Tag Archive: home prices


First-time Mortgagors: Taking it on the Chin

The Mortgage Report: April 5 Many modest-income Canadians who have never owned a home may never own a home, at least not an average home. That is, unless they can live almost anywhere (work remotely, for example), and/or they’re buying with someone else (e.g., a significant other). Here’s why… First-time homebuyers now expect to pay $433,000 on average, according to...

Stricter Housing Rules: Brace for Impact

If you follow the real estate market—and who doesn’t nowadays?—you’ve likely noticed growing speculation about new mortgage rules. Home prices are seemingly out of control, with national average prices up a shocking 25% y/y — amid a recession no less. “Canada hasn’t had a market overheating of this scope since the late 1980s,” says RBC. A growing chorus of analysts...

First-Time Home Buyer Incentive Revamped

The Liberal government wants to give its much-criticized First-Time Home Buyer Incentive (FTHBI) a redo. In its Fall Economic Statement this week, the government said it’s going to make it easier for borrowers to qualify. Effective “spring 2021,” first-timers who use the program will be able to purchase a home up to 4.5 times their household income (currently four times)...

Trouble in Condoland

—The Mortgage Report: Weekend Edition— Some commentators proclaim that home “prices can only go up,” but HouseSigma’s Market Temperature gauge shows it’s not peaches and cream everywhere. Market Temperature gauges the number of condos sold versus the number of active condo listings (inventory). Month-to-date, it’s plunged to the lowest level in HouseSigma’s records. If we close October at these levels...

Prepayment Envy

—The Mortgage Report: Sept. 28— Ever wonder who’s got the most generous prepayment privileges in Canada on a closed mortgage? So did we, so we just looked in our database of 3,000+ rates to find out. It turns out that credit unions rule the roost when it comes to annual lump-sum prepayment allowances. The leaders: 30% per year: Casera Credit...

Who Repealed the Law of Supply and Demand?

. If you want to pay less mortgage interest, it helps to have a cheaper home. If you want a cheaper home, it helps if there are more homes than people want to buy. Cue the Economics 101 reference. Yet, there are some who’d like us to believe that demand, not supply, is the problem. As if not having enough...

A New Low for 5-year Refinance Rates

—The Mortgage Report: Sept. 15— Never before has Canada seen an uninsured 5-year fixed nationally advertised for 1.84%. But on Tuesday we saw it, courtesy of Tangerine. At 1.84%, Tangerine’s rate is now just 4 basis points above the lowest nationally advertised uninsured variable rate. As usual, you’ll find even lower default-insured and insurable 5-year fixed offers if you shop...

iBuyers Are Changing the Game…Slowly

—The Mortgage Report: Aug. 19— Properly’s “Backup Offer” for Home Sellers Someday, the majority of Canadian home sellers will get a quote from an iBuyer. What’s an iBuyer? It’s a company that offers you roughly 7% less than fair market value to buy your home…fast. Why would someone take 7% less? Because some people place a high value on speed,...

No Price Crash. Quite the Opposite in Some Cities.

—The Mortgage Report: July 7— Price Expectations vs. Reality: “…Consumer expectations for house price growth in Canada dropped to zero,” according to a BoC survey released yesterday. But the data is about a month and a half old. Since then, home prices in the Greater Toronto Area have broken their 2017 record high. Imagine where prices would be if employment...

People Get Squeezed on Mortgage Renewals

—The Mortgage Report: Weekend Edition— Renewal Tax: Borrowers get worse deals on mortgage renewals than on brand new mortgages. And it’s been that way for decades. Interest rates on renewals have historically been about nine basis-points (0.09%) higher than rates on new mortgages. That’s based on a survey of five-year uninsured mortgages from 19 of the largest federally regulated lenders...