Category Archives: Canadian Housing Market

Jubilant July for Toronto Real Estate

The Toronto Real Estate Board (TREB) announced that 2013 brought the 3rd best July on record.  Not only did sales rocket by 16% but average sale prices also shot up by 8% to $513,246.  This is particularly good news for an industry that typically sees a summer slowdown July and August. The implication of these strong numbers is that tighter mortgage rules imposed by the Department of Finance (DOF) have … Read More

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Proud to Be Canadian!

I’m proud to be Canadian but even prouder to be a Canadian mortgage broker.  Our great country fared better then any other industrialized nation through the great real estate recession of 2008 that continues to linger today.  Foreign mortgage financing practices caused the massive economic downturn, but Canadian mortgage financing practices have kept our country stronger than others. What makes our mortgage system so strong is not individual rules, regulations … Read More

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Spike in Mortgage Rates Temporary

The recent spike in fixed mortgage rates is a direct result of an incredibly sharp rises in bond yields.  I say incredibly because the market grossly over-reacted to Ben Bernake’s comment that the Fed will eventually begin to taper monetary stimulus.  Following this over-reaction, you can expect to see bond yields ease back nearer to their previous lows. Kent Engelke, chief economic strategist at Capitol Securities Management Inc., confirms that … Read More

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The Rich are Getting Richer

The rich are getting richer according to the World Wealth Report, a study co-authored by RBC Wealth Management and Capgemini.  The number of Canadians with investable assets of $1 million or more grew by 6.5% to a record of 298,000 Canadians.  Even more shocking is that the really rich, the number of Canadians with investable assets of $30 million or more, grew by 11% to a record 4,500 Canadians. Now … Read More

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Do You Qualify for the Average Home?

You need a household income of $77,700 to buy the average Canadian home.  Of course there is no average city so you’ll need to earn more or less income depending on where you live.  Here’s a chart released by the Royal Bank of Canada (RBC) outlining the minimum income needed to qualify for the average house price in select Canadian cities. City Average Q1 Price Qualifying Gross Income Canada $366,500 … Read More

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RBC Raises Mortgage Rates

Rising bond yields have put upward pressure on fixed mortgage rates for the past few weeks and RBC was this first to flinch.  As of today RBC increased its 1 year mortgage rate by .14% to 3.14%; it’s 2 year mortgage rate by .1% to 3.14%; it’s 3 year mortgage rate by .1% to 3.65%; it’s 4 year mortgage rate by 0.1% to 3.09%; and most notably it’s 5 year … Read More

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Mortgage Rates Keep Prices High

After a period of steep year-over-year sales declines, the number of homes changing hands is back on a steady course.  “Last year’s deep downturn in Canadian home sales appears to be fading” according to Sal Guatieri, Bank of Montreal economist.  The tighter mortgage rules clearly had an impact on the number of transactions, knocking out many potential first time buyers, but it didn’t impact home prices like the Department of … Read More

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CMHC’s Volume Cut in Half

Stricter mortgage rules on CMHC insured mortgages have had a profound impact on the housing market as well as the insurer itself.  CMHC reports that in the first quarter of this year the number of housing units insured dropped to 52,078 from 114,045 over the same period last year.  This translates to a drop of underwritten insurance to $8.2 billion down by 56.8% from $19 billion last year. The good … Read More

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Save $12,000 on Your Next Mortgage

Mortgage penalties are a necessary evil and should be closely scrutinized when negotiating your next mortgage.  Choosing a mortgage solely based on the interest rate could cost you over $12,000 in future penalties overshadowing any interest savings. Forced to comply with new federal regulations, mortgage companies must now fully disclose their penalty formulas and must provide an on-line penalty calculator. It would be worth your while to submit your mortgage … Read More

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Housing Market to Drag Economy

A report released today by the Canadian Association of Accredited Mortgage Professionals (CAAMP) predicts significant job losses coming in the wake of the slowing housing market.  Analysis by Chief Economist Will Dunning points out that fewer sales mean fewer housing starts which will ultimately lead to fewer jobs.  Housing starts are already down by 15% from the 2011/12 average and its projected that the total drop will approach 30% by … Read More

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