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Canadian Realestate Magazine | 30 Jan 2015, 06:40 AM Agree 0
CIBC expects another rate cut in March despite weak loonie… Property mortgage with 0.50 per cent rate cut…for businesses… Weak dollar will hit household budgets…
  • e. harold | 30 Jan 2015, 10:15 AM Agree 0
    Ever wonder Who is actually causing this ??? Is it magic ? Who actually says the price will be this or that ?? Who actually says the interest goes up or down ? Where is that person ? Is it God ?? Can someone identify that person who starts this movement each time ?? Don't say ' its the market ' ! Somewhere, some human makes a move to make these crazy things happen.
    • Nate | 30 Jan 2015, 01:18 PM Agree 0
      It's Stephen Poloz, Governor of the Bank of Canada, who, along with a team of economists, make the decision to raise or lower the BOC rate at which money is lent to banks. They decide based on a target inflation rate of 2% within a range of's called monetary policy. Read up on the hazards of deflation or high inflation if you want to know why they do this.

      Banks set their own rates based on business decisions involving a few variables -- borrowing rate from BOC, bond market yields, perceived risk in the market place, business objectives, competition from other banks etc. Banks borrow from BOC, among other places, lend out money in the mortgage market, and make money on the 'spread' between the rate they charge and the rate at which they borrow. Mortgages often are subsequently bundled and resold by lenders on financial markets as 'asset backed securities'.
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