Early cracks in household credit hint at mortgage stress by 2026, CIBC’s Benjamin Tal warns + MORE Nov 6th

Canadians should soon have a new banking option as Questrade Financial Group says it has secured regulatory approval to launch Questbank. The company, known for its online trading platform, said Monday it received the final go-ahead from the Office of the Superintendent of Financial Institutions. “We’re Canada’s newest bank today,” Questrade chief executive Edward Kholodenko said. “So Happy Birthday to Questbank.” 

The company, however, won’t be rolling out new offerings immediately. Kholodenko said more details will be coming in the first half of next year on what’s in store, but that they haven’t ruled any categories out yet. “We’re working toward a full suite of services for Canadians.”

Fintechs eye credibility through regulation

The move comes as other fintech companies also push more into the banking space, including Wealthsimple Inc. which has been expanding its offerings into chequing accounts, credit cards, and mortgages as its assets under administration have grown to more than $100 billion…

The median age of first-time homebuyers in the U.S. has climbed to a record of 40 as soaring prices and mortgage rates over the last few years delay homeownership for millions of Americans.

Questbank’s launch signals the online brokerage’s biggest expansion yet, and could shake up Canada’s retail lending market

For too long, Canada’s self-employed have faced a maddening paradox. The very financial strategies that prove your business savvy—like maximizing deductions to lower your taxable income—often become the biggest roadblocks to securing a mortgage.

As a mortgage broker, I see this scenario play out every week. I meet brilliant entrepreneurs, skilled contractors, and creative freelancers who have thriving businesses and excellent cash flow. Yet, they get turned away by traditional lenders fixated on a single line on a tax return. The story is always the same: “My business is having its best year ever, but the bank says I don’t make enough money.”

If this sounds familiar, take heart. The landscape has changed. Lenders and mortgage insurers now recognize the unique financial reality of the self-employed. A new generation of intelligent mortgage products has arrived, designed to look beyond your declared income and see the true financial strength of your business…

Household credit strain is creeping in at the edges, and CIBC economist Benjamin Tal says it could spread to mortgages as payment shocks peak next year.