Canadian Mortgage News Daily — May 31, 2021

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Here’s a daily helping of fresh Canadian mortgage news (the italics are the Spy’s 2 cents).

Reader note: RateSpy’s breaking mortgage news is now at → RATESDOTCA.

• Our Housing Market Through the Eyes of Other Countries (RATESDOTCA)

• The Stress Test’s Biggest “Stress” Could Start in 2023 or 2024 (RATESDOTCA)

• CIBC’s Tal on Inflation and Interest Rate Expectations (RATESDOTCA)

• Mortgage stress tests are about to get tougher, but no rush to buy (BNN Bloomberg)
  • Mortgage rules or not, anytime you see home prices up 42% in 12 months (like this), that means many fewer are able to buy. In fact, only the top 15% of Canadian households even make enough to buy the average home in the first place (assuming 20% down and a 30-year amortization).

• Brokers expect expanded stress test rules to most affect first-time homebuyers (Calgary Herald)

• The Number of Americans Who Say It’s a Good Time to Buy a House Has Collapsed (BNN Bloomberg)

• Canada’s ballooning mortgage debts could put a dangerous dent in entrepreneurship (The Globe & Mail – Subscription)
  • Risk aversion aside, higher loan-to-values also limit the home equity one can tap to start a business.

• Canada’s booming housing market showed small signs of cooling down in April (Financial Post)
  • Posting this link just as a reminder to not read fluff stories (like this) that try hawk courses on making money in real estate.

• Moderation may be on the way in T.O. real estate boom (Toronto Sun)
  • Buyers get more sensitive to overpaying near tops. We’re approaching the kind of market where homes with above-average “days on market” really start to stand out, making sellers anxious. Anecdotally, the realtors we speak with suggest that price concessions may happen more frequently this summer—in all but the hottest markets—as sales-to-listing ratios drop.

• Amplify: I want no part of Canada’s broken real estate market (The Globe & Mail – Subscription)
  • Renting has rarely looked this good, particularly in markets with depressed rents and lofty home prices (case in point).

• Will inflation ruin our postpandemic economic party? (The Globe & Mail – Subscription)

• Vancouver homes selling below asking prices and assessments suggest market “headed back to Earth” (The Georgia Straight)

• Urban exodus: How COVID-19 has changed where many of us live, perhaps for good (Ottawa Citizen)

• PBO Warns That Higher Rates Will Impact Government Stimulus Measures (Baystreet.ca)

• OECD raises outlook for Canadian economic growth this year (BNN Bloomberg)

• Equifax: Data suggests Canadians’ financial recovery is uneven (Wealth Professional)

• Fitch Ratings gives Canadian alternative lender high marks (Mortgage Broker News)

• Stress Test transcript: How far would you move to buy an affordable home? (The Globe & Mail – Subscription)

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