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CategoryReal Estate Trends

The State of Homebuying in Canada 2019 CMHC Mortgage Consumer Survey
Posted Mortgage News

Significant decrease in first time home buyers in 2019

Canada Mortgage and Housing Corporation released The State of Homebuying in Canada report on November 15, 2019, with a few key findings, including this headline. 

The annual State of Homebuying in Canada report noted that 56% of all purchasers were first time buyers in 2018. This dropped to 47% in 2019.

The tightening of mortgage rules which has been taking place over the last 4 years is certainly having an effect. The never ending rule changes were intended to slow home sales and prices. But like most government interventions, its had the opposite effect.

Continue reading “Significant decrease in first time home buyers in 2019”
Important week for mortgage rates
Posted Interest rates

Important week for mortgage rates could cost or save you thousands.

Important week for mortgage rates

Mortgage rates fell by about 1% since January of this year. That rate drop has created a surge in real estate sales across Canada, with September and October seeing a greater than average number of real estate transactions.  We also saw consumers taking advantage of these low rates by refinancing their mortgages early.

The Five-Year Government of Canada bond yields have been going up and down like a yo-yo over the last three months, with a low point being 1.13% and a high of 1.58% just this past week. This uncertainty/volatility forced financial institutions to raise their interest rate by about .2% to .3%.  Having said that, interest rates are still very low. In my discussions with the major lenders, they are all telling me that it’s busier than usual for home purchases and refinance purposes. Continue reading “Important week for mortgage rates could cost or save you thousands.”

Posted Mortgage News

‘Renovictions’ should motivate you to BUY, not rent!

blog image, rent or buy, jan 2019

Do you need motivation to buy and own your home? Well, read this.

I read an article recently about “renovictions” courtesy of Rentals.ca. (This is geared more for Ontario and BC residents.) This is a new word that you’ll be hearing more often, I’m sure.

Here’s my warning and words of advice… Attention renters:  If you’re currently renting a condo or house with below market rents, you’ll want to read this.

And I’ll skip to the bottom line for a moment: If you’re renting, you should give serious consideration to buying and owning so that you have control over your place of residence.

Continue reading “‘Renovictions’ should motivate you to BUY, not rent!”

Posted 2 Comments on Remember when I said rates could go down, not up?! Bank News

Remember when I said rates could go down, not up?!

saving money-young woman putting a coin into a money-box-close up

If you’re a regular reader of this site, you’ll know I’ve been very skeptical and critical of the Bank of Canada (BoC) for continuing to increase interest rates. It just hasn’t made sense.

The BoC raised rates FIVE TIMES between July 2017 and October 2018. That’s a 1.25% increase. For anyone with a $300,000 mortgage, your payment increased by $189 per month. Or, to put it another way, for every $100,000 of mortgage, your payment went up by around $63 per month.

Yet, we kept hearing that the BoC wanted to raise rates further. Economists and other experts were saying we should expect more rate increases by the end of 2018! Wow!

Continue reading “Remember when I said rates could go down, not up?!”

Posted 3 Comments on The End of Rent Control? Bring it on! Mortgage News

The End of Rent Control? Bring it on!

Rent Control Blog Image, Nov 2018

Ontario’s controversial rent control is about to come to an end – and that’s a positive change!

When I was attending a speaking session with one of my favourite economists – Benjamin Tal – a few weeks back, he had a great quote: “There’s a Swedish economist who said, ‘Rent control is the best way to destroy a city, maybe besides bombing it.’”

Isn’t that the truth?!

In the GTA, rental units are scarce. And, says Tal, rent control would only further diminish the already depleted supply of available units. 

Continue reading “The End of Rent Control? Bring it on!”

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