Canada’s recent real estate boom—and bust—was followed by an immigration surge charting a similar trajectory. Together, they expose generous high-leverage mortgage programs that shift risk off lender books and onto public and private insurers. These programs enabled buyers with minimal credit and few local ties to purchase homes at peak prices. With values now plunging, […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canada Uses US Bubble Scheme To Transfer Investor Risk To Home Buyers Ontario is the latest province to offer sales tax relief to first-time buyers of new homes. The move follows federal incentives announced earlier this year, adding to the recently introduced […]
Canada’s banks aren’t worried about mortgage arrears—but should they be? The arrears rate climbed again in August, according to the Canadian Bankers Association (CBA), which represents the country’s largest lenders. Investors have brushed off the rise as a return to normal after record lows. What they may not realize is that the late 1980s also […]
Toronto’s real estate downturn deepened last month, and new homes weren’t spared. Data from industry group BILD shows September sales hit a record low for the month, worse than the 1990s real estate crash. Most of the data looked ominous, but there was a curious detail—condo prices climbed, defying the demand collapse. That divergence may […]
The Bank of Canada (BoC) cut its overnight rate by 25 basis points to 2.25% this morning, citing weak investment and falling demand. It also reminded Canadians that monetary policy is meant to keep inflation low and stable—then promptly put that on the sideburner. The BoC warned that monetary policy won’t fix the current headwinds, […]
Canadian real estate went from boom to bust—but the biggest risk lies ahead. Ontario is the latest province to offer rebates for first-time buyers of new homes, building on recent federal incentives. Framed as affordability, these programs resemble US housing bubble schemes—designed to shift risk from investors to families, who absorb losses rather than default. […]
Canada’s private-sector business environment is worse than headline data suggests. Statistics Canada (StatCan) data shows active businesses were little changed in July, but a closer look reveals the economy has seen big changes. Active business growth is increasingly concentrated in sectors dependent on public spending. The headline data has obscured reality, masking a sharp erosion […]
Canada’s economy was already unraveling before the immigration boom, according to CIBC Economics. A new report from the bank argues the downturn was inevitable—cheap credit masked deeper structural issues, and the post-pandemic recoil would have occurred in any event. The bank suggests the non-permanent resident (NPR) boom may have softened the economic damage, not amplified […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Mortgages Backed By Inflated Home Values, Zero Equity Canadian lenders are using inflated new home appraisals to increase mortgage leverage. Following the sharp drop in home prices, lenders are turning to blanket appraisals—which recognize the contract price as the asset value. […]
Canada’s about to become one of the world’s largest exporters of shiny rocks. BMO Capital Markets recently told investors that gold is just a hair shy of being Canada’s second-largest export. Underlying output has quietly scaled over the past 25-years, leaving the industry well-positioned for the recent price surge. Though it’s worth noting that the […]
