Canada’s mortgage lenders have seen the arrears rate fall down to pre-pandemic levels. The composition of that rate is now totally different though. Statistics Canada (Stat Can) data shows us the number of mortgages in arrears over 90 days at non-bank lenders for Q3 2020. The rate of arrears is now back to where it […]
Canada’s largest bank sees a lot of risk in real estate, just not where other people may see it. RBC Senior Economist Robert Hogue published a list of risks that may impact real estate markets near-term. The bank feels government aid kept prices moving higher, but the market is “far from risk free.” Here’s some […]
Most didn’t think it was possible, but this morning’s numbers show Canada is now more dependent on real estate. Statistics Canada (Stat Can) GDP data shows residential investment made a big climb in Q4 2020. The segment of investment has grown much faster than total GDP over the past few years. Canada is now almost […]
Canada’s government bond market is seeing yields surge, and it’s going to be felt in real estate. The Government of Canada‘s (GoC) 5-Year benchmark bond yield jumped yesterday. We know, we already covered rising yields just a few days ago. I promise this is kind of a big deal, and I’m not just harping on […]
Risk models from Canada’s largest bank shows a wider range of uncertainty for real estate. RBC’s latest models, shared with analysts this week, shows a general forecasted improvement. The downside hasn’t changed much, indicating a little more uncertainty. They also shared they are considering two new and “more severe” scenarios for energy and real estate. […]
Canada’s central bank isn’t really that worried about real estate, it appears. Bank of Canada (BoC) governor Tiff Macklem held a Q&A after a speech for the Edmonton and Calgary Chambers of Commerce yesterday. During the Q&A, the governor dismissed concerns about an overheated housing market. In fact, he welcomed its contribution to the economy […]
Canada’s population growth may have slowed, but new home completions are still moving at a breakneck speed. Canada Mortgage and Housing Corporation (CMHC) data shows developers delivered over 50,000 new homes in Q4 2020. The number of new homes began outpacing population growth in the prior quarter. The ratio went parabolic in the latest numbers […]
Canadian home buyers may be looking at higher mortgage rates sooner than expected. At least if they want to lock in their mortgage interest rate. The 5-year Government of Canada (GoC) benchmark bond yields in February, are almost double last year’s lows. Since 5-year fixed mortgages are influenced by these rates, they are likely to […]
Canadians are scrambling to buy a home and catch that huge wage of profits… but is it really that profitable? It depends what you’re comparing it to. When central banks flood the market with cheap money, almost everything soars. It’s not just real estate that is profitable. Real estate is just the only investment many […]
Despite Canada’s hot real estate market, lenders expect a record amount in losses. Statistics Canada (Stat Can) data shows expected credit losses (ECL) jumped in Q3 2020. ECLs are now at a record high according to the agency, but are a relatively small percent of total mortgage debt. It’s a little confusing, but expected losses […]
