The Canada Mortgage and Housing Corporation marked its 65th anniversary last week with the release of their 2011 annual report. As the nation’s top mortgage insurer (the organization backs $567 billion in default mortgage insurance), the CMHC controls roughly three-quarters of the nation’s mortgage default insurance. Despite inching ever closer to the $600 billion dollar government-imposed limit, the CMHC’s reported that there’s still plenty of room to meet the nation’s core demand for mortgage insurance. Continue reading
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High Home Prices and Bidding Wars: What You Need to Know
The price of a new home in Canada is on the rise, according to data released by Statistics Canada today. Market information from March shows that the price of a new home in Canada rose by 0.3% from the previous month, marking the 12 consecutive monthly increase. While relatively minimal, the jump was slightly greater than the 0.2% advance predicted by market experts.
Numbers don’t lie – houses are expensive,Ā competitionĀ is fierce and properties are selling fast. If you’re currently on the market for a new home, you best be prepared – a potential bidding war could be on the horizon. According to a nationwide survey conducted by the Bank of Montreal, one in four Canadians is willing to enter into a bidding war – a decision that could come back to haunt them a few years from now. Continue reading
Does Your Down Payment Stack Up?
Think that a 5 percent down payment is enough to secure a great mortgage rate? Think again. Pulling together the minimum 5 percent down payment, while a good start, is just that – a start. If you’re a first time home buyer looking to move up the property ladder, don’t skimp on your down payment. If you’re having trouble pulling together the 5 percent minimum, you’re setting yourself up for a hard, long haul. Continue reading
REITs – How They’re Changing the Face of Real Estate
The Financial Post recently reported that Canadian real estate investment trusts (REITs) have rallied to the highest levels in five years, and that’s despite Finance Minster Jim Flaherty’s constant threat of increased interest rates.
So, just what is a real estate investment trust and how can it impact your best mortgage rate search? Let’s take a look. Continue reading
Subprime Problems on the Horizon?
A hot housing market is pushing borrowers farther and farther away from mainstream financing and it’s causing quite the stir in the Canadian subprime mortgage industry. The source of the excitement? A growing pile of mortgage debt that’s coming from outside of Canada’s big six banks. Continue reading