The Canadian economy might seem booming — but not for everyone. Statistics Canada (Stat Can) payroll data shows elevated job vacancies in February. Wages increased, as one would expect with such high job vacancies. They just failed to keep up with the kind of growth expected in a high inflation environment. Average wages grew by […]
Canadian mortgage borrowers are going to be paying much higher rates soon. Desjardins’ latest consumer interest rate forecast shows the 5-year fixed rate mortgage climbing — a lot. Over the next few quarters, it can hit up to 7% — a rate that would have seemed impossible back in 2019. Elevated inflation may push borrowing […]
Canadian interest rates are on the rise and households apparently took that as a warning to borrow as much as possible. Filings with the Office of the Superintendent of Financial Institutions (OSFI) show home equity line of credit balances surged higher in February. Over 28 days, Canadians borrowed $2 billion more in HELOC debt — […]
From low-for-long to high-for-longer, Canada may not have inflation under control. A new report from BMO Capital Markets forecasts the Consumer Price Index (CPI) for Canada, and the US will taper into next year. Despite US inflation being much higher, it’s expected to fall below Canada’s rate and start 2024 at a more stable level. […]
High inflation has become such a risk to the economy, the central bank will do anything to slow it. That might include raising interest rates higher than already aggressive forecasts have called. This was the message from the Bank of Canada (BoC) at the Standing Committee on Finance today. The central bank Governor made it […]
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 […]
