Written by Vernon Clement Jones
Canadian Real Estate Wealth
"The Bank of Canada left the overnight rate unchanged at 1 per cent Tuesday, in the process suggesting a hike may not come anytime soon.
With specific reference to a weakened global economy, the bank review
argues "risks remain skewed to the downside,” although the national
outlook remains largely unchanged from earlier largely positive
projections.
It also stepped back from its warnings about household debt levels and the urgent need to bring that under control.
That move in particular lends weight to the idea that the bank will hold off on any rise in its key overnight rate, say analysts, suggesting the central bank may delay until sometime next year.
Still, some mortgage brokers are concerned the absence of any rate tightening will strengthen demands from the Office of the Superintendent of Financial Institutions for substantive changes to lender underwriting guidelines.
Those exhaustive proposals promise to hold banks more accountable for their lending decisions, but also threaten, charge some analysts, to compromise homeownership for many current borrowers.
Those changes are expected to be released later this month."
It also stepped back from its warnings about household debt levels and the urgent need to bring that under control.
That move in particular lends weight to the idea that the bank will hold off on any rise in its key overnight rate, say analysts, suggesting the central bank may delay until sometime next year.
Still, some mortgage brokers are concerned the absence of any rate tightening will strengthen demands from the Office of the Superintendent of Financial Institutions for substantive changes to lender underwriting guidelines.
Those exhaustive proposals promise to hold banks more accountable for their lending decisions, but also threaten, charge some analysts, to compromise homeownership for many current borrowers.
Those changes are expected to be released later this month."
