Home Capital Group reports higher earnings but below analyst expectations

TORONTO — Home Capital Group Inc. says it earned nearly $30 million in its most recent quarter, but fell just short of analyst estimates.The Toronto-based mortgage lender’s net income for the second quarter of its 2018 financial year was $29.6 million compared to a $111.1 million loss in the same quarter the previous year.It says its diluted earnings per share were 37 cents for the quarter ended June 30, compared to a loss of $1.73 per share in the second quarter of its 2017 financial year.Home Capital receives new credit line from two Canadian banks as Buffett backing expiresEvidence of mortgage fraud in Canada raises red flag at credit rating giantAnalysts surveyed by Thomson Reuters Eikon estimated a net income of $31.16 million or 38 cents per share for the quarter.CEO Yousry Bissada says in a statement that the company experienced its third consecutive quarter of mortgage origination volume growth, up 10 per cent or $112.1 million from $1.12 billion in the second quarter of 2017 to $1.23 billion in the second quarter of this financial year.He says the company’s core residential and commercial lending business continued to show resilience amid factors like rising interest rates and a softer Canadian housing market. read more

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Vancouver we have a problem CMHC rings alarm bells about real estate

A sold sign is pictured outside a home in Vancouver on June, 28, 2016. Canada’s national housing agency rang more alarm bells about Vancouver’s real estate sector after it released a report Wednesday saying there is now strong evidence of problematic conditions in the city. THE CANADIAN PRESS/Jonathan Hayward Vancouver, we have a problem: CMHC rings alarm bells about real estate market TORONTO – Canada’s national housing agency rang more alarm bells about Vancouver’s real estate sector after it released a report Wednesday saying there is now strong evidence of problematic conditions in the city.In a quarterly housing market assessment released Wednesday, Canada Mortgage and Housing Corp. increased its risk rating for Vancouver to its highest level for the first time since it began releasing the reports last year.The housing agency said it is seeing evidence of an overheated market, which occurs when demand outstrips supply, and price acceleration in the city. Previously, it had said there was strong indications of overvaluation as prices for single detached homes have soared higher than what economic fundamentals can support.Robyn Adamache, a principal market analyst for CMHC, said there have been signs of overheating in Vancouver’s real estate market for some time, but the agency didn’t want to prematurely signal that warning.“We had been waiting for a couple of quarters of evidence to be able to make that call,” Adamache said.“And part of what contributed to making that call this quarter is that we have started to see the multi-family sector, including both townhomes and apartments, also moving into overheated conditions in terms of the sales to new listings ratio, whereas before it was only on the single-family side.”CMHC’s assessment comes as the B.C. government plans to implement several measures, including a 15 per cent tax for foreigners purchasing property, in an effort to cool down house prices that are among the highest in North America.CMHC chief economist Bob Dugan said it’s too early to say what effects the tax will have on Vancouver’s real estate market.“This is an announcement that came out very recently,” Dugan said. “We haven’t had time to update any forecasts to take this tax into account. There are a lot of unknowns.”Earlier this month, the Real Estate Board of Greater Vancouver reported that the benchmark price for all residential properties in Metro Vancouver was $917,800 in June, a 32 per cent jump from the same month last year.CMHC’s report Wednesday also said that evidence of problematic conditions in Canada’s housing market as a whole has risen from weak to moderate, although Dugan cautioned against jumping to any conclusions based on the national figures.“I wouldn’t spend a lot of time focusing on the Canada-wide numbers,” Dugan said.“When you get down to the CMAs (census metropolitan areas), there’s a large variation from one place to the next. So really what you have to look at is where you live or what your part of the country looks like.”Toronto, Calgary, Saskatoon and Regina all showed strong evidence of problematic conditions, according to the report, while real estate markets in Edmonton, Winnipeg, Hamilton, Montreal and Quebec have exhibited moderate evidence of imbalances.The housing agency says imbalances occur when overbuilding, overvaluation, overheating and/or price acceleration depart significantly from historical averages.Overall evidence of problematic conditions has decreased in Ottawa since the previous CMHC housing market assessment in April.The assessment is intended to be an early warning system to alert Canadians about problematic conditions developing in the country’s real estate markets. It covers 15 regional markets and the national housing market as a whole.Follow @alexposadzki on Twitter. by Alexandra Posadzki, The Canadian Press Posted Jul 27, 2016 10:49 am MDT Last Updated Jul 27, 2016 at 4:40 pm MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email read more

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