Tag Archives: Real Estate

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, competition 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 →

CMHC Responsibility Changes Hands

Concern over a red-hot housing marketing and increasing consumer debt has prompted Finance Minister Jim Flaherty to make some drastic changes this week. On Thursday, Minister Flaherty announced that responsibility for the Canada Mortgage and Housing Corporation (CMHC) will be handed over to the Office of the Superintendent of Financial Institutions, the nation’s banking regulator.

It’s unclear how the change will impact the market. While some believe that new oversight will help halt skyrocketing real estate prices in Toronto, some experts anticipate very little change. Flaherty made it overtly clear that his main reason for tabling the bill was concern over the Toronto condo market. Designed to discourage high-risk borrowing, the new regulations would put the OSFI in charge of reviewing and monitoring CMHC’s commercial activities. The agency was previously monitored by Human Resources Minister Diane Finley. 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 →