Housing and credit cycles

Booms are built on borrowing

Professional - Gold & Platinum

In this lesson

Recognise the stages of a housing credit cycle and the indicators that warn of a turn.

Key takeaways

Housing cycles are driven by credit: easier borrowing lifts prices, tighter credit cools them.
Rising prices encourage more lending — a feedback loop in both directions.
Warning signs: rising arrears, surging new listings, completions of presold projects.
Canada's high household debt makes its housing especially sensitive to interest rates.

Watch this lesson with Tessa. The full video, worked example, calculator, quiz and Ask Tessa are part of Money Globe X Gold and Platinum. Create your account to start learning.

Next lesson: Property vs REITs

Educational information only - not financial advice.

Create your free account

Free lessons, live markets and the Classroom. Founding members get their first year at a founding price - applied automatically at checkout.

Offer terms