Time for your cheat sheet on this week’s top stories. Canadian Real Estate Four Reasons Canada’s Real Estate Bubble Is A Systemic Banking Risk Canada’s banks have a reputation for being some of the most prudent in the world, but it’s tarnishing fast. After going all-in on real estate, they’re now exposed to significant risks […]
Canadian real estate prices are rising, and that’s bad news if you’re looking for cheap credit. Statistics Canada (Stat Can) reported new home prices made the first increase in nearly a year. In a research note to investors, BMO warned the increase is just one of many housing data points that shows shelter is back […]
Canadian real estate is heating up, after a brief correction. Both prices and sales are up around most of the country—some markets rising by tens of thousands in May. Don’t expect it to last, warns a top economist. Oxford Economics warned clients they expect this to be a temporary boost, and the pullback for existing […]
Canadian real estate prices are back to surging after a correction that barely lasted a year. However, the momentum carrying prices higher isn’t expected to last very long after the latest Bank of Canada (BoC) rate hike. RBC, the country’s largest bank, expects rising interest rates will throttle demand at a time when more supply […]
Canadians went on a record debt binge, and are now left with one of the worst hangovers in history. Statistics Canada (Stat Can) data shows the household debt service ratio (DSR) surged to a new record high in Q1 2023. Households now dedicate a record share of income to repayment, and it’s not just due […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Bank of Canada Warns The Era of Low Rates Is Over The Bank of Canada doesn’t see low interest rates returning anytime soon. Over the past 3 decades, the central bank argues that various factors have applied pressure to lower rates. As […]
Canadian mortgage rates are once again rising, after a temporary decline that boosted home prices. Canada’s 5-year fixed term mortgage rate pulled back during the US banking crisis, helping to boost home prices. Surging government bond yields have rolled back the discount over just a few days. While the fixed term mortgage remains one of […]
Canadian real estate sales are generally down from historic levels, but households are just waiting for cheap credit. That was just one key insight from BMO’s latest Real Financial Progress Index (RFPI). The survey-based index seeks to capture household economic health, and their perspective on the economy. Not surprising, a good share of the takeaways […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Mortgage Default Risk Is The Highest In The OECD: IMF Canada has the highest mortgage default risk of any advanced economy. Mortgage debt surged across the world, as low rates stimulated housing markets in virtually every country. Now that rates are […]
Canada’s falling bond yields provided cheap mortgage credit, helping to boost home prices. Now it’s reversing course, with Government of Canada (GoC) 5 year bond yields rising sharply. The yields directly influence fixed mortgage rates, and over just a few days they’ve nearly reversed the discount given after the US banking crisis. Higher rates will […]
