A few months ago, central banks were worried Canadians wouldn’t borrow debt. Now Canadians are borrowing at one of the fastest rates in history, and have an astronomical pile of it. Bank of Canada (BoC) data shows outstanding mortgage credit reached a record high in July. There are some signs mortgage credit is slowing, but […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Households Spend More Income On Debt Than Any Other G7 Country: BIS Canadians devote much more income to debt payments than their G7 peers. Households in the country had an average debt service ratio (DSR) of 12.4% of income in Q4 […]
Canadian housing supply plays a role in home price growth, but doesn’t explain all of it. The Bank of Canada (BoC) published a paper on Canadian Housing Supply Elasticities. In it the researchers explain supply plays a big role, but not to the extent we’ve seen. Over the short-term, it fails to explain the extreme […]
The Canadian economy still has a long way to go before it’s recovered — possibly further than thought. RBC economist Josh Nye said today’s Bank of Canada (BoC) rate decision was widely expected. The central bank made no changes, reiterating the importance of quantitative ease (QE). Canada’s largest bank sees a risk of QE tapering […]
Home sales might be slowing, but Canadians have begun one of the most epic debt binges ever. Bank of Canada (BoC) data shows outstanding residential mortgage credit reached a new record in June. It didn’t just “soar” to that level though. It showed explosive growth, like someone strapped a rocket to it. Canadians Now Have […]
Canada’s top banker made an unusual move and began explaining his actions in the news. In an opinion piece last week, the Bank of Canada (BoC) governor Tiff Macklem didn’t let his work speak for itself. Instead, he took the unusual step of writing his own defensive opinion piece. Let’s take a quick dive into […]
Canada’s central bank is warning about a rapidly deteriorating mortgage environment. Yesterday we unpacked Bank of Canada (BoC) data on highly indebted borrowers representing a larger share of mortgage originations. Today we’re looking at an issue that builds on that — these borrowers have little equity. Highly indebted households with little equity are the perfect […]
Canada used to be known for its conservative mortgage lending, but that’s no longer the case. The Bank of Canada (BoC) warned mortgage quality has “deteriorated” in 2020. The central bank found highly indebted households, those with a loan-to-income ratio higher than 450%, now represent a record share of new mortgage debt. Highly indebted households […]
Canada’s central bank is closer to ending the program that added rocket fuel to home prices. The Bank of Canada (BoC) announced it will taper its quantitative ease (QE) program. QE has been a major contributor to the flood of cheap cash that’s helped push home prices higher. As the program gets close to an […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate The Canadian Property Bubble Can Start Deflating As Early As This Month The Canadian property bubble is starting to show signs of deflating last month. The 3-month annualized rate of growth for prices is falling in Toronto and Vancouver. Since this […]
