Bank of Canada Rate Announcement Apr 10th, 2024

Josh Perez • April 10, 2024

Bank of Canada maintains policy rate, continues quantitative tightening.

FOR IMMEDIATE RELEASE

April 10, 2024

The Bank of Canada today held its target for the overnight rate at 5%, with the Bank Rate at 5¼% and the deposit rate at 5%. The Bank is continuing its policy of quantitative tightening.

The Bank expects the global economy to continue growing at a rate of about 3%, with inflation in most advanced economies easing gradually. The US economy has again proven stronger than anticipated, buoyed by resilient consumption and robust business and government spending. US GDP growth is expected to slow in the second half of this year, but remain stronger than forecast in January. The euro area is projected to gradually recover from current weak growth. Global oil prices have moved up, averaging about $5 higher than assumed in the January Monetary Policy Report (MPR). Since January, bond yields have increased but, with narrower corporate credit spreads and sharply higher equity markets, overall financial conditions have eased.

The Bank has revised up its forecast for global GDP growth to 2¾% in 2024 and about 3% in 2025 and 2026. Inflation continues to slow across most advanced economies, although progress will likely be bumpy. Inflation rates are projected to reach central bank targets in 2025.

In Canada, economic growth stalled in the second half of last year and the economy moved into excess supply. A broad range of indicators suggest that labour market conditions continue to ease. Employment has been growing more slowly than the working-age population and the unemployment rate has risen gradually, reaching 6.1% in March. There are some recent signs that wage pressures are moderating.

Economic growth is forecast to pick up in 2024. This largely reflects both strong population growth and a recovery in spending by households. Residential investment is strengthening, responding to continued robust demand for housing. The contribution to growth from spending by governments has also increased. Business investment is projected to recover gradually after considerable weakness in the second half of last year. The Bank expects exports to continue to grow solidly through 2024.

Overall, the Bank forecasts GDP growth of 1.5% in 2024, 2.2% in 2025, and 1.9% in 2026. The strengthening economy will gradually absorb excess supply through 2025 and into 2026.

CPI inflation slowed to 2.8% in February, with easing in price pressures becoming more broad-based across goods and services. However, shelter price inflation is still very elevated, driven by growth in rent and mortgage interest costs. Core measures of inflation, which had been running around 3½%, slowed to just over 3% in February, and 3-month annualized rates are suggesting downward momentum. The Bank expects CPI inflation to be close to 3% during the first half of this year, move below 2½% in the second half, and reach the 2% inflation target in 2025.

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. The Council will be looking for evidence that this downward momentum is sustained. Governing Council is particularly watching the evolution of core inflation, and continues to focus on the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behaviour. The Bank remains resolute in its commitment to restoring price stability for Canadians.

Information note

The next scheduled date for announcing the overnight rate target is June 5, 2024. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR on July 24, 2024.

Read the April 10th, 2024 Monetary Policy Report

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Deposit Lending And Bridge Financing

By Josh Perez • April 30, 2025

Let’s say you have a home that you’ve outgrown; it’s time to make a move to something better suited to your needs and lifestyle. You have no desire to keep two properties, so selling your existing home and moving into something new (to you) is the best idea. Ideally, when planning out how that looks, most people want to take possession of the new house before moving out of the old one. Not only does this make moving your stuff more manageable, but it also allows you to make the new home a little more “you” by painting or completing some minor renovations before moving in. But what if you need the money from the sale of your existing home to come up with the downpayment for your next home? This situation is where bridge financing comes in. Bridge financing allows you to bridge the financial gap between the firm sale of your current home and the purchase of your new home. Bridge financing allows you to access some of the equity in your existing property and use it for the downpayment on the property you are buying. So now let’s also say that it’s a very competitive housing market where you’re looking to buy. Chances are you’ll want to make the best offer you can and include a significant deposit. If you don’t have immediate access to the cash in your bank account, but you do have equity in your home, a deposit loan allows you to make a very strong offer when negotiating the terms of purchasing your new home. Now, to secure bridge financing and/or a deposit loan, you must have a firm sale on your existing home. If you don’t have a firm sale on your home, you won’t get the bridge financing or deposit loan because there is no concrete way for a lender to calculate how much equity you have available. A firm sale is the key to securing bridge financing and a deposit loan. So if you’d like to know more about bridge financing, deposit loans, or anything else mortgage-related, please connect anytime! It would be a pleasure to work with you.

Should You Double Down or Diversify in Real Estate Investing?

By Josh Perez • April 30, 2025

If you’re crushing it with duplex conversions, Airbnb rentals, flips, or student housing, you might be wondering: Should I double down on what’s working—or start learning about other strategies to diversify my real estate portfolio? It’s a great question—and one I get asked all the time. My typical advice? Double down on your strengths, outsource your weaknesses. If you’ve found a strategy that fits your skills, market, and cash flow goals, it’s smart to build momentum. But in real estate—especially in today’s market—it’s just as important to stay informed and flexible. Why Staying Educated Matters Real estate isn’t static. The rules of the game are constantly changing. Lending practices shift. Local bylaws evolve. What worked flawlessly last year may become less profitable—or even unviable—this year. Here’s what I mean: “If lenders and banks don’t want to lend as much on certain assets—like student rentals or short-term rentals—or they start to clamp down on duplex conversions, that changes your rate of return. That changes the rules of the game.” If your entire strategy depends on leverage (and let’s face it, most real estate investing does), changes in financing can dramatically shift the effectiveness of your current approach. Keep Learning, Stay Adaptable Even if you’re succeeding now, always keep learning. New strategies like BRRRR, rent-to-own, mid-term furnished rentals, or commercial opportunities might offer different advantages in changing markets. You don’t need to master them all, but you do need to understand how they work—and when it might make sense to pivot. Final Thoughts Crushing one niche? Keep going. But don’t ignore the bigger picture. As markets evolve, being aware of shifting rules, lender policies, and local regulations will give you the edge. At the end of the day, the best investors aren’t just good at one strategy—they’re nimble, informed, and proactive. If you want to chat about how to strengthen your current investments and position yourself for what’s next, let’s connect.