Canadian real estate is probably fine, but the bank regulator just wants your lender to be extra safe. Earlier today, the Office of the Superintendent of Financial Institutions (OSFI) sent an advisory on real estate secured lending (RESL). OSFI, who oversees federally-regulated financial institutions (FRFIs), clarified expectations for risky mortgages. Lenders have been asked to […]
Canada will need to pump the breaks to stabilize its overheated economy. That was the message from RBC Economics’ latest research on inflation. Sky-high inflation has forced central banks to adopt an aggressive rate hike schedule. Cooling inflation (and the economy) with rapid rate normalization is now the plan. The slowdown is expected to begin […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Real Estate Cooldown Is Just Getting Started: BMO Slowing Canadian real estate sales are dragging renovation spending lower. An analysis from BMO Capital Markets shows renovation retail spending has begun to fall. Both segments are still elevated but rate hikes are […]
Canadian inflation continues to rocket higher as rate hikes occur at a snail’s pace. The Bank of Canada (BoC) policy rate still isn’t at the level seen at the start of 2020, but annual growth of the consumer price index (CPI) reached 7.7% in May, the highest level since 1983. However, BMO Capital Markets urges […]
Canadian real estate has another indicator showing higher rates are tempering the market. A new analysis from BMO Capital Markets shows housing-related retail sales fell in April. They attribute this to higher rates, and see this as a direct follow up to falling real estate sales. Activity remains elevated but BMO sees things slowing further […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Real Estate’s Nearly 40-Year Tailwind From Lower Rates Is Reversing: BMO The low rate tailwind boosting Canadian real estate over the past 40 years is coming to an end. The Bank of Canada estimates recent buyers will be renewing mortgages around […]
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 […]
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 […]
Told ya’ higher interest rates would lead to more Canadian real estate inventory. Canadian Real Estate Association (CREA) data shows existing-home sales dropped sharply in May. At the same time inventory has been climbing as more owners cash out some of those record gains. Falling sales and higher inventory has driven the market into balanced […]
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 […]
