One of Canada’s most important measures is showing choppy waters are ahead. Bank of Canada (BoC) numbers show the M1+, a measure of the money supply, continued to slow in October. The rate of growth is a leading indicator of economic growth, and is forecasting lean times ahead. The M1+ The M1+ is a narrow […]
Canadian real estate buyers aren’t the only ones being tight with the loans. Bank of Canada (BoC) numbers show household debt growth has fallen to the lowest level in more than 30 years. The decline in growth is so low, it’s something Canada hasn’t seen outside of a recession. Canadians Owe Over $2.15 Trillion In […]
Canadians are exercising more caution before stepping into the real estate market. Bank of Canada (BoC) numbers show mortgage credit growth continued to drop in October. The pace of growth has only been this low for two months in the past 30 years, but is still on track to head even lower. Canadians Owe Over […]
Canadian real estate prices are in for some more bad news, if you think credit and prices are related. Bank of Canada (BoC) numbers show the M2++ was still falling quickly in September. The quick declines follow a long period of growth, indicating the end of the business cycle. The end of the business cycle […]
Relax, everything’s fine. Or maybe it’s not. The Bank of Canada (BoC) quietly made plans to buy government backed mortgage bonds, last week. The move is designed to increase the bank’s assets, and arguably assist the housing market. That sounds great, until you realize how these things work. It’s a similar set-up to the one […]
Canadians still have access to cheap credit, but it’s disappearing fast. Bank of Canada (BoC) numbers show the cost of borrowing is rapidly increasing as of last week. Over the past two years, a typical household loan has seen servicing costs rise by nearly a third. Effective Borrowing Rates The effective borrowing rate is the […]
Canadian mortgage credit growth is falling, but how bad is it in real terms? People are comparing today’s low growth numbers to the mid-1990s. While there are some parallels, it more accurately resembles the early 1980s. Mortgage credit growth, when adjusted for inflation, is heading towards negative numbers. We haven’t actually experienced negative real growth […]
Try not to pull something laughing. Canadian real estate became slightly more affordable this year. The Bank of Canada (BoC) published their update to the Housing Affordability Index (HAI) for Q2 2018. The update shows the cost of ownership declined slightly from last year. Despite the good news, the cost of ownership is still at […]
Canada is being confronted with higher interest rates, and it’s really turning into a drag on growth. Bank of Canada (BoC) numbers show the M1+, a broad measure of money, is seeing significantly lower growth this year. The slowing growth is a sign of economic slowdown, often resulting in slowing sales of assets that require […]
Canadians are facing the most expensive credit in almost a decade. Bank of Canada (BoC) numbers show households are seeing the effective borrowing rate creep higher. The rate, which impacts how much consumers can borrow, is now at the highest levels since the Great Recession. Effective Borrowing Rate The effective borrowing rate is one way […]
