To the surprise of many, Canadians have balanced high debt loads and credit quality for over a decade. That era might be over. Transunion Canada data reveals an explosion of subprime borrowers in Q2 2023. Higher living costs and rising rates have combined to produce higher risk borrowers. At the same time, lenders are embracing […]
Canada has seen a surge of study permits issued, a key part of its population growth strategy. Immigration, Refugees and Citizenship Canada (IRRC) data shows study permits, a.k.a. student visas, surged higher in Q2 2023. The surge isn’t just about population growth, but is also a part of a plan to help maintain its waning […]
Canada’s biggest bank is warning investors of an economic slowdown brewing. Gross domestic product (GDP) data for Q2 won’t be released until next week, but RBC expects it to show the economy was hit with a sharp slowdown. Coupled with a mild acceleration to inflation, everyone has one question—is a slowing economy enough to prevent […]
Canada’s Millennials are doing worse than previous generations by virtually every metric. RBC Economics shared a report focusing on debt, labor, and economic risks. They found that Millennial incomes are failing to keep up in the current environment, leading to less disposable income. Boomers are doing much better, so it may sound like it all […]
Canadian mortgage borrowers won’t take on the risk of a variable rate mortgage, but they’re dreaming of rate cuts. Bank of Canada (BoC) data reveals a record share of mortgage originations had fixed interest terms in June. However, they aren’t opting for a longer, and traditionally more popular, 5-year fixed term. National Bank of Canada […]
Canada’s central bank will be watching home prices carefully when setting interest rates. In a note to investors, BMO Capital Markets explained that falling new home prices reduced the consumer price index (CPI) readings. However, they’re starting to bottom and are likely to become an influence on higher inflation. The Bank of Canada (BoC) is […]
Canadian mortgage credit fell to a level that might make policymakers uncomfortable. Bank of Canada (BoC) data reveals that outstanding mortgage credit climbed in June. However, it wasn’t enough to reverse the trend of decelerating growth. The last time the rate fell this low, mortgage liquidity injections were already in the works to stimulate borrowing. […]
The era of cheap debt might be over, and it can lead to a big shift for investors. That was the take from BMO Capital Markets, which took a dive into sell-off triggered by rising long-term yields. They found the rising yields aren’t due to rising inflation expectations, but rising real yields across the world. […]
Did your last walk through downtown Toronto feel quieter than usual? It’s not just your perception; fewer people are commuting to work in Toronto’s downtown offices. Strategic Regional Research Alliance (SRRA), a think-tank focused on Greater Toronto regional growth, recently released its July Occupancy Index. This Index, which tracks office occupancy relative to pre-2020 levels, […]
Canadian real estate prices surged higher as rates were cut, then plunged as rates climbed. According to a new BMO Capital Markets analysis, markets have retraced a significant portion of their losses despite higher interest rates. In fact, some real estate markets are even hitting new record highs alongside climbing interest rates. Tracking The Canadian […]
