Time for your cheat sheet on this week’s top stories.
Canadian Real Estate
Canadian Mortgage Arrears Hit A 5-Year High, Banks Shrink Books
Canadian banks saw mortgage arrears hit a five-year high, but that isn’t their only problem. CBA data reveals the mortgage arrears rate climbed to 0.25% in October. At the same time, banks saw the number of total mortgages they hold fall 0.9% from last year. Not only are more borrowers falling behind, but each delinquent mortgage matters more on a bank’s books.
Canadian Rental Vacancies Soar, But Rents Still Outpace Wages: CMHC
Canada’s state-owned mortgage insurer had good and bad news for renters. The good news is the vacancy rate in purpose-built rental buildings hit 3.1% in October 2025, indicating supply grew 40% faster than demand over the past year. The bad news? Average rents for a 2-bedroom apartment climbed a whopping 5.1% over the same period. Despite more vacant apartments for rent and a shrinking population, prices are still growing faster than wages.
Canadian HELOC Debt Climbs To $179B, The Highest Level Since 2019
Canadians are back to using their home equity like an ATM. HELOC debt hit $179.5 billion in October, up 3.9% from a year before. It now sits at the highest level since 2019, with growth rising at an elevated pace. Consumer credit growth is typically observed in a strong economy, as it fuels new consumption. However, the low-rate fueled pre-construction boom is now delivering a flood of mostly investor-owned homes, just as financing hurdles pile up. The surge in HELOC debt likely reflects compounding housing leverage.
Global Real Estate
BIS Warns Government Debt Is So Large It’s Distorting Credit Markets
The central bank for central banks is sounding the alarm on government debt. The Bank for International Settlements (BIS) researchers found that government bonds are losing their traditional discount as investors struggle to absorb the glut. Since these bonds serve as a benchmark, the distortion understates corporate risks and limits a central bank’s ability to control inflation. Not to mention an inflated benchmark pushes the cost of borrowing higher for everything from mortgages to government financing.
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