Real Estate

Short-term relief from Bank of Canada rate hold and more Canadian real estate news for September 9

Open this photo in gallery:

Home of the Week: 5036 Vanstone Crescent NW, CalgaryHayden Pattullo/Hayden Pattullo/Damon Hayes Couture

Here are The Globe and Mail’s top housing and real estate stories this week, with the lowest mortgage rates available in Canada today, commentary from our mortgage expert and one home worth a look.

Take The Globe’s business and investing news quiz

Homeowners with mortgages to get short-term relief, but future Bank of Canada rate hikes a ‘looming’ fear

The Bank of Canada announced Wednesday it was holding its key interest rate steady at 5 per cent, but borrowers shouldn’t celebrate just yet. Due to the rising concern about inflation, the bank is leaving the door open to future hikes. Rising rates have affected homeowners with variable-rate mortgages, reports Rachelle Younglai. This week’s decision has some borrowers in a state of “constant looming fear” that a hike in the future will

Read more
Real Estate

Canadian bank earnings at risk from office real estate exposure

Commercial real estate loans represent the second-largest lending exposure of Canada’s six largest banks

Get the latest from Barbara Shecter straight to your inbox

Article content

Canada’s banks may not be as exposed to commercial real estate as their counterparts in the United States, but that doesn’t mean their earnings aren’t at risk, particularly from the office segment pummelled by remote work, according to a prominent Bay Street analyst.

Advertisement 2

Read more
Real Estate

Billions of Dollars of Bad Real-Estate Debt Could Mean Big Bank Losses

  • Lenders, including major banks, are expanding their provisions to guard against loan losses.
  • The rapidly growing reserves reflect concerns about the health of commercial-real-estate debt.
  • The provisions put a drag on earnings, curtail lending, and could spur a cash crunch for some banks.

This earnings season, some major banks bucked tumult in the sector by raking in record revenues and surpassing Wall Street expectations.

But a blemish is building on the balance sheets of a growing number of financial institutions, in the form of cash reserves that banks and other lenders are required to collect against expected loan losses — including souring debts tied to commercial real estate. 

The reserves, stagnant money that doesn’t earn a return, place a drag on earnings, curtail lending, and show how hundreds of billions of dollars of problem real-estate assets, such as office buildings, are beginning to inflict wider financial damage.

The US’s four

Read more
Real Estate

What’s next for the Bank of Canada, and why mortgage holders are still holding on: This week’s top real estate stories

Royal LePage Terrequity Realty

Here are The Globe and Mail’s top housing and real estate stories this week, with the lowest mortgage rates available in Canada today, commentary from our mortgage expert and one home worth a look.

The Bank of Canada holds off on interest-rate hikes, but the door remains open

The Bank of Canada held its benchmark interest rate at 4.5 per cent this week, pausing its year-long campaign to increase borrowing costs. The widely anticipated decision makes the Bank of Canada the first major central bank to halt monetary-policy tightening and puts it on a different trajectory than the U.S. Federal Reserve, whose officials have said they expect to increase interest rates several more times.

This sounds like good news for borrowers, but central bank officials say they need more evidence that the economy is cooling and inflation is slowing before ruling out further interest-rate hikes, reports

Read more