UPDATE 1: FINANCIAL EFFECTS OF COVID-19
Since being labeled a pandemic per the World Health Organization (W.H.O.), the effects of COVID-19 have begun to ripple through the world’s economy – including Canada – and causing a number of different effects. To help keep you up to date on what is going on financially, we have compiled a list of recent announcements by the Ministry of Finance, the Bank of Canada, and OSFI:
- Minister Morneau announced a new Business Credit Availability Program, adding $10 billion of additional support financing, through Business Development Bank of Canada and Export Development Canada, to support Canadian Businesses. Click here for more.
- The Bank of Canada lowered the overnight rate from 125 to 75 bps, to reduce the interest cost burden for businesses and consumers alike. The bank also increased its Government of Canada bond buyback program. Click here for more.
- OSFI reduced the Domestic Stability Buffer from 2.25% to 1%, thereby freeing up $300 Billion additional lending capacity for Domestic Systemically Important Banks (D-SIBS). Click here for more.
In addition, Dominion Lending Centres in-house Chief Economic Advisor, Dr. Sherry Cooper, has been providing in-depth information on this situation as it evolves. You can find her latest articles on the situation below:
- March 6 – Bank of Canada rate cut and subsequent Canadian mortgage rate drop
- March 9 – Global Markets in Turmoil as Oil Plunges, Propelling Yields to Record Lows
- March 13 – Tour De Force: BoC Cuts Again, OSFI Eases, More Coming
- Check out the related CTV Interview here.
- March 16 – Stock and Bond Yields Plunge after Sunday Fed Cut
If at any time you would like to discuss your mortgage needs please contact us at 705-349-0502 or start your application here HOW TO APPLY