Over the past year, we’ve heard that younger households were behind the real estate binge. In addition to transfer data showing that’s not true, Equifax mortgage data for Q3 2021 agrees. Most demographics showed little change in their borrowing patterns, except for the extremes. Millennial-led households maintained their share of mortgages, but a larger share […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canada’s Real Estate Bubble Has Buyers Paying 2x The Mortgage Of Existing Owners Canadian homebuyers are paying double the payments of existing homeowners. In 2021, the average homeowner’s mortgage payment climbed to $1,382 per month in the third quarter. The average homebuyer […]
Canadian household debt problems are once again worsening, after taking a brief break. The ratio of household credit market debt to disposable income climbed in Q3 2021, according to Statistics Canada (Stat Can). Households are now borrowing debt at one of the fastest rates in half a decade. Unfortunately, their incomes aren’t rising in line […]
Canadian subprime real estate buyers are scrambling to join the housing gold rush. Earlier this week, we discussed the sharp climb in subprime mortgage borrowers in Q3 2021. Today we’ll break the Equifax data down by city and show the highest concentrations. All but three major cities in Canada saw their share of poor quality […]
Canadian homeowners often say affordability isn’t that bad, new buyers just need to stretch further. That’s because they’re most likely unaware they’re paying half of what it takes to buy a home now. Equifax data shows an average homeowner pays half as much on a mortgage compared to buyers in Q3 2021. This trend has […]
After taking a break at the start of the pandemic, Canadian real estate has seen subprime borrowers return. Equifax data shows an abrupt uptick in the share of new mortgages going to subprime borrowers in Q3 2021. It’s still a relatively small share, especially in contrast to historic levels. However, this is the first time […]
Canada’s central bank warned real estate buyers to prepare for higher interest rates. It appears buyers are calling their bluff, opting for little rate protection on loans. Bank of Canada (BoC) data shows the share of new mortgages with variable rates doubled in October. Interest costs on most new uninsured mortgages will rise with rates, […]
Canadian households have much bigger mortgage payments, even with cheap debt. Or maybe because of cheap debt? The average mortgage payment in Q3 2021 showed a big jump, according to TransUnion data. Instead of lowering payments, low rates have fueled record home sales and refinancing. The increased demand has driven home prices higher leading to […]
Canadians often complain mortgage interest isn’t tax deductible, like in the US. Some argue this is a trade off for the capital gains exemption Canadian homeowners have. However, one of the worst kept secrets in finance is mortgage interest can be turned into a deduction. One of those strategies is the Smith Maneuver, created by […]
Canadian mortgage debt is getting so large that it now rivals the economy’s output. Bank of Canada (BoC) data shows mortgage credit reached a new record high in October. Households have a strong appetite for housing debt, still printing high growth. That might change soon, though. The latest data indicates much less mortgage debt has […]
