Young Canadians are increasingly planning their financial futures as the world faces down the second the year of the coronavirus pandemic, according to a new survey by Sun Life Financial Inc. It found that 89 per cent of generation Z (ages 18 to 23) and 80 per cent of millennials (ages 24 to 39) are […]
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The Great Reopening is in the works, and the smart money is getting ready.
Economic readings increasingly portend a growth cycle unlike any other in modern history, once the pandemic finally releases its grip on the world.
Forecasters and investors are madly revising their estimates, and repositioning portfolios, to keep up with the scope of the economic megaboom that is taking shape. Financial markets are seeing a wholesale rotation out of the stocks and sectors that benefitted from pandemic-fuelled lockdowns, and into those industries that have the most to gain from a burgeoning global economy.
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“It generally means … there’s a light at end the tunnel,” he said. “But if it results in significant movement in mortgage rates,” it puts pressure on mortgage growth while raising funding costs.
With little demand for loans outside mortgages, banks have deployed their ballooning deposits into low-yielding short-term securities, which contributed to a decline in margins to 1.56 per cent, the lowest in about two decades.
Mortgage growth
Residential mortgage balances at Canada’s biggest banks Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, Canadian Imperial Bank of Commerce and National Bank of Canada grew 8.3 per cent in the three months through January, versus a 2.4 per cent increase in commercial lending.