Canadian mortgage credit has seen a drag from higher interest rates but old habits are hard to break. April hit a new high for residential mortgage debt, according to Bank of Canada (BoC) data. Higher interest rates, only two months in, helped to slow the rate of growth but it’s still very high. Canadian mortgage […]
We asked Toronto real estate broker Daniel Foch & mortgage agent Nick Hill to record a chat about our latest piece on mortgage originations which began falling *before* interest rates climbed. Article discussed: Canadian Mortgage Originations Fell Before Rate Hikes, Ontario Took The Biggest Hit
Canadian real estate prices are doing the unthinkable — they’ve stopped going up. After making a sudden drop last month, everyone is now wondering how much prices can fall. We’re hooking it up by assembling the downside scenario forecasts from the Big Six banks. Here’s the worst Canada’s biggest lenders see happening to home prices. […]
Greater Toronto real estate sellers are learning a lot can change in just one month. Toronto Regional Real Estate Board (TRREB) data shows the median sale price dropped in May. The majority of cities across the board are now seeing price declines as rates normalize. The Median Sale Price of Greater Toronto Real Estate Fell […]
Canadian real estate has had an easy climb over the past 30+ years, but that might be coming to an end. That was the take from BMO Capital Markets in a new research note. Recent mortgage borrowers will have to renew at much higher rates in the future. The estimated renewal increase will be the […]
Low rates and the promise of riches from ever rising home prices sent Canadians on an epic debt binge. Statistics Canada (Stat Can) data shows the household debt to disposable income ratio tied the record in Q1 2022. A tie might sound like we’ve seen this before, but interest rates make this situation stand out. […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Real Estate’s Worst Case Is A 30% Price Drop, Still Down By 2027: RBC Canada’s largest bank is preparing for a big drop in home prices in a downturn. RBC’s worst case scenario for Canadian real estate is a 30% price […]
Canada borrowed debt so households didn’t have to, but they went ahead and borrowed anyway. Bank of Canada (BoC) data shows the share of highly indebted mortgage borrowers pushed to a new high in Q1 2022. These borrowers, with at least a 450% debt-to-income (DTI) ratio, now represent 1 in 4 mortgages. It sounds bad, […]
First-time home buyers are out and investors are in. That’s the takeaway from Bank of Canada (BoC) data showing the share of real estate investors in the market. Before 2020, investor demand for real estate was beginning to slow down. When rates were cut in 2020, it sparked a new wave of investor demand that […]
Canadian real estate went from the narrative prices will always rise, to “look out below” in a matter of weeks. It’s not surprising to see a fickle public change their mind that fast, but it’s odd to see the Bank of Canada (BoC) do it. In the House Price Exuberance Indicator (HPEI) for Q1 2022, […]
