Perspectives Scotiabank Perspectives

Scotiabank Senior Economist Farah Omran is back this episode to give us her take on the state of the Canadian housing market. She'll break down the latest numbers, explain the high stakes and “suspense” she’s seeing, tell us what might play out in the next six months and much more. 
 
Key moments this episode: 
1:10 – Farah catches us up on the market since her last podcast appearance in the fall 
2:41 – What Farah means when she says “stakes are high”  
3:42 – The mystery behind why we’re seeing a relatively slow spring real estate season 
5:38 – Are there any markets that are especially hot in Canada? 
6:45 – Are people waiting for rate cuts before entering the market? 
8:12 – How the housing market impacts the interest rate outlook and vice-versa  
10:02 – An update on housing shortages and what governments (including the recent federal budget) are doing 
15:18 – Digging into the psychology around the housing market 
17:03 – Farah breaks out her non-existent crystal ball: what might the next six months look like?

This episode is a handy primer for anyone looking to get started in investing, or even those looking to refresh their knowledge. Our guest Craig Maddock, Vice President and Senior Portfolio Manager with Scotia Global Asset Management, breaks it all down in plain language. Everything from GICs, to stocks and bonds, to ETFs and mutual funds. It even addresses some common misconceptions and provides some questions to ask yourself before you visit an advisor. 
 
Key moments this episode: 
1:30 – What is the difference between investing and saving? 
2:49 – Why are people intimidated by investing when they first start out?   
5:17 – The most common misconception people have about investing (and how to avoid it) 
6:47 – What should someone ask themselves before they see an advisor?  
9:56 – How does time horizon factor into investing? 
11:17 – What is a GIC? 
13:44 – What are stocks and bonds? 
20:56 – How is investing more than just ‘gambling’? 
23:18 – What are mutual funds? How are they different from ETFs? 
30:09 – How is investing like fixing your car? 
32:16 – Some final advice for someone who is just getting started investing 

Talking about money with loved ones can be difficult. So in order to make those tricky conversations a little easier, a new project has broken down how we relate to money into six different Money Styles. Think love languages, but for finances. Tanya Eisener, the Senior Vice President of Retail Customer Value at Scotiabank, and Adam Palanica, the Senior Manager of Global HR insights and People Analytics at Scotiabank, are our guests this episode. They tell us how this tool works, why it’s needed and how you can use it to get a better handle on the emotions around money. 
To take the quiz and find your Money Style, check out the Money Style by Scotia Advice+ page. 
 
Key moments this episode:  
1:47 — So what is a Money Style?   
2:14 — How did behavioural science inform the creation of Money Style? 
2:53 — Why is money so difficult to talk about? 
4:29 — Getting to the root of the feelings around money 
5:13 — How does the Money Style quiz help make money conversations easier? 
6:23 — Why taking the stress out of financial conversations is especially important now 
7:17 — Some fascinating numbers around money and relationships 
7:46 — Breaking down the six Money Styles 
10:11 — How to interpret the quiz results 
11:24 — What to do once you’ve figured out your Money Style 
12:07 — How long does the quiz take? 
12:37 — One final behavioural science tip to help your relationship with money 
12:46 — Tanya’s takeaways around what she’s learned about our sometimes thorny relationship with money 

Getting into the housing market these days can be daunting. So, this episode we’re answering all the questions you may have had about mortgages and real estate but were too afraid to ask. Our guest is Tracy Gomes, Senior Vice President of Real Estate Secured Lending at Scotiabank. Tracy will define some key terms, give us a primer on how to pick between a fixed and variable interest rate mortgage, how much you might expect to pay for a down payment and more. 
 
Key moments this episode: 
1:32 — What’s the big question or concern that Tracy hears the most from people looking to get into the market? 
2:30 — What’s the first thing someone should be thinking about if they’re looking to buy a home for the first time? 
4:12 — What do you need to qualify for a mortgage? 
4:33 — The 4 Cs lenders are always looking at when processing a mortgage application 
5:27 — What is the minimum down payment needed in Canada? 
6:07 — Does the size of a down payment have an impact on the interest rate of a mortgage? 
6:36 — Breaking down the different types of insurance when it comes to mortgages 
8:34 — The role of ‘the bank of mom and dad’  
9:18 — Is it possible to buy a home without a down payment? 
9:25 — Options available for first-time buyers to save for a down payment 
10:07 — What is a stress test? 
11:35 — What other costs are associated with buying a house? 
13:07 — How do real estate agents get paid? 
13:46 — If you’re already in the market, should you sell before you buy or buy before you sell?  
15:20 — Mortgages 101 
17:10 — The most common mortgage question: what is the difference between fixed and variable rate mortgages? 
19:45 — Some quick mortgage definitions: term and amortization 
21:39 — How Scotiabank’s adjustable-rate mortgage works 
22:37 — Recap of variable vs fixed rate 
25:03 — Some tips on paying off a mortgage faster 
27:40 — What’s the final thing Tracy thinks people should know about buying a home

The Liberal government has laid out its 2024 Federal Budget, with new spending focused on issues such as housing, defence, and childcare, with new tax measures to help offset the cost.  
Rebekah Young, Scotiabank Economist and Head of Inclusion and Resilience Economics, joins us to break down the key takeaways Canadians need to know about the federal government’s spending plan, what is missing from the budget, and the impact it is likely to have on the broader economy and inflation. 
Read Rebekah’s full report: Canada’s 2024 Federal Budget. 
 
Key moments this episode: 
1:21 — A look at overall spending and key items 
3:19 — Key buckets of spending important for Canadians 
5:41 — Tax measures and other ways the federal government plans to pay for this new spending 
8:23 — A primer on capital gains 
10:24 — What impact these tax measures will have on productivity 
11:56 — What's the economic impact of this budget, near term and long term? What does it mean for housing and inflation in Canada? 
15:37 — The main thing Rebekah is taking away

The Bank of Canada held its benchmark interest rate steady at 5% for the sixth consecutive time, as expected. Even though inflation and other indicators are heading in the right direction, Governor Tiff Macklem said the central bank needed to see this pattern for longer to be assured it is “not just a temporary dip.”  
Scotiabank’s Chief Economist Jean-François Perrault is back to discuss the Bank of Canada’s latest decision, why he believes a rate cut in September is more likely than in June, and his thoughts on next week’s federal budget and the impact it could have on inflation.   
For an up-to-date breakdown of the Bank of Canada's key interest rate and its change over time alongside inflation numbers, visit our interest rate page. 

1:06 — What can we take away from the Bank of Canada’s latest decision? 
2:26 — The big question: When will rates finally come down? 
4:00 — So, could we see a rate cut this summer? 
4:50 — What would we need to see in terms of indicators for a June or July rate cut decision? 
6:33 — What is happening in Canada’s housing market and what does it mean for inflation? 
8:20 — Where do we stand on geopolitical risks when it comes to inflation? 
9:15 — What about a weak loonie compared to the U.S. dollar? Is that a factor that could impact inflation? 
10:45 — How do higher-than-expected U.S. inflation numbers complicate things when it comes to rate cuts? 
12:23 — What risk does Canada’s low productivity pose? 
13:31 — The Bank of Canada made a slight increase to its nominal neutral interest rate. What is that and why is that important? 
16:27 — Is there anything else we can learn from the latest Bank of Canada Monetary Policy Report? 
17:28 — What can we expect from the Federal Budget next week and how might that impact inflation and the Bank of Canada’s future decisions? 
19:52 — The top three takeaways for Canadians from the latest Bank of Canada decision 1:06 — What can we take away from the Bank of Canada’s latest decision? 
2:26 — The big question: When will rates finally come down? 
4:00 — So, could we see a rate cut this summer? 
4:50 — What would we need to see in terms of indicators for a June or July rate cut decision? 
6:33 — What is happening in Canada’s housing market and what does it mean for inflation? 
8:20 — Where do we stand on geopolitical risks when it comes to inflation? 
9:15 — What about a weak loonie compared to the U.S. dollar? Is that a factor that could impact inflation? 
10:45 — How do higher-than-expected U.S. inflation numbers complicate things when it comes to rate cuts? 
12:23 — What risk does Canada’s low productivity pose? 
13:31 — The Bank of Canada made a slight increase to its nominal neutral interest rate. What is that and why is that important? 
16:27 — Is there anything else we can learn from the latest Bank of Canada Monetary Policy Report? 
17:28 — What can we expect from the Federal Budget next week and how might that impact inflation and the Bank of Canada’s future decisions? 
19:52 — The top three takeaways for Canadians from the latest Bank of Canada decision