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Is the Housing Market Going to Cool Down in 2022?

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Is the Housing Market Going to Cool Down in 2022? We’re off to a good start in 2022 with rising housing prices. Buyer demand may dwindle as interest rates rise, causing property values to fall.The amount of inventory that enters the market will also impact whether or not prices cool. Are you looking to purchase a home this year? Here’s all you need to know about real estate prices. The housing market in 2021 was scorching, and many people who had hoped to buy a home were forced to put their plans on hold when skyrocketing property prices made it impossible. This year, we’re in a similar situation, but without the benefit of historically low mortgage rates to help offset rising home prices. According to the National Association of Realtors, the median existing-home sale price in January 2022 was $350,300. This represents a 15.4 per cent increase over the previous year. It’s apparent that demand is still high because buyers are willing to pay such a premium for a home. Will this pattern continue in 2022? Is it possible that housing demand may begin to diminish in the near future? Mortgage rate hikes may deter buyers. The average 30-year mortgage rate currently stands at roughly 4.5 per cent. Given that the 30-year loan didn’t even approach 4% in 2021, it’s a frightening number, especially at a time when home values are at an all-time high. But it isn’t just that mortgage rates are rising at the moment. Borrowers should instead expect rates to rise as the year progresses. For that, we can thank the Federal Reserve. The Federal Reserve recently boosted its federal funds’ rate and intends to raise it again this year. While the Federal Reserve does not determine mortgage rates, its activities certainly have an impact on them. As a result, it’s reasonable to expect that borrowers will pay more to finance a home in the months ahead. It’s also reasonable to predict that rising mortgage rates will cause some buyer reluctance. It remains to be seen if the decline is severe enough to cause home prices to fall significantly. However, there’s a risk that prices will gradually cool throughout the course of the year. Of course, housing inventory will influence whether or not home prices fall. Right now, we’re in the midst of a typical low-supply, a high-demand scenario that favours sellers. However, if more properties come on the market this year, buyers will regain some bargaining power, causing home prices to rise in a more positive direction for purchasers. Cash offerings will continue to reign supreme Whether you’re looking to buy a home for yourself or as an investment, one thing to keep in mind is that cash is king in today’s housing market. If you can make a cash offer on a home, even if you end up mortgaging it later, you’ll have an advantage over other buyers who must rely on finance to complete the transaction. Cash offers, on the other hand, may not be as easy to get by these days. When a need for cash arises, many real estate investors turn to their stock portfolios. And, given the current state of the stock market, now is not the best moment to liquidate stocks in order to free up funds for a home purchase. However, if you can pay cash, you’ll have a better chance of beating out other buyers at a time when housing inventory is still at an all-time low. Where should you put $1,000 instantly? REITs have routinely outperformed the stock market over the last 20 years or so. With the recent announcement of our top 5 preferred REIT investments, we believe now is an excellent moment to invest. Related posts. Expert’s Reaction to the increasing rates by the Bank of Canada by admin123 Living in Main Floors- A Great matter of importance for Aging Canadians who want a Pleasant Life Ahead by admin123 National home prices historically higher, listings terribly low by admin123 Housing prices kicks off, stuck historically high, but trended lower in January by admin123 Soleil Condominiums by Mattamay to beam in Milton by admin123 As home prices rise, Ford wants to approve developments as soon as possible by admin123

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Know why the real estate market is slowing down in Toronto

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Know why the real estate market is slowing down in Toronto Recently, Toronto’s real estate market has become unstoppable and hiking, with property prices skyrocketing, but purchasers have a complete sense of hope. According to the recent research by Move Smartly, a real estate authority in Toronto, the city is displaying early signs of a decrease because very fewer buyers are viewing homes and there has been a drop in the number of bids sellers receive. “Every week, I meet with my agents to discuss the real-time patterns we’re seeing on the ground,” said John Pasalis, president of Realosophy, a Toronto real estate agency. “By mid-February, we had all begun to notice early indicators of these tendencies and we believed the market would likely cool down sooner than we had anticipated.” To begin, I’d like to point out that one of the difficulties in addressing early signals of a slowdown is that home buyer and housing analysts alike are frequently perplexed because they rarely perceive any signs of a slowdown. The buyer still bidding on a property against 20 other bidders sees no signs of a downturn, and the housing specialist will not find a single measure in this report that implies things are slowing down. The first signs of a slowdown are a decrease in the number of buyers viewing homes and a decrease in the number of offers a seller receives on offer night, both of which are trends observed by market participants rather than data. Another positive trend for purchasers is the rise in the number of homes that don’t really sell on offer night. According to the survey, sellers typically advertise their homes well below market value in order to attract more purchasers. This is a tactic that allows a seller to sell their home for 5 to 20% more than the asking price, which is closer to the home’s actual market value. When a home does not sell on the seller’s offer night, the seller will often raise the asking price to a level that they are willing to accept (i.e., closer to true market value),” Pasalis explained. According to research, approximately 5% of properties with offer nights failed to sell in February, causing the sellers to raise their asking price. Buyer weariness, high prices, and rising rates, as well as inflation and future macroeconomic uncertainties, could contribute to a gradual decline in the market, according to Pasalis. Although a few weeks do not constitute a trend, I believe this shift will continue in the months ahead. Buyer fatigue, high prices, rising rates, inflation, and the macroeconomic dangers that lie ahead should all contribute to a gradual market slowdown. Buyers should keep an eye on these trends because they may find themselves buying a property in a highly competitive market only to have to sell their existing home in a much softer market. More than ever, timing will be crucial. While it’s still too early to observe any significant changes in the Toronto real estate market, if current patterns continue, the city could be on its way to a more manageable housing market by 2022. Related posts. Expert’s Reaction to the increasing rates by the Bank of Canada by admin123 Living in Main Floors- A Great matter of importance for Aging Canadians who want a Pleasant Life Ahead by admin123 National home prices historically higher, listings terribly low by admin123 Housing prices kicks off, stuck historically high, but trended lower in January by admin123 Soleil Condominiums by Mattamay to beam in Milton by admin123 As home prices rise, Ford wants to approve developments as soon as possible by admin123

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Severe Impact on Mental Health Thanks to the Canadian Real Estate Market

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Severe Impact on Mental Health Thanks to the Canadian Real Estate Market Both bank balances and mental health are being impacted by the housing market. Most recent, and also would-be new homeowners don’t really need reminding that the Canadian real estate market has shattered price records, spectacular bidding battles have become commonplace, as well as supply has tightened to unprecedented levels in the last two years. This February, the average home price in Canada broke the $800,000 barrier for the first time in human history. As per the latest stats from the Canadian Real Estate Association(CREA), homebuyers in Canada can now expect to spend $816,720 for a property, up 20.6 percent from last year. Home values in the Greater Toronto Area (GTA) rose so high that almost all young people — including those with high-paying careers — only could afford them if they had been among the fortunate few who got down payment gifts from their parents’ bank. The GTA experienced another month of double-digit price rises in February. The average cost of a property in the area has risen to a difficult-to-believe $1,334,544, up 27.7% year over year and 7.3 percent month over month. This implies that purchasing a standard detached home in the GTA would now need a down payment of $359,441. If you want to live in Toronto proper, the cost climbs to $414,798. Yikes. Former GTA residents have recently been enticed to relocate to more inexpensive pastures within the Maritimes. Nonetheless, this province-hopping tendency is really not helping locals in the property market, since newcomers drive up house rates, pricing countless individuals out. The consequences of a failing housing market, one that has been labeled a catastrophe, are having an unavoidable impact on mental health for many people. Despite the fact that the ongoing epidemic has made Canadians’ mental health more vulnerable than ever before. Homeownership, previously considered a life accomplishment in Canada, would no longer be a regular phenomenon. Indeed, one-third of Canadians under the age of 40 have given up on the idea of owning, as per RBC’s Spring Housing Poll from last year. In the year after, prices have so far only risen to record-breaking levels throughout the majority of the nation. Housing expenses are worrying consumers throughout the country, as per new RBC Annual Home Ownership Poll data. Almost half of the respondents (47%) say that thinking about purchasing or saving for a home as prices increase is stressing their relationship, while the majority (54%) are worried about having to buy a property further away from family and friends. Furthermore, 30% said they would have to and may have to live with their parents longer due to the rising cost in order to save enough money to buy a property. Despite the immense differences in time, younger people invariably compare themselves to their parents, who’ve been able to purchase homes while they were their age, when housing prices and mortgages were far more affordable. “Many young people are feeling like home-ownership is an impossible reality,” says Dr. Saunia Ahmad, Director and Clinical Psychologist at the Toronto Psychology Clinic. “The critical thing to remember is that a house is supposed to be a place where you can set your roots and have a long-term place to live. It’s not just that a real estate investment can make you money; stocks can do that too. With real estate, you have a home and there’s a psychological sense of safety in that.” House-hunting is really not exactly a peaceful procedure for individuals who really do attempt to enter the market, particularly if they are on a restricted budget. “The bidding wars have been demoralizing for people,” says Ahmad. “Think about the amount of time looking for houses, getting excited, and then not getting it.” According to Ahmad, this might have a significant impact on one’s health. Most individuals who have even considered purchasing in this rising market would surely agree. “It has been tough on some of my clients,” says Toronto-based realtor Ian Matthews. “In the past few months, the inventory has been so low that it has been very discouraging for some, with many properties selling with 10 or more offers. I think this, combined with two years of Covid lockdowns, and recent news from Ukraine has caused some people to feel like they have no control of their future in a crazy time.” Numerous Toronto houses, particularly those below $2 million, are selling with multiple offers or pre-emptive bids just one or two days after being listed, as per Matthews. He additionally mentions the recent tendency of real estate brokers offering houses at ridiculously low prices in order to garner more attention from potential purchasers. “This is causing buyers to rush to see places with hope, many of which are priced to go $500K or more over asking,” says Matthews. “When this happens week in and week out, it becomes really discouraging. I have been trying to manage expectations for clients and have been encouraging them to take time off to reset when it is needed.” Matthews claims that some of his clients are now house hunting in spurts as a result of his advice. “They’re seeing a number of properties in a few weeks and then vanishing for a period of time,” he says. “I think for a lot of buyers, it has become a bit of a rollercoaster and it can get pretty emotional, so taking breaks is often needed.” Move-up purchasers are also under pressure. However, first-time purchasers aren’t the only ones who are concerned. “I have a few clients looking to buy and then sell,” says Matthews. “They are concerned that they will buy at these prices and the market will shift, leaving them in an awkward position. Buying in this market and not being able to sell in this environment could make their purchases unaffordable. I am hoping the spring market will bring with it more inventory which will offer more stability. Though I don’t forecast prices coming

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How to Purchase a Home in Canada in just 7 Easy Steps?

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How to Purchase a Home in Canada in just 7 Easy Steps? Despite growing housing costs, real estate remains a valuable investment for several Canadians, especially millennials who want to purchase a home. Ever since beginning of the epidemic, record-low rates of interest have created an opportunity for hundreds of individuals to purchase their first house, whereas the prospect of increasing rates in the second quarter of 2022 has prompted many more to lock in rates, get pre-approved, as well as close on homes as soon as humanly possible. However, how do you go about buying a home in Canada? You might not know where to begin if this is your first time. The journey of purchasing a home, whether it’s a single-family home, a townhouse, or a condo, does not really begin when you phone a broker to schedule a viewing. Rather, it begins years before you decide to purchase a home, whenever you decide you’re ready. Here’s how to buy a home in Canada, step by step. We go through everything from choosing if you’re ready to buy a property to receiving your keys. In seven simple steps, you can purchase a home. Whether you’re purchasing a house, a townhouse, or a condo, the processes are the same. For the sake of clarity, we’ll focus on how to purchase a single-family home. Step 1: Put money aside for a deposit. Saving for a down payment is the first step in purchasing a home. A down payment of at least 5% of the buying price is required in Canada. For residences priced between $500,000 and $1 million, you’ll need 5% of the first $500,000 and 10% of the remaining amount. A minimum down payment of 20% is required for residences worth $1 million or higher. Remember to save 3 percent to 5% of the home’s purchase price for closing fees while saving for a deposit. Step 2: Organize yourself. Spend the effort to manage your money and documents while you’re collecting your deposit for a house. It’s possible that you’ll have to save for your down payment for months, giving you time to: Pay off your debts. Now is an excellent moment to pay off any credit card debt, student loan debt, vehicle loans, or a balance on a credit card. You may borrow more for your home if you have less debt. Compile your paperwork. A lot of documentation is required when applying for a mortgage, so now is the best time to get to work. If you locate your ideal home and need to move swiftly through the mortgage approval process, preparing your papers in advance is really helpful. Step 3: Examine your options for rebates and grants Buying a property is pricey, so don’t add to the expense. Check to see if any refunds or incentives are available to you. Step 4: Look for a good deal Why must your mortgage be any dissimilar? You wouldn’t get auto insurance without first searching around for the best deal, then why should your mortgage? Finding the best mortgage rate might save you hundreds – if not tens of thousands – of percent interest over the course of your loan. When you work with a mortgage broker, looking for the best mortgage rate is simple. Step 5: Obtain a pre-approval for a home loan A mortgage pre-approval is indeed a low-risk approach to get these crucial details that will help you figure out your maximum purchase cost. You may lock in a quote for up to 160 days if you really like the mortgage rate as well as the lender. If you secure a mortgage rate, even if rates go up, you’ll still be able to get the cheaper rate. Don’t worry if rates fall; your lender will accept the reduced rate. If you’ve never gotten a pre-approval before, review our list of pre-approval dos and don’ts before proceeding. Step 6: Find a place to live Finally, there’s the exciting part: looking for a home! You’re ready to call a real estate agent and start your property quest now that you have your mortgage pre-approval, a maximum purchase price in mind, and a sizable down payment. Here are some of our best advice: Find a real estate agent that specializes in the property or neighborhood you want to live in. If you’re a first-time homebuyer, you should avoid advertising yourself. It’s preferable to rely on a seasoned agent’s knowledge. Make a list of “must-haves” and “nice-to-haves” for your future home. Knowing where you can be flexible is critical. Examine the market in your preferred neighbourhood to ensure that property prices and your maximum buying price are in line. In a competitive market, you must be ready to act rapidly. Step 7: Make a proposal and close the transaction Things will move quickly after you locate the house you like, so don’t be alarmed! You’ll start by submitting a buying bid. If the home market in your area is hot (as it is in much of Canada), you shouldn’t be the only one who makes an offer. When your offer has been accepted, you’ll submit a deposit to the buyer, work with your mortgage broker to confirm your mortgage financing and schedule a home inspection. Depending on the outcomes of the house inspection, the offer may be modified. Even so, you’ll finally acquire financing and, with the aid of a real estate lawyer, pay your deposit and shift the title to the property into your name. Relying on the parameters of the acquisition offer, the whole procedure might take 30-60 days. You’ll get the keys from your real estate agent after everything is in place, and you’ll be the proud owner of your new house. The Final Word While this piece may appear to be comprehensive, it merely touches the surface of what it takes to buy a property in Canada. If you’re not sure what to do, you can always get free assistance from one of our mortgage

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Would the GTA see a slowdown in rising prices this spring?

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Would the GTA see a slowdown in rising prices this spring? A “slightly more balanced market” is likely to reach the GTA this summertime, as per new research, after months of constantly increasing property prices.Over the winter, two main themes have dominated the Canadian real estate market: the lowest recorded inventory as well as steadily rising prices. For a point this winter, active listings were at their lowest levels in more than two decades, resulting in a very highly competitive environment. In February, the average price of a property in Toronto jumped 27.7% year on year and, despite a 77% month-over-month increase in availability. The market has indeed benefited from historically low-interest rates. The low cost of borrowing has contributed to price increases that have lasted all winter. Nonetheless, as evidenced by the supply pattern in February, Canada appears to be on its way to a little more balanced market. According to the statistics from the previous month, the sales to new listings ratio (SNLR) was 64 percent, down 9 % month over month, indicating that the market will be a little more buyer-friendly in the approaching spring. Price escalations will certainly be slowed, but just not necessarily reversed, as the market becomes more balanced. By the summertime, prices are expected to have risen by more than 4%. Research predicts that the average price of a property in the GTA will approach $1,390,124 in June 2022, up 4.16 % and $26,194.20, based on TRREB’s 10-year historical information. The total number of transactions is expected to reach 13,638 this month, up 22.8 % from June of the previous year. Several sites have examined sales and pricing for the months of February through June from 2011 until 2021 to arrive at these forecasts. For every year, the percent difference between as well as sales volumes had been computed. These averages have been then used to forecast June 2022 average prices as well as sales numbers using pricing and sales data. By aggregating the percent difference between the top five as well as the bottom five years and applying it to the June 2022 data, a lower and higher range was also produced. At the extreme end of the spectrum, prices are expected to rise 0.21% to $1,337,294 while sales fall 15.3% to 11,538. On the top end, prices are expected to rise 8.12% to $1,442,955, while sales are expected to rise 13.3% to 15,739. It’s worth noting that these patterns and projections are substantially influenced by the April 2017 market correction, when prices decreased by about 20% over a few months as a result of the Ontario Fair Housing Plans’ activation. What does this entail for both purchasers and sellers of real estate? While housing prices will continue to rise, they will decrease from their present fast rate as we enter the Spring market time, according to the estimates. The average price of a home in the Greater Toronto Area increased by 7% in February, from $1,242,793 to $1,334,544. The move toward a more balanced market, coupled with improved inventory, could bring some relief to purchasers who have been worn down by a difficult winter. One of the most famous realtor, Claudio Castro, showcases: “A lot of what happened in the market over the winter can be attributed to buyers knowing that our era of historically-low interest rates was coming to a close. And, as the Bank of Canada recently announced, overnight lending rates have been increased by 25 basis points. So what we’ll see in the next few months is people acting according to that rate hike. A lot of that demand in the last few months has been driven by locking in interest rates. While we won’t see a huge jump in new listings overnight, and we’re still in a seller’s market, we are starting to see some inventory drip through, which should provide relief for buyers who have found themselves a little tired due to the record low stock and high prices throughout the winter. We’re still a long way away from a buyer’s market, but they’re beginning to see some more leverage as we head into more balanced  conditions.” TRREB’s original projection of a 12% price rise in the GTA for the year has been already overtaken by the actual outcome of 15% during the first two months of the year. Considering rising rates, pricing uncertainty might be a major factor heading into the Spring market, however, the figures indicate that rates will continue to expand in the months to come, albeit at a slower rate. In our projections for the housing market in 2022, we identified growing property prices as a crucial driver, as well as the potential impact of increased interest rates. “As mentioned in our earlier predictions for this year, supply is definitely a key to the real estate market story for 2022,” said Lauren Haw. “As supply has started to open up in February, we are starting to see a little relief for buyers in terms of opportunity and availability leading to more balanced conditions versus the intense seller’s advantage we’ve been facing. Price relief however is unlikely, and we are expecting to see continued increases in the single digits into the Spring market across property types.” If you’re thinking about purchasing a house this spring, the first thing you should do is schedule a complimentary buyer’s consultation. There are experts who will guide you through the home-buying process and offer suggestions for finding the ideal house for you based on your preferences and budget. Related posts. Would the GTA see a slowdown in rising prices this spring? by admin123 Whitby to witness the largest development in 30 years by admin123 February Leap in Canadian building intentions by admin123 Advantages and disadvantages of Mortgage Broker by admin123 Federal Ontario gives an investment of $259M for each GM for Oshawa by admin123 A rise in the Canada home prices again, 20th month in a row by admin123

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Whitby to witness the largest development in 30 years

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Whitby to witness the largest development in 30 years Whitby to witness one of the biggest development in 30 years, there has been an official start to construction of the Station No. 3 condominiums. The Brookfield Residential venture has been involved in the work for a long time and has finally taken a decision to go ahead.  The great development has received fund commitments from Whitby and Durham regions. These funds will “incentivize” the new project and also act as investments in the downtown core. The sum offered by the Durham region through the Regional Revitalization Program (RRP) will be upto $630,000 while Whitby will be funding $1,167,500  through the Town’s Community Improvement Plan (CIP) program for this huge venture. Station No.3 will be a 6-storey multi-purpose complex situated at Brock St and Colborne St. The development will be home to around 160 families. There is a limited variety of one to three bedrooms measuring upto 1,517 square feet for every condo. One of the major purposes behind this development is to provide housing to a large number of people including young professionals, retirees, and young families. Being a multi-purpose development, it is expected to accommodate business, thus resulting in the filing of 9,500 square feet mainly on the ground floor just for commercial purposes. The appropriate location of the development can be a great advantage too. It has proximity to Brock and Dundas Area, Whitby Four Corners, and several historical developments. One can also get convenient access to educational institutions. The different school found in the area includes Henry Street High, West Lynde Public, St Theresa Catholic School, and Julie Payette Public. Another significant feature of this Brookfield Residential project is that it will be created in alignment to the Council’s goal for the downtowns, wherein, the people can reside and work in proximity to the shops. According to Whitby Mayor Don Mitchell, “This will make historic downtown Whitby more vibrant and attractive. ” Expecting the Durham population to double in the next 20 years, such developments can be seen as a necessary step. Considering Whitby, there can be a 40 percent increase by 2033. Moreover, the ongoing population growth is affecting housing prices leading to higher costs. There has been an extensive rise in the housing prices at Whitby in the last few years.  The average pricing of the house is around $1.3M. According to John Henry, Regional Chair and CEO, The Regional Municipality of Durham “While the housing demands in Durham Region continue to increase, the Region is working to ensure that supply and pricing are competitive. Developments such as this are exactly what our residents need. That is why Regional Council invested nearly $630,000 into this development, with funding from the Regional Revitalization Reserve Fund. With its mix of new residential units and commercial space being created, Station Number 3 is a prime example of the imaginative solutions being implemented to help keep up with Durham’s growing population.” Related posts. Whitby to witness the largest development in 30 years by admin123 February Leap in Canadian building intentions by admin123 Advantages and disadvantages of Mortgage Broker by admin123 Federal Ontario gives an investment of $259M for each GM for Oshawa by admin123 A rise in the Canada home prices again, 20th month in a row by admin123 A collaboration on transit-oriented communities by admin123

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February Leap in Canadian building intentions

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February Leap in Canadian building intentions Even though all the development, innovation, and scientific and technological advances were made by man, he could not reduce the growing dependency of the economy on the construction of buildings. This case became evident in the case of Canada where the building permits showed a massive increase in number. This was a positive influence on the construction industry which resulted due to demand for new housing and increased government spending. The February hike in permit prices According to the statistical reports, the building intentions showed a drastic increase all over Canada. The value of permits showed a shocking amount of $12.4 billion in the month of February which is a 21% increase from what it was in January. Experts found high inflation rates in the country to be a major contributor to this current situation. Since the Canadian building intentions are a combination of a desire for residential and non-residential buildings it is necessary to understand the difference between the two What are residential building intentions? Throughout the years the demand for residential building construction has always been high due to the continuous increase in the human population and awareness among people to acquire a place of residence to retire to. But in February this already popular type of construction showed an increase of $7.8 billion which is 9.8% higher than January. Some explain this surge as the result of single-family home building desires. Most people aspire to move out of big cities to build their place of residence to enjoy some peace and quiet. What are non-residential building intentions? Non-residential buildings include commercial and institutional structures which were not left out in the latest trend of demand hike. The permits for this category of buildings reached a whopping $4.9 billion in February which when compared to the month of January is a 43.2%increase. This is more surprising that a hike in the price of residential permits as such a boost was not witnessed in this section for many years. An example of a non-residential boom was seen in BC and Quebec where hospital permits saw a boost to $1.9 billion. Though it was not a sustainable boom, it had its benefits, nonetheless. Importance of permit The building permit values are the early indication of construction activities going on in a country. For Canada, it is based on 2,400 municipalities that represent about 95% of the nation’s population. An important thing to note is that the issuance of a permit does not ensure that construction will take place. Conclusion Although an increase in building intentions has major positive effects on the economy, like boosting the construction industry, we need to ensure the level of inflation or any other negative output that caused this hike does not overpower the benefit of this result. Related posts. February Leap in Canadian building intentions by admin123 Advantages and disadvantages of Mortgage Broker by admin123 Federal Ontario gives an investment of $259M for each GM for Oshawa by admin123 A rise in the Canada home prices again, 20th month in a row by admin123 A collaboration on transit-oriented communities by admin123 Canada housing plans considered vague by BMO by admin123

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Advantages and disadvantages of Mortgage Broker

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Advantages and disadvantages of Mortgage Broker When you picture yourself getting a mortgage, you perhaps imagine heading to your local bank branch to deliberate down with a mortgage specialist to discuss your choices. This was once the standard process, but today it might be a mistake. Mortgage brokers are becoming very popular than ever, and are often a fine choice. Of course, whether you’re buying your first home or you’re a long-serving property owner, the emphasis on securing the lowest possible mortgage price can’t be overstated. But are mortgage brokers better? Keep reading to find out everything you need to know about using a mortgage broker. Who is a mortgage broker? A mortgage broker is a one-stop for mortgages. Unlike your local bank, which can only offer you a mortgage and mortgage rate from their suite of products, Mortgage brokers have access to many lenders When you make an appointment with a mortgage broker, it’s just like you’re making an appointment with the major banks, except you only need to meet with one person. A mortgage broker has access to products from multiple lenders. Pros and cons of using a mortgage broker So, should you use a mortgage broker? While we think that working with a broker is generally a good option for most people, its better to weight the pros and cons yourself. Advantages A Broker May save You Legal work Mortgage brokers have contact with a variety of lenders, some of whom you may not even know about. They can also steer you away from certain lenders by finding out the inconvenient payment terms hidden in the contracts. For a better knowledge of the mortgage rates, it is better to do a good research online and use the mortgage calculator further. Such tools will enable you to make a comparison in the rates and will act as additional knowledge while assessing the credibility of a mortgage broker. Mortgage Brokers Have Better Access Brokers act as gatekeepers to bring in clients, thus when it comes to getting some good clients, several lenders team up with the brokers. Moreover, it is difficult to contact the lenders directly to get information about retail mortgages. Moreover, the mortgage brokers can also manage to get you the best and most suitable price from the lenders due to their reach and their credibility. Thus, you can sometimes expect to get good rates as compared to what you would have got without their assistance. Expert assistance Brokers are experts at what they do and are accustomed to working with borrowers who may have unique needs; they have the best deals suitable to you such as freelancers or those with poor credit ratings. As they offer impartial advice on a broad range of lenders, they will also advise you on the best. Working with the mortgage broker will save your time and energy. Disadvantages A Broker’s Interests May Not Align With Your Own Your goal in looking for a mortgage is to find one with an affordable interest rate and with affordable fees. A broker’s goal, therefore, is to get you into a mortgage that maximizes their compensation also. The 2008 market crash revealed that many brokers were getting their clients into mortgages that they could not afford over time. Broker May Owe a Fee Mortgage brokers are paid either by the lender or by you. If the mortgage lender covers the fee, then it might include the broker’s commission as well, which might be a good deal for the broker but a bad one for you. Moreover, if the mortgage broker has chosen a specific lender for you, then the mortgage rates might not be quite suitable as well. Often they put their needs above the needs of the clients. Lack of familiarity and experience  If you’ve never used a broker before, you’ll need to establish a relationship with a new one. It may take a few tries before you find a good fit. A lot of mortgage offices hire inexperienced mortgage brokers who might lack the inside knowledge much needed for this profession. Thus, an inexperienced mortgage broker will not be able to get the best deal for you. More documents may be needed If you do not have a good relationship with the mortgage broker, it might cost you some extra efforts. Moreover, you will be required to provide an extra set of documentation, as there are a lot of lenders who avoid working with mortgage brokers. According to some lenders, the mortgage rates initiated by the broker can encourage problems when compared to those obtained from direct lending. Conclusion Working with the mortgage broker will save your time and efforts during the application phase. Potentially a lot of money over the life will be used. Every mortgage broker has a relationship with a different mortgage broker. Related posts. Advantages and disadvantages of Mortgage Broker by admin123 Federal Ontario gives an investment of $259M for each GM for Oshawa by admin123 A rise in the Canada home prices again, 20th month in a row by admin123 A collaboration on transit-oriented communities by admin123 Canada housing plans considered vague by BMO by admin123 High mortgage rates to overwhelm Canadian housing by admin123

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Federal Ontario gives an investment of $259M for each GM for Oshawa

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Federal Ontario gives an investment of $259M for each GM for Oshawa The federal and provincial governments are each contributing $259 million to assist manufacturing at General Motors facilities in the province, including an electric car production line that will be the country’s first of its type. Federal Industry Minister François-Philippe Champagne hailed the company’s CAMI manufacturing factory in Ingersoll, Ont., as the country’s first full-scale electric car production facility. A $2 billion investment from GM includes up to $259 million from each of the provincial and federal governments. At Monday’s announcement in Oshawa, Ontario Premier Doug Ford stated that the money “would bring pickup truck manufacture to Oshawa and electric car production to Ingersoll.” This investment, according to Bell, will safeguard 2,600 employment in Oshawa. Bell also stated that fifty percent of new production recruits at the Oshawa factory are women, showing GM’s commitment to workplace diversity. “Working with our government partners, we have reopened GM’s Oshawa facility, generating thousands of new jobs and attracting a record number of women in production roles,” said Marissa West, president and managing director of GM Canada. “Later this year, our CAMI factory in Ingersoll will commence full-scale electric car manufacture in Canada with BrightDrop.” This collaboration with the governments of Ontario and Canada is assisting GM in developing a more diversified, creative, and sustainable business and EV supply chain for the future – and we are happy to be doing it right here in Canada.” Champagne and Ontario’s Economic Development Minister Vic Fedeli also drove one of the vehicles at the Oshawa factory. They came alongside Premier Doug Ford to promote money from both governments for the $2 billion GM investment, which the politicians said will improve output at the Oshawa plant. General Motors said that the Oshawa assembly facility would add a third shift to accommodate increased light-duty Chevy Silverado pickup output. The business stated that the shift will result in a total of 2,600 additional employment since the mill reopened in late 2019. General Motors previously stated that when production resumed after nearly two years, around 1,800 jobs were created over two shifts in November 2021. Ford, who has made many auto sector announcements in recent weeks concerning electric and hybrid vehicles and parts, hailed GM’s statement on Monday as “additional fantastic news for Ontario’s auto sector.” “We’re making Ontario the finest jurisdiction in North America for building the cars and batteries of the future,” Ford stated. The premier’s support for electric vehicles, which began months before the provincial election campaign due this spring, indicates a shift from earlier in his government’s tenure. After taking office in 2018, Ford’s Progressive Conservative administration halted the construction of electric vehicle chargers (though it has subsequently committed money to create more) and cancelled discounts to encourage people to buy electric vehicles. So yet, Ford has made no commitment to reinstate rebates or other customer incentives. Related posts. Federal Ontario gives an investment of $259M for each GM for Oshawa by admin123 A rise in the Canada home prices again, 20th month in a row by admin123 A collaboration on transit-oriented communities by admin123 Canada housing plans considered vague by BMO by admin123 High mortgage rates to overwhelm Canadian housing by admin123 The Canadian Blind Bidding Ban Dilemma by admin123

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A rise in the Canada home prices again, 20th month in a row

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A rise in the Canada home prices again, 20th month in a row The surge in Canadian home prices continues unabated, reaching new highs for the 20th consecutive month in February. The latest Teranet-National Bank House Price Index, issued on Thursday, indicated a 1.7 percent increase in home prices between January and February across 11 major Canadian areas. On a three-month annualized basis, Canadian house prices rose 20.5 percent in February, a pace not seen since the summer. According to the survey, the most recent price increase is likely due to high demand in the resale market, which has favoured sellers. The latest Bank of Canada rate rise, as well as numerous others, planned this year, may also be responsible for driving buyers into the market. Home prices in Toronto set a new monthly high in November, up 28.3 percent from November 2020. Although the number of new listings fell slightly—by double digits in the condominium market—the average sale price reached an all-time high of $1.163 million, up 21.7 percent from the previous year (the national average gained 19.6 percent to $720,854). Meanwhile, in Vancouver, sales increased by 11.9 percent, while between September and October, sales increased by 8.6 percent, the largest single month-over-month gain since July 2020. For most of the previous three decades, projecting a crash in the Canadian real estate market has been a fruitless exercise, but there is precedence for at least a brief drop. Prices in both Toronto and Vancouver fell around five years ago when government initiatives to calm the market coincided with the central bank raising interest rates. This is similar to what is happening today and might indicate another possible downturn. Another reason influencing Oxford Economics’ estimate of a house price decline is the persistent assumption that the Bank of Canada (BOC) would hike interest rates. This began in early March 2022, when the BOC lifted its benchmark interest rate from 0.25 percent to 0.5 percent, the first time the bank has done so since 2018. Oxford expects the key interest rate will be raised three more times in 2022, followed by additional gradual hikes through 2024, bringing the rate to 2% by summer 2024. Fixed-rate, five-year mortgage rates are expected to rise by around one percentage point to 4.25 percent by the end of 2020, eventually reaching a ceiling of up to 5 percent by 2023. The research also takes into account the federal government’s upcoming new interventionist measures on housing demand, such as a tax on house flipping, a prohibition on foreign homeownership, and a tax on unoccupied properties held by non-residents. Even with a 24% decline, Canadian house prices would still be around 15% higher than before the epidemic, resulting in stronger market conditions that bring home prices closer to the reality of what Canadians can afford. Currently, a decline of this magnitude is not projected to cause a recession. The current prediction predicts that housing prices will be more in line with household borrowing capacity by 2028, although the impact would be varied throughout the country. It should also be emphasized that Canada’s ambitious immigration plans — inviting nearly 1.2 million immigrants over three years — are beginning to add to the country’s tight housing market, particularly in the main metropolitan centres of Vancouver and Toronto. Related posts. A rise in the Canada home prices again, 20th month in a row by admin123 A collaboration on transit-oriented communities by admin123 Canada housing plans considered vague by BMO by admin123 High mortgage rates to overwhelm Canadian housing by admin123 The Canadian Blind Bidding Ban Dilemma by admin123 Hamilton to witness the tallest building: 45 Storey Tower by admin123

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