Canada’s real estate correction may already be over, as prices return to sharp growth. BMO Capital Markets wrote to investors this week to explain they see higher home prices in the near-term. The bank observed that shortly after the Bank of Canada (BoC) warned of no further rate hikes, buyers returned with bigger budgets and […]
Canada’s largest bank is seeing signs of stress, as the cheap money binge haunts borrowers. RBC wrote to investors this week to warn households are beginning to fall behind on credit payments. As the economy begins to slow and job losses mount, the bank is forecasting things are going to get a lot worse over […]
Canada’s two largest real estate markets saw home prices rocket higher last month. Toronto and Vancouver real estate prices climbed in April, rising at the same rate. Both markets are seeing sales rise and tighter inventory, but it’s unlikely to have produced the same growth rate in both cities. Falling mortgage rates that introduced leverage […]
Canadian business insolvencies are back with a fury. Business insolvency filings with the Office of The Superintendent of Bankruptcy (OSB) climbed sharply in February. The number of businesses seeking creditor relief is now back to normal levels, before pandemic relief was rolled out. The problem is these aren’t supposed to be normal times, but a […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Banks Are Extending Amortizations Over 35 Years To Avoid Defaults Canada’s Big Six banks have a significant share of mortgages with amortizations over 35 years. BMO, CIBC, TD, and RBC all reported over a quarter of their portfolio had amortizations over […]
Not even Canada’s record population growth can prevent its economy from slowing. Statistics Canada (Stat Can) reported the country’s real gross domestic product (GDP) growth slowed in February. The final numbers showed just a third of the growth rate the agency anticipated in their preliminary estimate. Not even the demand boost from a record population […]
What’s the secret to Canada’s remarkably low delinquencies, despite soaring interest rates? Never paying off those super-sized mortgages, apparently. Filings from Canada’s Big Six banks show a big share of mortgages had remaining amortizations of 30 years or longer in Q1 2023. Most of the Big Six reported at least a quarter of their portfolio […]
Higher interest rates are doing something many thought impossible—it slowed Canadian borrowing. Bank of Canada (BoC) data shows the M2++ growth slowed further in February. The M2++ is a broad measure of the country’s money supply, closely linked with demand. The latest numbers show annual growth hasn’t been this low in at least four decades. […]
Canada’s economy is heading for a slowdown, and real estate might amplify it. That was the takeaway from the Bank of Canada (BoC) Market Participant Survey in Q1 2023. The survey polls financial market experts for their outlook over the next two years. The results reveal they see a recession this year, with weak housing […]
Canadian real estate owners are seeking the security (& discount) of fixed rate mortgages. Bank of Canada (BoC) data shows the share of new mortgage loans with variable interest continued to shrink in February. Just one year ago, the majority of new loans were attached to variable rate mortgages. Now the share is back to […]
