We received the latest Canadian employment report, for September, last Friday and while it showed that our rate of job creation slowed, it also confirmed that average wages increased by 2.2% on a year-over-year basis. In today's post I offer my take on how this latest data might impact both our fixed and variable mortgage rates.

All eyes were on Bank of Canada (BoC) Governor Poloz last Wednesday when he spoke at the Board of Trade in St. John’s, Newfoundland. Market watchers have been debating whether the Bank would now pause, after reversing the two 0.25% rate cuts that it had made in 2015 in response to the oil-price shock, or continue to raise rates to mitigate against the risk of rising inflationary pressures over the medium term. The answer to that key question has important implications for both fixed and variable mortgage rates.

Market watchers are currently engaged in a spirited debate about whether the Bank of Canada (BoC) will continue to raise its policy rate in the near future. In last week’s post I explained why the Loonie’s recent movements against a basket of other currencies make more near-term BoC rate rises unlikely, and in today’s post we’ll take a detailed look at the latest inflation data, which I believe further bolsters that view.

The Bank of Canada (BoC) has now increased its policy rate twice over its last two meetings and there is speculation that it might raise again before the year is out. But the Bank continues to insist that its policy path is data dependent and if that is the case, I think the Loonie's current momentum makes it doubtful that the BoC will raise again any time soon.

In today’s post we’ll briefly look at the impact that this latest rate increase is likely to have on borrowers and house prices and then I’ll offer my take on the likelihood that the BoC will raise again before the end of the year.

Today’s post explains which type of lender is typically offering the best value to the three different segments of mortgage borrowers that were created by last fall’s mortgage rule changes.

Today, our policy makers can’t fully explain why average incomes aren’t rising at a much faster rate. This is the key question for anyone keeping an eye on mortgage rates today because they should move in the same direction as average incomes over time, and at a similar speed. I have read many theories about why average wages aren’t rising as expected and a recent article, Wages vs. Jobs by Gary Shilling, offers particularly valuable insight. Today's post provides a summary of Shilling’s key points with my comments included as well.

Last week was a relatively uneventful one for the factor's affecting Canadian mortgage rates so today’s post highlights five key questions that borrowers should be focusing on as we look toward the fall real-estate market.