The latest in mortgage news: OSFI unveils minor changes to insurer capital adequacy test + MORE Sep 29th
If you are thinking about becoming a landlord, you need to consider not only the purchase price and mortgage repayment costs of your property, but other financial considerations as well.
How much does it cost to buy a rental property?
When purchasing a rental property, the typical down payment requirement is 20% of the purchase price. If the owner is going to occupy one of the units in a multi-unit property, there is a lower minimum.
For one- or two-unit properties, a buyer needs only 5% of the purchase price and can borrow the other 95%. However, if the property is worth more than $500,000, the minimum down payment is 5% on the first $500,000 plus 10% of the excess…
I believe that improved home ownership affordability is on the way, but that the “improvement” will likely be modest. To understand why, it helps to know how we got here and to consider what happens to the affordability equation as home prices go down and borrowing costs go up.
Inflation (not rates) is the biggest concern for central banks
Since March 2022, the Bank of Canada (BoC) has been raising interest rates in an effort to tame runaway inflation.
In June, inflation in Canada reached a 39-year high of 8.1% year-over-year, after decades of mostly low, stable and predictable inflation. It eased to 7.6% in July, but it remains well above the BoC’s target of 2% annual inflation…