Canada’s national stats agency is pouring a bucket of ice water on the country’s speculative markets. The Canadian Housing Statistics Program (CHSP) crunched housing supply numbers from 2019 to 2021. The Statistics Canada (Stat Can) program found that both Toronto and Vancouver Census Metropolitan Areas (CMAs) saw its housing supply grow much faster than its […]
Higher rates weren’t enough to kill Canada’s economy—they only made it angry. The Bank of Canada (BoC) surprised the market with a rate hike last week, and BMO doesn’t think it was the last one. Canada’s economy is running so hot, the market now expects at least two more rate hikes. It’ll almost certainly lead […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Bank of Canada Warns The Era of Low Rates Is Over The Bank of Canada doesn’t see low interest rates returning anytime soon. Over the past 3 decades, the central bank argues that various factors have applied pressure to lower rates. As […]
Canadians can barely remember the last time rates were this high, but get used to it. Bank of Canada (BoC) deputy governor Paul Beaudry, speaking a day after the rate hike, warned the era of low interest rates is over. They justified the forecast with a slate of reasons that didn’t quite make sense, and […]
Canadian mortgage rates are once again rising, after a temporary decline that boosted home prices. Canada’s 5-year fixed term mortgage rate pulled back during the US banking crisis, helping to boost home prices. Surging government bond yields have rolled back the discount over just a few days. While the fixed term mortgage remains one of […]
Canada’s economy continues to outperform, despite rising interest rates. In response, the Bank of Canada (BoC) hiked its overnight rate by 0.25 points to 4.75%—the highest rate in over 10 years. To further throttle excess demand, the central bank is also reducing credit liquidity, as it attempts to prevent already elevated inflation from returning to […]
Canadian real estate sales are generally down from historic levels, but households are just waiting for cheap credit. That was just one key insight from BMO’s latest Real Financial Progress Index (RFPI). The survey-based index seeks to capture household economic health, and their perspective on the economy. Not surprising, a good share of the takeaways […]
One of the country’s largest banks sees Canadian real estate getting out of control, and it can hit the whole economy. Scotiabank warns the Bank of Canada (BoC) needs to hike rates soon, or real estate and inflation will get out of control again. Failing to do so won’t just drive home prices higher, but […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Mortgage Default Risk Is The Highest In The OECD: IMF Canada has the highest mortgage default risk of any advanced economy. Mortgage debt surged across the world, as low rates stimulated housing markets in virtually every country. Now that rates are […]
The days of Canada having a reputation of conservative bank practices are coming to an end. In a new research note from the IMF, the global financial agency ranked mortgage default risks for households. Canada’s combination of high household debt, frothy home prices, and floating rate loans makes it the riskiest advanced economy in the […]
