According to Canada Mortgage and Housing Corporation (CMHC), the recent decline in new house building projects, increases in housing permits, low interest rates pushing up house prices, and the increased ratio of household debts may signify an imminent housing bubble. The CMHC report also noted that mortgage lending has been on a downward trend for several years now, with only about half as many mortgages being originated each year compared to five or six years ago. That follows a decline of 19.9% in November. Statistic Canada revealed an 11.3% rise ($6bn) in housing permits issued in Canadian municipalities in December 2015, following a 19.9% decline in November 2015, induced by increases in multi-family building plans in Quebec, Ontario, British Columbia and Alberta. The Canadian Central Bank refuses to increase interest rates to control excessive household borrowing. Meanwhile, the “jingle mail” phenomenon returns, where Canadians send keys back to banks in order to exit mortgages.
According to Canada Mortgage and Housing Corporation (CMHC), the recent decline in new house building projects, increases in housing permits, low interest rates pushing up house prices, and the increased ratio of household debts may signify an imminent housing bubble. The CMHC report also noted that mortgage lending has been on a downward trend for several years now, with only about half as many mortgages being originated each year compared to five or six years ago. Statistic Canada revealed an 11.3% rise ($6bn) in housing permits issued in Canadian municipalities in December 2015, following a 19.9% decline in November 2015, induced by increases in multi-family building plans in Quebec, Ontario, British Columbia and Alberta. The Canadian Central Bank refuses to increase interest rates to control excessive household borrowing. Meanwhile, the “jingle mail” phenomenon returns, where Canadians send keys back to banks in order to exit mortgages.