Canadian bond yields are soaring, but the central bank isn’t expected to raise rates. At least not yet, according to an analysis from BMO Capital Markets. Government of Canada (GoC) bond yields showed a multi-year high for annual growth in 2021. This means rising market expectations of the overnight rate climbing in the near-term. Despite […]
Canadians are buying into the narrative that higher mortgage rates will wreck half of households. A survey making the rounds saying exactly that doesn’t help, but the narrative existed before the survey. Fortunately, this isn’t true. How can we be sure? Well, let’s start with less than a third of households have a mortgage. Less […]
Over the past year, we’ve heard that younger households were behind the real estate binge. In addition to transfer data showing that’s not true, Equifax mortgage data for Q3 2021 agrees. Most demographics showed little change in their borrowing patterns, except for the extremes. Millennial-led households maintained their share of mortgages, but a larger share […]
Canadian household debt problems are once again worsening, after taking a brief break. The ratio of household credit market debt to disposable income climbed in Q3 2021, according to Statistics Canada (Stat Can). Households are now borrowing debt at one of the fastest rates in half a decade. Unfortunately, their incomes aren’t rising in line […]
Canadian subprime real estate buyers are scrambling to join the housing gold rush. Earlier this week, we discussed the sharp climb in subprime mortgage borrowers in Q3 2021. Today we’ll break the Equifax data down by city and show the highest concentrations. All but three major cities in Canada saw their share of poor quality […]
Toronto real estate prices are some of the fastest growing of any global hub, but it might seem slow at home. Canadian Real Estate Association (CREA) data shows Toronto is the slowest growing market in Ontario. Small cities are growing up to 3x faster, closing the gap between the county’s economic engine. Toronto Real Estate […]
The Canadian real estate boom has produced a gold rush, and now everyone is trying to sell you a home. It’s a country-wide phenomenon, as people see a low barrier of entry and large commissions. However, nowhere has taken to the trend like Toronto, which now has more Realtors than teachers. A lot more. Not […]
Canadian real estate’s economic contribution was slowing, but it’s back with a vengeance. Gross domestic product (GDP) made a big jump in October, with real estate doing a lot of the heavy lifting. A component, real estate and rental and leasing (RERL) provided over a tenth of the monthly GDP increase. RERL showed the biggest […]
Canadian homeowners often say affordability isn’t that bad, new buyers just need to stretch further. That’s because they’re most likely unaware they’re paying half of what it takes to buy a home now. Equifax data shows an average homeowner pays half as much on a mortgage compared to buyers in Q3 2021. This trend has […]
After taking a break at the start of the pandemic, Canadian real estate has seen subprime borrowers return. Equifax data shows an abrupt uptick in the share of new mortgages going to subprime borrowers in Q3 2021. It’s still a relatively small share, especially in contrast to historic levels. However, this is the first time […]
