Categories for Industry Reports

Watch the Bouncing Consumer Debt Ball

Canada’s debt situation appears to be getting better…if you just look at mortgages. But something sinister lurks beneath the surface. And it’s made of plastic. Indebtedness has been outgrowing incomes in this country, despite stringent new mortgage restrictions. Canadians now owe $1.78 in credit market debt for every dollar of household disposable income, just under the record high. And we keep...

New Bank of Canada Data on Mortgage Risk

Stricter mortgage rules are working, suggests the Bank of Canada in this report today. Now if only we could take that report at face value. New Stats on Mortgagor Debt Loads If the government wanted to slow the market, it did. As of the second quarter, the number of new low-ratio mortgages fell 15% year-over-year after the feds implemented the...

HELOCs Under the Microscope Again

HELOCs have been getting a bad rap ever since the FCAC proclaimed in 2017 that “home equity lines of credit may put consumers at risk.” Bank of Canada Governor Stephen Poloz then followed soon after by including HELOCs in a speech about what keeps him up at night. Policy-makers’ concern is that HELOC rates are rising and people are using them...

Affordability Crisis? Not Yet, RBC

“RBC’s affordability measure hasn’t been this bad since 1990.”—RBC Economics That’s according to RBC’s “Housing Trends and Affordability” report, which is making headlines across the country as we speak. But if you’re house hunting and terrified you won’t get a mortgage, don’t soil your trousers just yet. There’s a devil in RBC’s details. It’s the mortgage rates they assume in...

A “New Era” for Mortgage Rates

“Last year marked the beginning of a new era for Canadian households,” said CIBC Economics on Thursday. “For the first time since the early 1990s, interest rates on five-year Government of Canada bonds were higher than they were five years before.” The bank adds, “With that trend set to continue, we estimate that 70% of households with five-year fixed rate mortgages...

Rates Dominate the Consumer Mindset

Your mortgage rate isn’t everything, unless you’re in the majority of Canadians. A full 60% of those polled said getting the lowest rate possible is the “only thing that matters” when it comes to picking the best mortgage, CIBC found in a recent survey. That mindset is something lenders grapple with daily while trying to differentiate themselves. And with the...

HELOC Growth Doubles Mortgage Growth

Home equity line of credit (HELOC) balances are growing more than twice as fast as mortgages, shows a new report by CMHC. That will certainly raise more eyebrows in Ottawa. The government has been closely surveilling HELOC risk for a few years now. Their concern: homeowners are relying too much on HELOCs, taking on debt that’ll slow their consumption in the future...

47% of Mortgages Will NOT Renew This Year

It turns out, we weren’t sniffing glue by arguing that 47% of mortgages are not up for renewal this year. “Some pundits have been circulating inaccurate information recently,” National Bank Financial (NBF) said in a report Thursday. “One is the affirmation that almost half of Canadian mortgages have been or will be up for renewal this year, suggesting an imminent...

Are Homebuyers Too Optimistic?

Canadians are more gung-ho than ever to buy a house. RBC’s latest Home Ownership Poll found that nearly a third of Canadians (32%) still expect to buy a home within the next two years. That’s the highest level of homebuying intention Canada has seen since 2010, and up 7% from last year. This is despite a string of new mortgage...

Shady Mortgage Specialist Practices: FCAC Report

Let’s be clear on one thing. Most bank mortgage specialists are good people who do the right thing. Then, there are the other kind. Consumer watchog, the Financial Consumer Agency of Canada, is targeting those reps with a cautionary critique of mortgage sales practices at the big banks. The agency is worried that banks may be placing “sales ahead of...