This Week’s Top Stories: Bank of Canada’s Real Estate Spin & Speculators Turn To Arson

Time for your cheat sheet on this week’s top stories.

Canadian Real Estate

Bank of Canada Is Pushing A False Real Estate Narrative To Divert Blame: BMO

Last week, the Bank of Canada (BoC) claimed the country has a long-standing housing supply issue. This ticked off a number of experts that have been following this issue, including the economists at BMO. Prior to 2020, housing outpaced household formation and shelter costs were considered affordable across the country. Even the central bank’s housing affordability index demonstrates 20 years of near-record affordability that only ended with a low rate shock that fueled a speculation frenzy. 

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Canada To Limit International Students To Those With Deeper Pockets

Canada’s aggressive pursuit of international students is currently under scrutiny. As social media fills with posts of international students sleeping in tent cities and using food banks, the government is feeling pressure to act. A few days ago the first measure was launched—raising the minimum amount of funds required to study in Canada. However, they mentioned nothing about caps on permits or limits on schools to regions with adequate housing. Apparently the only issue policymakers saw is, those on study permits paying 5x more than domestic tuition, simply aren’t wealthy enough. 

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Two of Canada’s Largest Banks Hit With Anti-Money Laundering Fines

FINTRAC, Canada’s financial crime watchdog, announced compliance fines for RBC ($7.5 million) and CIBC ($1.33 million). During a routine audit, the agency found a number of gaps in the bank’s respective anti-money laundering (AML) reporting procedures. FINTRAC has been working to try and correct its image after BC’s AML inquiry found the agency to be an unreliable resource. 

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Canadian Real Estate Arson May Rise As Economy Slows, Warns Insurer

Canadian insurer Northbridge Insurance has warned that arson of new homes