Canada’s banks are bracing themselves for the fallout from the real estate bubble. Last week, the CMHC warned that the share of mortgages in arrears will climb further—especially in Ontario. The banks seem to agree, as the data shows they’ve been preparing for a sharp increase in mortgage losses. The median allowance for mortgage losses […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian GDP Stalls, Propped Up By Retail And Credit Cards Canadian economic output is starting to struggle. Real GDP was flat for a second straight month in August, with only 9 out of 20 industrial sectors showing growth. Stalling appears to be […]
Canada’s national housing agency is bearish on real estate over the near term. The CMHC’s latest forecast shows Canadian Bankers Association (CBA) mortgage arrears climbing into 2027. The trend is driven almost entirely by a surge in Ontario. That suggests they might be underestimating the fallout, since home prices in other provinces are only just […]
Canada’s central bank raised its key policy rate as it tries to tame rising inflation. The Bank of Canada (BoC) hiked its overnight rate 25 basis points to 2.5% this morning, its first hike in over 3 years. In the accompanying report, the BoC warns of elevated inflation into mid-2028. Higher input and financing costs […]
Canada’s real estate industry often argues the central bank should ignore shelter inflation and keep rates low to boost supply. A new Bank of Canada (BoC) staff paper tests both claims, and neither holds up as a blanket rule. The researchers find that ignoring shelter inflation during a demand-driven boom is destabilizing to the economy […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Real Estate Prices To Fall Even Further: Oxford Economics The Canadian housing crash is already the largest on record, and it may not be over. Oxford Economics is forecasting prices and sales falling further through early 2027. Higher rates, elevated energy […]
Oxford Economics expects Canadian home prices to fall further as rising mortgage rates, weak hiring, and stretched valuations weigh on demand.
Canadian borrowing is losing steam just as interest rate hikes come back into focus. Bank of Canada (BoC) data shows mortgage credit posted its smallest August increase since 2013, pushing annual growth to a pace rarely seen outside housing corrections. With nearly a third of new mortgages carrying variable rates, renewed tightening could further throttle […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Home Prices Back To 2016 Levels After Inflation, Still Out of Reach Canadian home prices rose—just not in real (inflation-adjusted) terms. BIS data shows home prices in Canada rose 0.78% in Q2 2026, the first increase in a year—though they remain […]
Rental prices in Canada have been driven by more than just population growth. A new Bank of Canada (BoC) research paper breaks down the factors that can explain the recent surge in 1 bedroom rents from 2020 to 2026. They found that financing costs made a big contribution to higher rents, especially when rates began […]
