The Canadian central bank’s addiction to low rates helped households rack up dangerous amounts of debt. Statistics Canada (Stat Can) data shows the household debt to income (DTI) ratio smashed the previous record in Q1 2023. Households are now the most highly leveraged in the country’s history, as they borrow money at a significantly faster […]
Canadian real estate became slightly easier to purchase, according to the country’s largest bank. RBC’s Housing Affordability Index showed a slight improvement in Q1 2023, the first in years. The decline won’t provide much comfort for buyers though, with housing still less affordable than the peak of the 90s bubble. The bank doesn’t see things […]
Canadian inflation is showing some encouraging signs, but the devil’s in the details. Statistics Canada (Stat Can) reported the growth rate for the Consumer Price Index (CPI) saw annual growth fall much lower than the market had forecast for May. BMO saw that as encouraging, but warns short-term growth isn’t budging, and that will reinforce […]
Canada’s bank regulator is growing increasingly concerned about a risk event. This morning the Office of The Superintendent of Financial Institutions (OSFI) raised the Domestic stability buffer (DSB) target 50 basis points (bps) to 3.5% of risk weighted assets (RWA). Banks subject to the buffer will have until November 1, 2023 to get it done. […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Real Estate Market Strength Unlikely To Last: RBC The Canadian real estate market has been surging since the Bank of Canada’s “pause” announcement, but RBC expects this momentum to slow due to rising interest rates and an improvement in inventory. Rising […]
Higher rates weren’t enough to kill Canada’s economy—they only made it angry. The Bank of Canada (BoC) surprised the market with a rate hike last week, and BMO doesn’t think it was the last one. Canada’s economy is running so hot, the market now expects at least two more rate hikes. It’ll almost certainly lead […]
Canada’s economy continues to outperform, despite rising interest rates. In response, the Bank of Canada (BoC) hiked its overnight rate by 0.25 points to 4.75%—the highest rate in over 10 years. To further throttle excess demand, the central bank is also reducing credit liquidity, as it attempts to prevent already elevated inflation from returning to […]
Canadian first time home buyers are 36 years old on average. That means they won’t have that starter condo paid off by the time they retire, according to recent bank reports. Four of the Big Five banks reported a large share of their portfolio had amortizations longer than 30 years in Q2 2023. Most of […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canada Has Entered A Per Capita Recession, Quality of Life Expected To Erode Canada has officially entered a per capita recession, and it’s expected to get worse in the coming months. Aggregate GDP is beginning to slow but it’s skewed by the […]
Canada’s expected to fall into recession later this year, but it may already be there by a traditional definition. Real gross domestic product (GDP) per capita data shows the country is in a per capita recession, one of the traditional definitions. These events are associated with an eroding standard of living, and it’s expected to […]
