Canadian bond yields are on the rise, and a big bank has forecast it will take mortgages along for the ride as well. The latest research note from BMO focuses on climbing longer term bond yields. The bank sees this as just the beginning, and sees modest growth for the next two years. They also […]
First it was Vancouver… then Toronto. Add Halifax to the list. Then Niagara, Hamilton… Woodstock? Don’t worry, I have no idea where that is either. Canadian real estate is now so frothy even the government can’t ignore it. The Canada Mortgage and Housing Corporation (CMHC) published its Q3 2021 Housing Market Assessment (HMA). In it […]
Canadian households are now so indebted, it exceeds the annual output of the economy. Statistics Canada (Stat Can) data shows the gross domestic product (GDP) printed modest quarterly growth in Q2 2021. The growth was dwarfed by household debt, which now exceeds the size of the country’s GDP. Economies with such large household debt loads […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate Canada Re-Elected The Same Leadership, But Real Estate Will Be Very Different Canada re-elected the same leadership, but with a very different housing strategy. They promised demand inducement schemes, supply subsidies, and improvements in trade transparency. The demand measures are likely […]
Canadians are about to see a flood of housing supply like they’ve never seen before. An RBC analysis found multi-year highs for various stages of new home construction in Q2 2021. New housing starts reached the highest level in over three decades. Homes completed are expected to hit a similar multi-decade high in the next […]
Canada’s largest banks cut mortgage rates last week, and now they might need to reverse the cuts. Half of Canada’s “Big Six” banks cut the interest rate on their 5-year fixed rate mortgages at the end of last week. It might have seemed like a no-brainer back then, but a week is forever ago in […]
Canadian bond yields have been sliding for the past few weeks, but that changed pretty fast. Global bond yields surged on Thursday after central banks expressed hawkish views overnight. By communicating their intention to ease stimulus, an abrupt market change occurred. Long-term yields have now climbed to the highest level in months. Experts say this […]
Canada plans to increase credit access for the country’s riskiest borrowers in the years to come. A re-elected government may not seem like change, but they promised a big one — larger insured mortgages. High-ratio borrowers will see an increase of up to 25% of their maximum mortgage size. Expansion of credit during a low […]
Canadian home prices are moving faster than wages, leaving a lot of cash-poor, house-rich Boomers. The Ontario Teachers’ Pension Plan Board (OTPPB) must see opportunity, because they are buying a large reverse mortgage lender. The pension announced its acquisition of HomeEquity bank today. It might not be a familiar name, but their flagship product might […]
Elevated levels of inflation may stick around longer than central banks have let on. The Organization for Economic Co-operation and Development (OECD) released its 2021 summer outlook. The intergovernmental agency for advanced economies revised Canada’s inflation forecast higher. Not a little either, they now see double the rate of expected inflation next year. The agency […]
