Mortgage Digest: HELOC usage rises to near two-year high as borrowing picks up + MORE Dec 18th

The Canada Mortgage and Housing Corp. says the pace of rent growth cooled significantly this year amid Canada’s largest gain of purpose-built rental supply in more than three decades.

A regular review of the latest mortgage and real estate news, a recap of key headlines, and a preview of upcoming economic releases.

The Bank of Canada (BoC) recently lowered its policy interest rate by another 50 basis points, from 3.75% to 3.25%. It was the central bank’s fifth consecutive cut.

What does it mean for Canadians as borrowers and savers when interest rate cuts happen? On the positive side, it means we’re starting to get inflation under control, and lenders are beginning to offer lower rates on mortgages and other types of loans. On the downside, it means the interest rates you can earn on guaranteed investment certificates (GICs)—a popular short-term savings vehicle in Canada—have started to drop.

Grow your savings with a high-interest savings account

Because GIC rates are dropping, Canadians are looking for alternatives for their short-term cash savings. High-interest savings accounts (HISAs) are a good option to consider. Whether you’re setting aside money for home renovations, a big trip or a financial gift to help your child buy their first home, HISAs provide more flexibility and liquidity than GICs, meaning your cash isn’t locked in and you can access it when needed…

Canada Mortgage and Housing Corp. says the annual pace of housing starts in November rose eight per cent compared with October, helped by strength in multi-unit starts in Quebec, Alberta and B.C.