Canadian real estate is in the largest bubble the county has ever experienced. RBC warns that housing affordability has eroded right across the country in November. In a research note to investors, the bank explains it’s now even harder to buy a home than during the 1980s bubble. A correction is now required to stabilize […]
Canada’s overstimulated economy is experiencing withdrawal from the end of low rates. Oxford Economics‘ warned investors the country is already in recession. It’s expected to spend most of 2023 in recession, and will be hit harder than its G7 peers. Highly indebted households and overpriced real estate shouldn’t expect much relief either. Elevated inflation will […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Real Estate Building Boom Hits Historic High, To “Be Tested”: BMO Canada’s real estate slowdown has developers pumping the breaks on new projects. Don’t worry, says BMO—there’s a record number of homes currently under construction. The seasonally adjusted annual rate (SAAR) […]
Canadian real estate just saw one of the biggest shopping sprees on record, and the bill isn’t pretty. Statistics Canada (Stat Can) data shows household mortgage debt service ratio (DSR) hit a record high in Q3 2022. Interest rates contributed to the recent spike, but the size of debt is the primary issue. Mortgage Debt […]
Canada’s highly indebted households are in a pickle after an epic debt binge. Statistics Canada (Stat Can) data shows the household debt to income ratio (DTI) climbed sharply in Q3 2022. Canada already had some of the most highly indebted households in the world. As the ratio climbs even further, they become more vulnerable to […]
Canadians believe interest rates will fall soon, and it’s now obvious in real estate. That’s the take from BMO Capital Markets, who sees this having unintended consequences. In a weekend research piece, they explain more investors are holding out for rate cuts. This will lead to maintaining lofty growth expectations and sticky inflation, making cuts […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canada’s Bank Regulator Just Told Banks To Put Away More Cash For A Risk Event Canada’s banking watchdog is asking the country’s Big Six to put away a little more cash for a rainy day. This week OSFI increased the domestic stability […]
Canada’s bank regulator is quietly asking the country’s largest banks to put aside a lot more rainy day cash. OSFI, Canada’s bank regulator, increased the domestic stability buffer (DSB) on Thursday. The move would see its Big Six financial institutions set aside significantly more capital for a risk-related event. The move will lower the need […]
Canada’s mortgage stress tests seemed excessive last year, but they were insufficient. The recent Bank of Canada (BoC) rate hike pushed a number of variable rate borrowers above their stress test rate. BMO warns these borrowers haven’t been risk-tested for the current environment. Canadian Mortgage Borrowers Haven’t Been Stress Tested For Rates This High The […]
Canadian real estate showed some encouraging signs last month, but don’t be fooled. RBC Economics wrote to clients breaking down major markets that have reported November sales. Canada’s largest bank warned that the market is still firmly in correction mode, with just a few exceptions. Despite minor signs of firming, they see real estate markets […]
