Canada used to be known for its conservative mortgage lending, but that’s no longer the case. The Bank of Canada (BoC) warned mortgage quality has “deteriorated” in 2020. The central bank found highly indebted households, those with a loan-to-income ratio higher than 450%, now represent a record share of new mortgage debt. Highly indebted households […]
Despite rainbows and unicorns, Canadian household debt problems didn’t just disappear. In fact, they got worse in many cases, and the economy is finally strong enough to start thinking about them. The Office of the Superintendent of Financial Institutions (OSFI), the country’s bank regulator, announced the domestic stability buffer (DSB) will rise in October. The […]
Canada’s real estate industry is asking bank regulators to loosen lending standards. OSFI, the bank regulator, is currently holding feedback on B-20 Guideline revisions. The Guideline, better known as the “stress test,” ensures borrowers can pay their mortgage after a modest rate hike. The Toronto Regional Real Estate Board (TRREB) wants some tweaks, arguing it’s […]
A new mortgage stress test? Don’t bother me with those peasant details. After Canada’s property bubble attracted global criticism, they announced tighter mortgage lending. On April 8, the Office of the Superintendent of Financial Institutions (OSFI) said they would make the stress test harder. By the following Monday, the first bank launched a pilot mortgage […]
Canadian real estate markets may have got the first big cooling measure today. The Office of the Superintendent of Financial Institutions (OSFI) announced they are moving to tighten uninsured mortgage leverage. The organization that regulates Canada’s banks, eased the mortgage stress test last year. Now that it’s clear mortgages don’t need stimulus, they’re looking to […]
Canadian regulators are asking banks to set aside a little extra cash for a rainy day. Okay, a lot more cash for a downpour. Office of the Superintendent of Financial Institutions (OSFI) completed their bi-annual domestic stability buffer review. The regulator sees systemic risks, those that can cause instability to the financial system, remain elevated. […]
Canadian Boomers are back to tapping their home equity to make ends meet. Office of the Superintendent of Financial Institutions (OSFI) filings show reverse mortgage debt hit a new record high in March. The record balance is still slowing in growth, but made a monthly increase larger than last year. That’s impressive, considering how fast […]
Canadians are back to using their homes as ATMs. Office of the Superintendent of Financial Institutions (OSFI) filings show the balance of loans secured by homes reached a new record high in February. Preliminary numbers show most of the growth is still from personal loans, such as HELOCs. Canadians Used Over $298 Billion In Home […]
Canadian seniors short on cash, but rich in property are drawing on home equity at an alarming rate. Bank filings with the Office of the Superintendent of Financial Institutions (OSFI) show September saw mid-double digit growth in reverse mortgage debt. The type of debt, which services seniors, is set to see continued growth well into […]
Time for your weekly cheat sheet on the most important stories this week. Canadian Real Estate Gasp! Canadians Might Have To Actually Make Enough Money To Buy Real Estate Soon Canada’s banking regulator wants to put an end borrowers depending on equity to get a mortgage. Equity lending, the process of depending on “earned” equity […]
