Canada’s largest bank sees the country’s real estate bubble popping like no other. Last week we explained RBC is getting ready to revise its forecast lower, and they made it official today. The bank explained to investors the correction will be larger than previously expected. They’re now forecasting the largest downturn in history for both […]
Canadian real estate suddenly had a shortage of supply after record low rates. Not in major boomtowns, but in small cities and rural municipalities. Canada had the biggest boom, but this was seen in almost every advanced economy. Right after rates were slashed to stimulate demand, everywhere had a sudden shortage. BMO Capital Market economists […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate The Canadian Real Estate Bubble Was Just Delivered Its Final Blow: BMO Canadian real estate costs just blew past the 80s bubble when it comes to payments. BMO estimates the average home in Ontario required $3,000/month in payments to carry the mortgage. […]
One of Canada’s largest banks is calling the housing market’s time of death — 10am Wednesday July 13, 2022. That’s basically the message from a BMO Capital Markets note to investors on Friday morning. Canadian housing affordability was already stretched to the limit, requiring price cuts to keep moving . Add this week’s rate hike, […]
Canadian interest rates are surging and that brings up a lot of questions about those with variable mortgage rates. Bank of Canada (BoC) data shows most new borrowers were opting for variable rate mortgages in May. However, the share has been falling from the record peak sparked by the central bank’s lag to keep up […]
Canadian real estate prices are falling about as fast as they climbed earlier this year. BMO Capital Markets long maintained Canada didn’t have a housing shortage but an excess of exuberance. As price gains slow, they are proven right as more people now expect prices to fall instead of rise. Following today’s rate hike, the […]
Canada’s economy got a bit of a surprise this morning — a massive rate hike. Analysts expected the Bank of Canada (BoC) to make a big move, just not the biggest in over 20 years. The central bank is hoping to temper inflation expectations by showing they’ll do whatever it takes. Canadians now face the […]
Canadian mortgage rates are surging higher but are mortgage rates now high? Bank of Canada (BoC) data shows interest costs for new mortgage lending climbed sharply in May. Rates are rising from record lows, stimulus-levels, and largely just normalizing. New mortgage borrowers were still paying less interest than they would have in 2019. Uninsured Mortgages […]
A lot more Canadians are suddenly seeking protection from lenders, but no need to ring the alarm — yet, at least. Consumer insolvency filings climbed in May, shows Office of the Superintendent of Bankruptcy (OSB) data. It was a substantial increase too, possibly raising concerns about rising rates. While volumes are rising, a base effect […]
Canadians are about to see interest rates they didn’t think were possible in just a few days. BMO made revisions to its overnight rate forecasts this week. At next Wednesday’s meeting, they’re calling the largest rate hike in two decades. That will bring interest rates (and your borrowing costs) to the highest level since 2008. […]
