Buying a home is the largest purchase most Canadians will make – and as of mid-2022 it became even more expensive, with rising interest rates driving up the cost of borrowing. Canada’s mortgage stress test has played a large role in that as well, by requiring buyers to prove they can manage rates well above what lenders are offering. Here’s a primer on how the stress test works, with insights from personal finance and mortgage experts.

What is Canada’s mortgage stress test?

The mortgage stress test is a financial calculation meant to ensure you can still qualify for your mortgage if interest rates rise.

The federal government introduced the stress test in 2016 for mortgage holders who were making a down payment of between 5 and 19 per cent and were required to purchase mortgage default insurance. In 2018, the Office of the Superintendent of Financial Institutions, or OSFI, the government agency that regulates federally incorporated lenders, expanded the stress test to buyers who make a down payment of at least 20 per cent and are uninsured. In essence, all insured mortgage holders and uninsured mortgage holders who get their mortgage with an OSFI-regulated lender must pass the test.

The current stress test rules, which came into effect on June 1, 2021, require borrowers to prove they can handle either the minimum qualifying mortgage rate of 5.25 per cent, or their contract rate plus two percentage points, whichever is higher.

Why was the stress test introduced?

With house prices soaring in 2016-17, the stress test was meant to give insured buyers more breathing room if the low interest rates they were borrowing at began to rise. “We know interest rates go up … and putting a buffer in place made sure Canadians could make their payments if they faced challenging circumstances,” says Angela Calla, a mortgage broker based in Port Coquitlam, B.C.

The test was also aimed at cooling Canada’s housing market. That year the average price for all housing types nationally had increased 10.7 per cent from the previous year, reaching a record high.

OSFI extended the stress test to uninsured buyers two years later out of concerns around high household indebtedness, and to guard against a wave of foreclosures if homebuyers struggled to pay their mortgages.

The stress test was also, in part, a lesson learned from the 2008 global financial crisis, Globe and Mail columnist Tim Kiladze wrote in June. Mortgages are the largest assets on the balance sheets of banks and other lenders, and a wave of defaults can ripple out to the broader financial sector.

OSFI’s move was received with “palpable and widespread” fury from the real estate industry, as the housing market was starting to cool at the time. It also sparked concerns that it could send borrowers into the unregulated lending market. It still has its detractors today. But, Mr. Kiladze argued, with inflation now at multidecade highs and the Bank of Canada hiking interest rates rapidly to wrestle it under control, the stress test is proving its value.

“If Canada still had the mortgage rules that existed when the housing market took off a decade ago, we would have every reason to be terrified now,” he wrote. “But we don’t, because, even in the face of serious backlash, regulators … prioritized controlling systemic risk.” (Data from the Canada Mortgage and Housing Corp. showed mortgage delinquency rates in Canada have remained below 1 per cent for the past 10 years, and since 2018 have never risen above 0.3 per cent.)

How does the stress test affect homebuyers?

Initially, OSFI set the stress test rate at the higher of two percentage points above a buyer’s contract rate or the posted Bank of Canada five-year rate. But after the Bank of Canada drastically cut interest rates during the pandemic, OSFI was concerned the five-year benchmark was too low to protect buyers against adverse events. In June, 2021, the most recent update, OSFI decoupled the minimum qualifying rate from the central bank’s posted rate. It has now a set floor rate of 5.25 per cent that the regulator will review annually.

By requiring buyers to qualify at a higher rate than they’re actually being offered, the stress test makes it more difficult for Canadians to get a mortgage. It can reduce the mortgage amount you qualify for or require you to save more money for a larger down payment.

When the stress test came in for uninsured borrowers in 2018, it cut purchasing power by about 22 per cent, according to the National Bank of Canada. The most recent update cut buying power by 4 per cent on average. This is because lenders have limits on borrowers’ debt service ratios – the amount of their income that goes to making their payments – and pushing the mortgage rate up means they’ll hit the ceiling faster and thus qualify for smaller mortgages.

While a 4-per-cent decrease in purchasing power might sound modest, it can be significant. Last year real estate brokerage Zoocasa calculated that Canadians looking to buy the average-priced home in their city with a 20-per-cent down payment would see the mortgage they qualify for decrease by between $14,000 and $47,000. Alternately, they’d need to boost their income by between $2,000 and $9,000 annually. Those living in Toronto and Vancouver took the biggest hits to mortgage qualification amounts.

Is everyone subject to the stress test?

Anyone who takes out a mortgage with a federally regulated lender overseen by OSFI – which includes banks and federal credit unions, and trust and loan companies – must face the stress test. Provincially regulated lenders like most credit unions, as well as alternative lenders, are not subject to the stress test rules. Some of these lenders will stress test you anyway to gauge the risk of lending to you, but they have the discretion to decide to approve you for a mortgage regardless.

However, if you’re an insured borrower you’ll be subject to the stress test regardless of the mortgage you choose.

If you’re renewing or refinancing your mortgage and decide to switch lenders, you’ll also likely need to pass the stress test. However, according to Robert McLister, a mortgage strategist with MortgageLogic.news and a Globe contributing columnist, there is an exception. If you were approved for a CMHC-insured mortgage prior to the introduction of the stress test in 2016, some lenders can “grandfather” you and qualify you at their actual five-year fixed rate.

Who is most affected by the stress test?

The stress test tends to disproportionately affect those who are just on the margins of qualifying, who are typically “buying the most house they can afford,” said Mr. McLister. And that’s a lot of people. According to the CMHC’s 2021 mortgage consumer survey, 65 per cent of buyers paid the maximum price they could afford to buy their home.

Does the stress test apply to both variable and fixed-rate mortgages?

You’ll have to undergo the stress test regardless of whether you opt for a fixed- or variable-rate mortgage. With variable rates consistently lower than fixed rates, Mr. McLister said choosing to be stress tested at a variable rate will likely help you qualify for a bigger mortgage than you would be able to achieve on a fixed.

As an example, an uninsured buyer who went with the lowest available five-year fixed rate as of August, 2022 would be stress tested at 6.79 per cent; if they went with the lowest available five-year variable rate, they’d be tested at 6.15 per cent. Mr. McLister said that in this case, a hypothetical uninsured buyer who’s making $100,000 a year, doesn’t have other debts and takes a 30-year amortization period, could qualify for a home that’s 5.4 per cent more expensive with a variable rate.

How have rising interest rates affected the stress test?

Recent rate increases show the huge impact that the hikes can have. The Bank of Canada, in an effort to tame rising inflation, made a series of interest rate hikes in 2022, including a supersized 100-basis-point hike in July that brought its policy rate to 2.5 per cent. (A basis point is one-hundredth of a percentage point.)

After two years of rapidly rising housing prices, rate hikes have started to cool the market – but they’ve also sent borrowing costs soaring and made the stress test much harder to pass. The minimum qualifying rate of 5.25 per cent is “no longer a factor,” Mr. McLister said, because it’s less than the lowest contract rates available on the market plus two percentage points. As of August, 2022, the easiest stress test rates for insured and uninsured buyers, based on the lowest nationally available interest rates, are 5.45 per cent and 6.15 per cent, respectively. (Insured buyers are typically offered lower rates because their lender is guaranteed repayment even if they default.)

According to loan comparison website Ratehub.ca, the yearly income needed to purchase the average Canadian home at a fixed mortgage rate with 20 per cent down has climbed by an average of $18,000, owing to these higher stress test requirements as of July. Vancouver buyers need to make a minimum of $232,000 a year to afford a home in the city – a nearly $32,000 increase since March – and Toronto buyers need to make roughly $226,000, an additional $16,000 in the same time frame.

“I’ve seen over the last few months it’s really impacting buyers’ ability to buy what they want in real time, one month to [the next] after the Bank of Canada has increased its rates,” said Davelle Morrison, a Toronto broker with Bosley Real Estate Ltd.

If rates keep climbing – as many in mid-2022 were expecting them to – then the stress will become progressively tougher for borrowers.

OSFI is leaving the door open to tweaking the mortgage stress test rules before the end of 2022 to address these new circumstances, Globe real estate reporter Rachelle Younglai reported in May.

Can you get around the stress test? What are the benefits and risks of doing so?

If you’re an uninsured borrower and choose to work with a private lender, mortgage investment company or provincially regulated credit union, you’ll likely be able to skirt the stress test – or, if your lender applies it, they may not reject you if you can’t pass the higher rate. “A debt service ratio shouldn’t make or break a mortgage decision in isolation of other factors,” Allison Van Rooijen, vice-president of consumer credit at Meridian Credit Union, told The Globe in August.

There are tradeoffs to this, Mr. McLister said: These lenders tend to offer interest rates “materially higher” than OSFI compliant mortgages. But this isn’t necessarily a bad thing, he said. As an example, if you went with a credit union that offered an interest rate that was 0.5 percentage points higher than a major bank’s, the credit union would still be able to qualify you for more financing because you don’t have to clear the hurdle of qualifying for two points higher than your contract rate.

(This article is courtesy of the Globe and Mail)

Angela Calla is an 18-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

FURTHER DECLINE IN INFLATION IN JANUARY AFFIRMS BANK OF CANADA PAUSE IN MARCH

Canadian inflation decelerated meaningfully in January despite the continued strength in the economy. Labour markets remain very tight, and retail sales continue strong. Nevertheless, the Bank of Canada’s jumbo rate hikes over the past eleven months have tempered inflation from a June ’22 peak of 8.1% y/y to 5.9% in January. 

The 3-month average growth in the Bank of Canada’s preferred median and trim inflation measures – designed to look through volatility in individual product prices to better gauge underlying price pressures – are running at around 3.5% on a three-month annualized basis. That’s still above the BoC’s 2% inflation target but is well below peak levels last year. 

Prices for cellular services and passenger vehicles contributed to the deceleration in the all-items CPI. However, mortgage interest costs and food prices continue to rise.

Last month, inflation excluding food and energy, rose 4.9% y/y. Prices excluding mortgage interest costs rose 5.4%. In both cases, year-over-year price growth was slower than in December. Some of the decline in inflation was due to base-year effects. In January 2022, mounting tensions amid the threat of a Russian invasion of Ukraine, coupled with supply chain disruptions and higher housing prices, put upward pressure on prices.

Monthly, the CPI rose 0.5% in January 2023, following a 0.6% decline in December. Higher gasoline prices contributed the most to the month-over-month increase, followed by a rise in mortgage interest costs and meat prices.

Another critical factor in today’s data is that inflation in services eased to 5.3% from 5.6%.

Food prices, however, remain elevated in January (+10.4%) compared to 10.1% in December. Grocery price acceleration in January was partly driven by year-over-year growth in meat prices (+7.3%), resulting from the most significant month-over-month increase since June 2004. Food purchased from restaurants also rose faster, rising 8.2% in January following a 7.7% increase in December.

Bottom Line

The Bank of Canada must feel pretty good about today’s inflation numbers. They confirm the wisdom of their announced pause in rate hikes at the January meeting. Despite continued strength in the labour market and January retail sales, headline and core inflation measures have declined again, with a five handle now on the headline rate. That is still a long way to the 3.0% inflation forecast by the end of this year, but it is moving in the right direction.

There will be no BoC action when they meet again on March 8. Their press release will be scrutinized for a hawkish versus dovish tone. Regardless of upcoming data, there is virtually no chance of any rate cuts this year.

(This article is courtesy of the Sherry Cooper Assoc.)

Angela Calla is an 18-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

The market has rebalanced meaning:

1. You can put less down
2. Have a lower purchase price
3. Have more of the balance paid off

There is so much more to look at than the rate, you can always refinance later when rates go down. Rent the rate, not the house 🏡

👍If you are working full time

👍Have a good credit score

👍A downpayment that is saved or gifted, let’s see what options are available today. Need a plan to save for a downpayment? We got you!

Email us to learn your options at angela@countoncalla.ca

Angela Calla is an 18-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

New mortgage data is offering a snapshot of where B.C. homeowners are getting their first foot into homeownership and how recent interest rate hikes are weighing down younger people more than others.

“It just tells you that these very, very substantial interest rate increases disproportionately affect the people who are struggling the most to begin with,” said Andrey Pavlov, a professor of finance at Simon Fraser University.

Cities on the periphery of large census metropolitan areas, who have a higher percentage of younger and new homeowners, have higher numbers of mortgage holders, according to Statistics Canada census data provided to Glacier Media by Andy Yan, director of Simon Fraser University’s City Program.

“This is reflective of particular demographic trends, but then also of particular financial trends, especially when it comes to interest rates,” Yan said.

Throughout the province, 58 per cent of homeowners have a mortgage versus the 42 per cent of homeowners who are mortgage-free.

The three communities in B.C. with the highest percentages of mortgage holders are Fort St. John, the City of Langley and Surrey. 

Fort St. John has by far the highest proportion of mortgages, with 76 per cent of homeowners being mortgage holders.

In comparison, only 44 per cent of West Vancouver homeowners have a mortgage, the lowest percentage in the province. The regional district of Powell River is second with 46 per cent and Sechelt is third with 47 per cent.

The distribution across the data is “striking,” said Pavlov. 

Those areas with higher home prices, like West Vancouver, have lower percentages of mortgage holders.

Many of the homeowners who purchased homes in that area, did so a “long time ago” and don’t have a mortgage anymore, said Pavlov.

“But if you look at the places that have a high percentage of mortgage holders, areas like Surrey, Port Coquitlam, New Westminster, Abbotsford, those are the relatively more affordable areas of the Lower Mainland,” he said. 

“It really shows the impact on younger people, and in a way lower-income people, because those are the people, through no fault of their own, they are now impacted more from interest rates than the average person,” he said. 

To compare, in the City of Surrey, where 68 per cent of homeowners have a mortgage, there are 72,580 people between the ages of 30 and 39, according to Statistics Canada. In West Vancouver, there are only 2,615 people within that age group. 

“It ties into historic patterns of getting on the housing ladder. That if you’re young, if you’re a young household trying to step into housing ownership, that you buy in the municipalities outside of central cities,” Yan said. 

In addition, for communities that are located more eastward in the Lower Mainland, it is clear that there are more homeowners with mortgages, he added.

“There are indeed cities with, what one might call, high levels of mortgage-free homes. And then, of course, other areas that have high levels of mortgaged homes. And they’re two stories on the same coin. All through which what we don’t know, is what will happen in a prolonged, not even high interest, normal interest situation,” Yan said. 

These periphery cities tend to rely more on personal vehicles for transportation rather than public transit. According to TransLink’s Travel Diary survey, the farther a suburban municipality is from the City of Vancouver, the higher the total daily kilometres travelled by driver per capita.

“If you look at some of these communities that have high mortgage levels, you will also look at those that are perhaps more car dependent than others,” said Yan. 

“I think that there is a fair argument about the role of public transit as a means of stabilizing household costs and household affordability.” 

The data provided by Yan does not include information on the depth of outstanding mortgages, but still provides a clear look into “a very distinct pattern with the central cities and with those that are on the periphery,” he said. 

(This article is courtesy of Business In Vancouver) 

Angela Calla is an 18-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

We were interviewed by the Steele and Vance show recently to speak on the Coromandel $700 million credit protection development. This was no doubt a result of the current economic climate and a sign of caution moving forward with pre-sale homes and the development of housing in the Lower Mainland as a whole.

Here is the full video below:

As well, if you would like to learn more, we have another article posted HERE which goes into more detail on the whole situation

The Angela Calla Mortgage Team

Angela Calla is an 18-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

Big hello from the Angela Calla Team! We wanted to give a quick reminder that March 1^st is the to contribute to your RSPs. This is significant because of the potential tax benefits you can get, based on your income bracket, such as reducing your overall taxable income or even seeing a tax refund.

In our upcoming Mortgage Planning Webinar, we discuss contributions to RSPs, as a viable option for intergenerational finance or mortgage planning. For example, the money saved or refunded back can be utilized to help pay off existing debt or put aside for future use, such as a gift to one’s children that we often see in today’s market.

Given the current inflation rates, many may feel that it is beyond their means to contribute to an RSP. If that is the case, our team would be happy to make introductions to financial planning partners whom we work with closely to put together a budget or plan that can get your money working for you in the best places.

The Angela Calla Team

Angela Calla is an 18-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

We were recently invited on the Jill Bennett show to discuss the recent news that Coromandel Properties, a major housing developer in Vancouver, is seeking creditor protection for over $700 million.

There are a few things to note about this recent development. However, what is most important to understand about this situation, and even all pre-sale property purchases, is that the most important thing when it comes to pre-sale is the disclosure statements signed at the beginning. The disclosure statement essentially acts as a contract, which lay out the terms of the purchase, what is expected to be received by the end, and the time frame development will roughly take. Presale properties generally have not broke ground yet and are expected to be done in a few months to a few years. As well, it is often the case that a certain number of presales are to be sold before the project can even get approved to move forward. Fortunately for potential investors and homebuyers, Canadians within BC are very well protected when purchasing a pre-sale, and deposits put down are protected in trust by the government.

But even with this in place, it is clear that the news about Coromandel is evidence of the effects of the recent rate hikes and inflation, and that this shouldn’t be seen as a single isolated event. We should expect that the rate of inflation as of late affects everyone.

If you have 10 minutes to spare, you can listen to the whole interview HERE.

Angela Calla is an 18-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

When inflation goes up, the value of your money goes down.

Inflation is like a dripping tap. It may look like barely any water is coming out. But it’s amazing how it adds up over time.

Say you put $50K under your mattress tonight. If inflation averages 3% per year – and you raid your mattress after 10 years to spend the $$$, it would only be worth $37,000 at present value – because of the inflated costs of goods and services. If you wait 20 years, it would be worth only $27,000 at present value, etc. 

Inflation isn’t 3%  🙁 and if you feel it’s time you secured your savings, please give your advisor a call.  If you do not have one, please feel free to reach out to angela@countoncalla.ca  as I would be happy to make an introduction to an associate that can meet in person, over zoom or on the phone.

Angela Calla is an 18-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

Dr. Tracy Thomas has built a career out of coaching celebrities, CEOs, professional athletes, and other high-performing individuals.

The psychologist and author, who started her coaching business 12 years ago, earned over $1 million just in 2021 alone. She’s also built a seven-figure net worth, thanks to high earnings coupled with consistent saving and investing. Insider verified these details by viewing tax forms and bank account statements.

“I have accumulated a lot, and I’ve also invested a lot,” she told Insider.

Thomas has been saving and investing a portion of her income since she started her career three decades ago, she said. However, she hesitates to use the word “saving.”

The term connotes “deprivation of the things you really want to do in the moment,” she explained. “It’s  not very attractive or glamorous.”

Instead of thinking you need to “save” your money, tell yourself that you’re “accumulating wealth” or “building wealth,” she advised.

Similarly, replace the word “budgeting” with “allocating,” she added. Budgeting implies restriction — having to cut something out of your life. Instead, frame it as: You’re allocating money for future goals or purchases, like a home, car, or retirement.

This is the type of language that Thomas and her clients use, she said: “They’re not ‘budgeting’ their money — that’s a scarcity mindset. They’re allocating or investing their resources. They’re allocating resources into some of their monthly entertainment; they’re investing into their wardrobe; they’re investing into their future lake house.”

Reframing your thinking and using what she calls “wealth language” may have a greater impact than you think. It helps to not only re-establish your relationship with money, but shifts thinking from a “scarcity” mindset to one of abundance.

For example, “If you say, ‘I’m building wealth,’ the wording of that in your own psyche already starts to produce way more wealth, because the self follows whatever the directions are that you’re giving it,” said Thomas. “It’s similar to when someone says, ‘I’ve got bad news’ or, ‘I’ve got great news,’ and immediately your chemistry shifts, because you’re following those directions.”

Success coach and author Jen Sincero offers similar advice in her book, “You Are a Badass at Making Money.”

“If you’re broke or not where you want to be financially, you can be sure that your language could use an upgrade,” writes Sincero.

Oftentimes, what you say reveals your true thoughts and beliefs about money. She highlights specific phrases that may seem harmless but can actually be limiting and hold you back from building wealth. Here are six common ones:

• “I want” is another way of saying “I lack”
• “I wish” is another way of saying “I’m not in control”
• “I need” is another way of saying “I lack”
• “I can’t” is self-explanatory
• “I hope” implies it might happen or it might not
• “I should” implies maybe you won’t or don’t want to

Try using this language instead, says Sincero:

• “I have”
• “I create”
• “I’m grateful for”
• “I enjoy”
• “I can”
• “I choose”

“Make the commitment to become aware of your language,” writes Sincero. “Get practiced at taking deep breaths before you speak. This will give you the space to stop, notice what was about to come out of your mouth, and course correct if needed.”

(This article is courtesy of Business Insider)

Angela Calla is an 18-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog. 

Today’s Labour Force Survey (LFS) for January was much stronger than expected, once again calling into question how long the Bank of Canada’s rate pause will last. This report showed no evidence that the labour market is slowing in response to the vast and rapid runup in interest rates. 

Employment surged by 150,000–ten times more than expected–and most of the gain was in full-time jobs. The employment rate has returned to pre-pandemic levels. Employment rates among people 55 to 64 have been on a solid upward trend since the summer of 2022, mirroring the rise in employment over that period observed among most demographic groups.

Immigration remains a vital factor in hiring. According to the latest population estimates, in the third quarter of 2022, Canada’s population grew the fastest in over 50 years, mainly driven by an increase in non-permanent residents. In the Labour Force Survey, non-permanent residents represent the majority of a larger group, including those who were not born in Canada and have never been landed immigrants. Non-permanent residents can hold various kinds of work, study, or residence permits. On a year-over-year basis, employment for those not born in Canada and who have never been a landed immigrant was up 13.3% (+79,000) in January, compared with growth in total employment of 2.8% (+536,000).

Average hourly wages rose 4.5% on a year-over-year basis in January, down from 4.8% in December. This is good news for the inflation outlook, but it remains much above the 2% target. Year-over-year wage growth reached 5.0% in June 2022 and peaked at 5.8% in November (not seasonally adjusted).

The unemployment rate remained near a record low, holding steady at 5.0% in January, just shy of the record-low 4.9% in June and July last year. 

Employment growth was most robust in wholesale and retail trade, healthcare, education, other services and construction.

Bottom Line

The Canadian jobs market is showing no signs of slowing. This has to make the Bank of Canada at least a bit nervous. The US jobs market data in January was also robust, and the Fed Chairman, Jay Powell, has assured markets that interest rates are likely to rise further. 

This is the last jobs report before the Bank of Canada meets again on March 8. The CPI data for January will be released on February 21 and will be the primary factor determ

(This article is courtesy of the Sherry Cooper Assoc.)

Angela Calla is an 18-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.

Click here to view the latest news on our blog.