Top mortgage stories of the week:

• Toronto not in condo bubble: RBC
• Debt-burdened Canadians succumb to lure of long-term car loans
• New home sales drop in U.S.

This Week's Quotation:

“Do not go where the path may lead, go instead where there is no path and leave a trail. ” - Ralph Waldo Emerson

Toronto not in condo bubble: RBC

Fears of a condo bubble in Canada's biggest housing market are overblown, according to a new report from the Royal Bank of Canada. RBC's senior economist Robert Hogue said in the report Tuesday that demand in Toronto is in line with supply, contradicting claims that a condo bubble has emerged in the city. He said that Toronto's condo building frenzy over the last few years is mainly a response to the steep drop in new single-family homes being built… Read more....

Debt-burdened Canadians succumb to lure of long-term car loans

Massive mortgage debt is top of mind for Bank of Canada Governor Mark Carney, but in his quest to curtail Canadians' borrowing, he might want to start thinking about the vehicles sitting in their driveways and garages, too. The use of long-term loans to purchase new vehicles is skyrocketing, as car buyers look for ways to cut or hold steady a key component of a family's spending – the monthly car payment… Read more....

New home sales drop in U.S.

New home sales recorded their biggest drop in more than a year in June and prices resumed their downward trend, dealing a setback for the budding housing market recovery. Single family home sales tumbled 8.4% to a seasonally adjusted 350,000-unit annual rate, the lowest rate in five months, the Commerce Department said on Wednesday. The percent decline was the largest since February 2011 and much of the drop in sales last month reflected a record 60% plunge in the Northeast, which had enjoyed hefty gains since December last year… Read more....