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The chances of a July rate cut increased this morning, as the latest Canadian inflation numbers showed improved progress towards the Bank of Canada’s (BoC) 2% target. Statistics Canada reports that the Consumer Price Index (CPI) increased at a rate of 2.7% year over year in June, down from 2.9% in May, and marking a 0.1% monthly decrease. Slowing gas prices were the main factor behind the deceleration, rising just 0.4% last month compared to 5.6% in May.

Hamilton tops the board in terms of rising required income; a home price increase of $9,400 means buyers must now earn $1,550 in additional income to afford an average-priced home as they did in April. The average home price in the Golden Horseshoe city was $868,300 in May. That was followed by Victoria, where buyers must now earn $1,230 in additional income, based on a month-over-month increase of $7,600, with the average price now at $874,300.

Vancouver and Victoria ranked second and third for improved affordability, despite a slight increase in their respective home prices. “Though home prices increased in Vancouver and Victoria, the decrease in mortgage rates was enough to still produce an improvement in affordability,” Laird says.

With notes from Penelope Graham When you sell an asset like a rental property or some investment products like stocks and you make a profit, capital gains taxes apply. The federal government announced changes to the rules in the April 2024 Federal Budget that will go into effect starting June 25, 2024. Here’s what you need to know about the changes to Canadian capital gains tax rules for 2024 and whether they could apply to you.

Stable mortgage rates couldn’t offset rising prices The March report marks the second month in a row where rising home prices have erased more favourable mortgage conditions, after a slight improvement in January. The data also reveals today’s borrowers are being stress tested at an average of 7.62%, based on the average five-year fixed mortgage rate of 5.62%. That’s roughly flat from the 7.63% recorded in February.

Inflation remains too high for Bank’s comfort However, the Bank made it clear today that a wait-and-see approach continues to be warranted as inflation risks remain too high for its liking. “Based on the outlook, Governing Council decided to hold the policy rate at 5% and to continue to normalize the Bank’s balance sheet. While inflation is still too high and risks remain, CPI and core inflation have eased further in recent months,” states the Bank’s announcement.

Memo 1: Mortgage payment defaults are increasing Despite steadily rising borrowing costs over the last two years, Canadian mortgage holders have been lauded for their ability to keep up with their payments – but new data shows cracks may be forming. Fourth-quarter 2023 numbers from Equifax Canada shows borrowers are increasingly missing their mortgage payments, especially as they come up to renew their terms at today’s higher rates.

Is life insurance a good estate planning tool? Life insurance can be used as a strategic estate planning tool. Let’s take a look at how life insurance, through tax-deferred growth and tax-free loans and withdrawals, can enhance the value of your estate while offering financial flexibility. The cash value in whole and universal life insurance policies grows tax-deferred, which means you don't pay taxes on the growth as long as the money stays in your policy.

I always thought I was pretty good at identifying things that are “too good to be true,” like emails from someone pretending to be my boss, asking if I can run an errand for them or wire money. Recently, however, I’ve seen things that are way too convincing; messages about promotions at stores I frequently shop at, or alerts informing me that someone has logged on to one of my accounts. I feel like it’s becoming harder to tell what’s safe to click on and what’s not.

Why we should talk about money with friends Let’s go back to the pop culture well for a second. Everyone’s favourite group of television friends from the 1990s went out to dinner during one episode. Struggling with their own respective financial woes, Rachel, Joey, and Phoebe order meals that are both light on the stomach and the wallet. Their more gainfully employed friends, Ross, Chandler, and Monica, order more expensive seafood dishes.