Canadian interest rates are on the rise and households apparently took that as a warning to borrow as much as possible. Filings with the Office of the Superintendent of Financial Institutions (OSFI) show home equity line of credit balances surged higher in February. Over 28 days, Canadians borrowed $2 billion more in HELOC debt — […]
Canada’s bank regulator is getting its ducks in a row after a routine audit to assess financial system risk. The Office of the Superintendent of Financial Institutions (OSFI) published its first Annual Risk Outlook last week. The report covers systemic risks to the system, including a home price crash. Amongst the issues uncovered was mortgage […]
Canadian real estate investors are about to face higher hurdles to enter the market. The Office of the Superintendent of Financial Institutions (OSFI), Canada’s bank regulator, confirmed new rules being rolled out in Q2 2023. The rules are a part of international Basel III guidelines, designed to reduce risk in the system. One critical change […]
Canadian real estate has a new risk factor catching the attention of regulators — CLPs. Combined Mortgage-HELOC Loan Plans (CLPs), better known as readvanceable mortgages, are fueling higher home prices. That was the take from OSFI, the country’s bank regulator. CLPs are rarely mentioned by regulators, but they’ve come up in several speeches since last […]
The head of Canada’s bank regulator called the country’s housing market what it is — a speculative frenzy. Office of the Superintendent of Financial Institutions (OSFI) superintendent Peter Routledge gave his take on housing this week. Speaking on the Herle Burley podcast, the regulator explained he sees real estate market exuberance. In his opinion, it […]
Canadian owners eased on home equity line of credit (HELOC) debt, but they’re warming up to using them again. Office of the Superintendent of Financial Institutions (OSFI) data shows an abrupt jump in HELOC debt for November. The credit segment had been shrinking for over a year, with only a few minor monthly bumps higher. […]
Canadians often complain mortgage interest isn’t tax deductible, like in the US. Some argue this is a trade off for the capital gains exemption Canadian homeowners have. However, one of the worst kept secrets in finance is mortgage interest can be turned into a deduction. One of those strategies is the Smith Maneuver, created by […]
Canadians tapped a lot more equity than their home equity line of credit (HELOC) balances show. Office of the Superintendent of Financial Institutions (OSFI) filings show loans secured by homes jumped in October. HELOC debt is the most common type of loan secured by homes, but represents just a small share of the debt. Homeowners […]
Canada’s new top dog at the bank regulator wants you to know they’re taking housing risks seriously. Office of the Superintendent of Financial Institutions (OSFI) Superintendent Peter Routledge discussed their housing priorities this week. In a speech to Vancouver CFAs, he said the financial system is safe but will get more regulations to keep it […]
Since the pandemic began, Canadian households have never been better. They’re saving more, they’re defaulting less, and some have even begun to poop rainbows. At least that’s what the narrative has been. Non-mortgage loan (A2) filings with the Office of the Superintendent of Financial Institutions (OSFI) shows that may not be the case. Expected credit […]
