Canadian housing once again driving our economy even as Toronto stumbles Strength of western provinces shows sustained national recovery Bloomberg News Erik Hertzberg November 15, 2019 11:12 AM EST Full Article can be seen here: https://business.financialpost.com/real-estate/toronto-decline-vancouver-recovery-leave-canadian-home-sales-flat   Canadian housing sales took a breather as activity in Toronto pulled back, but strength in the western provinces highlights a sustained recovery at the national level. Home sales were little changed in October after seven straight months of gains, according to data released Friday by the Canadian Real Estate Association. Toronto was a major drag, posting a 2.9 per cent decline, the biggest drop since February. Still, renewed momentum in Vancouver and…

These Homeowners Need a Private Mortgage ROSS TAYLOR NOVEMBER 13, 2019 Full Article can be seen here: https://www.canadianmortgagetrends.com/2019/11/these-homeowners-need-a-private-mortgage/ Most of us don’t give much thought to private mortgages. We are vaguely aware they exist, but perhaps have the impression they are mortgage solutions for financial derelicts. But that is totally not true. More often than not, they are needed when bad things happen to good people. And private mortgages and B-lender mortgages are the fastest-growing segment of the Canadian mortgage industry. One reason is because it’s much harder to qualify for an A-lender mortgage now than at any time in recent memory. High home prices, in major cities…

National housing market now characterized by more balanced conditions by Ephraim Vecina 13 Nov 2019 Full article can be seen here: https://www.mortgagebrokernews.ca/news/national-housing-market-now-characterized-by-more-balanced-conditions-321829.aspx Despite a modest degree of vulnerability remaining, the Canadian residential market is now exhibiting “much narrow imbalances,” according to the federal housing agency. A new quarterly report by Canada Mortgage and Housing Corp. stated that the average housing price nationwide ticked down by 0.6% annually during Q2 2019. Meanwhile, the population of young adults expanded by 1.9% during the same time frame, boosting the number of potential first-time home buyers. For the third consecutive quarter, CMHC cited “moderate” risk for the national market. This was after…

Why the mortgage stress test has proved so controversial for first-time homebuyers — and retirees There are some ways you can prepare for a mortgage stress test Nicholas Sokic November 7, 2019 2:07 PM EST Full Article can be seen here: https://business.financialpost.com/real-estate/mortgages/mortgage-stress-test-first-time-homebuyers-and-retirees Buying a new home is already a stressful experience. With last year’s introduction of a mortgage stress test for all aspiring homeowners, that has only become more so. There are several requirements to meet before a successful application, and the aspiring homeowner must be sure they will be able to meet the monthly payments before applying. WHAT IS IT? The mortgage stress test is designed to ascertain that the applicant…

Time is now with GTA’s housing-supply crunch By Dave Wilkes BILD President & CEO Fri., Nov. 8, 2019 Full Article can be seen here: https://www.thestar.com/life/homes/advice/2019/11/08/time-is-now-with-gtas-housing-supply-crunch.html Like all markets, the housing market in Ontario is driven by the laws of supply and demand. Strong demand for housing has created a persistent supply challenge that can only be solved, simply, by boosting the number of new homes being built. This approach makes sense. It is supported by numerous economists and academics. This is why the Building Industry and Land Development Association is encouraged by the provincial government’s focus on boosting housing supply. Every month, BILD releases the previous month’s new…

Toronto real estate exits the red zone for the first time in four years, says CMHC By Tess Kalinowski Real Estate Reporter Thu., Nov. 7, 2019 Full Article can be seen here: https://www.thestar.com/business/2019/11/07/toronto-real-estate-exits-the-red-zone-housing-is-now-less-overvalued-says-cmhc.html Canada’s national housing agency has moved the Toronto region housing market out of the high-risk red zone into the moderate yellow area for the first time since 2015. There are still signs that the area’s market is vulnerable to price acceleration and overheating, but overvaluation — where home prices exceed income levels by an excessive amount — eased from moderate to low in the first three quarters of the year, said Canada Mortgage and…

Toronto housing prices jump the most since 2017 — the year the market peaked Sales jumped 14%, with detached and townhouses leading the biggest gains Natalie Wong and Erik Hertzberg November 5, 2019 2:45 PM EST Toronto’s housing market continued to bounce higher in October, with prices rising the most in almost two years amid dwindling supply. The benchmark price, which accounts for differences in the type of homes sold, rose 5.8 per cent from a year ago to $810,900, the Toronto Real Estate Board said in a report Tuesday. That’s the biggest jump since December 2017 and takes it to within about $4,300 of…

Toronto at Highest Risk of Housing Bubble in North America  CRISTINA OPREAN , OCTOBER 29, 2019 Full article can be seen here: The annual UBS Global Real Estate Bubble Index 2019 report revealed that seven cities in North America are at risk for a prospective housing bubble. Toronto tops the list, followed by Vancouver. The study looked at 24 major cities worldwide and analyzed rent prices in relation to incomes, mortgage changes and construction levels. The data showed that some markets are accurately valued, while others are highly overvalued – which means they could be heading toward a potential housing crash. Cities were ranked according to a bubble index score to indicate whether they…

Toronto is now the world's second most overvalued property market: UBS Full article can be seen here: https://business.financialpost.com/real-estate/toronto-is-now-the-worlds-second-most-overvalued-property-market Colin McClelland September 30, 2019 3:00 PM EDT Toronto has emerged as the world’s second most overvalued housing market on the back of low rates and supply shortages, according to UBS AG’s annual global real estate bubble index. Vancouver was sixth in the Swiss bank’s 2019 index that is led by Munich, with Hong Kong, Amsterdam and Frankfurt filling out the other top spots. Toronto’s housing prices tripled between 2000 and 2017 and even the introduction of a foreign buyer’s tax and tighter mortgage rules only temporarily cooled red-hot prices,…

Don't-pay-til-you-die reverse mortgages are booming in Canada as seniors binge on debt Already carrying debt, many seniors can't downsize because they can't afford high rents, so turn to reverse mortgages for a new source of income As a full service mortgage brokerage, we too can arrange reverse mortgages if that is something you feel would be suited to you.  However, just like with any other mortgage product, it has it pros and cons.  Give us a call if you have any questions about reverse mortgages, we are happy to help.  Below is an article discussing some of the reasons behind the surge…

Many clients come to me looking to refinance their mortgage, and at the last minute they are shocked to find out the penalty they needed to pay to break their mortgage, even with the advice of finding that amount out first.  By finding out what it would cost to break your mortgage first, you will be able to determine whether or not doing so makes financial sense.  It will save you time, as well as money. Here is an article regarding this topic: Doing the math on when to break a mortgage contract By Lesley-Anne ScorgieContributing Columnist Sun., Sept. 8, 2019 Full article can be seen here: https://www.thestar.com/life/opinion/2019/09/08/doing-the-math-on-when-to-break-a-mortgage-contract.html Despite…

Bank of Canada maintains overnight rate target at 1 ¾ percent The Bank of Canada has maintains its overnight rate target at 1.75%.  The next scheduled date for announcing the overnight rate target is October 30, 2019 https://www.bankofcanada.ca/2019/09/fad-press-release-2019-09-04/ The Bank of Canada today maintained its target for the overnight rate at 1 ¾ percent. The Bank Rate is correspondingly 2 percent and the deposit rate is 1 ½ percent. As the US-China trade conflict has escalated, world trade has contracted and business investment has weakened. This is weighing more heavily on global economic momentum than the Bank had projected in its July Monetary Policy Report (MPR). Meanwhile, growth in the…

Trudeau’s homebuyer plan offers little solace in pricey markets By Natalie Wong and Paula Sambo Bloomberg Mon., Sept. 2, 2019 Full article can be seen here: https://www.thestar.com/business/2019/09/02/trudeaus-homebuyer-plan-offers-little-solace-in-pricey-markets.html Prime Minister Justin Trudeau wants to make housing more affordable for first-time buyers. His efforts may be of little help to people in the country’s priciest cities. The national housing agency aims to spend up to $1.25 billion over three years subsidizing down payments for new lower- to middle-income buyers. Under the program, launched Monday, the government will pay up to 10 per cent of the purchase price in exchange for a stake in the home that would be paid…

With talks of a recession in the news recently, some might just question how real the concerns are. Here is an interesting post about some of the opinions and numbers behind these concerns.  Full article can be seen here: https://www.canadianunderwriter.ca/insurance/how-real-are-concerns-about-a-recession-1004167435/ August 23, 2019   by Adam Malik So long as a trade war and tariffs being thrown around, recessionary fears will always linger over the head of the economy. But that doesn’t mean it’s all storm clouds. One economist believes Canada is in good shape. The latest chapter in the trade war happened just before the weekend. China announced a tariff hike of $75 billion on…

Here is an article about the topic of a recession.  With the stock markets dropping dramatically yesterday, there are an endless supply of view and opinions.  What I take from this is that Canada has record levels of debt.  Here is the quote from the article which drew me in: "So what happens if there’s a recession? Debt might not be the immediate cause of the downturn, but it might add fuel to the fire and make a recession worse. Say, for instance, that protectionism shaves enough points off global or U.S. GDP to create a sharp recession. Corporate and…

Is Canada facing a recession? What does that mean for the mortgage industry, home owners, buyer, sellers and the job market?  Here is an article discussing some of those topics. Is a global recession coming? Here's why analysts are worried Even if you don’t pay close attention to the stock market, Wednesday’s news may have caught your attention. The main stock indexes in Canada and the U.S. both plummeted in their worst day of the year, and economic analysts are worried that a global recession could be around the corner. There isn’t just one reason to worry. Several economic indicators from around the world…

With real estate construction booming in Canada, construction management apps like Punchzee help builders navigate their complex project with ease.  The more complex a project the higher the need for these types of apps. Punchzee is one of the latest, and it offers unsurpassed customizations and flexibility to the user, and can even be "white label" customized to each company, so that their reports, quotes and interface can reflect their own company's logos and color scheme. With the construction management software market to enter into the multi billions in the next few years you can expect to see the competition become fiercer in…

Desperate times call for desperate financing, apparently. By Daniel Tencer Full article can be seen here: https://www.huffingtonpost.ca/entry/mortgage-borrowing-canada_ca_5d337b57e4b0419fd32dc7c8 MONTREAL ― When people are desperate for something but can’t get it through official channels, they often turn to less-official ones.  And typically, there’s someone there to meet the demand. The Raps game may be sold out, but there’s a guy in the alley going, “Raps tickets! Get Raps ticket right here!” The mortgage market works according to similar principles. In Canada, the home-lending equivalent of a scalper is known as a mortgage investment corporation, and these MICs have been doing a brisk business lately. Borrowers at MICs don’t…

Canadians may now be able to afford slightly more expensive homes Nicholas Sokic July 19, 2019 11:54 AM EDT Full article can be seen here: https://business.financialpost.com/real-estate/mortgages/bank-of-canada-drops-mortgage-stress-test-rate-for-first-time-since-2016   For the first time in almost three years, the Bank of Canada has cut its minimum mortgage qualifying rate, dropping it to 5.19 per cent from 5.34 per cent. The central bank’s new rate has a slight effect on the mortgage stress test for those with uninsured mortgages. “At a minimum, the qualifying rate for all uninsured mortgages should be the greater of the contractual mortgage rate plus two per cent or the five-year benchmark rate published by the Bank of Canada,”…

Mortgage rules in Canada have faces some harsh changes in the past few years.  As your Toronto Mortgage Broker I can help navigate the mortgage world alongside you, answering any questions you may have about the mortgage process. Here is an article discussing the requst from the Ontario Real Estate Associaton to relax the mortgage rules that are currently in place.   TORONTO -- The Ontario Real Estate Association is calling for less stringent mortgage rules in a rebuttal aimed at the head of the Canada Mortgage and Housing Corp. OREA chief executive Tim Hudak says in a letter to federal policy-makers that Ottawa should…