According to recent reports, more than one in eight adult Canadians are expected to declare bankruptcy or negotiate a debt settlement with creditors. And yet, Canada’s homeownership numbers are currently at a record high. This just goes to show you that devastated credit doesn’t have to leave you high and dry when it comes to entering the housing market. Granted, credit-challenged consumers are bound to encounter more than their fair share of bumps along the road to homeownership. Even so, poor credit history isn’t insurmountable. Here’s what you need to know if you’ve recently gone through a bankruptcy or consumer proposal but are still optimistic about buying your first home. Continue reading
Author Archives: Editor
Housing Starts Not Bad in September
September’s housing starts fell less than originally expected says the Canada Mortgage and Housing Corp. Housing data released on Tuesday showed that housing starts fell to a seasonally adjusted annualized rate of 220,215 units last month. This was down from 225,328 units in August, but was still well above the predicted drop to 207,50o, according to poll of analysts from Reuters.
These numbers are well north of what economists state is required to meet the growth rate in household formations. However, many still feel that demand for new homes is primarily being supported by accommodative interest rates. If low mortgage rates were to begin to rise, the tides could quickly shift, causing a correction that would seriously impact the market. Continue reading
Consumer Debt Impacts IMF’s Outlook for Canada
Canada’s economic outlook took a big hit this morning as the International Monetary Fund downgraded the nation’s financial outlook. Inflated consumer debt levels and a shaky housing market were at the heart of the downgrade, which was announced in Tokyo this morning at the IMF-World Bank annual meeting.
The Washington-based global lender’s quarterly World Economic Outlook downgraded Canada’s economic advance from 2.1 percent to 1.9 percent for 2012. Next year’s growth was also altered from 2.2 percent to 2.0 percent. Currently, the Bank of Canada has estimated growth of 2.1 percent for this year and 2.3 percent for 2013. The central bank doesn’t issue it’s next forecast until October 24 when the Monetary Policy Report is released. Continue reading
What if the Government Didn’t Back Mortgages?
Saving for a down payment on a home takes dedication, perseverance, and sacrifice. For many, it also takes a long, long time. According to a recent report from Rate Supermarket, come 2020 the average cost of a home in Canada will be $553,000. To accumulate a measly 5 percent down payment for such a home, recent graduates should expect to spend at least 12 years saving up. If you’re hoping to pack away 10 percent, prepare to squirrel away your savings for roughly 21 years. Continue reading
Avoid Homebuyer’s Regret With These Tips
While buying a home is the biggest investment the average Canadian will ever make, many first-time home buyers still don’t take the time to perform sufficient financial due diligence before signing their offer to purchase. A recent survey commissioned by TD Canada Trust has found that the two biggest regrets include not saving for a larger down payment and not doing enough research into the actual costs of maintaining a home. Continue reading