Academics theorize why developers won’t create more purpose-built rental housing. They cite everything from user behavior to policy restrictions. For some reason, they never think to just ask a real estate developer candidly. A few weeks ago I shared a popular Twitter thread on real estate rental development. Not a lot of people realize real […]
Canadian banks have begun to weigh in on new mortgage changes, and they aren’t optimistic. Earlier today, the Office of the Superintendent of Financial Institutions (OSFI) announced a revision to the uninsured mortgage stress test. The change will shrink supersized mortgage budgets, reducing the number of over-leveraged borrowers. Two of Canada’s largest banks say it’s […]
Canadian real estate markets may have got the first big cooling measure today. The Office of the Superintendent of Financial Institutions (OSFI) announced they are moving to tighten uninsured mortgage leverage. The organization that regulates Canada’s banks, eased the mortgage stress test last year. Now that it’s clear mortgages don’t need stimulus, they’re looking to […]
Time for your cheat sheet on this week’s biggest stories. Canadian Real Estate Canadian Real Estate Overvalued, Toronto Needs A 28% Correction For Fair Value: IMF Many Canadian real estate markets are massively overvalued, according to the IMF. Their model shows Toronto’s estimated value is 28.2% lower than current prices. Vancouver’s estimated fair value is […]
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 […]
