27 Oct

CMHC Sees Problematic Housing Conditions in Canada By: Dr. Sherry Cooper

General

Posted by: Cory Kline

 

The Canadian Mortgage and Housing Corporation (CMHC) issued its quarterly housing market assessment and outlook yesterday, suggesting that, for the first time ever, there are “problematic conditions” in housing markets at the national level in Canada. As well, CMHC expects national housing starts and MLS sales to decline slightly in 2017 before stabilizing in 2018, which is pretty much the consensus view. What I find strange about the hype surrounding this report is that there is nothing new here. Moreover, the details seem encompass lagged data, before the sales decline and price slowdown in Vancouver–a slowdown that began before the August implementation of a 15% tax on non-resident buyers in Vancouver.

 

 

 

 
4 Oct

Mortgage Rules are changing effective October 17,2016

General

Posted by: Cory Kline

Morneau Takes Out the Big Guns to Slow Housing
By: Dr. Sherry Cooper

Yesterday, Ottawa unveiled major initiatives to slow housing activity both by potentially discouraging foreign home purchases and, more importantly, by making it more difficult for Canadians to get mortgages. As well, the Finance Minister is limiting the degree to which mortgage lenders can buy portfolio insurance on mortgages with downpayments of 20% or more. Ottawa has clearly taken out the big guns to slow housing activity, which is widely considered to be too strong in Vancouver and Toronto. Ironically, home sales have already slowed precipitously in Vancouver in recent months and the BC government introduced a new 15% land transfer tax on foreign purchases of homes effective August 6, the effects of which are yet to be fully determined.