The real reason the government has introduced stringent mortgage stress testing, claims a mortgage broker, is because it wants Canadians to spend less money on mortgage payments and more on other segments of the economy. “The government sees Canadians making their mortgage payments as a problem because they won’t spend their money in other sectors […]

Canada’s strong economy is set to continue into 2018 but it – and the housing market – are set to moderate. In its latest Economic Outlook, RBC says that although Canada’s economic growth will lead the G7 nations, it will fall from 2017’s predicted 2.9% GDP growth to 1.9% in 2018, followed by 1.6% in […]

The decision of the Bank of Canada to hold interest rates at 1% has left economists, lenders and homeowners guessing as to what will happen next. Governor Stephen Poloz noted that inflation was slightly higher than expected, slack remains in the labour market, and the housing market is moderating as forecast. However, he gave little […]

The federal Liberals are having second thoughts about a 2015 campaign promise out of concern that expanding the popular Home Buyers’ Plan would throw fuel on overheated housing markets. An internal document suggests high housing prices are a key reason the Liberals don’t appear to be in a hurry to fulfil an election pledge that […]

The highly anticipated November Labour Force Survey, released this morning by Stats Canada, surpassed all forecasts breaking multi-year records. Employers added a whopping 79,500 jobs last month, bringing the gains over the past 12 months to nearly 400,000. November’s data posted the most robust job market since the 2008-09 recession as the jobless rate plunged […]

The Canadian economy’s most significant vulnerabilities remain to be inflamed housing prices and unprecedented household debt levels, according to the latest report from the Bank of Canada. This is despite several signs that financial risks have begun to ease, the Bank’s study noted. “Better economic conditions and several new policy measures support prospects for additional […]

The Bank of Canada has released its latest assessment of the financial system and has once again highlighted risk from mortgages. While the overall tone of the report is positive – “Our financial system continues to be resilient, and is being bolstered by stronger growth and job creation, but we need to continue to watch […]

The once-hot real estate market cooled considerably in 2017, and with Guideline B20 on the horizon, all indications are that it will stay that way. It is expected that first-time homebuyers will bear the brunt of B20 more than anybody else, and according to Sherwood Mortgage Group’s president, that could result in a noticeable decline […]

The share of Canada’s population that is not able to access acceptable housing has remained stable over the past decade. Data from CMHC and Statistics Canada reveals that 1.7 million Canadian households were in core housing need in 2016, amounting to 12.7%, around the same as in 2006. “While the proportion of Canadian households living […]

The era of mortgage rates trending lower is coming to an end and some homeowners will struggle to afford payments. The warning comes in a report from ratings firm DBRS which says that owners will find renewal rates edging higher and will experience a “payment shock” having become used to lower rates when renewing. The biggest wake […]