Is this the right time to be buying a house? + MORE Jan 5th

Another year passes and, once again, we can check off another record-breaking year for real estate in Canada. This time, however, the headlines weren’t just about bidding wars and astronomical house prices; this time the headlines also announced new mortgage regulations, extended down payment rules and new taxes. So, just how accurate was our real estate market overview for 2016? Here’s what we expected and here’s what happened:
No. 1: A tale of three markets ✓
We anticipated that the two hot real estate markets in Canada—the Greater Toronto and Vancouver areas—would remain strong, while the rest of Canada would experience only modest prices increases (if any at all). For the most part this was true. According to data from the Canadian Real Estate Association, the Greater Toronto Area continued to rise in price, as did the Victoria, B.C. area. The Greater Vancouver Area, however, started to see price declines, while oil dependent Alberta also started to see some price appreciation (signalling that the real estate market in this province is now past it’s the oil-slump pricing and in balanced market territory)…

The government’s ongoing crusade against lenders is already proving costly. Regulatory tightening over the last year has raised conventional mortgage funding costs by at least 25 bps, say lenders we’ve spoken with. A ¼ point rate hike may not sound like a lot, but that’s $2,300 siphoned out of families’ pockets on a typical mortgage—over just one 5-year term. If you’re a new buyer making an average down payment on the average Canadian home, regulators have just penalized you with $10,400 more interest over your amortization. (The average amortization is 18.8 years and the average first-timer’s down payment is 21%, according to MPC). As usual, housing bears are jubilant over READ MORE

Q: Our lease is up in six months and, with a down payment saved, we want to buy our first house. But we’re worried about a housing market poised to crash. What should we do?
—Erika, Toronto
A: In 2016, CMHC identified that as many as 15 of the largest housing markets in Canada were overvalued, some by as much as 60%. This assessment by the country’s national housing agency was based on overall evidence of “problematic conditions” particularly in markets like Vancouver, Calgary, Saskatoon, Regina and Toronto. But don’t expect a 60% drop in home prices. Bob Dugan, CMHC’s chief economist, explains that “real estate markets are inherently local” and that if there is a correction it wouldn’t occur uniformly across the country, or even within a city. The purpose of CMHC’s analysis is to remind industry stakeholders to address market concerns—such as tightening mortgage rules or increasing how much money lenders hold back. As for you, I’d suggest making a home-buying decision based on your short-term needs and your long-term goals…

Company: TMG The Mortgage Group Position: Director, Corporate Marketing Location: Toronto, Ontario Apply to: shanna@mortgagegroup.com Director, Corporate Marketing Reports To: President, TMG The Mortgage Group Canada Inc   Hours and Salary Full Time Competitive salary and benefits   Summary Director – Corporate Marketing is responsible for developing and managing the branding (internal and external) of a well-known, national mortgage brokerage.  He/she is to oversee the brand, strategic marketing initiatives while promoting growth and expansion, as well as managing the day-to-day corporate marketing programs and responsibilities. He/she must be a motivated, results focused individual and have a solid track record of READ MORE