For several years now the housing market has been running red hot. Prices seem to continue to rise and more and more people continue to get priced out of the housing market. Although the market seems to have cooled down slightly, over the last 12 months the monthly number of transactions (35,410), and the average sale price ($656,625) are up 5% and 2% respectively. To combat the housing market crisis, the Canadian government has started the First Home Savings Account (FHSA). It is sure to be the answer we have all been waiting for and is here to solve the unaffordability issue many Canadians f ..read more

We are now nearly 10 months through 2022 and it has been a rough year when it comes to all things finance. Investment markets have faced headwinds. As of this writing, the TSX is down 7.4%, S&P 500 is down 16.6%, Dow is down 9.3%, and NASDAQ is down 25.6% year-to-date. Inflation passed decade highs and is still well above targets. In addition to markets being down and inflation being high, many people are worried about food and energy shortages. Energy shortages are of particular concern in parts of Europe. However, even our neighbors south of the border only have 25 days of diesel reserve ..read more

We are now three-quarters of the way through 2022. Congratulations! It has been quite an eventful year, with more still likely to come; war continues in Ukraine, US mid-terms are right around the corner, inflation is still way above targets, investment markets are down substantially, and interest rates have increased dramatically. There is little that the average person can do in day-to-day life to influence global events or political decisions. It is also impossible to predict exactly what the future holds. When contemplating the future, it is best to think of possibilities rather than probab ..read more

It seems that every month there is no shortage of economic activity and changes. As the days continue to tick by, more and more people seem to be realizing that the economic policies of the last two years have caused major cracks in our system. The question remains to be answered if the response is now too little too late. Will interest rate hikes by many of the world’s central banks really help combat inflation which is most people’s main concern? Will wages keep pace with inflation, or will real wage growth continue to decline? Rather than just focusing on inflation, we wanted to look at a c ..read more

It is no secret that home prices have skyrocketed over recent years. The rise has definitely been outsized in several locations and has skewed that national average to some extent. However, there is a silver lining to the recent rate hikes. With interest rates rising, it likely means that housing prices decrease. However, the amount of mortgage a borrower would qualify for will also decrease. For many Canadians, the idea of home ownership seems like something of the past. Many are unsure they will ever afford a house. For those that have found themselves in homeownership, a lot are now “house ..read more

Another month has come and gone, and that means new inflation statistics have been announced. A couple weeks ago, the US statistics were reported and this last week Canada reported their stats. Many were surprised that inflation increased as much as it did. Below we want to look at both Canada and US inflation statistics like we have in past updates. See below for updated graphs, and potential outcomes. If you want more information and want to read our previous thoughts on inflation check out the following: Inflation Update – April 2022 How Will Inflation Affect Your Retirement Income? Inflat ..read more

The economy and the world are in a precarious situation. Russia invaded Ukraine more than 110 days ago, Inflation continues to rise, and central bankers are saying interest rates will continue to rise. We have seen supply chain constraints, our cost of living keeps rising, and we will likely experience an increase in both of those going forward. The stock market has also had a rough first half of the year. Many people are finding themselves in situations that they never imagined and do not know how to navigate. One question that people have been asking with more regularity is “How high will in ..read more

There are many things in the world that give a person a sense of pride and joy. Maybe it’s getting a hole in one on the golf course. Perhaps, it’s getting that promotion at work. Maybe it’s seeing those around you thrive. Or, maybe, it’s looking back in time and realizing your inflation prediction was right. Now I am hesitant to say we were right, but I will say that we weren’t far off. If you’re not sure what I am referring to, it’s inflation predictions from 2021. Inflation has been a topic we have talked about a lot over the past two years. Something that mainstream political talking heads ..read more

The last two years have unearthed a lot of economic issues in Canada that many were unaware of. It has shown that our health care system is ill-equipped in a lot of ways. It has also begun to show some potential issues with how fiscal and monetary policies are implemented in Canada. One solution that has been thrown around is to implement universal basic income (UBI). Universal basic income has continued to increase in popularity and gain support from more prominent politicians. However, there are many potential negative consequences to implementing UBI. This is exactly what we want to delve i ..read more

In keeping with the trend of Canadian tax topics from the last couple of weeks, this week we will look at the primary residence exemption. This is likely one of the most wide-reaching tax topics that affect the majority of Canadians. However, even though this tax exemption helps the average Canadian immensely, there are still people advocating for its removal. In what follows we will look at what the principal residence exemption is, how it works, and the effects if it were to get removed. Before getting into the rest of the article, if you enjoy our weekly content click the follow button. Als ..read more