Canadian homeowners often say affordability isn’t that bad, new buyers just need to stretch further. That’s because they’re most likely unaware they’re paying half of what it takes to buy a home now. Equifax data shows an average homeowner pays half as much on a mortgage compared to buyers in Q3 2021. This trend has […]
After taking a break at the start of the pandemic, Canadian real estate has seen subprime borrowers return. Equifax data shows an abrupt uptick in the share of new mortgages going to subprime borrowers in Q3 2021. It’s still a relatively small share, especially in contrast to historic levels. However, this is the first time […]
Canada’s central bank warned real estate buyers to prepare for higher interest rates. It appears buyers are calling their bluff, opting for little rate protection on loans. Bank of Canada (BoC) data shows the share of new mortgages with variable rates doubled in October. Interest costs on most new uninsured mortgages will rise with rates, […]
Canadian households have much bigger mortgage payments, even with cheap debt. Or maybe because of cheap debt? The average mortgage payment in Q3 2021 showed a big jump, according to TransUnion data. Instead of lowering payments, low rates have fueled record home sales and refinancing. The increased demand has driven home prices higher leading to […]
Canadian mortgage debt is getting so large that it now rivals the economy’s output. Bank of Canada (BoC) data shows mortgage credit reached a new record high in October. Households have a strong appetite for housing debt, still printing high growth. That might change soon, though. The latest data indicates much less mortgage debt has […]
Canada’s central bank renewed its mandate, but with one fundamental change. The Bank of Canada (BoC) will now consider employment in addition to its goal of maintaining a 2% rate of inflation. The Governor stressed, it’s difficult to figure out when full employment is present. Two of Canada’s “Big Six” banks say full employment has […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate The Bank Of Canada Will Raise Interest Rates Early, Can Hit 11x The Current Rate: BMO Canada’s oldest bank sees interest rates climbing quickly over the next few months. BMO has moved up its forecast by 3 months, and now sees the […]
Canada has seen a surge in real estate buyers looking to get ahead of rising rates. After all, a higher cost of borrowing means higher payments, right? Running TransUnion mortgage payment data against mortgage rates shows the exact opposite. This is due to the basic design of interest rates, which are increasingly ignored due to […]
Canadian households are on an epic mortgage borrowing spree. Data from TransUnion shows explosive growth for new mortgage originations in Q2 2021. Sparked by low rates, the surge reveals that excess demand has played a significant role in exhausting supply. Canadian New Mortgages Jumped 49% Canadian mortgage originations made a sharp increase from historical levels. […]
Canada’s oldest bank is accelerating its forecast schedule for the central bank. BMO sees the first interest rate hike in April, after yesterday’s announcement from the Bank of Canada (BoC). That would be 3-months sooner than previously forecast, and the first hike is just the beginning. The forecast shows the overnight rate rising as much […]
