Government announces new housing tool
The federal government recently announced the launch of the Canada Public Land Bank, which features 56 federal properties that have been identified as being able to support housing, including five new properties that are now intended for leasing and ready for builders to submit their plans. The aim is for the list to grow regularly in the coming months. "Available, accessible and affordable housing options are scarce, and too many people do not have a safe place to call home. We need to do things differently and work in partnership to build more homes, faster,” Jean-Yves Duclos, Canada’s Minister of Public Services and Procurement, said. “We are leading a Team Canada effort to unlock public lands for housing at a pace and scale not seen in generations, thus leveraging these properties to build strong communities and more affordable housing for the benefit of all Canadians." Efforts are also underway for calls for housing proposals in multiple cities.
The federal government recently announced the launch of the Canada Public Land Bank, which features 56 federal properties that have been identified as being able to support housing, including five new properties that are now intended for leasing and ready for builders to submit their plans. The aim is for the list to grow regularly in the coming months. "Available, accessible and affordable housing options are scarce, and too many people do not have a safe place to call home. We need to do things differently and work in partnership to build more homes, faster,” Jean-Yves Duclos, Canada’s Minister of Public Services and Procurement, said. “We are leading a Team Canada effort to unlock public lands for housing at a pace and scale not seen in generations, thus leveraging these properties to build strong communities and more affordable housing for the benefit of all Canadians." Efforts are also underway for calls for housing proposals in multiple cities.
Canadian students need financial help from parents
With the school year kicking into full gear, Canadian students will once again be juggling the conflicting pressures of academic devotion and fiscal prudence. Even though a majority of post-secondary students (53%) claim to have achieved financial independence, a greater proportion (62%) admit they won't be able to make it through the school year without a bailout from family or the "bank of mom and dad," according to a new study from Simplii Financial, conducted by Ipsos. This, despite the fact that around two-thirds (64%) consider themselves to be financially literate. "While Canadian post-secondary students are financially responsible, they're hard on themselves and their peers when it comes to understanding personal finance," says Jimmy Dinh, managing director and head of Simplii Financial. "Many of them also expect to face more financial challenges with today's higher cost of living." At the same time, 60% are less confident in the financial literacy of their peers.
With the school year kicking into full gear, Canadian students will once again be juggling the conflicting pressures of academic devotion and fiscal prudence. Even though a majority of post-secondary students (53%) claim to have achieved financial independence, a greater proportion (62%) admit they won't be able to make it through the school year without a bailout from family or the "bank of mom and dad," according to a new study from Simplii Financial, conducted by Ipsos. This, despite the fact that around two-thirds (64%) consider themselves to be financially literate. "While Canadian post-secondary students are financially responsible, they're hard on themselves and their peers when it comes to understanding personal finance," says Jimmy Dinh, managing director and head of Simplii Financial. "Many of them also expect to face more financial challenges with today's higher cost of living." At the same time, 60% are less confident in the financial literacy of their peers.
What happens when the boomers leave the workforce?
Baby boomers started to reach the age 65 in 2011. Their retirements have exerted downward pressure on the labour force participation rate ever since, reaching the lowest level in 20 years in 2023, at 65%. A new study from Statistics Canada looks at the potential impact up until 2041. “Despite the large number of baby boomers retiring, the labour force should continue to grow over the next two decades in Canada, partly because of migratory increase. A rise in the labour force participation rate, particularly among older workers, could also have a significant impact on the size of the labour force in the coming years,” the study says. The study uses six scenarios: The "reference scenario" assumes a set inflow of 500,000 permanent immigrants per year over the projection period and a constant proportion of non-permanent residents (NPRs) amounting to 5% of the total population as of 2028. It also assumes that the participation rate of workers aged 55 years and older will be higher in 2041 than in 2023. The five other scenarios alter either the permanent immigration level or the labour force participation rate by age group.
Baby boomers started to reach the age 65 in 2011. Their retirements have exerted downward pressure on the labour force participation rate ever since, reaching the lowest level in 20 years in 2023, at 65%. A new study from Statistics Canada looks at the potential impact up until 2041. “Despite the large number of baby boomers retiring, the labour force should continue to grow over the next two decades in Canada, partly because of migratory increase. A rise in the labour force participation rate, particularly among older workers, could also have a significant impact on the size of the labour force in the coming years,” the study says. The study uses six scenarios: The "reference scenario" assumes a set inflow of 500,000 permanent immigrants per year over the projection period and a constant proportion of non-permanent residents (NPRs) amounting to 5% of the total population as of 2028. It also assumes that the participation rate of workers aged 55 years and older will be higher in 2041 than in 2023. The five other scenarios alter either the permanent immigration level or the labour force participation rate by age group.
Detached home prices increases in 2024
The RE/MAX Hot Pocket Communities Report surveyed 83 markets in the Greater Toronto and Vancouver areas and BC's Fraser Valley area and found that close to 40% of markets reported an increase in detached housing values in the first half of 2024. Another 30% reported an upswing in the number of sales. "While affordability remains the top obstacle for first-time homebuyers, more experienced buyers and investors are taking advantage of softer housing values, making their moves ahead of the Bank of Canada's (BoC) end to quantitative tightening," RE/MAX President, Christopher Alexander, said. "Pent-up demand continues to build, with an estimated 20,000 to 25,000 buyers currently lying in wait in the GTA, and another 5,000 buyers in the Greater Vancouver area ready to pull the trigger. The first interest rate cut in June did little to incentivize buyers, but early indications show the second may have struck a nerve." The Greater Toronto Area's 416 area code led the other regions in rebounding sales momentum, with just over 34% of neighbourhoods stable or experiencing growth in detached home-buying activity — ahead of the 905, Greater Vancouver and Fraser Valley.
The RE/MAX Hot Pocket Communities Report surveyed 83 markets in the Greater Toronto and Vancouver areas and BC's Fraser Valley area and found that close to 40% of markets reported an increase in detached housing values in the first half of 2024. Another 30% reported an upswing in the number of sales. "While affordability remains the top obstacle for first-time homebuyers, more experienced buyers and investors are taking advantage of softer housing values, making their moves ahead of the Bank of Canada's (BoC) end to quantitative tightening," RE/MAX President, Christopher Alexander, said. "Pent-up demand continues to build, with an estimated 20,000 to 25,000 buyers currently lying in wait in the GTA, and another 5,000 buyers in the Greater Vancouver area ready to pull the trigger. The first interest rate cut in June did little to incentivize buyers, but early indications show the second may have struck a nerve." The Greater Toronto Area's 416 area code led the other regions in rebounding sales momentum, with just over 34% of neighbourhoods stable or experiencing growth in detached home-buying activity — ahead of the 905, Greater Vancouver and Fraser Valley.
Equitable Bank launches new construction loan
Equitable Bank has introduced the Laneway House Mortgage, a construction loan to help Canadian homeowners finance the building of laneway homes or garden suites on their property. The loan product is initially available in the Greater Toronto Area, Greater Vancouver Area and Calgary. "Making efficient use of space in cities as Canadians' housing needs evolve is more important than ever. The Laneway House Mortgage provides a critical solution that can help support urban densification and create additional income streams amid affordability challenges, while also allowing homeowners to stay in place," said Mahima Poddar, Equitable Bank’s senior vice-president and group head of personal banking. "Canadians work hard, and they deserve a good home to come back to at the end of the day – one that's within the communities they love. Equitable Bank is proud to continue playing a lead role in financing projects that support housing accessibility in Canadian cities." The loan allows homeowners to expand their living space or gain an additional source of rental income, while also aiding in bringing housing density to urban centres.
Equitable Bank has introduced the Laneway House Mortgage, a construction loan to help Canadian homeowners finance the building of laneway homes or garden suites on their property. The loan product is initially available in the Greater Toronto Area, Greater Vancouver Area and Calgary. "Making efficient use of space in cities as Canadians' housing needs evolve is more important than ever. The Laneway House Mortgage provides a critical solution that can help support urban densification and create additional income streams amid affordability challenges, while also allowing homeowners to stay in place," said Mahima Poddar, Equitable Bank’s senior vice-president and group head of personal banking. "Canadians work hard, and they deserve a good home to come back to at the end of the day – one that's within the communities they love. Equitable Bank is proud to continue playing a lead role in financing projects that support housing accessibility in Canadian cities." The loan allows homeowners to expand their living space or gain an additional source of rental income, while also aiding in bringing housing density to urban centres.
Investments in Canadian fintech hit new high
According to KPMG International’s H1’24 Pulse of Fintech report, a record USD$7.8 billion was invested in Canadian fintechs in the first six months of 2024, up more than seven-fold from last year's full-year total of USD$1.1 billion. Private equity investments into two Montréal-based fintechs – Nuvei Corp. and Plusgrade Inc. – accounted for as much as 94% of the total value invested in Canada, and were also among the biggest five deals globally. "These two Canadian deals – among the biggest in the world – reflect the growing fintech ecosystem in Montréal and Quebec more broadly, where the startup scene is thriving thanks to support from institutional investors, and world-class universities are providing a steady stream of talent," said Georges Pigeon, a partner in KPMG in Canada's deal advisory practice in Montréal who specialises in financial services. Excluding those two deals, total investment was USD$516.8 million, down 26% from the USD$696 million invested in the second half of last year, and up nearly 20% from the USD$434.2 million invested in the first half of 2023.
According to KPMG International’s H1’24 Pulse of Fintech report, a record USD$7.8 billion was invested in Canadian fintechs in the first six months of 2024, up more than seven-fold from last year's full-year total of USD$1.1 billion. Private equity investments into two Montréal-based fintechs – Nuvei Corp. and Plusgrade Inc. – accounted for as much as 94% of the total value invested in Canada, and were also among the biggest five deals globally. "These two Canadian deals – among the biggest in the world – reflect the growing fintech ecosystem in Montréal and Quebec more broadly, where the startup scene is thriving thanks to support from institutional investors, and world-class universities are providing a steady stream of talent," said Georges Pigeon, a partner in KPMG in Canada's deal advisory practice in Montréal who specialises in financial services. Excluding those two deals, total investment was USD$516.8 million, down 26% from the USD$696 million invested in the second half of last year, and up nearly 20% from the USD$434.2 million invested in the first half of 2023.
Canadian economy sees modest rebound in Q1
Despite an interest rate cut in June — the first in years — and July, the overall Canadian economic sentiment continues to be subdued. A forecast report recently released by TD shows that Canada's economic momentum is trending up, but in a decidedly subdued way. Apparently, indebted consumers are still adjusting to the rapid increase in debt and living costs over the last 12 months. Still, the three-month moving average for core inflation rates fell from 2.91% in June to 2.71% in July, according to Bloomberg calculations. There is an expectation that core inflation rates will continue to stay low and this gives Bank of Canada policymakers a clear path to proceed with another 25 basis point cut on September 4, 2024. (To be clear, 1% equals 100 basis points.) While the most recent rate cuts didn't provide the boost many consumers and businesses were hoping for, it doesn't mean these cuts to borrowing costs aren't welcome — with additional rate drops both expected and desired by most Canadians.
Despite an interest rate cut in June — the first in years — and July, the overall Canadian economic sentiment continues to be subdued. A forecast report recently released by TD shows that Canada's economic momentum is trending up, but in a decidedly subdued way. Apparently, indebted consumers are still adjusting to the rapid increase in debt and living costs over the last 12 months. Still, the three-month moving average for core inflation rates fell from 2.91% in June to 2.71% in July, according to Bloomberg calculations. There is an expectation that core inflation rates will continue to stay low and this gives Bank of Canada policymakers a clear path to proceed with another 25 basis point cut on September 4, 2024. (To be clear, 1% equals 100 basis points.) While the most recent rate cuts didn't provide the boost many consumers and businesses were hoping for, it doesn't mean these cuts to borrowing costs aren't welcome — with additional rate drops both expected and desired by most Canadians.
Scotiabank expands Children's Aid program
Scotiabank announced renewed support for the Children's Aid Foundation of Canada to expand its Stay in School program across the nation. The $900,000, three-year investment will help 1,600 youth currently in Canada's child welfare system, to maintain their participation in high school and help them graduate and move on to higher education. "We are pleased to continue to partner with Children's Aid Foundation of Canada to provide young people with the support they need to overcome barriers to graduation," said Meigan Terry, senior vice-president and chief sustainability, social impact and communications officer at Scotiabank. "Through our ScotiaRISE social impact initiative, we are focused on supporting initiatives like the Stay in School program, reflecting our commitment to improving the lives of young people by empowering them to further their education." The program provides access to tools and resources including tutoring, mentoring, technology, transportation, extra-curricular school activities and scholarships that help further educational experiences.
Scotiabank announced renewed support for the Children's Aid Foundation of Canada to expand its Stay in School program across the nation. The $900,000, three-year investment will help 1,600 youth currently in Canada's child welfare system, to maintain their participation in high school and help them graduate and move on to higher education. "We are pleased to continue to partner with Children's Aid Foundation of Canada to provide young people with the support they need to overcome barriers to graduation," said Meigan Terry, senior vice-president and chief sustainability, social impact and communications officer at Scotiabank. "Through our ScotiaRISE social impact initiative, we are focused on supporting initiatives like the Stay in School program, reflecting our commitment to improving the lives of young people by empowering them to further their education." The program provides access to tools and resources including tutoring, mentoring, technology, transportation, extra-curricular school activities and scholarships that help further educational experiences.
Managers agree productivity in Canada is up
A new survey from talent solutions and business consulting firm, Robert Half, reveals nearly 7 in 10 managers (68%) believe there’s been an increase in productivity compared to one year ago. At the same time, some professionals indicate they are putting in longer work hours, raising concerns about burnout, decreased morale and turnover. "Increased productivity is very positive news for managers, businesses and professionals alike," said Koula Vasilopoulos, senior managing director of Robert Half Canada. "Businesses who maintain necessary staffing levels, adopt new technologies and invest in learning and development training for their staff see the benefits in increased engagement and productivity. However, this needs to be balanced with a positive work environment including reasonable hours and flexibility, as working longer hours and not establishing work-life balance can quickly offset productivity gains through burnout and turnover." By comparison, 21% of managers report no change in productivity, while only 11% have reported a decreased productivity on their teams.
A new survey from talent solutions and business consulting firm, Robert Half, reveals nearly 7 in 10 managers (68%) believe there’s been an increase in productivity compared to one year ago. At the same time, some professionals indicate they are putting in longer work hours, raising concerns about burnout, decreased morale and turnover. "Increased productivity is very positive news for managers, businesses and professionals alike," said Koula Vasilopoulos, senior managing director of Robert Half Canada. "Businesses who maintain necessary staffing levels, adopt new technologies and invest in learning and development training for their staff see the benefits in increased engagement and productivity. However, this needs to be balanced with a positive work environment including reasonable hours and flexibility, as working longer hours and not establishing work-life balance can quickly offset productivity gains through burnout and turnover." By comparison, 21% of managers report no change in productivity, while only 11% have reported a decreased productivity on their teams.
Canadian housing starts stronger in July
The trend in Canadian housing starts rose 3.2% from 247,840 units in June to 255,783 units in July. Measurement of the trend is a six-month moving average of the monthly seasonally adjusted annual rate (SAAR) of total housing starts for all areas in Canada. “Residential construction activity remains sturdy in Canada despite the clear slowdown in the resale market. The fact that such a cyclical component of the economy hasn’t buckled under sharply higher borrowing costs suggests that the more structural forces still at play are outweighing some pockets of weakness,” writes Robert Kavcic, a BMO senior economist and director of economics in a report on the housing starts. This makes for an annualized rate of 279,500 – the highest since June 2023.
The trend in Canadian housing starts rose 3.2% from 247,840 units in June to 255,783 units in July. Measurement of the trend is a six-month moving average of the monthly seasonally adjusted annual rate (SAAR) of total housing starts for all areas in Canada. “Residential construction activity remains sturdy in Canada despite the clear slowdown in the resale market. The fact that such a cyclical component of the economy hasn’t buckled under sharply higher borrowing costs suggests that the more structural forces still at play are outweighing some pockets of weakness,” writes Robert Kavcic, a BMO senior economist and director of economics in a report on the housing starts. This makes for an annualized rate of 279,500 – the highest since June 2023.
Money.ca Digest