What’s the secret to Canada’s remarkably low delinquencies, despite soaring interest rates? Never paying off those super-sized mortgages, apparently. Filings from Canada’s Big Six banks show a big share of mortgages had remaining amortizations of 30 years or longer in Q1 2023. Most of the Big Six reported at least a quarter of their portfolio […]
Higher interest rates are doing something many thought impossible—it slowed Canadian borrowing. Bank of Canada (BoC) data shows the M2++ growth slowed further in February. The M2++ is a broad measure of the country’s money supply, closely linked with demand. The latest numbers show annual growth hasn’t been this low in at least four decades. […]
Canada’s economy is heading for a slowdown, and real estate might amplify it. That was the takeaway from the Bank of Canada (BoC) Market Participant Survey in Q1 2023. The survey polls financial market experts for their outlook over the next two years. The results reveal they see a recession this year, with weak housing […]
Canadian real estate owners are seeking the security (& discount) of fixed rate mortgages. Bank of Canada (BoC) data shows the share of new mortgage loans with variable interest continued to shrink in February. Just one year ago, the majority of new loans were attached to variable rate mortgages. Now the share is back to […]
One of Canada’s biggest banks isn’t sold on a quick recovery for real estate prices. The Teranet-National Bank of Canada HPI (TNB HPI) just reported home prices made the largest annual drop on record in March. The economist that prepared the report warns home sales are still too weak to call for a recovery in […]
Canada’s pull back in new housing starts has presented supply concerns, but they shouldn’t… yet. A new analysis from BMO Capital Markets reiterates they don’t see a lack of supply, but too much demand. Looking at the number of new housing starts to working age population growth, they show little deviation from historical norms. However, […]
Canadian households are split between those deleveraging and those continuing the borrowing spree. Bank of Canada (BoC) data shows outstanding mortgage credit was virtually flat in February. Not as bad as contracting, which is a rare event in Canada. However, prior to the past two months, mortgage credit hasn’t moved this slow in well-over a […]
Canadian real estate prices are rising again, and everyone is scrambling to explain. Sure, you make a compelling argument that [insert any city in Canada] is the next Manhattan. However, Bank of Canada (BoC) data reveals a more blunt answer—witchcraft. Just kidding, it’s the reintroduction of cheap credit and the leverage that comes with it. […]
Canada’s credit-crazy real estate buyers have flooded the market once again. Canadian Real Estate Association (CREA) data shows a benchmark, or typical, home rose in March 2023. Breaking the data down by market, most saw substantial increases. One market even saw prices rip over $40k higher over a span of just 31 days. Canadian Real […]
Just a few weeks ago, we pondered if Canada’s real estate correction would pause with an influx of cheap credit and government-led stimulus measures. Canadian Real Estate Association (CREA) data released this morning confirmed it, with the benchmark home price rising significantly in March. Asset prices never move in a straight line, so it’s too […]
