Canadians made an unexpected move to deleverage a little of their HELOC debt. Bank of Canada (BoC) data shows HELOC debt fell in December. The decline was unusually strong for the month, at a rate not seen in decades. The drop wasn’t enough to bring the trend negative, however growth is negative in real terms. […]
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 […]
Everyone thinks their real estate market is hot, but they don’t realize they almost all are. Canadian Real Estate Association (CREA) data shows large home price gains in January. Not just for the year, but for the actual month. The increases were actually so big, almost two dozen markets saw prices climb 5-digits. The Price […]
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 […]
One of Canada’s largest banks brought attention to a warning sign in many real estate markets. BMO published a research note titled “Your House Makes More Than You Do,” by senior economist Sal Guatieri. The note focuses on how sustainable and long-term current housing trends are. I’m obviously kidding. It brings attention to the fact […]
Canadian real estate sales printed yet another record during the pandemic. Canadian Real Estate Association (CREA) data shows home sales in January 2021 hit a record. The new high for January sales came with a little slow down for growth. However, things have been so heated, even a double digit drop in growth is one […]
Toronto’s vacancy tax may have a big impact on real estate investors, according to a local board survey. The Toronto Regional Real Estate Board (TRREB) released the results of their survey, conducted by IPSOS in the fall. More than half of investors said they’ll either sell or rent their unit if a vacancy tax is […]
Canadian households saw net-worth make big gains over the past few decades. Using Statistics Canada (Stat Can) data from the recently released Survey of Financial Security (SFS), we can see how net-worth evolved for each age group from 1999 to 2019. Generally speaking, net-worth soared for most demographics. However, there are some notable exceptions, like […]
Thousands of Toronto’s short-term rental investors may call it quits. An Ipsos Survey, commissioned by the Toronto Regional Real Estate Board (TRREB), shows how investors plan to navigate the city’s new short-term rental rules. Only a third feel their investment won’t be impacted by the new rules. The remainder either plan on selling, or finding […]
