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Central bank’s rate hikes have yet to manifest, Stephen Poloz says


What will the impact of the current interest rate hikes be?

Ephraim Vecina
CMP

Former BoC head outlines possibilities

The full impact of the central bank’s rate hikes have yet to manifest, Stephen Poloz says

The Bank of Canada’s interest rate hikes have yet to reveal their full impact on the financial system, and are likely to be “even more powerful” than expected, according to the central bank’s former governor Stephen Poloz.

In a speech at Western University’s Ivey Business School in Ottawa, Poloz said that the hikes might have a less than desirable interaction with mounting debt levels.

“I think that the actions that are being taken to get us there will turn out to be even more powerful than a lot of people think,” he said.

Read more: What happens to Canada’s inflation next?

Poloz is anticipating inflation to ease to around 4% amid growth deceleration in metrics like commodity prices. As of October, Canada’s annual inflation rate stood at 6.9%.

The central bank’s hikes, which began in earnest in March, are widely expected to have a chilling effect on the national economy – particularly since it has become especially sensitive to interest rate movements, Poloz said.

“Does anybody here think the sensitivity of the economy to interest rate movements is less today than it was five or 10 years ago?” he said. “I think it’s more sensitive today than it was before.”

When asked if the BoC’s hikes have become overkill, Poloz responded, “It’s impossible to say.

“It takes a long time to actually slow down and so you stand on the brake really hard. Well, then you’re going to cause an accident too.”

 

Copyright © 1996-2022 KM Business Information Canada Ltd.



2.29 acres industrial land in Surrey sells for $15.34 Million


Port Kells 2.29-acre industrial site sells for $15.3 million

Western Investor Staff
Western Investor

Industrial land was listed as the market began to shift downward, agents say, which caused a mid-launch strategy adjustment to a successful sale at $6.7 million per acre in the Port Kells area of Surrey, B.C.

Frontline Real Estate Services, Langley, for Western Investor

 

Property type: Industrial land

Location: 10202 177A Street, Surrey, B.C.

Land size: 2.29 acres

Date of sale: October 6, 2022

Sale price: $15.34 million

Brokerage: Frontline Real Estate Services, Langley, B.C.

Brokers: Todd Bohn, Alex Girling and Braydon Hobbs

 

© 2022 Western Investor



GTA commercial real estate market slowed during Q3 2022 following a strong first half | Avison Young


Avison Young highlights GTA commercial market’s Q3 performance

Ephraim Vecina
CMP

New report pinpoints market’s strengths and challenges

Deviations from market trends established earlier this year were observed

Activity in the Greater Toronto Area commercial real estate market slowed during Q3 2022 following a strong first half, according to Avison Young.

In its latest market report, Avison Young cited elevated interest rates and ongoing economic uncertainty as the main drivers of deceleration.

“Many of the transactions that closed during the third quarter were negotiated in earlier months, and the market is expected to undergo a period of adjustment as stakeholders seek a new equilibrium in the current economic landscape,” Avison Young said.

Industrial property continued to be the region’s top commercial asset class in terms of dollar volume, amounting to roughly $1.4 billion during the third quarter.

ICI land clocked in at $1.2 billion in investments during Q3, followed by multi-residential ($699 million), retail ($694 million), and office ($536 million) investment activity.

Read more: Avison Young: Office market dynamics have significantly evolved in the largest cities

“Through three quarters of the year, total investment volume of $18.5 billion already exceeds all previous full-year totals except 2021 ($23.5 billion),” Avison Young said.

“However, the decline in activity during the second half of the year indicates that result is unlikely to be repeated in 2022. Cap rates are still compressed by historical standards, but the GTA average for all asset classes increased 20 basis points (bps) quarter-over-quarter to 4.3% – the highest level since 2017.”

 

Copyright © 1996-2022 KM Business Information Canada Ltd.



CMAs set to make their return for 2023


2023 Canadian Mortgage Awards building connections

Fergal McAlinden
CMP

Attending the prestigious gala event opens up a host of possibilities, 2022 winner says

The Canadian Mortgage Awards (CMAs) are set to make their return for 2023, with Toronto’s Westin Harbour Castle to host the prestigious awards gala on April 20.

Nominations are open until January 13 for the much-anticipated annual event, which will see mortgage professionals from across the country come together to raise a glass to the industry’s best and brightest.

After two years being staged virtually due to the COVID-19 pandemic, the CMAs made their triumphant return this year as an in-person event – and one of the winners from 2022 told Canadian Mortgage Professional that the value of a live ceremony couldn’t be emphasized enough.

“In person to me is always the way to go,” said Reaza Ali (pictured top), broker relations manager for Eastern Canada at Fisgard Asset Management and winner of the 2022 CIMBC Award for Lender BDM of the Year (Private Lending).

“Even prior to winning the award for the first time back in 2016 and then each year being the nominee, I found it a great opportunity to connect with people that you may not necessarily always have the opportunity to connect with.”

Opening up opportunities

Winning an award at the CMAs can also represent a significant career boost, Ali added, potentially opening up new doors in the industry and elevating a winner’s status with peers and colleagues.

As a networking event, meanwhile, the CMAs offer the chance to rub shoulders with counterparts and other industry figures, and lets mortgage professionals “have conversations with some other executives that you may not have had the opportunity to within other organizations,” Ali said. “In-person is a definite advantage for that.”

For winners, the moment of hearing their name called out in a venue packed full of industry peers is one that lives long in the memory. For Ali this year, it was a “true surprise,” he said, even despite having already been named an Excellence Awardee in 2016.

“I did not expect that this year,” he said. “We had quite a field of nominees, all well deserving. When they did call my name, I was very surprised and happy with that. Standing in front of everyone, they probably saw it on my face. I had a big smile the whole night.”

Winning a CMA is an affirmation of years of hard work that for Ali reflected the strong effort he had put into not only developing strong relationships with broker partners, but also industry partners for Fisgard.

 

There’s no secret recipe to actually win an award – but Ali pinpointed some of the things he had focused on this year, namely focusing on service levels and setting as high a standard as possible in that area of the business.

“We may never always be the best priced, or may not have all of the product suite that others may have in our niche areas,” he said. “But that relationship-building and top-of-mind service was critical. I found as the entrants into this industry and into our space of the industry escalated, the competition became that much greater.

“So to me, the service was critical to be able to maintain, and actually exceed, all the goals that we set for ourselves.”

How to get involved

Nominating for the leading independent awards program in the industry is straightforward and free. Just click here to select the category you wish to submit an entry for, and follow the directions to enter your details and those of your nominee with a brief reason of why the nominee deserves to be recognized in that category.

Award categories are divided into brokerage awards, lender awards, industry awards, and broker awards, with the latter series including the prestigious Broker of the Year (Regional) and overall Broker of the Year gongs.

Industry awards include the Service Provider of the Year, Woman of Distinction, Excellence in Philanthropy & Community Service, Mortgage Industry Employer of Choice, and Lifetime Achievement in the Mortgage Industry categories.

Excellence Awardees are set to be announced across CMP’s online channels in February, and final winners will be revealed at the celebratory awards show and profiled in CMP magazine.

Attending the prestigious gala event opens up a host of possibilities, 2022 winner says

Remember – you have until January 13 to get your nominations in for what promises to be one of the most unforgettable nights in the Canadian mortgage industry calendar in 2023.

 

Copyright © 1996-2022 KM Business Information Canada Ltd.



Canadian sees their finances hit by so-called unconscious spending habits amid the current cost-of-living crisis


What’s plaguing Canadians?

Fergal McAlinden
CMP

New survey sheds light
Canadians are seeing their finances hit by so-called unconscious spending habits amid the current cost-of-living crisis, report says
As mortgage rates continue to rise and Canada’s cost-of-living crisis shows little sign of slowing, many borrowers have felt the pinch throughout this year – but a new survey has shone a light on some of the worrying spending habits that are still prevailing across the country.
According to a report conducted by FP Canada among online Angus Reid Forum members, many Canadians’ finances are being negatively impacted by unconscious spending, purchases made through habit or convenience which hinder longer-term financial plans and household budgets.
While more than half of Canadians (51%) are currently concerned about their financial situation, many continue with habits that the report indicated were examples of unconscious spending: 21% are charging monthly subscriptions to credit cards more often than less (14%), and over a quarter (28%) are using a credit card to make payments more often, compared with 13% less often.
That’s a worrying trend, according to Raymond James Ltd. financial advisor Johanne Plamondon, who said the survey reinforced the value of using an experienced advisor to get spending habits and financial discipline under control.
“Where it mentioned people are worried about their spending, but they’re not doing anything about it – that rings out to me,” she told Canadian Mortgage Professional. “That’s where having accountability to someone is important, whether it’s your partner or you reach out to an advisor to sit down and go through some of your cashflow – where it is going, and just being aware of it.
“It’s a lot of work to do it [and] people don’t want to spend the time to do it. For some of my clients that have been in a situation where they’re high in debt, we sat down and we’ve gone through and I’ve helped them do the hard work of going through those statements and combing through and itemizing each category.”
What mortgage professionals need to know
Making sure that clients are taking a responsible approach to their finances is critical for a mortgage professional, Plamondon pointed out, in an uncertain climate where both interest rates and other costs are concerned.
“From a mortgage professional standpoint working with people, what I want to do is make sure that a client is prepared and organized and ready to take on a mortgage so that when they do walk in that door, they’re able to be approved a lot more readily,” she said.
A quarter of Canadians are buying more than intended during sales more frequently than six months ago, according to the survey, while 53% are still picking up additional items at in-store or online checkouts at about the same level as they did earlier in the year.
Plamondon said it was essential for Canadians to ensure they’re consistently reviewing their financial statements, receipts and banking transactions to remain cognizant of what they’ve been spending and how much inflation and rate hikes are impacting their finances and savings.
“We don’t want to take away people’s fun, but a lot of things are automated. You might have two or three different streaming devices or club memberships, but the fees have gone up – and unless you’re aware of that, is that something you’re prepared to undertake?
“A lot of it is just spending creep, we’re not aware of it, so for my clients we have the conversation. This is the reality for everyone.”

How can Canadians curb unconscious spending habits?
Using cash more often or having cash envelopes at home to budget for groceries, gas, and other necessities could be ways that Canadians might mitigate their unconscious spending habits, Plamondon suggested, to ensure that they’re not using their bank card and racking up unplanned or unnecessary expenses.
Younger Canadians (aged 18-34) were more likely to say that their use of credit cards to make payments had increased compared with six months ago, with that cohort also charging monthly subscriptions to credit cards, buying more than intended during sales, and using “buy now, pay later” plans more often.
“I find that the older demographic tend to have a little bit more of a handle on it, but some people that are spenders are just falling right into that cycle of increasing expenses just because they’re not paying attention to what’s happening,” Plamondon said.
“The survey indicated that more than half of Canadians are starting to become concerned about finances, just basic food and rent and living is starting to become a little bit more challenging. That is where they need to reach out and get some help, whether it’s a family member or talking to an advisor.”

Copyright © 1996-2022 KM Business Information Canada Ltd.



Canadian sees their finances hit by so-called unconscious spending habits amid the current cost-of-living crisis


What’s plaguing Canadians?

Fergal McAlinden
CMP

New survey sheds light
Canadians are seeing their finances hit by so-called unconscious spending habits amid the current cost-of-living crisis, report says
As mortgage rates continue to rise and Canada’s cost-of-living crisis shows little sign of slowing, many borrowers have felt the pinch throughout this year – but a new survey has shone a light on some of the worrying spending habits that are still prevailing across the country.
According to a report conducted by FP Canada among online Angus Reid Forum members, many Canadians’ finances are being negatively impacted by unconscious spending, purchases made through habit or convenience which hinder longer-term financial plans and household budgets.
While more than half of Canadians (51%) are currently concerned about their financial situation, many continue with habits that the report indicated were examples of unconscious spending: 21% are charging monthly subscriptions to credit cards more often than less (14%), and over a quarter (28%) are using a credit card to make payments more often, compared with 13% less often.
That’s a worrying trend, according to Raymond James Ltd. financial advisor Johanne Plamondon, who said the survey reinforced the value of using an experienced advisor to get spending habits and financial discipline under control.
“Where it mentioned people are worried about their spending, but they’re not doing anything about it – that rings out to me,” she told Canadian Mortgage Professional. “That’s where having accountability to someone is important, whether it’s your partner or you reach out to an advisor to sit down and go through some of your cashflow – where it is going, and just being aware of it.
“It’s a lot of work to do it [and] people don’t want to spend the time to do it. For some of my clients that have been in a situation where they’re high in debt, we sat down and we’ve gone through and I’ve helped them do the hard work of going through those statements and combing through and itemizing each category.”
What mortgage professionals need to know
Making sure that clients are taking a responsible approach to their finances is critical for a mortgage professional, Plamondon pointed out, in an uncertain climate where both interest rates and other costs are concerned.
“From a mortgage professional standpoint working with people, what I want to do is make sure that a client is prepared and organized and ready to take on a mortgage so that when they do walk in that door, they’re able to be approved a lot more readily,” she said.
A quarter of Canadians are buying more than intended during sales more frequently than six months ago, according to the survey, while 53% are still picking up additional items at in-store or online checkouts at about the same level as they did earlier in the year.
Plamondon said it was essential for Canadians to ensure they’re consistently reviewing their financial statements, receipts and banking transactions to remain cognizant of what they’ve been spending and how much inflation and rate hikes are impacting their finances and savings.
“We don’t want to take away people’s fun, but a lot of things are automated. You might have two or three different streaming devices or club memberships, but the fees have gone up – and unless you’re aware of that, is that something you’re prepared to undertake?
“A lot of it is just spending creep, we’re not aware of it, so for my clients we have the conversation. This is the reality for everyone.”

How can Canadians curb unconscious spending habits?
Using cash more often or having cash envelopes at home to budget for groceries, gas, and other necessities could be ways that Canadians might mitigate their unconscious spending habits, Plamondon suggested, to ensure that they’re not using their bank card and racking up unplanned or unnecessary expenses.
Younger Canadians (aged 18-34) were more likely to say that their use of credit cards to make payments had increased compared with six months ago, with that cohort also charging monthly subscriptions to credit cards, buying more than intended during sales, and using “buy now, pay later” plans more often.
“I find that the older demographic tend to have a little bit more of a handle on it, but some people that are spenders are just falling right into that cycle of increasing expenses just because they’re not paying attention to what’s happening,” Plamondon said.
“The survey indicated that more than half of Canadians are starting to become concerned about finances, just basic food and rent and living is starting to become a little bit more challenging. That is where they need to reach out and get some help, whether it’s a family member or talking to an advisor.”

Copyright © 1996-2022 KM Business Information Canada Ltd.