Finally, mortgage renewals have entered a new era MATT LUNDY Full article can be seen here: https://www.theglobeandmail.com/investing/personal-finance/household-finances/article-finally-mortgage-renewals-have-entered-a-new-era/ As Canadian mortgages come up for renewal, many households are starting to experience what TD Economics has dubbed a “completely new phenomenon” – higher interest rates. In a recent report, TD looked at the change to the conventional five-year mortgage rate over its term length. Essentially, this shows where rates for a popular product – the five-year, fixed-rate mortgage – stand upon renewal. For much of the past quarter-century, the change has been negative, meaning Canadians could expect lower rates come renewal time. But earlier this year, the difference…

The world of easy money transformed Canada into debt nation. That world is coming to an end Our parents and grandparents borrowed with the intention of paying it back. We don't think like that anymore Theresa Tedesco · for CBC News · Posted: Oct 24, 2018 4:00 AM ET | Last Updated: October 24 Full article can be seen here: https://www.cbc.ca/news/opinion/debt-opinion-1.4874956 That Canada is a country of borrowers, not savers, is now a given. Accumulating high levels of household debt has become a necessity for a modern life – and arguably, a new normal. Currently, Canadians owe $1.69 for every dollar of after-tax income we earn a year. That ratio is down…

Bank of Canada Raises Rates to 10-Year High STEVE HUEBL  OCTOBER 24, 2018 Full article can be seen here: https://www.canadianmortgagetrends.com/2018/10/bank-canada-raises-rates-10-year-high/ The Bank of Canada today delivered a widely expected quarter-point increase to the overnight target rate, raising borrowing costs for millions of Canadians. Citing an economy that is operating “at capacity” and modest wage growth, the BoC noted in its statement that the “policy interest rate will need to rise to a neutral stance to achieve the inflation target.” That neutral range, it says, is between 2.50% and 3.50%, suggesting additional rate increases of 75-100 bps. Removed from previous statements was the word “gradual” concerning future rate increases. The BoC…

Condo flippers aren’t the Vancouver and Toronto housing culprits By ERIK HERTZBERGBloomberg GREG QUINN Mon., Oct. 15, 2018 Full Article can be seen here: https://www.thestar.com/business/2018/10/15/condo-flippers-arent-the-vancouver-and-toronto-housing-culprits.html OTTAWA—Condo flipping was never pervasive in the Vancouver and Toronto housing booms and that sliver of the market has faded over time, suggesting tougher measures to curb speculators won’t make those cities more affordable. Just 3.4 per cent of Vancouver condominiums sold between April and June were units that had already been sold over the previous year, according to data compiled by Bloomberg from Teranet Inc.’s land and housing registry. The share of “paired sales” is close to the 2.9 per cent average…

Housing stress test disproportionately harms young homebuyers: mortgage industry Ryan Flanagan, Web Journalist, CTVNews.ca Full Article can be seen here: https://www.ctvnews.ca/business/housing-stress-test-disproportionately-harms-young-homebuyers-mortgage-industry-1.4136117 Published Tuesday, October 16, 2018 11:42AM EDT  Last Updated Tuesday, October 16, 2018 3:29PM EDT A recently toughened stress test is making it more difficult for young people and newcomers to the country to buy homes, Canadian mortgage industry leaders say. The stress test requirement came into effect in January. Anyone taking out an uninsured mortgage must be able to prove that they could continue to make their payments if their interest rate rose by two per cent, or to two per cent more than the Bank…

CMHC says annual pace of housing starts slowed in September CBC October 9, 2018   Full article can be seen here: https://ca.news.yahoo.com/cmhc-says-annual-pace-housing-164200343.html   The annual pace of Canadian housing starts fell to their lowest level in nearly two years in September. Canada Mortgage and Housing Corp. says the seasonally adjusted annual rate came in at 188,683 units last month, down from 198,843 in August. Thomson Reuters Eikon says economists had expected an annual rate of 210,000 for September. September marks the third straight monthly decline. The slowdown in the pace of housing starts comes amid rising interest rates from the Bank of Canada, and more restrictive mortgage rules. "The September…

Why advocates say expropriating unused buildings could help solve Toronto's housing shortage As election nears, advocates are pushing city to take over several lots on Sherbourne Street Lauren Pelley · CBC News · Posted: Oct 13, 2018 5:00 AM ET   Full article can be seen here: https://www.cbc.ca/news/canada/toronto/sherbourne-expropriation-solve-affordable-housing-shortage-1.4859383 On a brisk Thursday afternoon, dozens of housing advocates and community members gathered together on Sherbourne Street in front of a chain link fence. On the other side? A massive, empty lot. Attendees at the rally, organized by the Ontario Coalition Against Poverty (OCAP), are calling on the city to expropriate the land, and a nearby house, then transform it…

Toronto's luxury purpose-built rental market is booming A new crop of rental projects, chockfull of luxury amenities like yoga rooms and dog runs, is shaking up Toronto’s bleak housing market BY SAMANTHA EDWARDS  Full article can be seen here: https://nowtoronto.com/lifestyle/real-estate/purpose-built-rental-boom/ SEPTEMBER 19, 2018 4:19 PM In the last five years, housing options for renters in Toronto have been bleak. You could rent an apartment in an old high-rise, a floor in a chopped-up Victorian house or a unit in a condominium, where at any moment you might face eviction if the owner decides they want to move in.  However for the first time in decades, there’s been…

Bank of Canada Rate Hike by .25% The Bank of Canada has raised it interest rate to 1.5% up 0.25%.  This is an indication that the Canadian economy has been improving. What does this mean for your mortgage or your buying power?  Give us a call and see what options are available for you if you are considering buying or refinancing.  A quick call could save you thousands of dollars. Click here to contact us with any questions, anytime, we’re happy to help you with mortgage refinancing in Toronto and surrounding areas. Contact Peter Menicucci Your #1 Toronto Mortgage Broker and Direct Lender for Private…

Mortgage growth is slowing, but home equity loans are ticking up at twice the pace, says CMHC As per CMHC numbers, new mortgage loans down 7.7% from last year in Canada. CMHC says the number of consumers with a mortgage loan in the fourth quarter reached its highest point in the last three years. See the article indicating this info here: https://business.financialpost.com/personal-finance/debt/mortgage-debt-increases-at-slower-rate-amid-decreasing-home-sales-cmhc If you are seeking a home equity loan, home equity line of credit, or any other type of mortgage financing we can assist you with that.  Verico The Mortgage Leader is a Toronto based Mortgage Brokerage with access to multiple lenders.  Let us…

Housing affordability at 'crisis level' in Canada's most expensive market, say economists Cost of buying a home in Vancouver reached its highest levels on record in 1st quarter According to the following article, housing has reached a "Crisis" level.  Higher home prices, along with higher interest rates and the new "Stress Test" are all contributing factors to this. "Affordability is a major issue in two of Canada's largest markets. It's at crisis levels in Vancouver and poses a tremendous challenge for many Toronto-area buyers despite improving in the past two quarters," said Robert Hogue, senior economist at RBC Economic Research, in the report. The full article…

Canada debt-to-income ratio hits two-year low as rates set to rise By David Ljunggren and Fergal Smith ReutersJune 14, 2018 Full Article can be seen here: https://ca.news.yahoo.com/canada-debt-income-ratio-hits-two-low-rates-145249687--sector.html OTTAWA/TORONTO (Reuters) - Canadian household debt as a share of income slipped in the first quarter to a two-year low, a development sure to please policymakers worried about the pain that rising interest rates will cause. The ratio of debt to disposable income - which hit a record 170.0 percent last year - fell to 168.0 percent from 169.7 percent in the fourth quarter, Statistics Canada said on Thursday. This was its lowest since the 165.4 percent recorded in…

Canadian mortgage borrowing drops to lowest level since 2014 BNN Bloomberg Full Article can be seen here: https://www.bnnbloomberg.ca/canadian-mortgage-borrowing-drops-to-lowest-level-since-2014-1.1092931 Mortgage activity in Canada has dropped to the lowest level since 2014, falling by $2 billion to $13.7 billion in the first three months of the year, according to Statistics Canada data released Thursday. The slump in mortgage borrowing is a fresh sign that the effect of Canada’s new B-20 mortgage stress test rules and higher interest rates are taking hold in the country’s housing markets. The value of residential resale activity declined 17 per cent, Statistics Canada said. Meanwhile, credit-market debt such as mortgages fell to 168…

FP Live: What's in store for the housing market Watch FP Live on now for a full show on real estate, coast to coast — and yes, there will be a quiz Full article can be seen here: http://business.financialpost.com/real-estate/fp-live-housing-affordability-coast-to-coast Financial Post Staff June 14, 2018 11:05 AM EDT https://youtu.be/29amtobrAPA Ontario has a new premier and a new government, does that mean new housing policy for the province? Join Financial Post’s Larysa Harapyn today at 11 a.m. ET as FP Live sits down with Murtaza Haider of the Ted Rogers School of Management and Stephen Moranis of Forest Hill Real Estate to look at the potential impact of Ontario’s…

Sales continue to sink in Toronto’s housing market Full Article can be seen here: http://www.baystreet.ca/articles/baystreetschool/39683/Sales-continue-to-sink-in-Torontos-housing-market Baystreet Staff - Tuesday, June 12, 2018 By: Zoocasa Toronto housing market sales continue the way they’ve been going the entire first quarter of 2017 down. This May, sales have fallen by double digits for all market types in the 416, says the Toronto Real Estate Board (TREB). One reason TREB gives for slow sales is that buyers are unable to find a home that meets their needs: “In a recent Canadian Centre for Economic Analysis study undertaken for the Toronto Real Estate Board, it was found that many people are over-housed…

Shockingly high Toronto home prices making millennials’ hunt for housing a frustrating ordeal There's only a handful of cities in the world that make living in New York seem cheap for middle-income people — add Toronto to the list Full Article can be seen here: http://business.financialpost.com/real-estate/shockingly-high-toronto-home-prices-making-millennials-house-hunting-a-frustrating-ordeal Bloomberg News Natalie Wong June 6, 2018 1:19 PM EDT There’s only a handful of cities in the world that make living in New York seem cheap for middle-income people, places like London, Sydney and Hong Kong. And then there’s Toronto, as 26-year-old JunJun Wu will tell you with a sigh. After almost three years in New York she opted to move…

Toronto home prices inch higher, owners stay on sidelines amid worst sales slump in almost 10 years Sellers are holding back to see if things improve, leading to strained supply and stiffer competition between buyers, which is buoying prices Bloomberg News  Erik Hertzberg and Natalie Wong  June 4, 2018  12:34 PM EDT Full Article can be seen here: http://business.financialpost.com/real-estate/toronto-home-prices-inch-higher-owners-stay-on-sidelines-amid-worst-sales-slump-in-almost-10-years Prices for Toronto homes climbed in May as buyers competed for fewer new listings amid the worst sales slump in almost a decade. Sales dropped 22 per cent to 7,834, compared with the same month last year, according to data Monday from the Toronto Real Estate Board. Seasonally…

How various Ontarians are faring in the province's housing market BY ARMINA LIGAYA, THE CANADIAN PRESS POSTED MAY 31, 2018 1:53 PM EDT    LAST UPDATED MAY 31, 2018 AT 2:40 PM EDT Full Article can be seen here: http://toronto.citynews.ca/2018/05/31/how-various-ontarians-are-faring-in-the-provinces-housing-market/ Housing affordability is a major issue for many Ontarians getting set to cast their ballots in the provincial election. The governing Liberals brought in measures last year that, along with higher interest rates and tighter mortgage lending regulations, led to a modest cooling in home pricing and activity after the market reached dizzying heights. But average home prices and rents in Ontario are still above national averages, and…

How speculators inflated the Toronto housing bubble At the height of the mania, investors accounted for one in five home sales in parts of the GTA, says a new report by Joe Castaldo  Apr 12, 2018 Full Article can be seen here: https://www.macleans.ca/economy/realestateeconomy/how-speculators-inflated-the-toronto-housing-bubble/ There are many culprits behind last year’s unsustainable rise in Toronto house prices, with experts blaming everything from foreign buyers to lack of supply. But a new report singles out another major factor: speculative investment. Toronto brokerage Realosophy Realty Inc. found 16.5 per cent of low-rise houses in the Greater Toronto Area were purchased by investors during the first quarter of 2017, the peak of the bubble.…

Bank of Canada keeps interest rate at 1.25%, but economists predict hike in July By Erica Alini  National Online Journalist, Money/Consumer  Global News Full Article can be seen here: https://globalnews.ca/news/4241700/bank-of-canada-interest-rate-announcement-may-30-2018/ After lifting rates from 1 per cent to 1.25 per cent in January, the bank has held back through three consecutive rate announcements in March, April and May. But BoC watchers believe central bank governor Stephen Poloz is likely gearing up for another hike at the bank’s next monetary policy rendezvous on July 11. “The tone of the statement was more hawkish than expected, with the concluding paragraph dropping two strong hints that a July hike is…