Canada’s non-bank lenders saw an unusual situation – mortgage growth, and rising arrears. Statistics Canada (Stat Can) data shows non-bank lenders had a big quarter extending mortgages in Q2 2020. The large growth in mortgage extension was accompanied by a sharp uptick in arrears. Highly unusual since those trends tend to require conditions opposite of […]
Canadian real estate prices just got another negative forecast from a Big Three credit rating agency. Fitch Ratings released its Global Housing Outlook this month, which contained a forecast for Canadian home prices. The firm generally sees home prices falling next year, as well as the delinquency rate nearly doubling. Canadian Real Estate Prices Forecasted […]
Canadians didn’t see their debt problems improve nearly as much as previously thought. Statistics Canada (Stat Can) data shows household debt to income made a big quarterly jump in Q3. The rise was accompanied by a substantial upward revision of the previous quarter. The ratio has now already retraced half of the drop it made […]
Time for your cheat sheet on this week’s more important stories. Canadian Real Estate RBC’s “Worst Case” For Canadian Real Estate Is A Price Drop Of Nearly 30% Canada’s largest bank’s risk scenarios show a larger downside than upside for real estate. RBC’s best cast scenario shows Canadian real estate prices rising 6.1% over the […]
Canadians are once again comfortable borrowing their home equity – at least a little of it. Office of the Superintendent of Financial Institutions (OSFI) filings show the balance of loans secured by home equity approached the previous all-time high in September. Growth is still slow, but it’s no longer negative. Canadians Owe $307.11 Billion Secured […]
Canada’s largest bank is prepared for price drops most would find unthinkable. Royal Bank of Canada (RBC) filings show possible risk scenario forecasts. Over the next year, the base forecast shows virtually flat growth. In a best case scenario, growth would hit levels similar to previous years. In a worst case, they forecast prices can […]
Canadian millennials are doing much worse than the previous generation. New Statistics Canada (Stat Can) data shows millennials make much more than Gen X did at their age. Despite significantly higher wages, they pay much more than the last generation did for basic necessities. That’s further complicated by the fact they also pay more in […]
Not every Canadian that took a credit payment deferral needed one. Don’t let that fool you into thinking no one needed a payment deferral though. Royal Bank of Canada (RBC) data shows the number of expired payment deferrals the bank is carrying. The vast majority of people have resumed payments without problem. However, delinquencies are […]
Canadians are over pandemic spending fears. At least when it comes to getting mortgage debt. Bank of Canada (BoC) data shows the balance of outstanding mortgage credit reached a record high in September. Despite the pandemic, mortgage debt is now growing at the fastest rate since 2018. Canadians Owe Over $1.7 Trillion In Mortgage Debt […]
Canadian banks are seeing a higher rate of arrears on mortgages, despite support. Recently released Canadian Banks Association (CBA) data shows the mortgage arrears rate jumped in May. The rise in arrears implies non-payment issues were brewing before the pandemic. It also means the bank’s special treatment of mortgages hasn’t totally eliminated risk. About Canada’s […]
