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Stress Test Causing National Housing Slump: CREA May 21st
The Canadian Real Estate Association (CREA) blames the mortgage stress test introduced in January for slow activity across the nation in April. The housing market has cooled in all respects from April of last year, when the market peaked: the average sale price declined by 11.3 per cent to $495,000,.... More »
Frustrated with mortgage tech? You’re not alone + MORE Feb 14th
For the past few years, mortgage brokers have been presented with a seemingly non-stop barrage of new mortgage technology..... More »
Is Now a Good Time to Buy Real Estate in Victoria? Jul 11th
Thinking about buying real estate in Victoria? While some might suggest waiting a year or two for housing prices to come down, now might be a good time to start looking. The quarterly report on Vancouver’s housing market indicates while prices are starting to come down, inventory is high. So, sho.... More »
Housing and interest rate forecasts for 2025 Dec 30th
As we reflect on 2024, it was a year of resilience and adjustment for Canada’s housing and mortgage market, marked by the Bank of Canada’s pivot to rate cuts after two years of relentless hikes, offering long-awaited relief to borrowers..... More »
Buying a second home: How it works in Canada + MORE Sep 25th
What does it take to buy a second home in Canada? There’s a lot to consider, from figuring out whether you can afford to buy a second property (and whether it’s worth it) to navigating the down payment requirements and mortgage rules. To help you get started, we’ve answered these questions and.... More »
Q4 2017 Bank Earnings – Mortgage Morsels
– canadianmortgagetrends.com
It was a good year for Canada’s Big 6 banks, which earned a combined $42 billion for fiscal year 2017. As with the rest of the mortgage industry, there was a fair amount of attention this quarter given to the incoming B-20 regulations that take effect January 1, 2018. Overall the big banks expect a […]
CREA cuts 2017, 2018 forecast due to incoming tighter mortgage rules
– canadianbusiness.com
TORONTO _ The Canadian Real Estate Association has cut its home sales forecast for next year due to the impact of tighter mortgage regulations that come into effect New Year’s Day, which are expected to rein in spending for some buyers.
CREA said in an updated projection Thursday the banking regulator’s revised mortgage underwriting guidelines, which include a stress test for uninsured mortgages, will reduce sales activity across the country, particularly in and around Toronto and Vancouver.
The association now forecasts a 5.3 per cent drop in national sales to 486,600 units next year. That new estimate shaves about 8,500 sales from its previous 2018 forecast.
The national home price is expected to slip by 1.4 per cent in 2018 to $503,100.
“With some homebuyers likely advancing their purchase decision before the new rules come into effect next year, the ‘pull-forward’ of these sales may come at the expense of sales in the first half of 2018,” CREA said in a statement…
CREA said in an updated projection Thursday the banking regulator’s revised mortgage underwriting guidelines, which include a stress test for uninsured mortgages, will reduce sales activity across the country, particularly in and around Toronto and Vancouver.
The association now forecasts a 5.3 per cent drop in national sales to 486,600 units next year. That new estimate shaves about 8,500 sales from its previous 2018 forecast.
The national home price is expected to slip by 1.4 per cent in 2018 to $503,100.
“With some homebuyers likely advancing their purchase decision before the new rules come into effect next year, the ‘pull-forward’ of these sales may come at the expense of sales in the first half of 2018,” CREA said in a statement…
Debt to household income ratio rises in third quarter, household net worth
– canadianbusiness.com
OTTAWA _ The amount Canadians owe relative to their income hit a new high in the third quarter.
Statistics Canada said Thursday that household credit market debt as a proportion of household disposable income increased to 171.1 per cent, up from 170.1 per cent in the second quarter.
That means there was $1.71 in credit market debt, which includes consumer credit and mortgage and non-mortgage loans, for every dollar of household disposable income.
Benjamin Reitzes, Canadian rates and macro strategist at the Bank of Montreal, said the upward trend in household debt continues unabated.
“And, with homebuyers rushing to get into the market ahead of the new OSFI rule change that takes effect on Jan. 1, 2018, we could see a further increase in Q4,” Reitzes wrote in a report.
“However, that suggests we could see some flattening out of the ratio in 2018 _ though don’t bet on it as housing has been persistently resilient.”
Household debt is often cited as a key risk to the Canadian economy by the Bank of Canada and others…
Statistics Canada said Thursday that household credit market debt as a proportion of household disposable income increased to 171.1 per cent, up from 170.1 per cent in the second quarter.
That means there was $1.71 in credit market debt, which includes consumer credit and mortgage and non-mortgage loans, for every dollar of household disposable income.
Benjamin Reitzes, Canadian rates and macro strategist at the Bank of Montreal, said the upward trend in household debt continues unabated.
“And, with homebuyers rushing to get into the market ahead of the new OSFI rule change that takes effect on Jan. 1, 2018, we could see a further increase in Q4,” Reitzes wrote in a report.
“However, that suggests we could see some flattening out of the ratio in 2018 _ though don’t bet on it as housing has been persistently resilient.”
Household debt is often cited as a key risk to the Canadian economy by the Bank of Canada and others…
Housing market to slow in 2018 but prices to rise
– moneysense.ca
TORONTO — New stricter mortgage rules are expected to slow the housing market next year, but prices are still expected to rise about five per cent, according to a report by Royal LePage.
In its market survey forecast, the real estate firm says its house price composite, which measures prices in 53 Canadian cities, is expected to increase 4.9 per cent next year to $661,919.
A new stress test for homebuyers who don’t need mortgage insurance will be required starting next year.
The new rules are expected to reduce the maximum amount buyers who have a down payment of 20 per cent or more will be able to borrow starting Jan. 1.
The Royal LePage report suggests home prices in the Greater Toronto Area are expected to increase 6.8 per cent in 2018, while the Greater Montreal Area is expected to see an increase of 5.5 per cent.
Greater Vancouver is expected to increase 5.2 per cent in 2018.
The post Housing market to slow in 2018 but prices to rise appeared first on MoneySense.
In its market survey forecast, the real estate firm says its house price composite, which measures prices in 53 Canadian cities, is expected to increase 4.9 per cent next year to $661,919.
A new stress test for homebuyers who don’t need mortgage insurance will be required starting next year.
The new rules are expected to reduce the maximum amount buyers who have a down payment of 20 per cent or more will be able to borrow starting Jan. 1.
The Royal LePage report suggests home prices in the Greater Toronto Area are expected to increase 6.8 per cent in 2018, while the Greater Montreal Area is expected to see an increase of 5.5 per cent.
Greater Vancouver is expected to increase 5.2 per cent in 2018.
The post Housing market to slow in 2018 but prices to rise appeared first on MoneySense.
