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Trudeau Offers No Relief to Canadian Home Owners on Mortgage Rates

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Trudeau Offers No Relief to Canadian Home Owners

Only three years ago, Justin Trudeau was being challenged about the expense of carrying all that extra debt when the Prime Minister interrupted the reporter, CTV’s Glen McGregor, to reprimand him about how low interest rates were.

“Interest rates are at historic lows, Glen,” Trudeau added, a smug smile on his face.

Since then the Trudeau Liberals have boosted expenditure by 55% since gaining office, from $317 billion in 2016 to $490 billion presently. The government deficit increased from $29 billion to $40 billion, and the national debt increased from $648 billion to $1.2 trillion.

And the cost of debt service has risen from $25.7 billion in 2016 to $43.9 billion presently, and it is only going to rise further.

Cash-strapped Canadians who recently purchased homes with long-term variable rate mortgages may be paying up to $1,700 extra each month as a result of this year’s rate hikes.

Now, heavily indebted Canadians seeking for relief from a sharp spike in mortgage rates are in for some disappointment, as recent bond market moves indicate that interest rates will remain elevated for longer than originally thought due to tenacious inflation.

In comparison to the 30-year duration that is prevalent in the United States, nearly all Canadian mortgages have a period of five years or less. According to the Canada Mortgage and Housing Corporation (CMHC), home mortgage debt stood at C$2.08 trillion ($1.53 trillion) as of January 2023.

It implies that when around 20% of Canadian mortgages come up for renewal in the next year, many borrowers will be in a worse financial situation than they could have anticipated just a few months ago. Mortgage rates tend to lag after bond market movements.

“With each passing month, as rates rise, we discuss with consumers how much mortgage they can qualify for, and that’s been decreasing as rates rise,” said James Laird, co-CEO of

Thanks to Trudeau the 5-year mortgage rate offered by major Canadian banks has risen to its highest level since November 2008, according to Bank of Canada data.

When it comes time to renew, homeowners who want to search for lower interest rates may have fewer options because they will have to re-qualify for the stress test at the newest interest rates with their new lender.

Read:  Trudeau Now Blames Canada’s International Students for Housing Shortage

In 2021, Canada modified its stress test laws, forcing borrowers to demonstrate their ability to handle mortgage repayment 200 basis points above their contracted rate, and consumers will have to re-qualify if switching to a different lender at the time of renewal.

“That is a flaw in a stress test that hopefully will be fixed at some point.” “You’ll see more consumers than usual sticking with their lenders,” Laird said.

The likelihood of another interest rate hike in September has only increased as inflation has returned to above the Bank of Canada’s target range, while robust economic growth, particularly in the United States, has fueled concerns that rates will remain higher for longer.

With no promise of a rate drop in the near future, worried homeowners are increasingly struggling to make their monthly mortgage payments and, in some circumstances, being forced to sell their homes.

Daniel Foch, director of economic analysis at Toronto-based RARE Real Estate, cited Toronto Regional Real Estate Board statistics showing that power of sale – a clause that permits lenders to sell a borrower’s house if they default on mortgage payments – had increased in recent months.

According to the data, power of sale was used for 48 to 80 properties in the Greater Toronto Area in the last three months, up from 14 to 32 a year ago. According to Foch, that number is on course to reach 75 by the end of August.

With interest rates at a 22-year high, mortgage growth in Canada has fallen to its worst pace in about four years, according to KBW analysts, which is expected to weigh on banks’ quarterly earnings beginning this week.

“Whereas consumers may have had some strong income growth in the last 12 months to offset higher debt payments, that is not going to be the case in the next 12 to 24 months,” said Stephen Brown, deputy chief North America economist at Capital Economics.

“It will undoubtedly be problematic for the Canadian economy if interest rates remain at this level.”


Dianne Feinstein: ‘Pioneering’ Senator Dies Aged 90

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Senator Dianne Feinstein of California, who served for more than three decades and was a pioneer for women in American politics, passed away at 90.

Feinstein was the eldest senator in the United States, and she voted on Thursday.

The veteran Democrat was questioned about alleged memory and cognitive issues for months.

After a “minor fall” at home in April, she was admitted to the hospital, the latest in a series of health concerns.

The office of Ms. Feinstein stated in a statement that she died overnight at her residence in Washington, DC.

The statement continued, “Senator Feinstein was a force of nature who had an enormous impact on our country and her home state.” She left an incontestable and extraordinary legacy.

Governor Gavin Newsom of California must now appoint her replacement. He had previously promised to nominate a black woman to serve the remainder of her term, which ends in 2025.

Ms. Feinstein, born in 1933 and grew up in San Francisco, attended Stanford University and was elected to the San Francisco County Board of Supervisors in 1969.

This election marked the beginning of a long career in public service that led her to become the first female mayor of San Francisco and, in 1992, a senator.

She had previously proclaimed her intention to retire at the end of the following year, but she resisted mounting pressure. Several prominent Democrats, including Representatives Adam Schiff and Katie Porter, have previously declared their intentions to run for her Senate seat.


Senator Dianne Feinstein of California, who served for more than three decades and was a pioneer for women in American politics, passed away at 90.

In a statement issued after her passing, US President Joe Biden said that Ms. Feinstein “made history in so many ways, and generations to come will benefit from her legacy.”

Due to a case of shingles, she was absent from Capitol Hill for nearly three months earlier this year. Upon her return, she assumed fewer responsibilities and used a wheelchair to navigate the US Capitol. She occasionally appeared perplexed in interviews, committee hearings, and floor votes.

Ms. Feinstein was well-known for her ardent support of gun control measures and the 1994 assault weapons prohibition signed into law by President Bill Clinton.

After the murders of her predecessor, George Moscone, and city councilman Harvey Milk, she became mayor of San Francisco in 1978.

She stated that the experience of racing to Mayor Moscone’s office and discovering a bullet wound while searching for his pulse had left an indelible mark on her.

As a senator, Ms. Feinstein was the first woman to chair the influential Senate Intelligence Committee, overseeing a multi-year evaluation of the CIA’s controversial interrogation program of foreign terrorists following the September 11, 2001, terrorist attacks.

The evaluation ultimately resulted in legislation prohibiting “enhanced interrogation techniques” on terrorism suspects, such as waterboarding.


Senator Dianne Feinstein of California, who served for more than three decades and was a pioneer for women in American politics, passed away at 90.

Ms. Feinstein was the first woman to serve on the Senate Judiciary Committee and the first woman to lead the Senate Rules Committee.

Nancy Pelosi, a Democrat from California, described Dianne Feinstein as a “pioneering woman leader” in a statement.

“Dianne’s extraordinary career will inspire countless women and girls to pursue careers in public service for generations to come,” she said.

On the Senate floor, Republican minority leader Mitch McConnell praised “her dogged advocacy and diligent service”.

In recent years, concerns about her deteriorating health and cognitive abilities have prompted calls for her retirement and brought attention to the aging of America’s legislators.

During a committee vote, individuals around her could be heard in a widely circulated video telling her to “just say yes.”

Despite mounting family tensions, she is succeeded by a daughter, Katherine, who reportedly held power of attorney over her mother’s legal affairs. Richard Blum, her investment banker spouse, passed away last year.


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New York City: State Of Emergency Declared Over Flash Flooding

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In New York City, a state of emergency has been declared as violent storms deliver flash flooding.

Many of the city’s subways, streets, and highways have been inundated, and LaGuardia Airport closed at least one terminal on Friday.

According to New York Governor Kathy Hochul, some areas received up to five inches (12.7cm) of rain overnight, and up to seven more inches (17.8cm) are expected.

“This is a dangerous, life-threatening storm,” she continued.

She announced on X, formerly known as Twitter, that she was proclaiming a state of emergency in New York City, Long Island, and the Hudson Valley due to the region’s extreme rainfall.

She urged individuals to take precautions and to “never attempt to travel on flooded roads.”

As a result of the declaration of a state of emergency, New York City Mayor Eric Adams issued a call for “heightened alertness and extreme caution.”

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In New York City, a state of emergency has been declared as violent storms deliver flash flooding.

“Some of our subways are flooded, and it is extremely difficult to move around the city,” he said at a press conference.

Due to intense rainfall, people were pictured and captured on video wading through knee-deep water in the streets and subways.

The Metropolitan Transportation Authority (MTA) advised individuals who did not need to travel to remain at home.

Terminal A at La Guardia Airport is presently closed due to flooding, according to airport authorities.

Before traveling, passengers were instructed to verify with their airline.

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The New York City Police Department also announced multiple road closures and the deployment of the National Guard.

Elsewhere, traffic stopped along a section of the FDR Drive, a significant thoroughfare on the east side of Manhattan, as the water rose above the tires of automobiles.

In addition, employees attempted to unclog a drain in South Williamsburg, Brooklyn, while cardboard and other debris floated by.

According to municipal officials, there were no storm-related fatalities or serious injuries as of midday (1600 GMT).

The weather service has issued flood warnings and advisories for approximately 18 million people in the New York metropolitan area and other major East Coast cities.


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Disney Plus Announces Crackdown On Password Sharing In Canada In 2023

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NEW YORK — Today, password-sharing crackdowns are becoming increasingly prevalent in the streaming industry. In addition, Disney Plus follows suit.

In an email sent to Canadian users this week, Disney announced restrictions on the “ability to share your account or credentials outside of the household.”

The updated Canadian Subscriber Agreement for Disney Plus stipulates that users may only share a subscription within their domicile if permitted by their account tier and that violations may result in Disney Plus limiting or terminating service. According to the streamer’s help center, “Household” refers to the collection of devices associated with a subscriber’s principal residence and used by the residents.

These password-sharing restrictions are part of multiple revisions to the Disney Plus Subscriber Agreement that will go into effect on November 1 for most Canadian users. According to this week’s email, annual subscribers in Quebec may see the changes a bit later, depending on their billing cycle, while users who alter their plan before November 1 will see the changes take effect immediately.

As previously disclosed in August, Disney Plus will launch its ad-supported tier offerings in Canada and select European markets on November 1. The ad-supported tier of Disney Plus has been available in the U.S. since December 2022.

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Disney Plus Announces Crackdown On Password Sharing In Canada

When contacted by The Associated Press, a Disney Plus spokesperson declined to comment on whether similar domestic restrictions could be anticipated in countries other than Canada.

In a recent earnings call, Walt Disney Co. CEO Bob Iger pledged to make the company’s streaming services profitable, notably through an October price increase on its ad-free Disney+ and Hulu plans in the U.S. and a restriction on password sharing that is expected to last through 2019.

At the time, Iger did not elaborate on the password-sharing crackdown beyond stating that Disney could reap some benefits in 2024, although he added that the work “might not be completed” by then and that Disney could not predict how many password-sharing users would switch to paid subscriptions.

New restrictions on streaming extend far beyond Disney. Netflix, for instance, made headlines when it began clamping down on password sharing. Freeloading viewers are now required to open their accounts in the United States unless a subscriber with a standard or premium plan agrees to pay a $8 monthly surcharge to enable more people from different households to watch.


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