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Why mortgage rates in Canada are going down

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As inflation continues to soften, the Bank of Canada announced on Wednesday it would be holding its interest rate at 4.5 per cent for a second time in a row.

The bank announced no plans to cut rates in the near future but despite this, mortgage rates in Canada have been on a downward trend.

According to Ratehub.ca, the lowest five-year fixed rate mortgage available in Canada is 4.29 per cent, down from 4.59 per cent on March 1. The lowest five-year variable rate is available for 5.55 per cent, down from 6.10 per cent. Three-year fixed rates have also come down to 4.34 per cent, from 4.79 per cent at the start of March.

Part of this has to do with the fact that bond yields in Canada have fallen, a sign that the market is anticipating a rate cut on the horizon. James Laird, co-CEO of Ratehub.ca and president of CanWise Financial, says bond yields are “a key input” when it comes to determining mortgage rates.

On top of that, he says banks and lenders have started to offer more spring promotions as the weather gets warmer and the housing market starts to heats up.

“That’s when the lenders and banks start competing with each other more aggressively. That’s when you’ll see promotions and banks and lenders are willing to take thinner margins in order to win volume,” he told CTVNews.ca on Thursday over the phone. “So, a combination of lower economic costs to fund these mortgages plus spring promotions means rates have come down.”

SHOULD YOU GET A FIXED-RATE OR VARIABLE RATE MORTGAGE?

Jackie Porter, a certified financial planner and talent partner at Carte Wealth Management, notes that we also find ourselves in the rare situation where variable rates are more expensive than fixed rates.

“For the first time in a long time, fixed rates are actually lower than being in a variable rate mortgage, which is crazy. So that’s a really good indication that rates will come down,” she told CTVNews.ca in a phone interview on Thursday.

Canadians who are entering the housing market or about to renew their mortgage are currently faced with a dilemma: should they take a more expensive variable rate with the anticipation that interest rates will fall, or lock in a cheaper fixed rate?

“I’m having conversations with my clients, where they don’t want to take a five-year because they expect to see five-year rates come down in the near term. It’s just that we just don’t know what the near term really means when there’s so many different factors that we have to consider,” Porter said.

Laird said many consumers are taking a middle-ground approach: opting for a two- or three-year fixed rate mortgage. The rates on these mortgages are a little more expensive than a five-year fixed rate, but they offer more flexibility than five-year rates and are currently cheaper than variable rates.”

“The short term fixed rates are as popular now as they’ve ever been,” Laird said. “People are anticipating rates being lower in, say, two or three years, which is why they want the renewal to happen in two or three years as opposed to the traditional five-year fixed rate.”

It remains unclear if and when the Bank of Canada will lower interest rates. Bank of Canada Governor Tiff Macklem said rate cuts in the near future “don’t look like the most likely scenario to us,” and he didn’t rule out a possible rate hike to get inflation fully down to two per cent.

Meanwhile, economists say a rate cut could happen either by the end of this year or in early 2024, pointing to concerns over a possible mild recession on the horizon, as well as the fact that several banks in Europe and the U.S. have run into trouble. And even if a rate cut happens, its possible size is also unclear and could depend on whether we enter a deep or shallow recession.

“These are conversations I certainly am having with my clients and it’s a really important conversation for consumers to be having with their professional advisers to kind of get a sense of what their specific situation is,” Porter said. “It really kind of depends on their overall financial circumstances, what makes the best sense for them.”

 

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Sonia Furstenau staying on as B.C. Greens leader in wake of indecisive election

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The B.C. Greens say Sonia Furstenau will be staying on as party leader, despite losing her seat in the legislature in Saturday’s provincial election.

The party says in a statement that its two newly elected MLAs, Jeremy Valeriote and Rob Botterell, support Furstenau’s leadership as they “navigate the prospect of having the balance of power in the legislature.”

Neither the NDP led by Premier David Eby nor the B.C. Conservatives led by John Rustad secured a majority in the election, with two recounts set to take place from Oct. 26 to 28.

Eby says in a news conference that while the election outcome is uncertain, it’s “very likely” that the NDP would need the support of others to pass legislation.

He says he reached out to Furstenau on election night to congratulate her on the Greens’ showing.

But he says the Green party has told the NDP they are “not ready yet” for a conversation about a minority government deal.

The Conservatives went from taking less than two per cent of the vote in 2020 to being elected or leading in 45 ridings, two short of a majority and only one behind the NDP.

This report by The Canadian Press was first published Oct. 22, 2024.

The Canadian Press. All rights reserved.



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Toronto FC captain Jonathan Osorio making a difference off the pitch as well as on it

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Toronto FC captain Jonathan Osorio is making a difference, 4,175 kilometres away from home.

The 32-year-old Canadian international midfielder, whose parents hail from Colombia, has been working with the Canadian Colombian Children’s Organization, a charity whose goal is to help disadvantaged youth in the South American country.

Osorio has worked behind the scenes, with no fanfare.

Until now, with his benevolence resulting in becoming Toronto FC’s nominee for the Audi Goals Drive Progress Impact Award, which honours an MLS player “who showed outstanding dedication to charitable efforts and serving the community” during the 2024 season.”

Other nominees include Vancouver Whitecaps midfielder Sebastian Berhalter and CF Montreal goalkeeper Jonathan Sirois.

The winner will be announced in late November.

The Canadian Colombian Children’s Organization (CCCO) is run entirely by volunteers like Monica Figueredo and Claudia Soler. Founded in 1991, it received charitable status in 2005.

The charity currently has four projects on the go: two in Medellin and one each in Armenia and Barranquilla.

They include a school, a home for young girls whose parents are addicted to drugs, after-school and weekend programs for children in a disadvantaged neighbourhood, and nutrition and education help for underprivileged youth.

The organization heard about Osorio and was put in contact with him via an intermediary, which led to a lunch meeting. Osorio did his due diligence and soon got back to the charity with his decision.

“It was something that I wanted to be a part of right away,” said Osorio, whose lone regret is that he didn’t get involved sooner.

“I’m fortunate now that to help more now that I could have back then,” he added. “The timing actually worked out for everybody. For the last three years I have donated to their cause and we’ve built a couple of (football) fields in different cities over there in the schools.”

His father visited one of the sites in Armenia close to his hometown.

“He said it was amazing, the kids, how grateful they are to be able to play on any pitch, really,” said Osorio. “But to be playing on a new pitch, they’re just so grateful and so humble.

“It really makes it worth it being part of this organization.”

The collaboration has also made Osorio take stock.

“We’re very fortunate here in Canada, I think, for the most part. Kids get to go to school and have a roof over their head and things like that. In Colombia, it’s not really the same case. My father and his family grew up in tough conditions, so giving back is like giving back to my father.”

Osorio’s help has been a godsend to the charity.

“We were so surprised with how willing he was,” said Soler.

The TFC skipper has helped pay for a football field in Armenia as well as an ambitious sports complex under construction in Barranquilla.

“It’s been great for them,” Figueredo said of the pitch in Armenia. “Because when they go to school, now they have a proper place to train.”

Osorio has also sent videos encouraging the kids to stay active — as well as shipping soccer balls and signed jerseys their way.

“They know more about Jonathan than the other players in Colombia,” Figueredo said. “That’s the funny part. Even though he’s far away, they’ve connected with him.”

“They feel that they have a future, that they can do more,” she added. “Seeing that was really, really great.”

The kids also followed Osorio through the 2022 World Cup and this summer’s Copa America.

Back home, Osorio has also attended the charity’s annual golf tournament, helping raise funds.

A Toronto native, he has long donated four tickets for every TFC home game to the Hospital for Sick Children.

Vancouver’s Berhalter was nominated for his involvement in the Whitecaps’ partnership with B.C. Children’s Hospital while Montreal’s Sirois was chosen for his work with the Montreal Impact Foundation.

Follow @NeilMDavidson on X platform, formerly known as Twitter

This report by The Canadian Press was first published Oct. 21, 2024.



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Five Things to Know: Toronto Raptors’ 2024-25 season

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TORONTO – The Toronto Raptors kick off the 2024-25 season on Wednesday night when they host the Cleveland Cavaliers at Scotiabank Arena. Here are five things to know ahead of the Raptors’ home opener:

THREE DECADES — It’s the Raptors’ 30th anniversary and the team has plans to celebrate all season, including bringing back their purple jerseys from the mid-1990s. Toronto will also be honouring former players, including Hall of Famer Vince Carter. He’ll be the first-ever player to have his Raptors jersey retired in a ceremony at Scotiabank Arena on Nov. 2.

DEPTH CHART — The Raptors lacked depth to start last season with essentially one player coming off the bench — shooting guard Gary Trent Jr. — with then-rookie swingman Gradey Dick sometimes rotating in too. That short bench was evident with a -4.4 net rating over the season, tied with the San Antonio Spurs for third-worst in the NBA. Net rating is an advanced stat that indicates how much better or worse a team performs on a per-possession basis.

However, a series of trades and four draft picks remade the roster and greatly improved Toronto’s depth.

Point guard Davion Mitchell, power forward Ochai Agbaji and centre Chris Boucher of Montreal will lead the reserves to start the season. All three have serious NBA experience, averaging more than 17 minutes per game in their careers. They’ll be joined on the second unit by centre Kelly Olynyk (back) of Kamloops, B.C., and small forward Bruce Brown (arthroscopic knee surgery) once they’re healthy for a robust veteran bench that can handle big minutes. Ja’Kobe Walter, Toronto’s 19th overall pick in this past summer’s draft, will presumably be Dick’s backup at the two-guard once he’s recovered from a sprained shoulder.

COMMUTERS — Walter was the highest of Toronto’s four picks selected in the 2024 NBA draft in late June. Power forward Jonathan Mogbo (31st), point guard Jamal Shead (45th) and centre Ulrich Chomche (57th) were also selected. Although all four will see some NBA minutes this season — especially Shead, whose dogged defence was a highlight of the Raptors’ pre-season — they’ll also be regulars for the G-League’s Raptors 905 in nearby Mississauga, Ont.

IN-SEASON TOURNAMENT — The Raptors are in Group B for the NBA’s second-annual in-season tournament. They’re grouped with the Milwaukee Bucks, Indiana Pacers, Miami Heat and Detroit Pistons. Toronto’s so-called Cup Nights will begin Nov. 12 in Milwaukee and continue when the Raptors host Detroit on Nov. 15. Their third tournament game will be Nov. 29 in Miami and then their group stage will end Dec. 3 when Indiana visits Scotiabank Arena.

Financial incentive has been added to the NBA Cup playoffs this season, with players on the winning team earning US$514,971 each, while $205,988 goes to each player on the runner-up team. Players who lost in the semis will get $102,994 apiece and players that lose in the quarters will get $51,497.

PORTER SENTENCING — Former Toronto backup centre Jontay Porter will receive face sentencing on Dec. 18 after he pleaded guilty in the summer to a U.S. federal conspiracy crime. Porter, 24, was banned from the NBA after admitting that he helped bettors by intentionally underperforming in games. Prosecutors have estimated that he could be facing a range from just under 3 1/2 years in prison to a little over four years.

This report by The Canadian Press was first published Oct. 22, 2024.

The Canadian Press. All rights reserved.



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