Canada’s highly indebted households are in a pickle after an epic debt binge. Statistics Canada (Stat Can) data shows the household debt to income ratio (DTI) climbed sharply in Q3 2022. Canada already had some of the most highly indebted households in the world. As the ratio climbs even further, they become more vulnerable to […]
Canadians believe interest rates will fall soon, and it’s now obvious in real estate. That’s the take from BMO Capital Markets, who sees this having unintended consequences. In a weekend research piece, they explain more investors are holding out for rate cuts. This will lead to maintaining lofty growth expectations and sticky inflation, making cuts […]
Canada’s bank regulator is quietly asking the country’s largest banks to put aside a lot more rainy day cash. OSFI, Canada’s bank regulator, increased the domestic stability buffer (DSB) on Thursday. The move would see its Big Six financial institutions set aside significantly more capital for a risk-related event. The move will lower the need […]
Canada’s mortgage stress tests seemed excessive last year, but they were insufficient. The recent Bank of Canada (BoC) rate hike pushed a number of variable rate borrowers above their stress test rate. BMO warns these borrowers haven’t been risk-tested for the current environment. Canadian Mortgage Borrowers Haven’t Been Stress Tested For Rates This High The […]
The Great Canadian Real Estate Slowdown is set to continue into the future. Statistics Canada (Stat Can) data shows the value of building permits fell in October. The drop in permits shows less building activity is planned, especially for residential building. It sounds like bad news, but it might not be. Falling land and building […]
Canada’s real estate bubble has blown past the 90s bubble, and is going for the biggest of all time. National Bank (NBF) data shows affordability in Q3 2022 eroded to the worst level since the early 1980s. Just like the 80s bubble, they don’t expect this one to persist for much longer. Affordability is expected […]
Canada’s highly indebted households are starting to show serious signs of debt overload. Equifax data shows the rate of auto loan delinquencies hit a rarely seen level in Q3 2022. Consumer credit in general has seen rates begin to climb as interest rates rise. Housing remains the one exception, though that’s likely to change as […]
The Canadian real estate bubble got a big boost from low rates, and prices are correcting as rates soar. Home prices climbed aggressively as cheap credit flooded the mortgage market until March. As rates increased, credit was throttled, and the opposite effect began to appear. Home prices are now down significantly and likely to slip […]
Many Canadian mortgage borrowers are regretting walking into a low rate trap. Bank of Canada (BoC) data reveals a surge of borrowers over the past few years opting for variable rates. At the time, mortgage borrowers might have saved a few points over their fixed-rate peers. Now interest costs are making one of the most […]
The Canadian real estate bubble is bursting rapidly as rates rise, and peak buyers are in for a rough time. Canadian Real Estate Association (CREA) data shows the national market peaked in March 2022. We ran the numbers to see how much equity buyers from that month would have at this point. Most peak buyers […]
