The decision of the Tory government to change the tax laws in Canada could have a far reaching affect on the markets in the days and weeks to come, but no more so than on the Canadian dollar. The Canadian dollar has fallen below 88 cents and it looks like much further weakness ahead.
The stock markets are taking a beating and that means the dollars are heading to the bond market which lowers rates for longer term mortgage money. The silver lining in this is that non residents will gain back some of their purchasing power due to favourable exchange rates. In addition, it looks like mortgage rates may drop sooner that expected which is always good news in our business.