Making sense of the markets this week: June 23, 2024 + MORE Jun 23rd

Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
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Should you get a 30-year mortgage?  + MORE Jul 8th

Signing a 30-year mortgage in Canada can be an attractive option for some home buyers in the face of relentless real estate prices and historically high interest rates. Specifically first-time home buyers and those now renewing their mortgages. While prices in Toronto have fallen slightly, with .... More »
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Making sense of the markets this week: July 14, 2024 Jul 14th

Kyle Prevost, creator of 4 Steps to a Worry-Free Retirement, Canada’s DIY retirement planning course, shares financial headlines and offers context for Canadian investors. Are U.S. rate cuts on the way? While Canada’s inflation rate is obviously at the forefront around decision making.... More »

The latest mortgage news: Variable-rate mortgages are making a comeback + MORE Jun 29th

Mortgage borrowers are increasingly opting for variable-rate mortgages, a trend that is expected to continue as the Bank of Canada continues to lower interest rates..... More »

Weekly mortgage digest: Which big banks just dropped fixed rates? + MORE Jul 11th

After a spike in bond yields last week prompted some mortgage lenders to increase certain rates, fixed mortgage rates are again trending downward..... More »
Making sense of the markets this week: June 23, 2024Kyle Prevost, creator of 4 Steps to a Worry-Free Retirement, Canada’s DIY retirement planning course, shares financial headlines and offers context for Canadian investors.

We’re building more houses—and prices are down!

On Monday, the Canada Mortgage and Housing Corporation announced housing starts rose from 241,111 units in April to 264,506 units in May: good for a 10% increase. The pace was highest in Montreal, where starts were up 104%, and in Toronto, they were notably up 47%. That’s a pretty good clip, considering how high interest rates are at the moment.

While it would be statistically correct to say that this level of housing starts is near historically high levels, that doesn’t quite tell the whole story.

Source: Statista.com

To get a more accurate historical perspective, we should consider the housing starts per capita over the years. After all, Canada’s higher population should mean more capital, carpenters, electricians and other factors of production that go into housing creation, right?

Source: Brent Bellamy on X

Perhaps we’re moving in the right direction, but we’ll need a major uptick in housing starts before we have proportionately the same housing creation numbers as we did back in the heyday of the 1970s…

Continue Reading On moneysense.ca »

Online mortgage lender Nesto says it has acquired mortgage finance company CMLS Group. 

Continue Reading On canadianmortgagetrends.com »

Payment shocks at renewal due to shorter mortgage terms have become a growing concern. This has led some to question whether adopting longer mortgage terms would provide greater financial stability.

Continue Reading On canadianmortgagetrends.com »

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