Time for your cheat sheet on this week’s top stories.
Canadian Real Estate
Ontario Takes The Lead, As Insolvencies Rise Across Canada
Canadian insolvencies are rising fast, with Ontario seeing the fastest growth. Ontario saw 4,315 insolvencies filings in October, up 20.9% from last year. To contrast, there were 13,512 filings across all of Canada, up 13% from last year. Ontario’s growth isn’t just the fastest growth, it’s much faster than the national average.
Canadian Homeowners See Variable Rate Mortgage Interest Climb Over 25%
Variable rate mortgages have made a double digit climb compared to last year. The average variable interest rate was 3.89% in September, up 25.89% from last year. This is the highest rate in over half a decade – the length of data readily available from the Bank of Canada. Overall, this is still a low rate – but much higher than it was during Canada’s massive credit expansion.
Eastern Canadian Real Estate Markets See Big Demand Surge
Canadian real estate markets are seeing a big surge in demand, compared to inventory. Halifax, Montreal, and Ottawa are seeing the biggest increase in one measure. The concentration for the fastest increases are mostly in Eastern Canada. However, most of the country is seeing a rise in their SNLR.
Canadian Business Credit Demand Slows, Signaling A Slowdown For Economic Growth
Canadian businesses are cooling down on their debt binge. The balance of business loans reached $2.24 trillion in October, up 5.33% from last year. This is the lowest growth for October since 2016, and the lowest 12-month increase for any month since January 2017. A decline in business credit growth is often a sign they’re tapped out, or they aren’t seeing much expansion opportunities in the near future. That’s a warning flag for the general economy.
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