Canada’s banking regulator is seeing a spike in highly indebted mortgage borrowers. The Office of the Superintendent of Financial Institutions (OSFI) observed renewed growth in the exposure of mortgages to “over-leveraged” households in Q4 2020. Low interest rates are fueling rapid growth in borrowing — for both quantity and size. The share of mortgages going […]
Canadians have big expectations for home buying and price growth over the next year. Mortgage Pros Canada (Mortgage Pros) released its annual report, containing consumer survey results. The survey, taken at the end of 2020, shows record sentiment for home buying and price growth over the next year. William Dunning, the organization’s chief economist, says […]
Canada’s household debt grew almost twice as fast as its economy, due largely to its addiction to housing. The country’s household debt to gross domestic product (GDP) made a sharp increase in Q3 2020. A little household debt to drive growth is normal, but the country is embracing it to the extreme. Canada’s ratio of […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Real Estate In A “Melt Up,” And Little Chance Of Stopping It By Spring: BMO Canadian real estate prices are in a “melt up,” says one the country’s largest banks. This is when prices show unsustainable price growth, based solely on […]
Canadian households are taking advantage of the cheap debt flooding the mortgage market. Bank of Canada (BoC) data shows outstanding mortgage credit reached a new high in January. The total size of the debt pile isn’t just a shocker at this point. Over the past year, accumulated mortgage debt was more than 5% the size […]
Many Canadians are surprisingly comfortable telling strangers they approve of mortgage fraud. Equifax released its latest consumer survey along with upgrades to its ClearPro fraud detection platform. The company confirmed what many have suspected — credit fraud may be rampant. It didn’t take sophisticated software to figure that out either. That was just the result […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Bank Of Canada Wants A Housing Bubble, While Other Central Banks Try To Pop Them The Bank of Canada is embracing fast rising home prices, but that’s not a normal reaction. Especially at this time, in markets with overheated real estate. […]
The pandemic didn’t slow Canadians from borrowing more to buy real estate. In fact, mortgage data may be showing the exact opposite. Statistics Canada (StatCan) data shows residential mortgage credit hit a record in 2020. Typically during a recession credit growth is expected to slow down. Last year saw the opposite, with declining rates pushing […]
Canadian real estate buyers are driving prices using irrational exuberance. US Federal Reserve (The Fed) data shows Canada’s homebuyers were “exuberant” in Q3 2020. This is when buyers disregard fundamentals, and paid more because they felt they couldn’t lose. This isn’t new, but it’s not as old as some have assumed. Canadian homebuyers irrationally drove […]
Canada’s largest bank believes higher rates are a lot closer than most are hoping for. RBC senior economist Josh Nye is forecasting the Bank of Canada (BoC) will hike rates sooner than expected. The forecast is based on higher inflation and a recovery ahead of schedule. The economist is watching for a gradual reduction in […]
