Many Canadian mortgage borrowers are regretting walking into a low rate trap. Bank of Canada (BoC) data reveals a surge of borrowers over the past few years opting for variable rates. At the time, mortgage borrowers might have saved a few points over their fixed-rate peers. Now interest costs are making one of the most […]
The Canadian real estate bubble is bursting rapidly as rates rise, and peak buyers are in for a rough time. Canadian Real Estate Association (CREA) data shows the national market peaked in March 2022. We ran the numbers to see how much equity buyers from that month would have at this point. Most peak buyers […]
Canada’s got ninety-nine problems and mortgage debt is…. Over two trillion of them. Bank of Canada (BoC) senior deputy governor Carolyn Rogers addressed concerns about financial stability earlier today. She boiled it down to two major concerns that have been present for a long time, but are building up — household debt and housing. She […]
Canadian mortgage credit had an unusually slow month, as the hangover from higher rates starts to settle in. Bank of Canada (BoC) data shows consumer mortgages debt continued to decelerate in September. Higher rates and weak home sales combined for the slowest September in two decades. Canadians Owe Over $2.1 Trillion In Mortgage Debt Canadian […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Mortgage Lenders See Larger Loan Losses, Average Value Soars 68% Canadian mortgage lenders are reporting significantly higher average loan losses. The average loss reached $96,000 in Q3 2022, up a whopping 68.4% (US$39,000). This indicates liquidity is falling for sellers, which […]
Canadian real estate found its footing last month, according to the industry. However, Canadian Real Estate Association (CREA) data tells a completely different story in the October numbers. Yes, seasonally adjusted home sales were higher than the month before, but it was still the worst October since the Global Financial Crisis. Home prices also saw […]
Every asset bubble has common issues, and leads to a scramble to identify which bubble we’re in. After all, if you identify which bubble this is like, you might be able to identify the outcome. BMO Capital Markets shared the similarities of this cycle with five major booms-and-busts. Here’s what’s similar, and what isn’t. Post-War […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Was The Bank of Canada Reckless For Saying Rates Will Be Low Until 2023? Was it reckless for the Bank of Canada (BoC) to tell households that interest rates will be low until 2023? Yes. Central banks are supposed to be responsive […]
Canada’s variable rate mortgage borrowers—brace yourself. BMO Capital Markets has made another upward revision to its interest rate forecast this week. The bank was forced to make a revision as sticky inflation and rising wages require much higher interest rates to cool activity. Canada’s overnight policy rate is now forecast to hit the highest level […]
Canadian households are facing a trifecta of problems—rising rates, soaring inflation, and lots of debt. Office of the Superintendent of Bankruptcy Canada (OSB) data predictably shows rising insolvencies for September. However, even with a sharp climb, insolvency filings have yet to reach 2019 levels. Households are increasingly feeling the pressure of debt, but we’re still […]
