Canadian mortgage & banking news

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The Bank of Canada will announce its overnight rate target on eight scheduled dates throughout the year. These announcements are accompanied by press releases detailing the rationale behind the rate decision. The next announcement is scheduled for December 9, 2026.

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The Bank of Canada conducts a quarterly Market Participants Survey to gather insights on macroeconomic and financial variables, as well as monetary policy. This survey involves reaching out to a diverse group of financial market participants. The latest release of this survey was on November 9, 2026.

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The Bank of Canada will announce its overnight rate target on eight scheduled dates annually, accompanied by a press release detailing the decision's rationale. Four times a year, the Governing Council releases a Monetary Policy Report outlining base-case projections for Canadian inflation and economic growth, along with a risk assessment. These announcements are crucial for understanding the central bank's monetary policy direction.

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The Bank of Canada's Business Outlook Survey and Canadian Survey of Consumer Expectations provide insights into business and household sentiment. These surveys gather information on inflation, labour market views, and household finances from business leaders and consumers across Canada. The findings are used to inform the Bank of Canada's policy decisions.

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Montreal's business community is proposing to repurpose several floors of a planned $200-million downtown tower to host the headquarters of a new multinational defence bank. Canada was selected to host this bank, which will finance defence projects for NATO members and allies, with several Canadian cities competing for the host city designation. The proposal aims to strengthen Montreal's bid against other cities, including Toronto, which has also secured a potential headquarters location.

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IGM Financial Inc. is undertaking a $95-million restructuring charge to streamline operations and reduce costs, with anticipated annual savings of $70 million by 2028. These savings are intended to fund investments in artificial intelligence tools, aiming to enhance efficiency and client service. The restructuring occurs as IGM's core businesses, IG Wealth Management and Mackenzie Investments, adapt to evolving market demands and technological advancements.

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Canadian oil companies are projected to earn $90 billion in windfall profits due to global oil price shocks, leading to increased inflation and energy costs for consumers. A proposed windfall profits tax on the oil and gas industry could generate significant revenue to offset these costs and fund renewable energy investments. Polling indicates strong public support across various demographics for such a tax, with proponents arguing it would not deter industry investment.

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Ontario's repealed Bill 124, a wage restraint law, continues to impact public sector finances, with the Independent Electricity System Operator seeking to recover $329-million from ratepayers due to retroactive pay adjustments. This fallout includes significant financial pressures on organizations like hospitals and social service agencies, leading to strikes and staff shortages in some sectors. The province is now facing substantial costs for retroactive compensation and legal fees, reversing earlier projected savings.

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RBC CEO Dave McKay utilizes an AI-generated daily report covering economy, markets, and mortgage data to inform his agenda, aiming for increased efficiency and customer acquisition. The bank is investing heavily in AI, projecting significant enterprise value by 2027, while anticipating a shift in workforce towards client-facing roles. McKay also noted that uncertainty around trade agreements is muting borrowing appetite in Canada, contrasting with demand in the U.S. tech sector.

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Fairfax Financial Holdings Ltd. has agreed to acquire Canadian wine producer Andrew Peller Ltd. for an enterprise value of $579-million. The offer includes cash payments of $8 per class A non-voting share and $12 per class B voting share. The transaction, subject to approvals, is anticipated to close in the third quarter of 2026.

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Scotiabank is proposing to acquire the remaining 28% stake in its Jamaican subsidiary, Scotia Group Jamaica Ltd., for approximately $500 million. This move is part of the bank's strategy to enhance capital and operational efficiency across its global operations. The transaction, which is subject to shareholder and court approvals, is anticipated to conclude in the fourth quarter of 2026.

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The European Central Bank (ECB) has raised its benchmark interest rate to 2.25 per cent to combat inflation driven by rising oil prices. This move by the ECB, the first major central bank to act in response to the conflict, precedes upcoming rate decisions from the U.S. Federal Reserve, Bank of Japan, and Bank of England. The ECB's decision aims to temper inflation, which has surpassed its 2 per cent target, while balancing the impact of higher borrowing costs on economic growth.

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Toobit has launched a Prediction Market allowing traders to speculate on the outcomes of real-world events, including financial developments. This new feature enables users to trade event-based contracts using USDT from their existing Futures Account. The prediction market sector has seen significant growth, with global trading volumes surging to over $25 billion by March 2026.

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The UK housing market shows signs of stabilizing, with a survey indicating that new buyer demand remained unchanged in May after three months of decline. While sales activity is subdued and prices continue to fall, the pace of this decline appears to be easing. However, agents caution that it is too early to declare a recovery, as higher borrowing costs and fragile sentiment persist.

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Apotex, Canada's largest drug company, saw its stock soar 12% on its first day of trading on the Toronto Stock Exchange, marking the largest Canadian initial public offering in five years. The company raised $1.3 billion, with its market capitalization reaching $5.8 billion. Private equity firm SK Capital Partners, which invested in Apotex in 2023, has significantly increased its value and that of the founding Sherman family's retained stake.

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The U.S. Justice Department has subpoenaed major American banks, including JPMorgan Chase, Bank of America, and Wells Fargo, for information regarding the alleged political motivation behind customer account closures. These subpoenas, some issued last year, are seeking details on individuals whose accounts were reportedly "debanked" and the reasons for these actions. This development follows pressure from former President Donald Trump, who previously signed an executive order aimed at preventing financial institutions from denying services based on political reasons.

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Global investors are demanding significantly higher yields for high-risk CCC-rated bonds due to growing fears of stagflation, driven by Middle East conflict and rising oil prices. This trend is putting pressure on highly indebted companies that borrowed heavily during the era of low interest rates. The market is showing a clear divergence, with lower-rated debt facing increased stress while higher-rated debt remains more resilient.

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Gold prices have declined for a third consecutive day following new US strikes against Iran, which have disrupted energy flows and contributed to rising inflation. This geopolitical instability has led to increased uncertainty in global markets, prompting investors to reduce risk exposure. The ongoing conflict has also impacted oil prices and raised the possibility of interest rate hikes by central banks to manage inflation.

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Canadians approaching retirement have seen significant wealth growth, largely tied to housing equity, but this wealth is not easily convertible into retirement income. While housing has become a de facto retirement vehicle due to limited alternatives and stagnant growth in other savings, its illiquid nature and the need for ongoing shelter present challenges. The intergenerational wealth divide is exacerbated as rising home values for older generations create barriers for younger buyers, impacting future retirement security.

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The Bank of Canada maintained its policy interest rate at 2.25 per cent, a decision supported by muted price pressures outside of gasoline and weak economic growth. While headline inflation rose to 2.8 per cent due to gasoline prices, core inflation measures have moderated, suggesting a potential path back to the 2 per cent target. However, rising input costs for producers present conflicting signals, leaving the bank's future rate decisions uncertain.

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The Bank of Canada has maintained its benchmark interest rate at 2.25% for the fifth consecutive time, citing mixed economic signals and a dilemma between controlling inflation and supporting economic growth. Governor Tiff Macklem downplayed recession concerns but noted flatlining growth, while acknowledging risks from global oil prices and potential trade restrictions. The central bank is prepared to be nimble, with potential for rate hikes if inflation persists or cuts if trade restrictions impact growth.

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Nasdaq Verafin has launched two new AI agents designed to help Canadian financial institutions combat financial crime by automating repetitive compliance tasks. These AI tools aim to assist with anti-money laundering alert triage and enhanced due diligence on high-risk customers, freeing up human investigators for more complex cases. The technology is also being employed to detect fraudulent activity through behavioral biometrics, enhancing the fight against evolving criminal tactics.

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U.S. inflation reached a three-year high of 4.2% in May, driven primarily by surging oil prices, which has put pressure on consumer finances and savings. The Federal Reserve is expected to hold interest rates steady but may remove language suggesting future rate cuts, with markets anticipating a potential hike by year-end. While core inflation excluding food and energy remained modest, rising costs for goods like clothing and airline fares are contributing to broader price increases.

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The Bank of Canada has maintained its key interest rate at 2.25%, acknowledging that the future path for rates remains uncertain due to global factors like the Middle East conflict and trade tensions with the U.S. These uncertainties present considerations for Canadians with variable or fixed-rate mortgages, influencing decisions on rate holds and term lengths. The central bank indicated it is prepared to adjust rates if inflation pressures broaden or if economic weakness persists.

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The article explores the potential for artificial intelligence (AI) to be used in setting monetary policy and interest rates, drawing parallels to historical rules-based approaches like Milton Friedman's money supply rule and the Taylor rule. While AI is already assisting central banks with data analysis and forecasting, its direct application in policy decisions faces challenges due to the inherent unpredictability of economic outcomes and the need for human discretion. The increasing use of AI pricing in various industries is also noted as a factor influencing how quickly prices respond to monetary policy changes.

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Canada's top banking regulator, Peter Routledge, stated that Canadian banks possess the capacity to increase lending to small and medium-sized enterprises, urging them to adjust their business models and risk appetites. He highlighted a U.S. bank's commitment of over $1 trillion to its economy as a benchmark for Canadian institutions. Routledge also noted that OSFI is considering lowering risk weightings for loans to SMEs for larger banks, a move that could facilitate more lending.

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Digital mortgage lender Nesto has secured $300 million in a funding round led by major investors, valuing the company at $1.47 billion. The funds will be used to enhance its AI-driven mortgage underwriting process, aiming to significantly reduce approval times. Nesto's expansion plans include offering AI-powered financial products to other institutions, while maintaining regulatory compliance and human oversight.

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The Canadian dollar reached a six-month low against the U.S. dollar ahead of the Bank of Canada's upcoming interest rate decision. This decline occurred as Canada's trade surplus widened in April, driven by record exports, partly due to higher crude oil prices. Investors anticipate the Bank of Canada will maintain its benchmark interest rate at 2.25%.

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Families with young children are leaving Toronto and Montreal for more affordable housing markets in Calgary, Edmonton, and Ottawa due to a lack of child-friendly home construction. The high cost of housing, driven by restrictive land-use policies and government fees, makes homeownership unattainable for many young families in these major cities. This outmigration risks creating a "doom loop" in Toronto and Montreal, impacting school and daycare availability and long-term economic sustainability.

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The federal government is offering up to $150-million in loans to airlines facing financial pressure from high jet fuel costs, aiming to ensure sector stability and affordable travel. This initiative, called the Liquidity for Airline Sector Resilience program, requires participating airlines to commit to domestic sourcing, restrict executive pay, and maintain Canadian operations. While some smaller carriers have welcomed the program, larger airlines like WestJet have expressed opposition, citing concerns about market distortion and past taxpayer losses from similar loan forgiveness.

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Canadian tech companies are experiencing layoffs, with some employers citing artificial intelligence as a reason for job cuts and reduced entry-level hiring. However, experts suggest that factors like pandemic-era talent hoarding, rising interest rates, and declining investor capital are more likely culprits for broader workforce reductions. While AI may be a convenient scapegoat for some layoffs, it is increasingly capable of performing tasks traditionally handled by entry-level employees, leading to a shift in required skills for new hires.

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Canada faces a critical juncture in quantum computing development, with the U.S. making significant investments that could lead to foreign control of essential infrastructure. The article advocates for increased quantum literacy, drawing parallels to successful AI training initiatives, to prepare Canadians for the technology's transformative potential. This proactive approach is crucial for Canada to remain competitive and secure its future in this rapidly evolving field.

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Canada's economy presents conflicting signals with strong job gains following a technical recession, prompting the Bank of Canada to consider its next interest rate decision amidst moderating inflation and stalled growth. The U.S. housing market is under scrutiny following Berkshire Hathaway's investment in a homebuilder, with elevated mortgage rates continuing to impact the sector. Several Canadian companies, including Dollarama and Adobe, are facing investor attention due to their performance in the current economic climate.

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The Bank of Canada is widely expected to hold its policy interest rate at 2.25% due to a stagnating economy and trade uncertainty, despite recent inflation pressures from oil prices. While headline inflation rose, core inflation remains near the 2% target, and recent GDP data showed contraction, suggesting a cautious approach from the central bank. Market expectations for rate hikes later in the year have diminished significantly compared to earlier forecasts.

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A Bank of Canada report indicates that approximately 9% of Toronto mortgage holders may not qualify to refinance their loans in 2027 if current housing prices persist. Nationally, this figure is estimated at 4%, driven by declining property values and worsening loan-to-value ratios. Borrowers facing these challenges could potentially miss mortgage payments if unable to refinance or renew their loans.

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TD Bank Group has entered into a 10-year agreement to purchase carbon credits from the carbon capture startup Deep Sky. This deal involves TD acquiring over 18,000 verified direct air capture carbon dioxide removal credits. Deep Sky is developing carbon removal facilities in Alberta and plans to build a commercial facility in Manitoba.