June 29th, 2017
Ontario Proposes Ban to Stop Double Ending in Real Estate
The Ontario government is proposing banning double-ending in real estate. This practice involves a realtor representing both a seller and buyer in a transaction. The worry that brought about this proposal is concentrated around the idea that consumers will not be represented properly and fairly by a realtor who is dealing with both parties.
Along with this, the government is also considering increasing fines for realtors and brokerages who violate the code of ethics. The fines would be increased to $50,000 for a realtor personally and $100,000 for a brokerage.
We will see where these proposals lead, and will be keeping a close eye on the situation.
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Interest Rate Hike – Is It Close?
In other news, an interest rate hike may be closer than anticipated. The last time the Bank of Canada raised it rates was seven years ago, in 2010.
Stephen Poloz, the Governor of the Bank of Canada, restated that the, “2015 cuts [have] appeared to have done their job.” The Canadian economy has, apparently, been steadily growing, and the rate drop used to balance the drop in oil prices in 2015, has allowed for the economy to flourish in other ways.
Poloz’s recent comments are leading some economists to believe that an interest rate hike is on the way sooner,rather than later. Some are predicting the hike will happen in July, while others are more hesitant, and say the hike may occur in the fall.
According to the Financial Post, and Global News, the loonie was as high as 76.71 U.S cents on Wednesday, which is the highest it’s been since February of this year. Canada’s low jobless rate also is indicative of the need for a rate hike.
So, what does this mean for mortgages? If the Bank of Canada raises their posted prime rate, the big Canadian banks will also raise their prime rates, effectively making variable rate mortgages more expensive. Those who have variable rate mortgages now can most likely expect an increase in their monthly payments unless they lock into a fixed rate. This will also drive up the cost of lines of credit and loans tied to the prime rate.
We are expecting more information to become available in the next few weeks and will provide everyone with an update.