The Blog

Market Commentary – 11/21/12

Market Commentary from First National

Here is the latest market commentary provided by First National Financial LP.


November is Financial Literacy Month and, so far, it has seen the release of two, seemingly, contradictory reports about Canadian debt.


Earlier this month, the Royal Bank reported growth in consumer debt fell 0.7% in the third quarter compared to a year ago (to 5.6% from 6.3%), the slowest pace in more than 10 years. Then, last week, credit reporting agency TransUnion cited a 4.6% increase in consumer debt in the third quarter of this year, compared to a year ago – the fastest pace of increase in two years. But there is a key difference between the two reports: TransUnion’s does not include mortgage debt and RBC’s does.


The difference in the two conclusions appears to rest squarely on the slowdown in the Canadian housing market. It also appears to give some credence to concerns raised by the Canadian Association of Accredited Mortgage Professionals. The group’s chief economist has released a report stating Ottawa’s latest effort to rein-in the housing market is overkill.


The report finds that 11% of potential, high-ratio homebuyers are being knocked out of the market. It extrapolates that the ensuing drop in demand could impact employment and home prices which, in turn, could dampen consumer sentiment with unpredictable, negative consequences for the overall economy.


If you have questions or need some advice or help with your mortgage, please contact me.


Mark Delleman

(604) 889-0050

Leave a Reply

I use technology, experience, dedication, continued training, and education to provide you with the best answers and solutions to your mortgage financing needs.

%d bloggers like this: