Sebastien Lavoie, Assistant Chief Economist, Laurentian Bank Securities
Stefane Marion, Chief Economist and Strategist, National Bank of Canada
Here are the top 10 sound bites from that session:
“(As far as financial institutions are concerned, when it comes to significant) mortgage growth on balance sheet…that game is over.”—Jestin
“You get worried if you’re talking a 200-250 bps (rate) increase, but we simply don’t see that in the cards.”—Jestin
“If the 5-year yield in Germany is 1/4 point, it can’t be 5% here.”—Lavoie
“My terminal rate for the Bank of Canada overnight rate is 2% (just 100 bps above today).”—Marion
“Economic forecasts can be hazardous to your wealth.”—Jestin
“(Ottawa) could be open to more macro prudential measures, like increasing the down payment…Household indebtedness is still a concern for the Bank of Canada.”—Marion [While a down payment change is possible, he says it wouldn’t happen “until after the election.”]
(Will we see a change in amortization?) “No.”—Marion
“47% of household formation is taking place in Alberta.”—Marion
“Debt divided by disposable income is misleading (as an indicator)…To the extent that your homeownership rate is moving up, your debt-to-income ratio will go up…The home ownership rate will start to level off.”—Marion
“One of these days the 28-year-olds living in basements and playing video games will get out and buy a home.”—Jestin
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