Real estate market to slow in 2016, RBC says + MORE Aug 21st

MoneySense magazine: September/October 2015
Volume 17, Number 5
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Below is just some of what you’ll find inside this latest issue.

The New Way to Invest Even More

Canada’s Best Credit Cards 2015

Election 2015: Portfolio Impact | The Elusive Middle Class

Editor’s Letter
No arguments here, the TFSA has come of age
Intelligence
Pay off your mortgage one film shoot at a time, The science of term life insurance, pharmacist secrets & more
Ask MoneySense
TFSAs, down payments, doctor’s fees & more
By: Bruce Sellery
Portfolio Makeover
Investing a lump sum for retirement
By: Julie Cazzin
Home Owner
Two ways to cool white-hot home prices
By: Romana King
Index Investor
Getting the money out of your mattress
By: Dan Bortolotti
Family Profile
And then there were three
By: Julie Cazzin
Retirement
Downsizing: Go small, think big
By: David Aston
Smart Spender
Closet organization, local city guides, autos, tech & more
How I Did It
How I saved $4,000 on our grocery bill by planting a garden
…

As it turns out, there was a little typo in CMHC’s recent rental policy announcement. In its original notice on July 24 (which CMT covered here), the insurer said property taxes and heat would have to be included in a customer’s debt ratios when applying for a mortgage on an owner-occupied property with a rental suite. But when we did the math shortly after running that story, the numbers didn’t make sense. The new policy actually made it harder to qualify than the current policy, which isn’t too logical for a measure meant to spur secondary suite formation. “This was READ MORE

TORONTO – Activity in Canada’s real estate market will slow “modestly” next year as interest rates begin to rise, according to a new report from RBC Economics.
The report pegs the risk of an outright crash in real estate as low, saying RBC expects the economy to grow and that interest rates will likely rise gradually starting next year.
However, the bank says there could be a “severe” downturn in the real estate market if employment plunges due to a deep recession or if interest rates surge dramatically.
Meanwhile, RBC says the economic shock from lower oil prices hasn’t been big enough to derail Canada’s overall real estate sector.
Bank of Canada rate cuts and its impact on mortgage rates »

In fact, it says the Canadian housing market is poised to post one of its best years on record despite a drop in home resale activity in the oil-sensitive provinces of Alberta and Saskatchewan.
RBC says rock-bottom interest rates have fuelled demand for housing elsewhere, particularly in Ontario and British Columbia…

The fact that Canada’s housing market is competitive is certainly nothing new: our “Not Your Mother’s Mortgage” poll found 88% of millennial buyers feel home prices are rising unsustainably. But all this activity has led way to a leaner, meaner home buyer, who won’t hesitate to swoop in on your dream home’s bidding war and sell it back to you for a higher price.
We have the full story – don’t miss this week’s lineup!
Conservatives Promise to Expand Home Buyer’s Plan to $35,000
The Conservative government knows homeownership affordability is a key issue facing Canadians, and are pulling out big pre-election promises targeting would-be buyers. The latest is a $10k upping of the Home Buyer’s Plan to $35,000. But will buyers really benefit?
Read Sean’s Blog | Conservatives Promise to Expand Home Buyer’s Plan to $35,000
Contract Assignments: A New Level of Home-Buying Competition
Just when you thought bidding wars couldn’t get any fiercer, there’s a new kind of buyer in the shark tank…