Canadian subprime credit inquiry volumes are falling, but still lead the market. TransUnion updated some of its credit indicators for Q2 2021 today. Overall improvements are seen in credit health, with high-quality borrowers leading in growth. However, the subprime segment has been contracting at a smaller and smaller rate. Smaller contractions can mean the segment […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate One Of Canada’s Largest Real Estate Lobbies Lost Their Sh*T Over An Election Promise One of Canada’s largest real estate lobbies isn’t very happy with one of the new election promises. The Liberals promised this week to ban “blind-bidding” if re-elected. The […]
Home sales might be slowing, but Canadians have begun one of the most epic debt binges ever. Bank of Canada (BoC) data shows outstanding residential mortgage credit reached a new record in June. It didn’t just “soar” to that level though. It showed explosive growth, like someone strapped a rocket to it. Canadians Now Have […]
Canada’s highly indebted households didn’t see their finances improve during the pandemic. Many did get a lot more neat stuff they couldn’t afford without low interest rates though. That’s the takeaway from the MNP Consumer Debt Index, conducted quarterly by Ipsos. The poll found a third of Canadians consider themselves “house poor.” Even more are […]
Canadian (and US) bond yields made an abrupt decline over the past few weeks. This is contrary to what experts had forecast, but it hasn’t changed their tune. In fact, Desjardins chief economist Jimmy Jean said it reinforces his belief. In a note to clients this week, he outlined the disconnect between yields and the […]
Canadian real estate went from being a boost for the economy, to being a drag in just over a year. Statistics Canada (Stat Can) data shows real gross domestic product (GDP) fell in May. Amongst the sectors causing the slowdown was real estate, having peaked in March. Since then the sector has been deteriorating at […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Mortgage Quality Has “Deteriorated”: Bank Of Canada Newly issued mortgage debt is going to highly indebted mortgage borrowers. These borrowers represent 21.7% of mortgages issued in Q4 2020, a new record high. It even dwarfed the previous record set in 2016, […]
The Canadian economy is improving, excluding some minor hiccups like this morning’s GDP. An improved economy needs less stimulus, and that means higher mortgage rates. To see what Canada is in for, we modeled a forecast range for 5-year fixed-rate mortgages. If Canada doesn’t go into a double-dip recession, much higher mortgage rates are coming. […]
Canadian mortgage rates are so low, how could you not buy a little more house? The rate of interest for a mortgage in Canada recently fell below the rate of inflation. This rarely happens, and the last time real mortgage rates were this negative was over 40 years ago. That was in the middle of […]
Never has it been so obvious that government data on housing costs don’t reflect the cost of buying. Home prices are on a tear, and while CPI’s shelter component is high, it’s miles away from soaring home costs. That’s because of the way it’s measured, says BMO chief economist Douglas Porter. Here’s his breakdown on […]
