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New Mortgage Rules Canada 2016

October 31, 2016 1 comment

The Canadian government made changes to the approval process effective October 17th, 2016, for buyers who have less than a 20% down payment. These buyers are now required to qualify under higher interest rates than previously. We have created a short video to explain the new mortgage rules as they pertain to CMHC, and other loan insurers in Canada. Here is the video:

New Mortgage Rules Canada 2016

It remains to be seen as to what effect this will have on our booming Canadian real estate market, but for high-ratio buyers, they will now qualify for about 20% less than they did prior to October 17.

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Toronto Condo Foreign Buyers

April 11, 2016 Leave a comment

One of the hottest topics in real estate circles in Canada these days is the proportion of offshore buyers, and if and how they are inflating prices in local markets. This month, the Canada Mortgage and Housing Corporation has released a report which investigates the extent of foreign ownership in the condominium markets of Canada’s major cities. One of the interesting stats to come out of the report is that foreign ownership of condos tends to be higher in newer buildings – those built since 2010 in the cities of Toronto and Vancouver.

CMHC reports that the rate of foreign ownership in the overall Greater Toronto Area (CMA) is less than 2% for condominium projects completed before 1990, but foreign ownership rises to 7% for condos completed since 2010.

For Toronto, foreign ownership of condos is highest in the downtown core of the city, where the numbers approach 10%.  CMHC does note that the methodology used for their study allows for some leeway in the exactness of the numbers.

CMHC_Foreign_Take_2

The foreign ownership totals are higher in Toronto, somewhat surprisingly, than they are in the Vancouver area, where foreign investors count for less than 2% of the projects built before 1990, a number which increases to about 6% for those completed since 2010.

Also interesting to note, there are some fairly large statistical jumps from 2014 to 2015 – for example, in the overall Toronto CMA, foreign ownership of condos in that single year jumped nearly a full 2 percentage points  – from 5.5% to 7.4% – for buildings completed 2010 or later. It’s important to remember, however, that some of these numbers can be skewed by condo construction completions, and when there are a large number of completions in a single year, the foreign ownership numbers will grow correspondingly. The growth in foreign ownership of condos, nevertheless, as shown by these CMHC statistics, is obviously real , and hard to ignore.

CMHC_Foreign_Ownership_chart_detail

So what are we to make of foreign ownership of condos, and how does it affect our local market in the Greater Toronto Area? I think that the numbers are still relatively low, although certainly 10% foreign ownership of newer condos in the downtown core of Toronto will have a effect on the market. Toronto’s growing role as a global city brings added pressures on real estate market pricing, it’s a simple matter of supply and demand. That new offshore investors are most interested in newer projects indicates that attention is being paid to many of  the latest condo project launches, many of which are being marketed globally. It appears that the word is getting out there that Toronto, and its environs, are a good, stable, and safe place to invest. Going forward, I believe this trend will continue.

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Simple Guide to CMHC New Mortgage Rules April 2010

April 6, 2010 2 comments

Created a summary “In Plain English” of the new rules from CMHC pertaining to mortgage loan approval in Canada….these new rules will  affect all home buyers across Canada, but especially self employed people, as well as commission sales people….link to my Simple Guide to CMHC New Rules April 2010……..

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