Time for your cheat sheet on this week’s top stories.
Canadian Real Estate
Canada’s Happiness Plunge: Among The Worst Places For Young Adults
Canada once ranked among the world’s best places to live, but not anymore—especially for young adults. The country’s happiness score fell from 6th a decade ago to 25th in 2025, marking the sharpest drop among advanced economies. The spiral is even bigger for young adults, with the country’s youth happiness rank plunging to 71st in the world. Only three countries fell harder: one gripped by mass poverty, one torn by war, one seized by the Taliban.
Canadian Regulator Secretly Threatens Banks Over Risky Mortgages Ahead of 2027
Canada’s banks may be dealing with mortgage borrowers who aren’t richer than they think. In October, OSFI presented concerns regarding the use of stale blanket appraisals to approve mortgages on new construction. Instead of assessing the property’s current value, lenders simply validate the contract price as the property’s current value. Despite heavy redactions, what little was publicly disclosed reveals the regulator’s tone hardening after media scrutiny. By November, OSFI’s concerns escalated into formal warnings, with the regulator citing Bank Act violations. OSFI isn’t just warning about the slowdown—it’s bracing banks for the turbulence ahead.
Ontario Launches $1.3B Toronto Condo Developer Bailout, Warns Bank
Ontario announced a $1.3 billion bailout for Greater Toronto condo developers. The province is launching a public-private partnership to buy recently completed and unsold condos across the GTA and turn them into for-profit rental units. If the idea is to attract investment, it’s a big misfire—this confirms a market so inefficient that it requires state-backed market intervention. BMO Capital Markets warned investors of the bailouts, noting that even a deal of this scale is a drop in the bucket against record-low sales and a flood of incoming inventory.
Canadian Banks’ $7B Side Hustle: Involuntary Real Estate Liquidator
Canadian banks are seeing a surge in mortgage net impairment, expected recoveries from seizing and selling delinquent residential properties. Uninsured mortgage net impairment climbed roughly 150% to $7.2 billion from 2022 to Q1 2026, while home prices plunged 21% over the same period. The picture gets worse with stale blanket appraisals, which risk overstating the value of the homes securing delinquent mortgages.
Canadian Real Estate’s Biggest Crash Since The ‘90s To Worsen: BMO
Canada’s real estate correction isn’t over—and it’s worse than most realize. Home prices dropped 21% over the past four years, the largest correction since the 1990s, according to BMO. Real home prices have fallen back to where they were 9 years ago, as inflation continues to be a headwind. With massive supply on the horizon and inflation set to accelerate, the bank warns things will get worse before they get better.
English (US) · 