Canadians can barely remember the last time rates were this high, but get used to it. Bank of Canada (BoC) deputy governor Paul Beaudry, speaking a day after the rate hike, warned the era of low interest rates is over. They justified the forecast with a slate of reasons that didn’t quite make sense, and […]
One of the country’s largest banks sees Canadian real estate getting out of control, and it can hit the whole economy. Scotiabank warns the Bank of Canada (BoC) needs to hike rates soon, or real estate and inflation will get out of control again. Failing to do so won’t just drive home prices higher, but […]
Canadian real estate prices are climbing on the country’s booming population. More demand means higher home prices, right? Not so fast, it may not be as straightforward as the narrative. Statistics Canada (Stat Can) data released today shows immigrant income levels from a survey conducted in 2021. Recent immigrants to Canada earn significantly less than […]
Canadian inflation might be cooling, but the costs of building a home is surging higher. Statistics Canada (Stat Can) data shows home building costs jumped higher in Q1 2023. Rather than slowing down, growth is accelerating—running over 5x the inflation target. It’s even worse in Toronto, where the high rise crane capital of North America […]
Canada’s largest bank is seeing signs of stress, as the cheap money binge haunts borrowers. RBC wrote to investors this week to warn households are beginning to fall behind on credit payments. As the economy begins to slow and job losses mount, the bank is forecasting things are going to get a lot worse over […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Real Estate Owners Aren’t Selling, Here’s Why Canadian real estate markets are seeing a drop in sales, but it’s the inventory drop that’s concerning. That was the warning BMO Capital Markets sent to investors this week. The reason? A lack of […]
Canadian real estate might be slow right now, but a large bank thinks it’s going to “rip” soon. A new analysis from Scotiabank warns investors that the Federal government is at odds with the Bank of Canada (BoC) goals. The country’s central bank is trying to slow demand and the resulting inflation, while the Fed […]
Will Canada’s real estate market correction hit pause with an influx of cheap credit? CMHC data shows that 5-year conventional mortgage rates fell in February. Not huge, but the second consecutive month since the most aggressive climb in a generation. With credit costs plummeting even faster in March, it could provide a boost for the […]
Canada’s real estate slowdown is still trickling through the mortgage market. Bank of Canada (BoC) data shows mortgage originations continued to fall in January. The volume of new lending has virtually dropped off a cliff, as higher rates throttle leverage. Sky-high home prices that are falling aren’t exactly providing much buyer incentive either. Canadian Mortgage […]
Canada was no exception to the retreat of global bond yields after the US banking crisis hit last week. The Government of Canada (GoC) 5-Year Bond yield plunged at one of the fastest rates in a generation. It wasn’t alone, with most yields falling—potentially signaling lower borrower costs. That is, if the panic-driven drop sticks […]
