This Week’s Top Stories: Bank of Canada Warns of Higher Rates & Home Prices Are Falling

Time for your cheat sheet on this week’s top stories. 

Canadian Real Estate

Canadian Mortgage Debt Is Chugging Along, Despite The Slowdown

Canadian mortgage debt continues to grow, rising 7.1% ($137.8 billion) over the past year to hit a total of $2.08 trillion in December. Growth is slower from the peak, but still elevated from a historical perspective. It’s also rising much faster than GDP, with a balance that rivals annual output—meaning this growth will drag the economy. 

Continue Reading…

Canada May Need Tighter Monetary Policy If The Economy Remains Overheated: Bank of Canada

The Bank of Canada has warned that its current monetary policy may not curb the economy’s overheated state, and further tightening may be necessary. The BoC targets an inflation rate of 2%, but inflation is more than three times that. Factors like employment, wage growth, and service price inflation need to moderate to bring inflation back to target. If these measures are not successful, further monetary tightening may be necessary.

Continue Reading…

Canadian Real Estate Now In The Deepest Correction Since The 90s, Prices Back To Mid-2021

Canadian real estate is still in a deep correction, with prices now 12.5% lower than last year. Annual growth was also the weakest in the benchmark’s history. Prices have dropped 17.8% (-$154,600) since their peak in March 2022, but remain 30.9% ($168,400) higher than in 2020. Experts forecast prices are only halfway to the bottom, with stagnation to follow.

Continue Reading…

Canadian Mortgage Brokers Have “Riskier” Clients, Exploited For More Profit: BoC

Canada’s central bank recently released a staff paper that revealed mortgage brokers tend to have “riskier” clients, and are often exploited for higher profits through steering. The paper found that broker-clients typically have lower incomes, use more leverage, and have longer amortizations. Steering, the process of directing clients to certain products out of self-interest, is partially blamed for the higher costs, adding an average of 4.5 years to the amortization of a mortgage. The BoC suggests more industry transparency can reduce this risk, and help clients with the best outcome. 

Continue Reading…

Nearly Half of Canadians Are Worried About Shelter Costs: Stat Can

According to Statistics Canada, nearly half of Canadians are concerned about their ability to pay for shelter. The cost of living crisis has made life unstable for almost a third of households, with a higher concentration in young adults. Transportation, food, and shelter show the fastest rising prices, with those aged 35-44 the most likely to report difficulty meeting financial needs. In addition, 1 in 4 households can’t handle an unexpected expense of $500, with those between 35-44 and 45-54 most likely to report difficulty.

Continue Reading…

4 Comments

COMMENT POLICY:

We encourage you to have a civil discussion. Note that reads "civil," which means don't act like jerks to each other. Still unclear? No name-calling, racism, or hate speech. Seriously, you're adults – act like it.

Any comments that violates these simple rules, will be removed promptly – along with your full comment history. Oh yeah, you'll also lose further commenting privileges. So if your comments disappear, it's not because the illuminati is screening you because they hate the truth, it's because you violated our simple rules.

  • Ali 1 month ago

    In my opinion, since the market downfall, many factors contributed but better dwelling only fueling it by spreading negative sentiments in the market. I am certain if Canadian market crashed then better dwelling should also be blamed to spread rumors and panic in the market.

  • Shel 1 month ago

    I am caught in the middle of this game, I have two mortgages to renew in September and I have no idea what it’s going to look like by then. I am scared plain and simple! why should i be punished and possibly loss my houses? because I won’t be able to afford the new higher payments?
    This government needs to go !! They caused this to happen !!!

    • Loonie Canadian 1 month ago

      The Bank of Canada doesn’t get new management if the government changes, and the view that the BoC is political is why the value is trash.

  • Ellen 1 month ago

    Already new this was coming in 2020.everyone said I didn’t know what I was talking about and in fact it’s never going to get better ever

Comments are closed.