16 May

Canadians Are Still Spending—And That Says More About Us Than the Economy

Latest News

Posted by: Murali Raveendran

There’s something quiet but telling about a home just after winter. The snow has melted, the light shifts, and you start to see what’s been hiding underneath—cracks in the pavement, a fence that needs tightening, maybe even a project you’ve been putting off. It’s not just about the house. It’s about the shift in us, too.

This April, even though Canadian consumer sentiment was scraping the bottom of the barrel, we chose to keep going. According to RBC’s latest spending tracker, Canadian cardholders didn’t just keep up—they spent more. Against the backdrop of economic doubt, we leaned into living. We booked dinners. We fixed up our spaces. We chose art, experiences, and groceries that brought people together. That’s not just spending. That’s hope in motion.

What the Numbers Say

Let’s break it down:

  • Overall spending rose 2% from March.

  • Discretionary spending—things like dining, entertainment, and home goods—increased by 2.5%.

  • Essential spending (groceries, fuel, etc.) also saw a 1.6% rebound, despite a dip in gas spending due to the April 1 carbon tax roll-off.

  • Travel spending dipped by 1.9%, as many Canadians opted to stay closer to home.

In short? Canadians are still buying—but they’re choosing what matters.

The Home at the Heart of It

For homeowners and soon-to-be homeowners, these choices are even more meaningful.

Take British Columbia, for example. The province saw a 3.1% jump in spending, led by household and construction-related purchases—likely tied to a rebound in the renovation and home improvement sectors. After a tough economic stretch for construction, this recovery signals a renewed investment in spaces that offer more than shelter—they offer a sense of control, comfort, and future.

Saskatchewan saw a 5.8% jump, while smaller provinces like P.E.I. and Newfoundland saw minor dips, though RBC notes these can often be chalked up to monthly fluctuations and sample size limitations.

The bigger message? Canadians across the country are making intentional decisions, even in uncertainty. And those decisions often circle back to one thing: home.

Why This Matters for You

If you’re a homebuyer wondering whether now is the right time to make your move, or a homeowner debating whether to upgrade or refinance, here’s the key takeaway: confidence doesn’t always show up in headlines—it shows up in action.

People aren’t waiting for everything to be perfect. They’re moving forward when it makes sense for them—emotionally, financially, and personally.

And that’s the real signal here. Despite low consumer confidence numbers in March and April, Canadians aren’t frozen in place. They’re adapting. They’re spending in categories that bring meaning—like home life, community, and creativity—even while pulling back in others like travel.

It’s not recklessness. It’s resilience.

Your Next Step Doesn’t Need to Be Huge

Whether it’s finally starting that renovation project, revisiting your mortgage to improve cash flow, or deciding it’s time to stop renting and start planting roots—this is your sign to take the next step.

Because the data isn’t just telling a story about money. It’s telling a story about people who still believe in what’s possible.

6 May

Why Homebuyers Are Still Hesitating—Even With Good News

Latest News

Posted by: Murali Raveendran

It’s 2025, and mortgage rates are finally dropping. Headlines everywhere say it’s a “buyer’s market.” So why does it still feel hard to move forward with confidence?

If you’ve been sitting on the sidelines, unsure whether to buy, you’re not alone. Even though the numbers are improving, the feeling of the market hasn’t caught up. Here’s why—and what it really means.


1. Rate Cuts Were Supposed to Be the Big Fix—But Weren’t

When interest rates started to fall, many expected the housing market to bounce right back. But it didn’t.

Why? Because buyers aren’t just looking at rates. They’re dealing with:

  • Wage growth that hasn’t kept up with inflation

  • A sense of whiplash from years of market volatility

  • The fear of making a major decision in uncertain times

The takeaway: lower rates are helpful, but trust takes time to rebuild.


2. The “New Frontier” Is Out West

Cities like Calgary, Edmonton, and Regina are seeing more action than Toronto and Vancouver. Why?

Because they represent something deeper than affordability:

  • Breathing room

  • Opportunity

  • A fresh start

For many Canadians, these places symbolize a break from the pressure and hustle of high-cost cities—and a chance to live life on their own terms.


3. Bigger Forces Are Still Making Buyers Nervous

Even with good news at home, global uncertainty remains:

  • Trade tensions

  • Rising inflation expectations

  • Economic slowdowns in other parts of the world

These act like a shadow in the background—making people wonder: What if I buy now and things get worse later?


So, What Can You Do?

The key is to separate emotion from strategy. While fear is valid, it’s also important to look at:

  • Your personal affordability

  • Local market conditions

  • Long-term goals

A home isn’t just a financial decision—it’s a life one. And the right time to buy isn’t when the market says “go”—it’s when your life does.

5 May

Canada at a Crossroads

General

Posted by: Murali Raveendran

What Rising Trade Tensions Mean for Your Mortgage

Global trade tensions are rising fast. U.S. President Donald Trump’s latest tariffs are hitting Canadian exports like steel and aluminum hard. These changes are shaking up Canada’s economy—and they could affect your mortgage, too.

Who’s Involved?

The Bank of Canada is the key player here. Think of it as a careful protector, trying to keep the economy steady.

Then there’s President Trump. He’s bringing disruption with new tariffs and trade barriers.

Finally, we have Canadian banks, businesses, and borrowers. They’re all trying to adjust, unsure of what’s coming next.

What’s Happening Right Now?

For the first time in nearly a year, the Bank of Canada did not cut interest rates. Instead, it held its rate at 2.75% in April.

Why? Inflation dropped more than expected. The Consumer Price Index (CPI) fell to 2.3%, down from 2.6%. That gave the Bank a reason to pause.

Still, trade risks are high. Tariffs could push prices up or slow the economy. That’s why the Bank chose to wait before making another move.

The Economic Landscape

This isn’t just a big-picture issue. It affects your day-to-day life.

Interest rates impact everything from your mortgage payment to your credit card. As trade issues grow, inflation and job numbers may shift too. Because of this, borrowers should be ready for change.

The Core Conflict

Here’s the big challenge: Should the Bank cut rates to help the economy—or keep them steady to control inflation?

If rates drop, it’s easier to borrow. But if inflation rises too fast, everything gets more expensive. The Bank of Canada is trying to strike the right balance.

This is not an easy decision. And there’s no one right answer.

So… What Comes Next?

Right now, no one knows for sure.

Some major banks think we’ll see more rate cuts this year. Others believe this could be the end of them.

Meanwhile, global trade issues and inflation will keep influencing the Bank’s choices.

Bottom Line for Borrowers

Stay alert. Things can shift quickly. Keep an eye on rate news.

Know your numbers. Lower inflation today doesn’t mean lower costs tomorrow.

Talk to an expert. A mortgage advisor can help you plan ahead.

 

Want to stay ahead of the next rate change? Subscribe to our newsletter for weekly updates made just for Canadian borrowers.