October 2012 Canadian Economic Fundamentals

[Ally]

The pros and cons of rent-to-own




The changes to the mortgage rules announced by Finance Minister Jim Flaherty last July are making it more difficult for first time buyers to get approved for a mortgage. Other buyers may have good credit but not enough of a down payment. At the same time, landlords are looking for good tenants to rent their units. Rent-to-own may provide a win-win for both owners and tenants.



Read the full article here.

 

[Ally]

Economic outlook not so rosy, Flaherty told




OTTAWA`Finance Minister Jim Flaherty is being told the Canadian economy will perform significantly lower next year than was forecast in his federal budget in March.




Private-sector analysts informed Flaherty at a meeting Monday that they see economic growth of 2 per cent in 2013, well below the 2.4 per cent prediction indicated in the 2012 budget.




For 2014, however, the economists see the economy bouncing back to 2.5 per cent growth, slightly higher than the 2.4 per cent forecast in the budget.





Read the full article here.

 

[Ally]

No U.S.-style housing market meltdown for Canada: CIBC




CALGARY ` Canada is not poised for an American-style real estate meltdown, finds a new report released Tuesday by CIBC World Markets.




The report said there are a number of factors that raise concerns about Canada`s housing market, but there are also fundamental differences between the Canadian and U.S. markets that should see a soft landing for the real estate market here.




`To be sure, house prices in Canada will probably fall in the coming year or two, but any comparison to the American market of 2006 reflects deep misunderstanding of the credit landscapes of the pre-crash environment in the U.S. and today`s Canadian market,` said Benjamin Tal, deputy chief economist at CIBC.





Read the full article here.

 

[Ally]

Going against the grain, two measures point to stronger economic growth




OTTAWA - After several high-profile downgrades, the Canadian economy is getting some support from two reports that suggest the future may be brighter than most believe.




A leading economic indicator from the Macdonald-Laurier Institute registered its second consecutive monthly gain in September, a signal of moderate growth.




The index rose 0.2 per cent after a 0.1 gain in August and a flat reading in July.





Read the full article here.