Canada’s biggest banks will start to report their quarterly earnings this week but strong numbers could detract from the longer-term issues.
While the banks are expected to show rosy outlooks thanks to new US tax rules and rising interest rates, but weaker demand in Canada, and the threat of a NAFTA collapse may mean later challenges.
The banks are also likely to be impacted by the change to the B-20 mortgage rules which came into effect at the start of 2018; that could be a headwind of between 5% and 10% for the lenders.
The Canadian Press reports that the jump in new mortgage applications seen at the end of 2017 as home sales rose 4.5%, has been followed by a rise in the number of big bank-rejections that mortgage brokers have experienced. Clients are increasingly being directed to alternative lenders and credit brokers, the report says.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
More market watch: