

Unleash the Potential of Canadian Commercial Real Estate Investments with Team Arora

The world of real estate is an exciting and ever-evolving space, with abundant opportunities for investors, businessmen, and individuals looking to secure their futures. If you’re in Canada or planning to invest in the Canadian market, there’s never been a better time to dive into the exciting world of commercial real estate. In this post, we’ll explore everything you need to know about investing in Canadian commercial properties, and how Team Arora can help you get the best deal, ensuring a seamless and stress-free experience.

The Significance of Commercial Real Estate in Canada

Commercial real estate plays a pivotal role in the overall economic growth of Canada. This sector includes a wide range of property types such as office buildings, retail centers, industrial facilities, and multi-family residential properties. As businesses and industries grow, the need for more commercial spaces also rises, thereby contributing to the prosperity of the nation.

Recent reports have shown that Canadian commercial real estate investments continue to thrive despite challenging market conditions. For instance, the low-interest rate environment is driving more investors towards this asset class, seeking higher returns and portfolio diversification.

Why Now Is a Great Time to Invest

The timing is crucial when it comes to real estate investments, and presently, the Canadian market offers a plethora of opportunities. Here are a few reasons why now is an excellent time to invest in Canadian commercial real estate:

Favorable Interest Rates

With the current low-interest rates, the cost of borrowing money to invest in commercial properties has become much more affordable. Investors can take advantage of these favorable rates to finance their purchases, potentially increasing their profit margins.

Growing Demand for Commercial Properties

As the Canadian economy recovers post-pandemic, businesses are re-evaluating their needs, and new enterprises continue to emerge. These factors create a growing demand for commercial properties, offering a fantastic chance for investors to capitalize on the anticipated growth.

Diverse Investment Options

Whether you’re interested in retail spaces, office buildings, or industrial properties, there is a wide array of investment options in Canada’s commercial real estate market. This diversity allows investors to pick and choose the properties that align best with their goals and risk tolerance.

How Team Arora Elevates Your Commercial Real Estate Experience

At Team Arora, we understand the intricacies of the Canadian real estate market and strive to provide exceptional services for our clients. Here’s how we help our clients achieve their goals while minimizing stress:

Vast Network of Top Realtors

Our connections with top Realtors across various provinces allow us to offer our clients an extensive range of options and assist them in relocating to different regions.

Comprehensive Services

Our services encompass land development, commercial, pre-construction, and residential real estate, ensuring that all your real estate needs are catered to under one roof.

Unwavering Commitment to Client Satisfaction

We prioritize our client’s needs and work relentlessly to help them sell, buy, or lease properties at the best price, ensuring a hassle-free experience.

Take the Next Step Towards Your Commercial Real Estate Journey

With favorable market conditions and our commitment to delivering the utmost quality, now is the perfect time to invest in Canadian commercial real estate with Team Arora by your side. So, whether you’re looking for a new home or a lucrative business space, get in touch with our professional staff and let us assist you in finding the ideal property.

How to Build Equity in Your Home

08/26/22 12:04 PM

One of the primary goals of home ownership should be the building of equity in your home. Equity is simply the difference between the current value of a property and the balance of all mortgage obligations.

For example, if you have a home that is valued at $375,000 (based on an appraisal or a Comparative Market Analysis) and a mortgage balance of $175,000, you have $200,000 ($375,000 -$175,000) equity in your home. As long as the market remains stable, this is like money in the bank. As your house value increases over time and mortgage payments you make reduces the level of your debt, your home equity increases.

Why Equity in a Home is Important?

Simply stated, the appreciation of equity in a home is one of the easiest and most successful paths to wealth that is available to you. To a large degree, it is almost painless—you make the mortgage payment that you would have to make anyhow and the balance is reduced. The value of the home, meanwhile, is rising. As a result, your nest egg should be growing. The quicker you find yourself at 100% equity—owning nothing on your home—the quicker the route to less financial stress and true wealth.

How to Build Additional Equity?

There are a number of ways to build additional equity in a home, some easier than others but all effective:

1) Higher initial down payment
The most obvious way to build additional equity is at the first opportunity—making a larger down payment at the time of purchase. This extra money is immediately “banked” in the home, making it much less tempting to spend.

2) Extra principal payments
Making extra payments of principal (or just adding money to your monthly payment designated to go to principal) has a double effect on your equity. First, every dollar you contribute reduces your debt by the same amount. Second, reduced debt means less interest paid, which means that each month more of your payment goes to principal and less goes to interest.

NOTE: Although most loans allow it, check with your lender to see if they accept extra payments of principal with no penalty.

3) Shorter mortgage term
The lower mortgage interest rates that we have seen recently means that for many buyers, they are able to either initially secure a mortgage with a shorter term or, if the are currently in a long term mortgage (such as 30 years) refinance and get a shorter term. Shorter mortgage terms mean that you will be paying down your principal much quicker and therefore gaining additional equity at a much faster rate.

4) Home improvements
When you improve the quality or size of your home, you also increase its value and thus your equity. Be aware, though, that although virtually all home improvement projects will bring some return, some are much more advantageous than others. For example, remodelling kitchens or bathrooms traditionally have brought a greater return than adding leisure amenities such as pools or whirlpools. To get the maximum equity enhancement, make certain that the kind of improvements you want to make will increase the home’s value appreciably.

The Bank of Canada has raised its interest rate to 2.5%

07/13/22 1:53 PM

In an effort to curb runaway inflation, the Bank of Canada raised its benchmark interest rate largest amount in the past 20 years.

Canada’s central banks raised Wednesday their benchmark interest rate by one percentage point to 2.5% This is the largest single increase in the bank’s rate since 1998.

Canadians will receive high rates from their lenders for things such as mortgages and credit lines.

All things being equal, a central banking institution will reduce the lending rate when it wants the economy to grow by encouraging people to borrow money and invest. When it wants to cool an overheated economy, it raises rates.

The bank had previously lowered its interest rate to record lows during the pandemic. It has since raised its rate four more times since March in an aggressive campaign against inflation. This is the bank’s highest rate in 40 years.

Canada’s inflation is more severe and persistent than the Bank predicted in its April Monetary Policy Review (MPR). It will likely stay around 8% for the next few months. Global factors like the conflict in Ukraine and continuing supply disruptions have been the main drivers of inflation, but domestic price pressures are increasing due to excess demand. The CPI is seeing more than half of its components rise by over 5%. The Bank’s core inflation measures have increased to between 3.9% – 5.4% due to the increasing price pressures. Surveys show that more people and businesses expect inflation to rise for longer periods of time, increasing the risk of inflation becoming entrenched in wage- and price-setting. The economic costs of restoring price stability would be higher if this happens.

The impact of Russia’s invasion of Ukraine and ongoing supply constraints as well as strong demand have all contributed to global inflation being higher. To combat inflation, many central banks tighten monetary policy. The resulting tighter financial environment is limiting economic growth. The United States is experiencing high inflation and rising interest rate, which contributes to a slowdown of domestic demand. China’s economy is being held back in the face of restrictive measures to control COVID-19 epidemics. The oil prices are still volatile and high. The Bank expects that global economic growth will slow to around 3 1/2% this year, 2% in 2023, and then strengthen to 3% by 2024.

TD Bank Mortgage Rates Brampton July 2022

The Canadian economy has seen an increase in excess demand. The labour market is tight, with a record-low unemployment rate, wide-spread labour shortages and rising wage pressures. Businesses are increasing prices to offset higher labour and input costs due to strong demand. The rebound in spending on difficult-to-distribute services is driving strong consumption. High commodity prices are boosting business investment and increasing exports. According to the Bank, GDP increased by approximately 4% in quarter 2. The third quarter is forecast to see a slowing of growth to 2%, as consumption growth slows and the housing market activity recovers from the unsustainable strength experienced during the pandemic.

The Bank predicts that Canada’s economy will grow by 3 1/2% in 2022 and 1 3/4% in 2023 respectively, and 2 1/2% in 2024. As global growth slows, the Bank expects Canada’s economy to grow by 3 1/2 % in 2022, 1 3/4 % in 2023, and 2 1/2 % in 2024. This, along with the resolution to supply disruptions will bring demand back into balance and reduce inflationary pressures. The global energy prices are expected to fall. Inflation is expected to start to fall later in the year. It will be around 3% by next year before returning to its 2% target by 2024.

The economy is clearly in excess demand and inflation high and widening. More businesses and consumers expect high inflation to continue for longer. Therefore, the Governing Council decided today to accelerate the path to higher interest rate. They raised the policy rate 100 basis points. The Governing council continues to believe that interest rates must rise further. However, the Bank’s continuing assessment of inflation and economy will determine the pace of increases. Quantitative tightening is continuing and complements increases in the policy rate. The Governing council is steadfast in its commitment price stability and will continue to take the necessary actions to reach the 2% inflation target.

(Source)