Category Archives: Canadian Housing Market

Toronto Condo Prices on the Rise

Toronto condo prices are expected to jump a healthy 2.50% in 2013.  For the average $305,000 condo this equates to an increase of $7,625.  These findings were released in a report authored jointly by Genworth Canada and the Conference Board of Canada.  The report focused on 8 major Canadian cities and forecasts price increases in all markets except for Vancouver, the countries priciest market. “This data corroborates our view that … Read More

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CMHC on Track to Profit another Billion

CMHC released its second quarter results on Wednesday reporting a quarterly profit of $255 million.  The crown corporation is well on its way to generating another $1 billion in annual profits.  The Canadian government doesn’t usually do well running profitable businesses, but this is one cash cow that we’d be foolish to privatize. Mortgage insurance claims for the quarter were $168 million, up from $144 million in the same period … Read More

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Scotiabank Buys ING Direct

After a short time on the auction block ING Direct has been gobbled up by Scotiabank for a reported $3.1 Billion.  It’s the largest transaction in Scotiabank’s 180 year history.  Although many of Canada’s big banks were interested in the transaction, Scotiabank was the hungriest to acquire its $30 billion of deposits.  On the heels of the announcement Scotiabank published a high profile letter reassuring ING Direct customers that it … Read More

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Bank Profits Jump Despite Negative Rhetoric

Scotiabank’s profits skyrocket 57% while Bank of Montreal’s profits launch 37% higher in the third quarter.  If anyone was concerned about our Canadian banks’ well-being, they should be consoled by these numbers.  With net income increasing to $2.05 billion and $970 million respectively these solid performing institutions are well positioned to weather the worst of storms regardless of what the doomsayers preach. These results are one more reason why Canadians … Read More

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ING Direct Up For Sale

The Dutch based mega bank ING is putting its Canadian operations up for sale with the likely buyer being one of the existing big 6 Canadian banks.  The large Canadian banks have the means and the expertise to make the most of this profitable business.  The biggest advantage of such a transaction would be lower transaction costs through greater economies of scale, but that would only apply if they could … Read More

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Home Prices Hit Ceiling – For Now

You know we’ve hit the ceiling when one of Canada’s leading real estate companies becomes pessimistic on home value appreciation.  Phil Soper, president and CEO of Royal LePage Real Estate Services is concerned over the recent mortgage rule changes.  “The most recent set of mortgage changes, the fourth in four years, is also the most aggressive.  The cumulative impact of these new regulations has created a significantly higher hurdle for … Read More

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15 Years to Mortgage Freedom

On average Canadians have 15 years left to pay off their mortgage.  This is the findings of a survey released yesterday, conducted by Leger Marketing, for BMO Bank of Montreal.  It’s difficult to distil any meaning from an average of the entire Canadian population, but thankfully the survey breaks down its findings by province and by 5 year amortization increments.  Here are a summary of the results. Years Left on                                                   … Read More

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Flaherty Tightens Mortgage Rules

The department of finance ambushed the financial services industry late Wednesday with the announcement that they are tightening mortgage rules.  Just 2 weeks ago the Office of the Superintendent of Financial Institutions (OSFI) released mortgage rule changes after weeks of deliberation and industry feedback.  Apparently the government didn’t like the process or the results and heavy handed a few changes of their own. The changes announced are a reduction in … Read More

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CMHC Releases Canadian Housing Market Outlook

Canada Mortgage and Housing Corporation (CMHC) released their Second Quarter 2012 Canadian Housing Market Outlook on Thursday.  The Canadian housing market is expected to remain strong over the remainder of 2012 and for all of 2013.  This, in a nutshell, is the CMHC’s mid-term forecast for the housing market.  Although there will always be pockets that stray from the norm, it’s largely expected that we’ll have a balanced market with … Read More

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Banks Respond to Appraisal Concerns

In the wake of the Office of the Superintendent of Financial Institution’s (OSFI’s) letter to federally regulated financial institutions, (FRFI’s) the big banks are already responding to the concern on property valuations.  “We have tightened our process, and make sure that we are getting an accurate read,” reported RBC through David McKay, its head of Canadian banking.  TD bank however feels further tightening isn’t necessary.  “We’re really not seeing a … Read More

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