Falling Rents May Impact House Prices

A recent report from Capital Economics highlights falling rents in Canadian cities, especially Toronto and Vancouver, and points out that this could have a significant knock-on effect on Canadian house prices.   The report identifies several reasons why rents are falling: The surge in unemployment due to COVID-19 lockdowns has hit low-wage earners the hardest,… Read More

Coronavirus Threatens Survival of Toronto Small Businesses

The Broadview-Danforth Business Improvement Association (on behalf of dozens of Toronto BIAs) recently surveyed 561 small business tenants and 137 landlords across the city as to how the Coronavirus lockdown has affected them. A majority of the respondents (61%) said that they would not survive over the next 3 months without rent relief, and 76%… Read More

Canadian Government Supporting Mortgage Market

Soon after the COVID-19 lock-downs began last month, signs started to appear that the mortgage market was headed for a credit freeze, where mortgage lenders would be unable or unwilling to keep lending to homebuyers. A credit freeze would likely crash the real estate market – if mortgage lending isn’t possible, home sales would collapse… Read More

Changes Coming To The Mortgage Stress Test

The ‘stress test’ for mortgage qualification in Canada requires that homebuyers must qualify for a mortgage as if the mortgage interest rate were higher than the actual rate they will get. The idea is to determine that the applicant will be able to keep up with the payments if interest rates should rise.  That ‘higher… Read More

Luxury Toronto Real Estate Sales Over $5 Million Increasing

After a soft start to the year, sales of luxury Toronto real estate is on the upswing, surpassing 2018 trough levels. Year-to-date sales in the GTA of freehold and condominium properties priced in excess of $5 million topped 100 units between January and October 31. This is up 8.5 per cent from the 94 sales… Read More

Annual CMHC Survey Shows Homebuyers Are Upbeat

Every year, CMHC conducts a survey of Canadians across the country to find out the thoughts, attitudes and behaviours of homebuyers. The 2019 survery includes 1,385 first-time and repeat homebuyers in every region of the country in both English and French. All participants had undertaken a mortgage transaction in the past 18 months. Highlights of this years survey include:… Read More

Auditor General Issues Scathing Report Critical of Tarion

Buying a new home can be the single biggest purchase for many people in their lifetime. In Ontario, new home buyers rely on the Tarion New Home Warranty program to protect them from costly repairs resulting from mistakes and poor workmanship on the part of home builders. There have been increasing public complaints about Tarion… Read More

IMF Says More Supply Is The Key To Improved Housing Affordability

In a recent blog post, the International Monetary Fund (IMF) took aim at Canada’s housing affordability crisis and suggested that the solution lies in building more houses. Actually, this is pretty obvious when you think about it. If we focus on making it easier for buyers to afford to purchase a home (e.g., the government’s… Read More

Federal Election – Housing Platforms

Here’s a quick summary of what each of the federal parties are promising/proposing for housing in Canada: Conservative Party Make the mortgage qualification stress test less stringent, and eliminate it completely for renewals to keep banks from gouging borrowers on renewal with uncompetitive high rates. Allow first time buyers to obtain 30 year amortizations to… Read More

Many Canadians Are Financially Stressed – BDO

BDO Canada is part of a large global network of firms that provide debt solutions for people in financial difficulty. They publish a study called the ‘BDO Canada Affordability Index‘. Here are some of the key conclusions from the latest study: More and more Canadians are taking on debt in all forms: 57% carry a… Read More