MLN NewsStream

Over 300 individual private lenders are reportedly caught up in the collapse of a would-be real estate empire.

The property portfolio totals hundreds of rental units, assembled partly by internet personality and self-promoted "successful investor," Dylan Suitor. More than $144 million of leverage was used. Much of that debt is now in jeopardy.

Something doesn't feel right about this CPI fight. It's like central banks are trying to put out the inflation fire as someone pours gasoline on it.

On the one hand, Fed chief Powell said on Wednesday that rate cuts are likely sometime "this year." He celebrated America's "six months of good inflation data" and confirmed the U.S. policy rate is "likely at its peak."

On the other hand, real-time U.S. GDP estimates have suddenly surged to 4.2%, over double the rate that's historically conducive to disinflation. And that strength—as long as it holds—will also keep Canadian inflation higher than it would be, despite Tiff Macklem's attempts to downplay this threat.

Add that to Canada's hot core inflation readings and the fact that Canadian GDP has been pacing at 3%+ annualized growth over the last two months.

No doubt, more borrowers are starting to wonder if the market's June rate cut timing is ambitious.

What do mortgage shoppers do about it?

Fixed-rate funding costs have barely budged for ten days. That's visible in the 4-year swap (below), the closest thing to a fortune teller when it comes to predicting near-term uninsured fixed-rate changes.

This week's got three data thrillers that could break us out of this range, however:

ICICI Bank Canada, a wholly-owned subsidiary of India's second-largest bank, has cut the cord with mortgage brokers.

It's the comeback story of the year in Canada's mortgage market. As MLN first reported seven months ago, BMO is looking to shake up the industry after an almost 17-year absence from the broker channel.

Brokers, always in need of better prime uninsured mortgage options, have waited a long time for this. And now, that wait is over because by this time next week, the banking giant will be underwriting 3rd-party deals.

For the lowdown on BMO's broker rates, products and secret sauce, we caught up with Hassan Pirnia, Head of Home Financing and Personal Lending Products at BMO, and Justin Scully, Head of BMO BrokerEdge, the bank's new broker division.

If you're in the mortgage game and need to understand how this affects your business, you'll want to hear what they said...