Making sense of the markets this week: September 17, 2023 + MORE Sep 15th

If you’re in the market for your first home but need help coming up with the financing, you do have some options, including asking someone to co-sign the mortgage. Involving a third party is probably not what you envisioned for home ownership, but recent interest rate hikes and rising real estate prices have made it harder for many Canadians to afford a home. (Good news: You don’t have to actually live with the third party, if you don’t want to.) We’ll show you how this strategy, along with government programs like the new first home savings account (FHSA), can help you purchase your first property.

What is the minimum down payment in Canada?

A big factor in Canadians’ ability to purchase a home is having the down payment—the amount of money a buyer pays up front when purchasing a property. This amount is taken off the purchase price of the home and is subsequently not included in the mortgage loan. So, the larger your down payment, the better—you’ll pay down your mortgage faster and pay less interest over time, and you’ll likely be able to purchase a more expensive house…

Kyle Prevost, creator of 4 Steps to a Worry-Free Retirement, Canada’s DIY retirement planning course, shares financial headlines and offers context for Canadian investors.

U.S. inflation battle: Mission not accomplished 

Despite increasing interest rates and hawkish talk from the U.S. Federal Reserve chair Jerome Powell, the U.S. economy doesn’t look to be slowing down anytime soon. The U.S. Consumer Price Index (CPI) update for August came out on Wednesday and the headline inflation rate was higher than anticipated at 3.7%.

On one hand, the continued economic strength is obviously good news for job seekers and Americans trying to negotiate wage increases. If you prefer to focus on inflation rates, though, this labour market strength, combined with resilient price pressures, is really backing the U.S. Fed into a corner as far as raising interest rates is concerned.

In related news, the European Central Bank (ECB) also raised interest rates this week, lifting its key interest rate to 4% from 3…