Better Dwelling ~ May 26th, 2024

Canadian Bank Regulator Sees Mortgage Defaults Rising, 1 In 7 Of Concern

Canada’s bank regulator is warning that mortgage debt is one of the biggest risks to the country. OSFI released its annual risk outlook and mortgage credit was one of the top 4 biggest threats to the financial system. In particular, the large sums people have borrowed and the potential for those sums to become more burdensome at rate renewal. Roughly 1 in 7 dollars of outstanding mortgage credit is vulnerable to substantial payment shock.

Canadians Fleeing Toronto & Vancouver Accelerated To A Record Pace: BMO

Flight from Canada’s big cities was supposed to be a temporary issue during the pandemic. That’s not the case according to the latest interprovincial migration data, which shows the flight from Toronto, Vancouver, and Montreal have accelerated. BMO believes the trend was expected and started before the pandemic. A lack of affordability accelerate the move though, and combined with more work places embracing remote work, the country’s biggest economies will see a rapid shift—not necessarily a good one.

Canadian Renters Have Relief On The Horizon As Rents Slow: BMO

Canadian renters may finally be able to sigh in relief. The latest inflation data shows CPI shelter slowed down, notably the rent sub component. While still robust, shorter-term trends show the growth rate is hitting a wall. BMO believes the trend is driven by an increase in rental vacancies, as well as lower expectations when it comes to future growth as immigration moderates.

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