Posted by & filed under Canadian Economy.

Description: Mortgage rates in Canada took a drop this week following the Bank of Canada’s 50 basis points cut to its rate. The site – – estimated that for each 1/2% cut in interest rates, Canadians would save $500 per year on each $100,000 borrowed. This is Canada’s lowest interest rate since the recession of 2008. The reason for this cut: you guessed it; the corona virus.

Date:  March 5, 2020




Discussion points:

1) Do you plan on buying a home after graduation? Does this cut in rates impact your timeline?

2) Why would the Bank of Canada be cutting its rate during a temporary crisis like this?

3) Read the “Accounting Matters” section on page 535 of Wiley’s Financial Accounting : Tools for Business Decision-Making. What has the Bank of Canada said is one of the top risks to Canada’s financial system?

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