The days of Canada having a reputation of conservative bank practices are coming to an end. In a new research note from the IMF, the global financial agency ranked mortgage default risks for households. Canada’s combination of high household debt, frothy home prices, and floating rate loans makes it the riskiest advanced economy in the […]
Canada is selling itself as a global hub for immigration, and people want in—temporarily at least. Temporary resident applications surged higher in Q1 2023, according to the latest data from the IRCC, Canada’s immigration department. Despite fewer permanent resident applications, temporary resident applications have surged so quickly the agency has turned to artificial intelligence to […]
Canada is known for three things these days—maple syrup, hockey, and money laundering. Earlier this month, poor attention to the last one may have derailed TD’s $13.5 billion acquisition of US bank First Horizon. Now Robbins LLP, a firm specializing in shareholder rights, has made it the center of a new class action suit. The […]
Canada’s falling bond yields provided cheap mortgage credit, helping to boost home prices. Now it’s reversing course, with Government of Canada (GoC) 5 year bond yields rising sharply. The yields directly influence fixed mortgage rates, and over just a few days they’ve nearly reversed the discount given after the US banking crisis. Higher rates will […]
Canadian first time home buyers are 36 years old on average. That means they won’t have that starter condo paid off by the time they retire, according to recent bank reports. Four of the Big Five banks reported a large share of their portfolio had amortizations longer than 30 years in Q2 2023. Most of […]
Canadian real estate might be seeing higher prices, but more buyers can’t pay their bills. Equifax data reveals the mortgage delinquency rate climbed in Q1 2023. Households are also increasingly falling behind on payments, a sign that further mortgage delinquencies are in the pipeline. This is occurring as lenders scramble to extend the length of […]
Canadian mortgage borrowers are fleeing unpredictable variable rates, and getting more leverage. Bank of Canada (BoC) data reveals that nearly three-quarters of mortgages issued in March had rates fixed for 1 to 5 years. It’s a big change from a year ago, when most borrowers were opting for variable rates. Borrowers shifted their preferences after […]
Canada’s Boomers went all in on real estate investment, looking to double down on their windfall. That was the takeaway from a new Canadian Housing Statistics Program (CSHP) study looking at investor demographics in 2020. The Statistics Canada (Stat Can) study found that most resident real estate investors are at least 55 years old. Younger […]
Canadian mortgage debt is finally returning to normal just a year after rates began climbing. Bank of Canada (BoC) data shows households continued to slow down on the mortgage credit borrowing in March 2023. The growth rate has now returned to levels more typical of the 2010s—back when people thought they knew what a frothy […]
Canada’s real estate frenzy fallout is only just beginning, according to its central bank. The Bank of Canada (BoC) published their latest Financial System Review (FSR) today, with mortgage repayment presenting a threat to the economy. They forecast that existing borrowers will see their payments climb significantly by 2025, especially if borrowers don’t extend the […]
