Tag: Economy

Housing A Major Factor for Emigrating Canadians

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Despite the latest figures from Statistics Canada confirming that the inflation rate has dropped to its lowest level of 2.8% in over two years, many Canadians are still struggling with the high cost of living. The fall in inflation was majorly driven by the reduction in gasoline prices which dropped…

Central Bank Hikes Interest Rate To 5pc

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The Bank of Canada has raised its benchmark interest rate by 25 basis points. This brings its key interest rate to a high of 5%, with the prime rate now at 7.2%. This is the highest level seen since April 2001. The impact of interest rate hikes can often take…

Bank of Canada Worried by Mounting Household Debt

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With mortgage rates expected to be renewed at higher levels in the coming years, the Bank of Canada is worried that many households that are overly burdened by debt may not be able to absorb the financial shock. The issue of growing household debt loads was a recurring theme in…

Inflation Slows To 5.2 percent

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Statistics Canada has reported that the country’s inflation rate cooled to 5.2% in February. This is the largest single-month deceleration since April 2020. It fell from 5.9% recorded in January and is at its lowest level in 13 months. It is also lower than many analysts’ prediction of a 5.4%…

Bank of Canada Holds Key Rate Steady

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The Bank of Canada has announced that it will maintain its policy rate, with the overnight rate at 4.5%, the bank rate at 4.75%, and the deposit rate at 4.5%. The Canadian dollar fell against the US dollar following the announcement to a four-month low, trading at 72.54 US cents.…

Vancouver Approves New 10.7 percent Property Tax Hike

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Vancouver has just approved a 10.7% increase in property taxes as part of the operating budget for 2023. This increase came just a week after city staff proposed a lower 9.7% hike. Unexpectedly, during the first public meeting to discuss the budget this week, the council went ahead to approve…

Foreign Property Tax Stirs Criticism

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At the start of the year, a new federal property tax rule came into effect, banning non-Canadians, non-permanent residents and foreign companies from buying non-recreational residential property in the country for the next two years. This new tax rule and the underused housing tax (UHT) which is a 1% annual…

Taxpayers Put On Alert As Tax Season Begins

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With tax season around the corner, it comes as no surprise that online tax scams are on the rise. Not only are incidents up, but so too is the sophistication of the scams. Many of the scams work on the pretence that communication is coming from the Canada Revenue Agency…

Canada Business Confidence Dips

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A recent survey by CPA Canada indicates that business confidence in the Canadian economy has declined. The survey of chartered accountants in both the private and public sectors found that just 9% of businesses are optimistic about the economy for the next 12 months. This is a sharp drop from…

First-Time Homebuyers to Access HBP and FHSA

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Thanks to legislation that has currently passed the second reading in the House of Commons, first-time homebuyers may be able to tap into both their Home Buyers’ Plan (HBP) and first home savings account (FHSA) contributions when making the same home purchase. Before this, the draft FHSA legislation limited first-time…