What's Up Wednesday
Short and concise info from the last week.
Housing and Real Estate
National Bank of Canada's CEO announced late last week that plans are being considered to slow the boom of housing prices over the next few months, considerations being new regulation on banning blind bidding on homes, and potential changes to the mortgage underwriting criteria.
Economic bounce back from the second wave of pandemic lockdowns has been significantly stronger than the first wave. The Bank of Canada suggests that the first-quarter economic growth is much stronger than initially believed it would be. Also believes that the damage done to the economy due to the pandemic should be absorbed/ corrected by Q3-Q4 of 2022. Early estimates suggest that overnight interest rates may begin to rise at some point this year. Overall Canadian economy has been highly resilient to the hardships of the pandemic. CERS and CEWS benefits extended past the June 5th deadline, and still available, but the plan is to reduce and remove the benefits by September 2021.
Stress test for uninsured mortgages (4.79% current moving to 5.25%) has been a topic from the preceding weeks, but there's been no talk on how people seeking insured mortgages would be affected. Early speculation is that those seeking a High Ratio (less than 20% down) and those that choose to continue insuring Conventional mortgages (greater than 20% down or equity) should still be able to access the current 4.79% rate.