The head of Canada’s national housing agency rang off yet another warning to homebuyers. Evan Siddall, the head of the Canada Mortgage and Housing Corporation (CMHC), warned people to question the motives of anyone that says home prices will rise in the near-term. He does so before rattling off a list of economic pressures against […]
Canada’s Big Six banks are preparing for a lot more bad loans. Canadian banks reported Q2 earnings this week. A common theme in all reports was a sharp increase in provisions for credit losses (PCLs). These have been rising over the past year, as delinquencies begin normalizing from lows. This trend has accelerated quickly however, […]
Canada’s national housing gave the Canadian real estate industry a further peek at what they expect for prices. The Canada Mortgage and Housing Corporation (CMHC) explained last week that price declines are expected across the country. Now they’ve provided a breakdown of the forecast, and how it impacts individual provinces. Prices are expected to start […]
One of the “Big Three” credit agencies warned they expect a big jump for insolvencies. TransUnion gave the industry a look at recent macroeconomic and consumer credit activity this week. During the presentation, the firm’s analysts highlighted various deteriorating macro events. They warned lenders to expect a rising wave of defaults, as a “severe” risk […]
Canadian homeowners on insured mortgage deferrals are starting to feel the heat. The Canada Mortgage and Housing Corporation (CMHC) updated the federal government on the state of housing last week. During this update, they warned first-time homebuyers to be extra careful purchasing. To highlight this, they ran through a scenario on how a small downturn […]
Canadian households are facing a problem they didn’t think was possible a few weeks ago – falling consumer prices. Statistics Canada (Stat Can) data shows the consumer price index (CPI) fell in April. The deflationary move is the first seen in Canada, in over a decade. A month isn’t a trend, but if it continues, […]
Canada’s national housing agency wants to remind people there’s a limit to what they can do. Evan Siddall, CEO of the Canada Mortgage and Housing Corporation (CMHC) updated Canada’s standing committee on finance. In the update, he explained how the CMHC is using tens of billions in capital to support real estate markets. Even so, […]
Just how much did Canada lean on household debt to grow the economy over the past few decades? A lot. Bank of Canada (BoC) crunched the numbers, and they show household debt accelerated faster than any other segment of debt. The distribution of debt makes Canadian households one of the most vulnerable of the advanced […]
Canada’s mortgage apocalypse isn’t going to be fun, but it could have been a lot worse. The Bank of Canada (BoC) released its model on mortgages in arrears this week. Through a combination of monetary policy and bank generosity, mortgages in arrears are still expected to rise to record highs. However, without the policies implemented, […]
How does an irrational market respond to deteriorating fundamentals? We sifted through dozens of pages of Canadian real estate price forecasts to find out. All forecasts recognized this is the largest employment shock the country has ever seen. However, the impact on real estate prices ranged from “it’s bullish”, to “how do prices rise when […]
