Posted on January 13, 2023
- New mortgage guidelines may limit extra debtors
- What led to the vacation journey chaos
- How Canadian and American family debt will differ in 2023
- Canada should change our well being care spending, says Bill Morneau
- Cheap groceries are diverted from the landfill
- What to speak to your funding adviser about
Getting caught up on per week that received away? Here’s your weekly digest of The Globe and Mail’s most important enterprise and investing tales, with insights and evaluation from the professionals, inventory ideas, portfolio methods and extra.
New mortgage guidelines may limit extra debtors
Earlier this week, Canada’s banking regulator proposed new mortgage guidelines, including three new limits on how lenders grant the loans. According to Robert McLister, the Office of the Superintendent of Financial Institutions desires to skim one other layer of the least-qualified debtors off the federally regulated mortgage market. The proposal contains proscribing how a lot banks can lend debtors whose mortgage exceeds a sure share of their gross earnings, limiting the debt-service protection exceptions lenders make to get round its borrowing stress check and introducing new rate of interest affordability stress exams. These new mortgage tips come after the Bank of Canada has ramped up rates of interest by 4 share factors since March 1, 2022 and the common Canadian house worth has plunged 22.4 per cent up to now 9 months.
What led to the vacation journey chaos
With cancelled and delayed flights owing to severe weather, misplaced baggage, stranded passengers and common airport chaos, this vacation season would possibly go down as one of the worst travel times in latest Canadian aviation historical past – and that features final summer, when staffing shortages couldn’t sustain with journey demand as COVID-19 restrictions have been lifted. So why, in a rustic in which there’s a winter season, have been airways and airports unable to function as traditional? And how did the airways, which make a lot of their income promoting tickets to individuals keen to flee chilly climate, discover themselves unable to function? Eric Atkins investigates what amounted to the perfect storm: snow on Christmas week, no seats out there and main disruptions throughout North America.
How Canadian and American family debt will differ in 2023
If you’re a visible one that loves seeing points charted out, don’t miss Jason Kirby’s opus of metrics that cowl every little thing from housing, rates of interest and inflation, to job markets, Canada’s vitality transition, immigration and Indigenous reconciliation. Over dozens of charts, Kirby asks consultants – together with economists, buyers, lecturers and enterprise leaders – to assist make sense of the 12 months forward. For instance, Beata Caranci, chief economist at TD Bank Group, seems on the distinction in family debt-service ratios between Canadians and Americans, and the U.S. deleveraging cycle after the 2008-09 international monetary disaster now pays dividends. The motive for the uptick in debt danger for Canadians at present? The recognition of variable-rate mortgages through the pandemic and the dramatic rise in rates of interest.
Canada should change our well being care spending, says Bill Morneau
More than two years after resigning from cupboard and the House of Commons, Bill Morneau is about to release a book – titled Where To From Here – that appears again on his 5 years in Prime Minister Justin Trudeau’s authorities and gives a 325-page street map for navigating the nation’s financial and social challenges. One of these points, Andrew Willis writes, is well being care spending and the unsustainable rise in prices amid an growing older inhabitants. In Mr. Morneau’s view, he and different political leaders have prevented the laborious work of well being care reform, and as a substitute elevated federal switch funds and different sources of money for a system that now consumes 13 per cent of Canada’s gross home product. Going ahead, the previous cupboard minister writes, federal transfers needs to be conditional on commitments from the provinces to realize “measurable progress” on reforms, overseen by an company with representatives from each ranges of presidency.
Cheap groceries are diverted from the landfill
One option to struggle food inflation is by really utilizing all of your groceries. Another means is to purchase closely discounted meals nearing its sell-by date. According to Susan Krashinsky Robertson and Sean Silcoff, numerous cell apps are making that doable by allowing grocery chains to post and sell food at deep discounts. Products are typically in excellent situation and reductions are as excessive as 50-per-cent off. Toronto-based Flashfood Inc., as an example, solely sells from shops owned by Loblaw Cos. Ltd., and in Quebec, Montreal’s FoodHero sells discounted meals from Metro Inc., and from Empire Co. Ltd. banners resembling IGA. In an period when firms are touting their environmental, social and governance bona fides, lowering meals waste has change into a much bigger precedence for grocers. Tech firms are taking a minimize by serving to them promote what would in any other case go within the bin.
What to speak to your funding adviser about
The previous 12 months was traditionally unhealthy for buyers as a result of the dual pillars of portfolio constructing – shares and bonds – have been hammered. Canada’s bond market benchmark, the FTSE Canada Universe Bond Index, fell 11.7 per cent final 12 months on a complete return foundation, and up to date inventory market declines have affected many common TSX-listed dividend shares. Portfolios that might have been thought of prudently diversified a few years in the past didn’t fare properly, which implies you and your investment adviser have a lot to talk about. Rob Carrick outlines 5 factors to hit in your subsequent dialogue.