Happy Monday Morning! Canadian banks reported first quarter earnings this past week. Those earnings provided an important glimpse into what’s shaping the nations housing market. Deep in the footnotes, CIBC reported that $52-billion worth of mortgages – the equivalent of 20% of the bank’s $263-billion residential loan portfolio were in a position where the borrower’s monthly payment was not high enough to cover the interest portion of the loans. The bank has allowed these borrowers to stretch out the length of time it takes to pay off the loan, which is known as the amortization period. As well, borrowers are adding unpaid interest onto their original loan or principal.
Like trying to fight a war and not take casualties... now the banks are undermining everything the central bank is trying to do because nobody wants to take the pain. Justin will get out just in time and it will be Pierre's fault (remember the state of the US when Obama took office the first time around)
Always super informative content from Steve, love the open minded, objective analysis. Its quite transparent in your writing and my recent discovery - The Looney Hour 👍 been tuning in 🫡
That was a great write up. The market may not even fall too much more in price. You may have a sideways market for years with low inventory and depressed sales. The cities need to create a lot more rental housing and I think leaders need to look more into what David Eby is doing.
This is the best information to describe why prices have remained elevated. Unbelievable!
Like trying to fight a war and not take casualties... now the banks are undermining everything the central bank is trying to do because nobody wants to take the pain. Justin will get out just in time and it will be Pierre's fault (remember the state of the US when Obama took office the first time around)
Always super informative content from Steve, love the open minded, objective analysis. Its quite transparent in your writing and my recent discovery - The Looney Hour 👍 been tuning in 🫡
I've been developing weekly stats for TO and surrounding areas for my reps, also watching bond yields, etc. Great information and insight. Thanks!
That was a great write up. The market may not even fall too much more in price. You may have a sideways market for years with low inventory and depressed sales. The cities need to create a lot more rental housing and I think leaders need to look more into what David Eby is doing.
Thank you for the thoughtful analysis, Steve!