More commentary has come out on the exceptional levels of household debt in Canada. These sometimes speak directly to the issue, such as described in the Borrowing Binge in the Vancouver Sun, or as a negative outlook provided by Moody’s when assessing the exposure of Canada’s banks. The latter makes explicit references the level of […]
While the cost of housing has prompted much debate, too little attention is on the heavy subsidies granted to residential real estate investment and the way in which these subsidies have caused price inflation. Fortunately, the Government of Canada mortgage insurance program is being scaled back. The restrictions introduced late in 2016 are ‘cooling the […]
Canada Mortgage and Housing Corporation (“CMHC”) has created what could be called a mortgage insurance empire. With a book totaling $526B in 2015, that book alone was larger than Canada’s fifth largest bank and exceeds 1/3 the total all outstanding residential mortgages in Canada. This coverage is sold through banks, credit unions and other lenders. […]