Canada Housing Market: 3 Top Stocks to Buy Right Now!

Mortgage stocks such as Equitable Group can allow investors to benefit if the Canadian housing market prices continue to soar.

| More on:
edit Back view of hugging couple standing with real estate agent in front of house for sale

Image source: Getty Images

According to a report from, the average cost of a home in Canada rose 20% year over year to $748,439 in January 2022, which is an all-time record. Further, the MLS Benchmark Price also increased by 23% to $825,800 last month.

While investors are worried about the threat of multiple interest rate hikes this year, there are several reasons why prices of the Canadian housing market will continue to gain pace going forward.

We’ll look at three TSX stocks you can buy right now that provide you exposure to Canada’s housing market.

Equitable Group

Equitable Group (TSX:EQB) provides personal and commercial banking services to retail and commercial customers in Canada via its subsidiary, Equitable Bank. This stock has returned 533% to investors in dividend-adjusted gains since February 2012.

In 2021, total loan originations for the bank increased 39% year over year to $42 billion. Further, it also increased its customer base by 44% to over 250,000 while maintaining a strong CET1 ratio of 13.3%. Its Q4 earnings rose by 12% to $80.1 million while diluted earnings per share stood at $2.29.

Despite its stellar gains, EQB stock continues to trade an attractive valuation. Its forecast to increase its adjusted earnings per share at an annual rate of 20% in the next five years and is trading at a forward price-to-2022-earnings multiple of just 8.5. Analysts expect EQB stock to rise by another 30% in the next 12 months, given consensus price target estimates.

Atrium Mortgage Investment

Atrium Mortgage Investment (TSX:AI) is a small-cap investment company valued at a market cap of $613 million. It provides a range of financing solutions in Canada that includes mortgage loans for residential, multi-residential, and commercial real estate properties.

In Q4 of 2021, its mortgage portfolio rose by 2.9% to $767.1 million. Around 91.4% of its portfolio are first mortgages while 99.3% of its portfolio is less than 75% loan to value. Further, the average loan to value ratio stands at 60.9%.

Its net income in Q4 surged to a record $41.8 million, which was an increase of 6.7% year over year. The stock is valued at a forward price-to-earnings multiple of 14, which is really attractive given it offers investors a dividend yield of 6.3%.

Bridgemarq Real Estate Services

The final stock on my list is Bridgemarq Real Estate Services (TSX:BRE) which is another small-cap company. It provides various services to real estate brokers in Canada and offers a suite of information and tools to assist its client base in the delivery of real estate services. It offers investors a tasty forward yield of 8.1%, making the stock extremely attractive to income-seeking investors.

The company reported sales of $12.4 million in Q3, which was an increase of 16% year over year. It also reported net earnings of $3.9 million compared to a loss of $2.2 million in the year-ago quarter. Bridgemarq’s improved profit margins were driven by an improvement in sales and a gain in the fair value of its exchangeable units.

Its distributable cash flow for Q3 stood at $5.2 million, or $0.41 per share, up from $4.4 million, or $0.35 per share, in Q3 of 2020.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Investing

Man data analyze

If I Could Only Buy 1 Stock Right Now, This Would Be it

Investors will likely benefit from this company’s ability to deliver profitable growth, solid dividend payments, and a low valuation.

Read more »

A worker gives a business presentation.
Dividend Stocks

3 Dividend Stocks You Can Safely Hold for Decades

Here are three of the safest Canadian dividend stocks you can buy right now to hold for decades.

Read more »

Red siren flashing
Dividend Stocks

Buy Alert: This Energy Stock Is Unstoppable After Strong Results

Tourmaline Oil (TSX:TOU) beat earnings and looks unstoppable.

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

1 TSX Sector I’m Bullish on in October 2022

Renewable energy is exactly where investors should sit on their cash, so this is the top stock I'd recommend to…

Read more »

A worker uses a laptop inside a restaurant.

5 Things to Know About Rogers Communications Stock

Rogers Communications (TSX:RCI.B) stock is a big deal, but there are five things you might not know about it.

Read more »

Technology, internet and networking, security concept
Tech Stocks

Why Blackberry Stock (TSX:BB) Fell 16.5% in September

While general macroeconomic weakness hit Blackberry stock hard in September, the company has a lot to look forward to.

Read more »

Electric car being charged
Tech Stocks

3 Stocks That Could be Worth More than Tesla by 2032

Tesla stock is riding high, but these three stocks could someday eclipse it.

Read more »

Female hand holding piggy bank. Save money and financial investment
Dividend Stocks

2 Safe Dividend Stocks to Beat Inflation

Canadian investors, young and old alike, can cope with or even beat inflation by owning two safe dividend stocks.

Read more »