Canada’s bank regulator is getting its ducks in a row after a routine audit to assess financial system risk. The Office of the Superintendent of Financial Institutions (OSFI) published its first Annual Risk Outlook last week. The report covers systemic risks to the system, including a home price crash. Amongst the issues uncovered was mortgage […]
Canadian households were in a mad dash to borrow debt before the recent rate hikes. Bank of Canada (BoC) data shows outstanding mortgage credit hit a new high in February 2022. Over the past year, households grew mortgage debt at the fastest rate since 2008. Canadian Mortgage Debt Hit A New Record High The BoC’s […]
Canadian real estate is approaching a game changing environment, according to the country’s biggest bank. RBC Economics notified customers they’ve made downward revisions to their home sale forecast, as rates rise higher than expected. The Bank of Canada (BoC) tries to cool potentially destabilizing inflation, it’s expected to reduce budgets. Lower budgets following record demand […]
Canadian inflation is hitting multi-decade highs and is projected to get worse. Derek Holt, Scotiabank’s head of Capital Markets Economics, argues the pace of inflation will force interest rates to double by the summer. The Bank of Canada (BoC) is now so behind controlling inflation that raising the overnight rate by an entire point at […]
Canadian real estate price growth is running out of steam, falling from record highs. Canadian Real Estate Association (CREA) data shows home prices hit a record in March. However, most of that appears to be momentum, as the annual rate showed abrupt deceleration. Higher interest rates are cooling expectations, and we may now be past […]
Canadian mortgage payments are soaring as home prices hit record growth. Those payments might get more expensive for some as interest rates rise. It’s understandable that some are worried homeowners will face significant pressure. However, don’t expect renters to have any sympathy. As expensive as housing is, average mortgage payments are lower than the cost […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Canada’s Oldest Bank Begs, “Could we PLEASE Stop With This Supply Myth?” One of Canada’s most prominent economists is getting tired of the false supply narrative. BMO chief economist Douglas Porter explained the supply narrative is vastly overstated. In an analysis […]
Soaring Canadian real estate prices have made it “normal” to borrow supersized mortgages. Mortgage distribution data showing the size at origination has shifted to the right. Low rates and higher home prices have facilitated households borrowing a lot more to buy a home. Just five years ago, the largest segment of borrowers had been borrowing […]
Good thing Canadian mortgage borrowers have been stress tested, because it’s game time. Fixed rate mortgages have already climbed aggressively with market expectations. However, variable rate mortgage interest costs have lagged until recently. Now they’re expected to make up for lost time, doubling over six months. With rising inflation expectations, it might climb even further. […]
Canada’s central bank is aggressively hiking rates but also expecting more inflation. The Bank of Canada (BoC) rate decision got all of the attention yesterday, but that was expected. It’s the BoC forecast that was a surprise, as they hiked their inflation expectations. The consumer price index (CPI) annual growth numbers received an uptick for […]
