Time for your cheat sheet on this week’s top stories.
Canadian Real Estate
Only One of Canada’s Big Six Banks Expects Real Estate Prices To Rise
Canada’s Big Six banks have released their base case forecasts for real estate prices and only one of them expects prices to rise in the next year. RBC is the most optimistic, expecting prices to rise 2.6% to $732,300 by next year, followed by 5.1% compound annual growth for the next four years. National Bank is the second most optimistic, expecting prices to fall 9.6% over the next year. CIBC, Scotiabank and BMO all expect prices to fall, with BMO having the most bearish outlook, calling a 14.0% drop by next year.
Canada’s Subprime Mortgage Problem Is Growing As Private Loan Use Surges
Canadian regulators are sounding the alarm on private mortgages, as it experiences explosive growth. Traditionally these high interest mortgage