Canada’s bank regulator is getting ahead of any rate cuts with new limits on leverage. The Office of the Superintendent of Financial Institutions (OSFI) has notified lenders to prepare for a new loan to income (LTI) rule. The new rule will limit federally regulated financial institutions (FRFIs) mortgage portfolios to a multiple of the income […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canada Is Spending 75% of Its Forecast Deficit To Prop Up Mortgages The Government of Canada (GoC) plans to spend a whopping $30 billion to support its mortgage market this year. March marked the second month of its buying spree, spending roughly […]
Canadian households are cooling on their borrowing but the type of debt may be an important sign. Statistics Canada (Stat Can) data shows household credit climbed at one of the slowest rates in decades in January. The slowdown was primarily caused by slower mortgage debt growth, with credit card debt rising 3x faster. Canadian Household […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Wealth Driven By Housing, Outpaced Income Up To 13x: RBC Canadian wealth is driven by housing and it’s creating a wealth gap that may be permanent. An analysis from RBC shows nearly half of household wealth has been driven by housing—almost […]
Canadians have seen their wealth surge through a simple act—just paying their mortgages. The problem, according to the country’s largest bank, is that one person’s inflated housing wealth is another person’s hurdle to shelter. RBC warns the issue is now so bad, the vast majority of people will never be able to afford to buy […]
Canadian real estate markets picked up at the end of the year, as cheaper mortgage debt appeared. Expect the opposite pressure over the next few days as Government of Canada (GoC) bond yields surge on strong inflation data. Reversing some of the ground made over the past few weeks, a sudden jump in yields is […]
Canada embarked on an ambitious mission to grow its economy using rapid population growth. After hitting unreal immigration targets they may have forgotten to plan one detail—what are people going to do when they get to Canada? That was the focus of the latest analysis from National Bank of Canada (NBF). The bank’s chief economist […]
Canadian real estate buyers have been motivated by falling mortgage rates, but that may change soon. Government of Canada (GoC) 5-year bond yields have been climbing sharply. The yield, which helps determine the cost of 5-year fixed rate mortgages, had been falling over the past few months, delivering relief to buyers. Over the course of […]
Canada’s economy has been making headlines for leading the G7, but many aren’t feeling the effects. That’s because gross domestic product (GDP) per capita has barely moved. Rather than growing the economy through economic improvements, Canada has only added more consumers through immigration. Adjusting for population, US households have seen their economic picture grow 10x […]
Canadians are starting to feel the consequences of their debt addiction. MNP, Canada’s largest insolvency consultancy, released the results of its regular consumer debt survey. They found most consumers are struggling to repay their loans, and regret borrowing as much as they did. However, it’s not clear they could have prevented the borrowing if they […]
