Relax, everything’s fine. Or maybe it’s not. The Bank of Canada (BoC) quietly made plans to buy government backed mortgage bonds, last week. The move is designed to increase the bank’s assets, and arguably assist the housing market. That sounds great, until you realize how these things work. It’s a similar set-up to the one […]
Canadian seniors short on cash, but rich in property are drawing on home equity at an alarming rate. Bank filings with the Office of the Superintendent of Financial Institutions (OSFI) show September saw mid-double digit growth in reverse mortgage debt. The type of debt, which services seniors, is set to see continued growth well into […]
Canadians still have access to cheap credit, but it’s disappearing fast. Bank of Canada (BoC) numbers show the cost of borrowing is rapidly increasing as of last week. Over the past two years, a typical household loan has seen servicing costs rise by nearly a third. Effective Borrowing Rates The effective borrowing rate is the […]
Canadian’s withdrawing home equity can’t stop, won’t stop. Office of the Superintendent of Financial Institutions (OSFI) filings show the balance of loans secured by residential real estate hit a new record high in September. Despite fast rising interest rates, borrowing for HELOCs haven’t slowed down one bit. Loans Secured By Real Estate Loans secured by […]
Canadian real estate prices just printed an unusual month. The Teranet – National Bank of Canada House Price Index (Teranet HPI) show all but one market experienced a decline in October. The monthly decline has only occurred a handful of times in the index history. Teranet HPI Regular readers can probably skip this part. The […]
Canadian real estate developers facing soft domestic demand are looking to China. Juwai.com, the largest overseas property portal in Mainland China, conducted a developer survey. Over a third of Canadian developers are looking to spend more to attract Mainland Chinese capital. Who Did They Survey? Juwai surveyed “dozens” of North American real estate developers, on […]
Try not to pull something laughing. Canadian real estate became slightly more affordable this year. The Bank of Canada (BoC) published their update to the Housing Affordability Index (HAI) for Q2 2018. The update shows the cost of ownership declined slightly from last year. Despite the good news, the cost of ownership is still at […]
Canada is being confronted with higher interest rates, and it’s really turning into a drag on growth. Bank of Canada (BoC) numbers show the M1+, a broad measure of money, is seeing significantly lower growth this year. The slowing growth is a sign of economic slowdown, often resulting in slowing sales of assets that require […]
Canadians are facing the most expensive credit in almost a decade. Bank of Canada (BoC) numbers show households are seeing the effective borrowing rate creep higher. The rate, which impacts how much consumers can borrow, is now at the highest levels since the Great Recession. Effective Borrowing Rate The effective borrowing rate is one way […]
Canadian real estate prices are more tame, but a correction may still be in the cards. The Federal Reserve Bank of Dallas (Dallas Fed), a branch of the US Federal Reserve, released exuberance indicators for Q2 2018. Exuberance is lower than it was last year, but we’re still nowhere near a healthy market. Exuberance Indicators […]
