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Bank Of Canada Pumping Billions Into Mortgage Liquidity To Prop Up Real Estate

Author: External Author | | Categories: Bank Mortgage , Builder Mortgage , Commercial Mortgage , Down Payment , First Time Home Buyer Mortgage , Home Equity Line Of Credit , Home Renovation Mortgage , Investment Property Mortgage , Mortgage Pre-Approval , Mortgage Pre-Approvalv , Mortgage Refinance , Mortgage Renewal , New to Canada Mortgage Program , Private Mortgage , Reverse Mortgage , Second Mortgage , Self Employed Mortgage

Canada’s central bank is desperately trying to prop up real estate markets with liquidity. Bank of Canada (BoC) has been injecting billions into Canada Mortgage Bonds (CMBs). The central bank began purchasing a few million worth of bonds during last year’s real estate slow down. As the pandemic hit, the BoC began buying hundreds of millions worth of CMBs per week. The flood of liquidity has a limited impact on preserving prices, but creates a massive withdrawal risk.

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Original Article Source Credits: Better Dwelling ,

Article Written By: Stephen Punwasi

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