What is a 'halal mortgage'? Does it make housing more accessible?
The 2024 federal budget announced on April 16 included plans to introduce “halal mortgages” as a way to increase access to home ownership.
The value of the loonie fell to its lowest point in nearly two years this week, adding further pressure on Canadians already squeezed by high inflation and the possibility of a global recession.
The Canadian dollar traded for 75.27 cents U.S. on Friday, falling at one point to nearly two-year low of 75.15 cents U.S. earlier in the day.
Meanwhile, the World Bank warned on Thursday that countries could head toward a global recession in 2023 as central banks simultaneously hike interest rates in response to inflation — potentially resulting in lasting harm to emerging market and developing economies.
"It's going to be more expensive to buy stuff and your dollar isn't going to go as far," Lydia Miljan, a professor of political science at the University of Windsor, told CTV National News.
"The cost of borrowing is higher and so obviously that is going to put in some recessionary pressures."
Importers will feel the pain of a weaker Canadian dollar more acutely compared to exporters who would receive a boost by selling their products in U.S. currency, she said.
What is different this time, Miljan adds, is the possibility of a recession at the same time as high inflation.
She says any financial planner would advise to hold off on any major purchases and start paying off debts as interest rates go up.
"Recessions don't have to last a long time, but this, coupled with all the other problems we had this year, I think is the last thing that Canadians want to see again," she said.
The Bank of Canada this month raised its key interest rate to 3.25 per cent, one of a number of hikes it has already made this year as part of a strategy also employed by other central banks to slow inflation.
Analysts say the American dollar is normally seen as a safe haven during times of volatility, with investors parking their money in U.S. bonds, which in turn drives up the currency's value.
Russia's war in Ukraine has continued to have an impact on the global economy, as well.
The low value of the Canadian dollar also may affect food prices, which have also remained high due to inflation.
"We do import a lot of food from abroad during the winter to feed ourselves and if the loonie drops even further, it will impact the buying power of our importers," Sylvain Charlebois, director of Dalhousie University's Agri-Food Analytics Lab, told CTV National News.
"And that would include obviously our main grocers and different agencies that actually do make sure that we have affordable foods in stores and at the restaurant."
On the other hand, a recession could lower prices if people choose to spend less money, he said.
With files from CTV News, The Canadian Press and The Associated Press
The 2024 federal budget announced on April 16 included plans to introduce “halal mortgages” as a way to increase access to home ownership.
A recent report sheds light on Canadians living abroad--estimated at around four million people in 2016—and the public policies that impact them.
One person was killed in a six-vehicle crash on Highway 400 in Innisfil Friday evening.
An election-year roast of U.S. President Joe Biden before journalists, celebrities and politicians at the annual White House correspondents' dinner Saturday.
It's one thing to say you like Taylor Swift and her music, but don't blame CNN's AJ Willingham's when she says she just 'doesn't get' the global phenomenon.
Ontario is now home to an invasive and toxic worm species that can grow up to three feet long and can be dangerous to small animals and pets.
Harvey Weinstein’s lawyer said Saturday that the onetime movie mogul has been hospitalized for a battery of tests after his return to New York City following an appeals court ruling nullifying his 2020 rape conviction.
Polish President Andrzej Duda says while no decision has been made around whether Poland will host nuclear weapons as part of an expansion of the NATO alliance’s nuclear sharing program, his country is willing and prepared to do so.
A number of LGBQT+2s groups in Central Alberta are pushing back against a request from the Red Deer South UCP constituency to reinstate MLA Jennifer Johnson into the UCP caucus.
As if a 4-0 Edmonton Oilers lead in Game 1 of their playoff series with the Los Angeles Kings wasn't good enough, what was announced at Rogers Place during the next TV timeout nearly blew the roof off the downtown arena.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
A property tax bill is perplexing a small townhouse community in Fergus, Ont.
When identical twin sisters Kim and Michelle Krezonoski were invited to compete against some of the world’s most elite female runners at last week’s Boston Marathon, they were in disbelief.
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
A local Oilers fan is hoping to see his team cut through the postseason, so he can cut his hair.
A family from Laval, Que. is looking for answers... and their father's body. He died on vacation in Cuba and authorities sent someone else's body back to Canada.
A former educational assistant is calling attention to the rising violence in Alberta's classrooms.
The federal government says its plan to increase taxes on capital gains is aimed at wealthy Canadians to achieve “tax fairness.”