Canada’s largest provincial real estate market is about to become more transparent. The Real Estate Council of Ontario (RECO) is looking for feedback on proposed rule changes. The proposal is to create more transparency, and includes allowing multiple-bid disclosure. Multiple bids get the most attention, but a less-known change is a bigger deal — eliminating […]
Canada has seen a surge in real estate buyers looking to get ahead of rising rates. After all, a higher cost of borrowing means higher payments, right? Running TransUnion mortgage payment data against mortgage rates shows the exact opposite. This is due to the basic design of interest rates, which are increasingly ignored due to […]
Canadian households are on an epic mortgage borrowing spree. Data from TransUnion shows explosive growth for new mortgage originations in Q2 2021. Sparked by low rates, the surge reveals that excess demand has played a significant role in exhausting supply. Canadian New Mortgages Jumped 49% Canadian mortgage originations made a sharp increase from historical levels. […]
Canada’s central bank didn’t do much today, but they did give us a new Tiff-ism for Christmas. The Bank of Canada (BoC) made no changes in its rate announcement this morning, the last of the year. They also updated the public on their promise not to accumulate government bonds, calling the balance “roughly constant.” What […]
After decades of telling the public that low rates make housing affordable, Canada’s central bank is declaring, whoops! Bank of Canada (BoC) research shows decades of low rates did not make housing affordable. In fact, it had the opposite effect — increasing the size of mortgage debt. Real estate markets absorbed the increased debt capacity […]
Canadians are going all-in on housing, as it’s increasingly seen as a low-risk asset. As debt grows faster than the economy, the ratio of mortgage debt to gross domestic product (GDP) has been soaring. Canada has created so much moral hazard, home prices no longer fall during a recession. Instead, households are leveraging up and […]
Most immigrants in Canada find themselves in just two major regions, and those regions also happen to pay them the worst. Statistics Canada (Stat Can) data shows the median annual income for immigrants in 2019 was much lower in major hubs. Immigrants that arrived 10 years ago are paid much lower in places like Southern […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate The Bank Of Canada Only Sees 2 Real Estate Bubbles And Vancouver Isn’t One Of Them Global agencies are ringing the alarms, but Canada’s central bank only sees 2 bubbles. The HPEI, the Bank of Canada’s exuberance indicator, only flagged Hamilton […]
The Canadian economy is recovering slower than its peers despite elevated inflation. BMO chief economist Douglas Porter indexed the GDP for Canada, the US, and Australia in Q3 2021. All three economies began as a v-shaped recovery, but Canada is the only one not to hit pre-pandemic levels. Despite signs of a strong economy, like […]
The Canadian economy is quickly going from a recovery to overstimulated. That was the take from the National Bank of Canada (NBC) today, anyway. In an unusual move, the Big Six bank wrote an open letter demanding a halt to stimulus. They also argue that the central bank needs to hike rates in the next […]
