Canada turned to millions of temporary residents to solve its coming demographic shift, but will it work? RBC Economics has released a new analysis discussing the country’s recent surge in temporary residents. These temporary residents are providing essential labor, helping to resolve the sudden shortages after pandemic stimulus. However, the programs need better targeting, as […]
Canada’s economy has been a raging inferno of excess demand, and policymakers are throwing gas on it. That was the take in a new BMO Capital Markets memo warning that Federal spending is outpacing the country’s economic output, contributing to excess demand and higher inflation. As a result, the bank warns that interest rates have […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Household Debt Hits $2.9 Trillion As Personal Loans Pick Up Canadian households are shying away from mortgages and picking up more personal loans. The outstanding balance of household debt reached $2.9 trillion in May. A new record, but also the slowest […]
Canadian households, the most indebted in the G7, are finally showing borrower fatigue. Statistics Canada (Stat Can) data reveals household debt reached a new record in May 2023. Now larger than the country’s output, the mountain of debt is changing its growth pattern. Households borrowed mortgage debt at the slowest rate since the Great Recession, […]
Canada’s real estate industry is lowering expectations for the market going forward. The Canadian Real Estate Association (CREA) revised its home sales forecast lower for the remainder of the year. They also see 2024 being slower than previously anticipated, as demand slows without central bank stimulus. Canada’s Real Estate Industry Revises 2023 Sales Lower Expectations […]
Canada’s economy has been lucky enough to buck recession forecasts, but its luck may be running out. The country’s latest job report showed huge job gains in June. However, it’s the rising unemployment rate that caught the attention of BMO’s chief economist. In a note to investors, they warned the rising rate has a near-foolproof […]
Canadian real estate markets top global bubble lists, but speculators still pile in. Global observers struggle to understand why, but they only need to look at the latest guideline from the Financial Consumer Agency of Canada (FCAC). The government watchdog for consumers recently released the Guideline on Existing Consumer Mortgage Loans in Exceptional Circumstances (Guideline), […]
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Unemployment Rate Rises As Population Outpaces Jobs Canada’s economy is adding a massive amount of jobs, but not nearly enough. The country reported a gain of 60,000 jobs in June, but the unemployment rate rose to 5.4% as well. It turns […]
Canadians have been able to maintain an epic borrowing spree, but cracks are starting to appear. Transunion’s Q1 2023 Consumer Pulse survey found a significant share of households won’t be able to cover their bills. Behind the lack of financial confidence is sky-high inflation, that’s leading consumers to cut back on spending, and delaying plans […]
The Canadian central bank’s addiction to low rates helped households rack up dangerous amounts of debt. Statistics Canada (Stat Can) data shows the household debt to income (DTI) ratio smashed the previous record in Q1 2023. Households are now the most highly leveraged in the country’s history, as they borrow money at a significantly faster […]
