Canadian real estate affordability data paints a dreary future for young adults. BMO’s latest look at affordability reveals it hasn’t been this hard to buy a home since the late-80s bubble. The brief period of rising interest rates didn’t help, but there’s a bigger issue. Interest rates are the highest since 2001, but since then […]
One of Canada’s Big 3 mortgage insurers is no longer publicly sharing its underwater exposure. Canada Guaranty quietly dropped the value of mortgages with negative equity in its latest data, as first reported by the Globe. Is the private insurer, backstopped by taxpayers, hiding a public concern? Let’s take a quick dive into the issue, […]
To the surprise of many, Canadians have balanced high debt loads and credit quality for over a decade. That era might be over. Transunion Canada data reveals an explosion of subprime borrowers in Q2 2023. Higher living costs and rising rates have combined to produce higher risk borrowers. At the same time, lenders are embracing […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian GDP To Show Slowing Growth, Or The BoC May Hike Rates: RBC Canada’s largest bank is warning investors that the country’s economic output is slowing. RBC expects next week’s official Q2 2023 GDP growth data to show a sharp deceleration in […]
Canada’s biggest bank is warning investors of an economic slowdown brewing. Gross domestic product (GDP) data for Q2 won’t be released until next week, but RBC expects it to show the economy was hit with a sharp slowdown. Coupled with a mild acceleration to inflation, everyone has one question—is a slowing economy enough to prevent […]
Canada’s Millennials are doing worse than previous generations by virtually every metric. RBC Economics shared a report focusing on debt, labor, and economic risks. They found that Millennial incomes are failing to keep up in the current environment, leading to less disposable income. Boomers are doing much better, so it may sound like it all […]
Canadian mortgage borrowers won’t take on the risk of a variable rate mortgage, but they’re dreaming of rate cuts. Bank of Canada (BoC) data reveals a record share of mortgage originations had fixed interest terms in June. However, they aren’t opting for a longer, and traditionally more popular, 5-year fixed term. National Bank of Canada […]
Canada’s central bank will be watching home prices carefully when setting interest rates. In a note to investors, BMO Capital Markets explained that falling new home prices reduced the consumer price index (CPI) readings. However, they’re starting to bottom and are likely to become an influence on higher inflation. The Bank of Canada (BoC) is […]
Canadian mortgage credit fell to a level that might make policymakers uncomfortable. Bank of Canada (BoC) data reveals that outstanding mortgage credit climbed in June. However, it wasn’t enough to reverse the trend of decelerating growth. The last time the rate fell this low, mortgage liquidity injections were already in the works to stimulate borrowing. […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate The Global Era of Cheap Credit May Be Over, Home Prices To Adjust: BMO One of Canada’s largest banks sees the global era of cheap credit coming to an end. Post-Global Financial Crisis (GFC) the world was flooded with liquidity— pressuring real […]
