Canada’s bank regulator is getting ahead of any rate cuts with new limits on leverage. The Office of the Superintendent of Financial Institutions (OSFI) has notified lenders to prepare for a new loan to income (LTI) rule. The new rule will limit federally regulated financial institutions (FRFIs) mortgage portfolios to a multiple of the income […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canada Is Spending 75% of Its Forecast Deficit To Prop Up Mortgages The Government of Canada (GoC) plans to spend a whopping $30 billion to support its mortgage market this year. March marked the second month of its buying spree, spending roughly […]
Canada’s explosive population growth went from a boasting point to liability in less than 3 years. The Government of Canada (GoC) announced on Thursday they will be implementing a limit for temporary residents in the coming years. This comes as the economic boom driven by immigration fades, leaving behind an oversupply of labor and undersupply […]
Canadian households are cooling on their borrowing but the type of debt may be an important sign. Statistics Canada (Stat Can) data shows household credit climbed at one of the slowest rates in decades in January. The slowdown was primarily caused by slower mortgage debt growth, with credit card debt rising 3x faster. Canadian Household […]
Canadians are generally satisfied with life— as long as they’re older. Statistics Canada (Stat Can) released its Life Satisfaction 2023 survey results. The country fell just short of breaking the OECD’s top ten, with the average person not quite satisfied. The biggest takeaway is the divergence by age—most seniors are satisfied with the country, while […]
Canada’s population is surging but it isn’t producing much demand for goods and services. Statistics Canada (Stat Can) data shows the Consumer Price Index (CPI) slowed in February. Weaker demand from households is allowing supplies to rise and taming price growth. The rapid deceleration has led to an unusually large gap compared to the US. […]
Canadian real estate sales are getting weaker and inventory is rising, but don’t let that get in the way of a solid narrative. Canadian Real Estate Association (CREA) data shows existing home sales fell in February. The same day also shows new listings climbing, essentially producing fundamentals that indicate a weaker market. That didn’t have […]
If you’ve ever thought that using a payday loan to pay off a credit card was a good idea, you’re about to be all kinds of impressed. The Government of Canada (GoC) has begun buying billions in Canada Mortgage Bonds (CMBs), in a last ditch effort to stimulate more borrowing. The planned purchases are equivalent […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Wealth Driven By Housing, Outpaced Income Up To 13x: RBC Canadian wealth is driven by housing and it’s creating a wealth gap that may be permanent. An analysis from RBC shows nearly half of household wealth has been driven by housing—almost […]
Canadians have seen their wealth surge through a simple act—just paying their mortgages. The problem, according to the country’s largest bank, is that one person’s inflated housing wealth is another person’s hurdle to shelter. RBC warns the issue is now so bad, the vast majority of people will never be able to afford to buy […]
