Mandeep Singh Ghotra PREC*'s blog

Source-  https://www.theglobeandmail.com/

Canada’s bank regulator plans to better protect the country’s financial system by limiting how much homeowners can borrow against the value of their homes.

The main target for the Office of the Superintendent of Financial Institutions is the popular readvanceable mortgage, or combined loan plan (CLP), in which a traditional mortgage is combined with a line of credit that increases in size as a customer pays down mortgage principal.

Source  - financialpost.com

The drumbeats warning of a coming recession are getting louder and more persistent.

The toll taken by the rising cost of living and tightening financial conditions around the globe are prompting more economists to sharply downgrade their outlooks.

Former Treasury Secretary Lawrence Summers told Bloomberg TV that there’s an increasing risk the recession he expects will start sooner, in 2022.

Source - Realtor.ca

Key amendments now in full force

Beneficial Ownership

When verifying the identity of an entity, you now have the obligation to obtain beneficial ownership information for that entity. In the case of a corporation, this may involve obtaining the names and addresses of all persons who own or control, directly or indirectly, 25% or more of the corporation.

As expected, the Bank of Canada raised its overnight policy rate by 0.5 points to 1.5 per cent. In the statement accompanying the decision, the Bank noted that inflation will likely move higher in the near term before beginning to ease later this year. That inflation is occurring against the backdrop of strong Canadian economic activity, widespread labour shortages and strengthening wage growth. While housing activity is moderating, consumer spending is robust and the Bank judges the Canadian economy is clearly operating in excess demand.

Source BCREA - Vancouver, BC – May 30, 2022. After reviewing the BC Financial Services Authority (BCFSA) consumer protection recommendations published on May 26, the British Columbia Real Estate Association (BCREA) urges the Ministry of Finance to carefully consider the next steps prior to implementing any of the measures proposed.