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Canada’s population growth driven by underutilized immigrants without shelter: RBC

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Canada’s population growth driven by underutilized immigrants without shelter: RBC Canada’s immigration success is wasted. RBC found that immigration drives most growth. They email investors that immigrants are younger and better educated than Canada’s domestic workers. They were more likely to be overqualified for their employment and have poorer housing. If Canada doesn’t change course, its problems will worsen Canada Needs Immigration Talent Lottery Wins Canada’s aggressive immigration agenda works. From 2010 to 2019, 7 immigrants per 1,000 individuals arrived. It tops the G7, surpassing Canada. It’s demographic time bomb makes it good. Canada hopes immigrants will solve its demographic cliff. Immigration drove 90% of population growth in 2021. Statistics Canada predicts 100% immigration-driven growth by 2050. Deaths would outnumber births without immigration. As they retire, the ageing population leaves a skill deficit. Canada wants 1.5 million immigrants in three years. It hopes half are skilled economic migrants. That should reduce near-record job openings and wage-related inflation. Immigrants bring demand and dependents, making it harder. “Indeed, new immigrants can fill unfilled positions, but they also stimulate demand for housing and consumer goods which in turn enhances labour demand,” argues Nathan Janzen, assistant chief economist at RBC, Canada’s largest bank. Furthermore, “higher levels of immigration alone won’t ‘fix’ longer-run structural labour supply issues—but they’ll help. Immigrant skill sets could benefit even more if well utilised.” Canada’s Immigrants Are Smarter Than Locals Canada is the immigration lottery winner—young and educated. Around a third of the bank’s customers hold advanced degrees. Only 20% of domestic workers have advanced degrees. Immigrants tend to study innovative fields. Janzen writes that immigrants with higher education are more likely to major in STEM subjects (science, technology, engineering, and math) than non-immigrants. Canada Wins, but Immigrants Lose Canada, like many lottery winners, wasted its wealth. Immigrants are often underutilised or overqualified. Underutilized immigrants outnumber non-immigrants 29.8% to 4.5%. Janzen added, “By our count, immigrants with a degree in those subjects are six times more likely to work in positions that do not require comparable expertise. “Proper integration of their abilities might address workforce shortages, add to a more productive labour force, and counter rising pressure on inflation and housing Immigrants in Canada are more likely to live in substandard housing Immigrants are more likely to suffer from Canada’s housing problem. The immigrants (16%) are more than twice as likely as non-immigrants (7%) to live in substandard housing. Immigrants were also more likely to spend over 30% of their income on shelter (21% vs. 13%). Underutilization may also contribute to this issue. Immigrants in Canada Have Poorer Dwelling The bank advises authorities use labour utilisation to capitalise on immigration. Policies encourage skilled migrants. Yet, domestic employers don’t value those skills. If they’re doing manual labour, attracting an accountant is pointless. “Proper integration of their abilities might help alleviate worker shortages, add to a more productive labour force and counter rising pressure on inflation and housing,” adds Janzen. Related posts 01 March 2023 Want to Build on Your Own Land? Here Are Five Things You Can Count On From Your Contractor 28 February 2023 Canada’s population growth driven by underutilized immigrants without shelter: RBC Want to Build on Your Own Land? Here Are Five Things You Can Count On From Your Contractor Canada’s… 28 February 2023 Fitch Expects World’s Biggest Real Estate Price Correction in Canada Fitch Expects World’s Biggest Real Estate Price Correction in Canada A major credit rating agency… 18 February 2023 Despite the slowdown, Canadian mortgage debt continues to rise Despite the slowdown, Canadian mortgage debt continues to rise Despite the housing market recession,… 15 February 2023 StatCan: Nearly Half of Canadians Worry About Shelter Costs StatCan: Nearly Half of Canadians Worry About Shelter Costs Many Canadians worry that they are only a… 30 January 2023 How can homeowners safeguard against title fraud? How can homeowners safeguard against title fraud? There are new reports of title fraud every week, and… 30 January 2023 Bank of Canada will increase rates, and leave room for more: BMO Bank of Canada will increase rates, and leave room for more: BMO One possible reason why we won’t…

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Canadian real estate price

Fitch Expects World’s Biggest Real Estate Price Correction in Canada

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Fitch Expects World’s Biggest Real Estate Price Correction in Canada A major credit rating agency predicts deteriorating conditions for the Canadian housing market. The most recent client risk assessment from Fitch Ratings for the mortgage bond market has been withdrawn. According to the agency’s report, soaring global real estate prices are likely to correct, with Canada braced for the largest boom and crash in history. The delinquency rate is expected to rise due to rising mortgage rates and worsening economic conditions. However, not to levels observed before 2020. Canada’s real estate market had one of the largest booms and subsequent busts The Canadian housing market had one of the world’s most dramatic price increases. There was a sharp increase of 41% in home prices from 2020 and 2022, when they peaked. Only the United States (+43%) showed a more rapid increase; thus, this increase was still impressive. This rapid increase has led to inflated prices, which the agency believes will eventually correct. The firm predicts a 15% drop in Canadian home values from peak to trough. Australia (-16%) is predicted to take a larger hit, but this is still the agency’s second largest prediction correction. According to the agency’s calculations, Canadian home prices will have been 29% overvalued by the year 2022. They anticipate a rapid reduction in the overvaluation in the next months. This would be as a result of rising salaries, falling home prices, and stable interest rates. Yet, they are not optimistic that the overvaluation will disappear entirely. This is particularly in Toronto and Vancouver. They can still absorb significant damage Delinquencies will increase when mortgage payments increase As a result, some households are feeling some financial strain as a result of rising mortgage payments. The organisation discovered that the typical monthly payment for a borrower with a fixed-rate mortgage had increased by $300. Those with adjustable rate mortgages were hurt harder, with a $700 monthly hike. However, certain indicators suggest that media portrayals of the potential economic effects are exaggerated. Variable rate mortgage borrowers are safer, and many households have seen their savings grow. Just about a third of families have mortgages, and Fitch estimates that seventy percent of them are on fixed rate periods of five years or longer. Only a tiny percentage of the market is vulnerable to an increase in the overnight rate. Moreover, there are ways to cushion the blow, such as extending loan amortisations. Yet when the economy is in a downward spiral, it’s inevitable that defaults will increase. The agency projects that by 2024, the mortgage areas rate will have increased by 64 percentage points. Thus, reaching 0.23 percentage points. This is a substantial increase from recent years, yet it is still below than levels seen before 2020. If sales have been slow for a long time and then suddenly pick up, the increased pace may give the impression of a major shift. Since 2020, the system has been warped by low-cost lending and default-prevention aid. Once that credit is used up and defaults normalise to non-stimulus conditions, it is expected that defaults and sales will revert to their levels prior to 2020. The only variable they didn’t account for in their forecast was price. In the opinion of experts, the drop in home prices hasn’t yet corrected the overvaluation. These forecasts, the agency said, assume the United States will see a moderate economic slowdown. Due to the tight nature of the trade relationship, the severity of a downturn in the United States is a consideration. They warn that Canada‘s strength could be put to the test if the situation in the United States worsens Related posts 28 February 2023 Fitch Expects World’s Biggest Real Estate Price Correction in Canada Fitch Expects World’s Biggest Real Estate Price Correction in Canada A major credit rating agency… 18 February 2023 Despite the slowdown, Canadian mortgage debt continues to rise Despite the slowdown, Canadian mortgage debt continues to rise Despite the housing market recession,… 15 February 2023 StatCan: Nearly Half of Canadians Worry About Shelter Costs StatCan: Nearly Half of Canadians Worry About Shelter Costs Many Canadians worry that they are only a… 30 January 2023 How can homeowners safeguard against title fraud? How can homeowners safeguard against title fraud? There are new reports of title fraud every week, and… 30 January 2023 Bank of Canada will increase rates, and leave room for more: BMO Bank of Canada will increase rates, and leave room for more: BMO One possible reason why we won’t… 28 January 2023 How To File A Warranty Claim And What You Can Anticipate How To File A Warranty Claim And What You Can Anticipate There has been a recent surge in the population… 28 January 2023 Three Improved Ways to Understand Your Warranty Three Improved Ways to Understand Your Warranty Purchasing a home in the pre-construction phase can be…

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Despite the slowdown, Canadian mortgage debt continues to rise

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Despite the slowdown, Canadian mortgage debt continues to rise Despite the housing market recession, Canadians still have a serious addiction to mortgage debt. According to Stat Can, the sum of outstanding mortgage loans reached a new high in December of 2022. Even while the rate of increase in mortgage credit has fallen to its lowest point in years, it is still significantly higher than it was before 2020. With a GDP as large as Canada’s and expanding at a much quicker rate, it continues to be a cause for concern. Total Canadian mortgage debt exceeds $2 trillion The mortgage debt in Canada continued to grow by billions towards the end of last year. In December, the total amount due reached $2.08 trillion, an increase of 0.1%, or $3.0 billion. Compared to last year, this is a $137.8 billion (7.1%) rise. The fact that one-third of a very small population is responsible for so much debt is cause for alarm in and of itself. But the rate of expansion is slowing down. When interest rates rise, mortgage borrowing in Canada slows dramatically Mortgage credit is being slowed by slowing real estate sales and rising rates. In February of 2022, a month before the initial increase to the overnight rate, annual growth peaked. Every month since then has seen slowing, culminating in December’s reported rate of 7.1%. Since October of 2020, it has been declining at an ever-faster clip. Mortgage Debt Continues to Outpace Productivity Despite Slower Growth Please keep in mind that slowing down is not the same thing as being slow. The amount of mortgage credit that is currently outstanding continues to grow at an abnormally rapid clip. The rate in December was still 1.4 percentage points above the average for the five years preceding to 2020. Even though its size is comparable to GDP, its growth rate is substantially higher. Increase in Mortgage Debt in Canada Slowly but surely, rising interest rates are putting an end to Canada’s mortgage binge. But if mortgage lending expands faster than GDP, consumer spending would inevitably fall. In a nutshell, the unproductive financial economy is stifling the productive economy, which is terrible for long-term expansion Related posts 18 February 2023 Despite the slowdown, Canadian mortgage debt continues to rise. 15 February 2023 StatCan: Nearly Half of Canadians Worry About Shelter Costs StatCan: Nearly Half of Canadians Worry About Shelter Costs Many Canadians worry that they are only a… 30 January 2023 How can homeowners safeguard against title fraud? How can homeowners safeguard against title fraud? There are new reports of title fraud every week, and… 30 January 2023 Bank of Canada will increase rates, and leave room for more: BMO Bank of Canada will increase rates, and leave room for more: BMO One possible reason why we won’t… 28 January 2023 How To File A Warranty Claim And What You Can Anticipate How To File A Warranty Claim And What You Can Anticipate There has been a recent surge in the population… 28 January 2023 Three Improved Ways to Understand Your Warranty Three Improved Ways to Understand Your Warranty Purchasing a home in the pre-construction phase can be… 28 January 2023 Can I Have A New Home Warranty Even If It’s Not New? Can I Have A New Home Warranty Even If It’s Not New? Did you buy a previously owned house recently?…

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Canadian real estate

StatCan: Nearly Half of Canadians Worry About Shelter Costs

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StatCan: Nearly Half of Canadians Worry About Shelter Costs Many Canadians worry that they are only a few dollars away from financial disaster. Canadian Social Survey Quality of Life and Cost of Living for Q3 2022 findings were recently released by Statistics Canada (Stat Can). Nearly a third of households struggle to make ends meet because of the cost of the living problem, with young adults bearing the brunt of the uncertainty. Particularly difficult have been the skyrocketing costs of both buying and renting a home, with nearly half of Canadians concerned about their housing affordability. Canadian inflation is reaching a generational high The rate of inflation in Canada is among the highest it has ever been. The increase in the CPI of 10.9% in 2022 was the highest since 1982. Following a 2021 increase of 6.8%, which was more than three times the targeted pace, we now see this. Transport (+10.6%), food (+8.9%), and housing (+6.9%) all showed the highest price increases, according to Stat Can. It has put a lot of people in Canada in a tight spot, especially young individuals. One of the hardest-hit demographics in Canada is the country’s youth The cost of living increase has affected all households, especially young adults. A recent survey found that 35% of American families struggled financially in the previous 12 months. Individuals between the ages of 45 and 54 accounted for the second largest percentage, after those between the ages of 35 and 44 (46%). Those over the age of 65 had the lowest rate of reporting financial hardship at 25%. Nevertheless, one-quarter of Americans citing financial hardship is a sizable proportion. One-quarter of Canadians would have trouble paying a $500 emergency bill One in four (26% of all households) can no longer afford to pay for a $500 emergency due to the rising cost of living. That skews towards younger households, with the biggest share (35%) among those between the ages of 35 and 44. Those between the ages of 45 and 54 were the next most likely to report being unable to cover a modest unexpected expense (31%), while those 65 and older were the least likely (19%). Almost Half of Canadians Worry About Housing Costs Housing was the primary concern because Canada has one of the world’s most overheated real estate markets. Nearly half of the households (44%). Reported worrying about meeting their housing costs. Those between the ages of 15 and 24 had the highest rate (58%), followed closely by those between the ages of 25 and 34 (56%). Of all age groups, those 65 and up had the lowest percentage of worry about housing expenses (27%), but that’s still 1 in 4 people. Young folks are already feeling the effects of the housing affordability crisis. According to Stat Can, housing expenses affected 44% of adults aged 25 to 34. These families either had to uproot because of a change in circumstances or because of the high cost of maintaining their living arrangements. Less than 15% of households headed by someone 45 or older selected this option. Nearly half of Canada’s population under the age of 45 now faces difficulties meeting their basic housing needs. Because of the crushing financial burden of home ownership, even fewer young persons are likely to consider making the investment. Related posts 18 February 2023 Despite the slowdown, Canadian mortgage debt continues to rise. 15 February 2023 StatCan: Nearly Half of Canadians Worry About Shelter Costs StatCan: Nearly Half of Canadians Worry About Shelter Costs Many Canadians worry that they are only a… 30 January 2023 How can homeowners safeguard against title fraud? How can homeowners safeguard against title fraud? There are new reports of title fraud every week, and… 30 January 2023 Bank of Canada will increase rates, and leave room for more: BMO Bank of Canada will increase rates, and leave room for more: BMO One possible reason why we won’t… 28 January 2023 How To File A Warranty Claim And What You Can Anticipate How To File A Warranty Claim And What You Can Anticipate There has been a recent surge in the population… 28 January 2023 Three Improved Ways to Understand Your Warranty Three Improved Ways to Understand Your Warranty Purchasing a home in the pre-construction phase can be… 28 January 2023 Can I Have A New Home Warranty Even If It’s Not New? Can I Have A New Home Warranty Even If It’s Not New? Did you buy a previously owned house recently?…

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How can homeowners safeguard against title fraud?

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How can homeowners safeguard against title fraud? There are new reports of title fraud every week, and more and more people are wondering what they can do to safeguard their properties against becoming the next target. In an interview with CBC‘s Ismaila Alfa, FCT President Daniela DeTommaso discussed the matter. “We’re witnessing a degree of complexity in these frauds we’ve never seen before,” says Daniela. “[Fraudsters are] using fake IDs, but to the naked eye, you wouldn’t know they weren’t who they said they were.” Homebuyers and current homeowners alike are vulnerable to title fraud. When a person’s property title is stolen or they buy a home that was falsely listed, they have few legal choices. Seeing “innocent people on both sides [of transactions] just heartbroken by something they could never have even dreamt could happen,” is how Daniela describes the situation. Professionals in the field strongly recommend that homebuyers invest in title insurance. Title insurance is the “greatest security” for homebuyers, according to Tim Hudak, CEO of the Ontario Real Estate Association (OREA). Protections against title fraud for current homeowners Even years after closing, homeowners can purchase title insurance to protect their financial investment in their home. However, it may be too late to offer protection once a problem like fraud has been uncovered. According to Daniel, now is the time to buy title insurance. Just like you wouldn’t buy a house without property and casualty insurance. She further says, “there’s no reason you shouldn’t be getting title insurance.” A title insurance policy offers more than financial protection to a homeowner who discovers the theft of their property’s title. Daniela argues that the title insurance company must likewise defend the policyholder. That implies they will step in and defend the insured as soon as they realize title fraud has occurred. Costs are entirely covered by them. Legal fees to clear a home’s title can run into the tens of thousands, and there are further expenses associated with uncovering the fraud and managing the legal proceedings. It’s not just making up for that huge loss,” Daniela says. As an added bonus, you won’t have to worry about the time or money it takes to confirm your identity because someone else will do all of it for you. Don’t put off getting homeowners insurance until your house is a news story. Existing FCT homeowner’s title insurance protects you and your property from potential risks. Related posts 30 January 2023 How can homeowners safeguard against title fraud? How can homeowners safeguard against title fraud? There are new reports of title fraud every week, and… 30 January 2023 Bank of Canada will increase rates, and leave room for more: BMO Bank of Canada will increase rates, and leave room for more: BMO One possible reason why we won’t… 28 January 2023 How To File A Warranty Claim And What You Can Anticipate How To File A Warranty Claim And What You Can Anticipate There has been a recent surge in the population… 28 January 2023 Three Improved Ways to Understand Your Warranty Three Improved Ways to Understand Your Warranty Purchasing a home in the pre-construction phase can be… 28 January 2023 Can I Have A New Home Warranty Even If It’s Not New? Can I Have A New Home Warranty Even If It’s Not New? Did you buy a previously owned house recently?… 26 January 2023 Process of warranty claim and what to expect? Process of warranty claim and what to expect? Everything about your new house would be wonderful if you… 25 January 2023 Home Snow Removal? Remember These Spots Home Snow Removal? Remember These Spots One constant of an Ontario winter is snow. Sometimes quite a…

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Bank of Canada will increase rates, and leave room for more: BMO

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Bank of Canada will increase rates, and leave room for more: BMO One possible reason why we won’t see a rate cut this year is that Canadian markets have already started talking about them. Over the weekend, BMO Capital Markets sent a letter to investors stating their anticipation of a rate increase this week. Currently, they predict a pause in rate hikes by the Bank of Canada (BoC) following the upcoming one, but they caution that this may not be the BoC’s limit. Hikes in the future could be fueled by bullish fundamentals, inflationary concerns, and market anticipation. The Bank of Canada Is Likely To Raise Interest Rates Next Week It is widely anticipated that the Bank of Canada will increase its overnight rate this week, marking its entry into the supposedly restrictive terrain it has previously addressed. According to BMO, the overnight rate will increase by 25 basis points (bps), making it equal to its 20-year high. There is anticipation that this will be the highest point for the year, but they caution that further increases cannot be ruled out. The BMO rate and macro strategist Benjamin Reitzes argues that with inflation still far above target, we predict that Governor Macklem and the Governing Council will keep the door open to further increases just in case the data forces their hand. He said the BoC may surprise the market by cutting rates before the fall, when cuts are widely expected. There’s reason to think there might be even more hikes down the road Canada’s Base Is Solid, and It May Not Need To Ease There is much speculation of a recession, yet there are few indicators of a downturn in Canada’s fundamentals. The preferred gauge of inflation used by the BoC, core CPI, is still above 5% and much above the 2% target rate. December’s employment report showed another near record growth, indicating that the economy is still humming along strongly. The Bank of Canada’s Business Outlook Survey from last week was a major shortcoming. Its data demonstrated a decline in morale, although companies maintained an optimistic outlook. Despite the slowdown, Reitzes argues that it is intentional on the part of the BoC. They’re attempting to reduce inflation by cooling the economy. More dangerous than credit shortages is the possibility of an inflationary spiral. Moreover, BMO suggests the BoC may raise rates for risk management reasons. They would rather keep inflation under control than have it spin out of control if they are overly permissive. The latter is a more serious issue that requires a more dramatic cooling event to mitigate. In this situation, it’s preferable to err on the side of caution than carelessness. While there has been some good inflation news as of late, that doesn’t mean the trend will continue. Upside inflation risks still exist, but they have diminished since he made those comments a few months ago. Due to market anticipation of a reduction, the BoC may be compelled to raise rates Since the market is already factoring in planned layoffs by this fall, it’s time to start a fresh funding round, right? For precisely this reason, the BoC may be unable to decrease interest rates. A resurgence in economic activity may be possible before it completely dies down if expectations shift in a lenient direction. According to Reitzes, this could lead to even higher inflation before the desired effect is seen. “While the BoC isn’t excessively busy with the market, improved financial conditions go counter to the purpose of lowering inflation pressure, and cannot be a positive development,” he argues. BMO believes that a 25 bps raise is warranted on the basis of fundamentals, risk management, and market conditions. Although, as Reitzes points out, the BoC often attempts to surprise. This keeps a central bank relevant by discouraging individuals from taking actions that run counter to its current objective. That’s why, he advises, we shouldn’t rule out pausing the meeting this week. They still want to go on future excursions, despite this setback. In particular if core inflation proves to be more persistent than expected. Related posts 30 January 2023 Bank of Canada will increase rates, and leave room for more: BMO Bank of Canada will increase rates, and leave room for more: BMO One possible reason why we won’t… 28 January 2023 How To File A Warranty Claim And What You Can Anticipate How To File A Warranty Claim And What You Can Anticipate There has been a recent surge in the population… 28 January 2023 Three Improved Ways to Understand Your Warranty Three Improved Ways to Understand Your Warranty Purchasing a home in the pre-construction phase can be… 28 January 2023 Can I Have A New Home Warranty Even If It’s Not New? Can I Have A New Home Warranty Even If It’s Not New? Did you buy a previously owned house recently?… 26 January 2023 Process of warranty claim and what to expect? Process of warranty claim and what to expect? Everything about your new house would be wonderful if you… 25 January 2023 Home Snow Removal? Remember These Spots Home Snow Removal? Remember These Spots One constant of an Ontario winter is snow. Sometimes quite a… 23 January 2023 Lower Bond Yields Mean Lower Fixed Mortgage Rates Lower Bond Yields Mean Lower Fixed Mortgage Rates Mortgage debtors may finally see some relief after…

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How To File A Warranty Claim And What You Can Anticipate

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How To File A Warranty Claim And What You Can Anticipate There has been a recent surge in the population of small towns in Ontario’s rural areas. More and more people migrate there from the city’s crowded core. The pandemic has helped to speed up this migration, as telecommuting has already proven to be an effective business tactic. So, here’s some good news if you’re a “remote” worker in search of a brand-new house in a less crowded area. To start, you have a variety of options to consider. Numerous new residences are being built in little villages away from major cities. Second, your builder is almost certainly going to include a Tarion-backed warranty in the sale price of your home. This is a summary of what you should expect from warranty claim: Your deposited money is secure Your deposit on a new freehold house or condominium unit in Ontario is secured when you sign a cheque for the full purchase price. The amount of your security deposit returned to you when you sell a freehold property is directly related to how much money the property sells for. If the property is selling for less than $600,000, your deposit is fully covered up to $60,000. If the price is higher, your deposit is protected at a rate of 10 percent, up to a maximum of $100,000. The concept of security deposits in condominiums is slightly different. Your security deposit is held in trust in accordance with the Condominium Act and will be completely safe. The new home warranty plan provides you with an additional $20,000 in coverage. Compensation for delays is possible In either case, you and the builder would prefer that the closing date not be pushed back. However, delays sometimes occur for good reason. If your builder follows the proper processes, they may be able to delay your completion or occupancy date. This is done according to the provisions of your purchase agreement. However, if they don’t, you could be eligible for compensation for the delay. The maximum amount that can be claimed under the warranty is $7,500, with daily compensation set at $150. This sum is meant to assist with any unforeseen costs, such as higher rent or food, that may arise as a result of the hold up. You can file a claim for delay compensation to help pay the costs of things like short-term housing rentals and storage facilities. Defects can be covered by warranty for up to seven years Upon moving into your new residence or assuming occupation of your new condo, the duration of this guarantee will begin. There are three distinct phases of protection. All violations of the Ontario Building Code (OBC) and unlawful substitutions of goods your builder agreed to deliver are covered in addition to any flaws in workmanship or materials in the first year. If your bathroom exhausts into the attic, for instance, you are breaking the OBC. Unauthorized substitutions include situations like when a builder installs cheaper materials like laminate countertops when you specifically requested granite. The builder could be contacted for a warranty claim in any scenario. Your two-year warranty protects you from problems. These include your home’s plumbing, heating, air conditioning, and electrical systems. Moreover, it includes OBC’s health and safety violations, cladding faults, and water seepage in the basement or elsewhere. The third type of protection is up to seven years of security against significant structural faults. Any problem that compromises the safety of the building’s structure or restricts the functionality of a sizable component of the dwelling is considered a substantial structural issue. Possible causes include foundation movement, severe cracking of basement walls, and the growth of deadly mould. Related posts 28 January 2023 How To File A Warranty Claim And What You Can Anticipate 28 January 2023 Three Improved Ways to Understand Your Warranty Three Improved Ways to Understand Your Warranty Purchasing a home in the pre-construction phase can be… 28 January 2023 Can I Have A New Home Warranty Even If It’s Not New? Can I Have A New Home Warranty Even If It’s Not New? Did you buy a previously owned house recently?… 27 January 2023 How To File A Warranty Claim And What You Can Anticipate Process of warranty claim and what to expect? There has been a recent surge in the population of small… 26 January 2023 Process of warranty claim and what to expect? Process of warranty claim and what to expect? Everything about your new house would be wonderful if you… 25 January 2023 Home Snow Removal? Remember These Spots Home Snow Removal? Remember These Spots One constant of an Ontario winter is snow. Sometimes quite a… 23 January 2023 Lower Bond Yields Mean Lower Fixed Mortgage Rates Lower Bond Yields Mean Lower Fixed Mortgage Rates Mortgage debtors may finally see some relief after…

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Three Improved Ways to Understand Your Warranty

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Three Improved Ways to Understand Your Warranty Purchasing a home in the pre-construction phase can be a thrilling adventure. In addition, it may be quite lengthy. Your move-in date may be months or even years away from the time you sign the purchase agreement. The Ontario New House Warranty Program affords you certain guarantees as a buyer of a newly constructed home in the province. This protection lasts for a good long while as well, spanning both the time before you take possession (for things like deposits and improper delays). Moreover, the seven years after you take possession (for things like defects). While it’s important that you know what’s going on with your warranty, it’s understandable that you can’t focus on it 100% of the time. We hear you, and we know that you’d rather not be inundated with data. This is why we have included a variety of resources for education. These may be accessed at any point in the process of purchasing a new house. The following are some brand new resources that will be useful to anyone. They include individual who is either in the market for a new house or who has recently purchased one: Updated Brochures for Print and Web The pamphlet we offer, “Warranty Coverage for New Homes in Ontario,” has always been a best-seller. The new and improved version is even better. The Freehold Brochure, now revised and enlarged, is the best way to learn about the new home warranty. New information is included, such as the responsibilities of the homeowner, builder, and Tarion. Data Sheets Regarding Warranties Buyers of new houses and condos will see a change on February 1, 2021, when they get ready to sign the contract. This is because from now on, every new home purchase agreement and construction contract must include a Warranty Information Sheet signed off on by both the builder and the vendor. Depending on the home being sold, the Warranty Information Sheet may include a brief summary of the warranty coverage (such as deposit protection and compensation for closing delays). It emphasize the significance of the pre-delivery inspection, and point new homebuyers in the direction of additional resources. Buyers will be fully informed of the coverage to which they are entitled at the time of purchase thanks to the Warranty Information Sheet. Related posts 28 January 2023 Three Improved Ways to Understand Your Warranty Three Improved Ways to Understand Your Warranty Purchasing a home in the pre-construction phase can be… 28 January 2023 Can I Have A New Home Warranty Even If It’s Not New? Can I Have A New Home Warranty Even If It’s Not New? Did you buy a previously owned house recently?… 27 January 2023 How To File A Warranty Claim And What You Can Anticipate Process of warranty claim and what to expect? There has been a recent surge in the population of small… 26 January 2023 Process of warranty claim and what to expect? Process of warranty claim and what to expect? Everything about your new house would be wonderful if you… 25 January 2023 Home Snow Removal? Remember These Spots Home Snow Removal? Remember These Spots One constant of an Ontario winter is snow. Sometimes quite a… 23 January 2023 Lower Bond Yields Mean Lower Fixed Mortgage Rates Lower Bond Yields Mean Lower Fixed Mortgage Rates Mortgage debtors may finally see some relief after… 21 January 2023 Denied mortgage renewal: What happens next? Denied Mortgage Renewal:What happens next? If you want to keep paying down your mortgage after the current…

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Can I Have A New Home Warranty Even If It’s Not New?

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Can I Have A New Home Warranty Even If It’s Not New? Did you buy a previously owned house recently? A new home warranty may still be in effect if the home is less than seven years old. For the most part, Ontario’s new construction warranties cover a period of seven years. A fact that you might not know is that a home warranty is transferred to the property rather than the owner.  It is likely that the purchase of a resale home less than seven years old will include a warranty The terms of the new home warranty cover whoever owns the home for seven years after the original date of possession. However, assuming ownership of a resold property isn’t enough to transfer the warranty coverage. If you’ve just purchased a previously owned house, it’s imperative that you contact Tarion as soon as possible to let us know you’ve taken ownership. Tips for registering a house warranty on a previously owned property It’s important to have both the purchase agreement and the deed on hand. Please provide us with a copy of these papers so we can update our records. Once we have finished making the necessary changes to our system, we will send you an email confirming the alteration, along with your enrollment number and a link to MyHome. Here at MyHome, you can easily maintain tabs on your submitted paperwork and the remaining time on your house warranty. This tool can also be used to complete and submit any warranties that may apply to you. No company will  provide extensive warranty details over the phone prior to delivery, since this would violate their customers’ privacy. Once you’ve registered as the new owner in the system, the concerned company and individual will be able to inform you whether or not the home is protected by the warranty. Moreover, it would determine whether or not it’s enrolled with Tarion. Suggestions for ensuring that you take full advantage of any applicable warranty terms and conditions Closing dates that fall after the warranty form submission deadline can be a problem for homeowners. Is there anything you can do to remedy the situation? Know what your warranty covers before you start negotiating with the seller. Assist them with the necessary paperwork to make sure they don’t miss the submission date. While the seller’s priority may be getting out of the house and onto the next chapter of their lives, yours should be learning about the warranty protections you’ve earned. You should be conscientious and cooperative with the vendor in order to ensure that the warranty documents are submitted on time. Not submitting the paperwork in a timely manner could cause critical deadlines to be missed. Visit Tarion’s Learning Hub to find out crucial information regarding home warranty coverage and deadlines. A home buyer’s best bet is to find out about the property’s warranty terms before making a purchase. How to know the time that is remaining on the warranty? It is advised to consult with either a real estate agent or an attorney. They can inquire directly with the seller or contact us on their behalf to get warranty details such as the date coverage began, the name of the home’s builder, and whether or not the home has been occupied. Related posts 28 January 2023 Three Improved Ways to Understand Your Warranty 28 January 2023 Can I Have A New Home Warranty Even If It’s Not New? Can I Have A New Home Warranty Even If It’s Not New? Did you buy a previously owned house recently?… 27 January 2023 How To File A Warranty Claim And What You Can Anticipate Process of warranty claim and what to expect? There has been a recent surge in the population of small… 26 January 2023 Process of warranty claim and what to expect? Process of warranty claim and what to expect? Everything about your new house would be wonderful if you… 25 January 2023 Home Snow Removal? Remember These Spots Home Snow Removal? Remember These Spots One constant of an Ontario winter is snow. Sometimes quite a… 23 January 2023 Lower Bond Yields Mean Lower Fixed Mortgage Rates Lower Bond Yields Mean Lower Fixed Mortgage Rates Mortgage debtors may finally see some relief after… 21 January 2023 Denied mortgage renewal: What happens next? Denied Mortgage Renewal:What happens next? If you want to keep paying down your mortgage after the current…

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Process of warranty claim and what to expect?

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Process of warranty claim and what to expect? Everything about your new house would be wonderful if you could just move in. It’s possible that you’ll discover anything that needs fixing, finishing, or installing after your builder has left. However it is important to ensure that builders meet minimal customer service requirements when addressing warranty repairs or issues with newly constructed homes. Submission of a Warranty Claim Submitting a warranty form initiates the warranty claim procedure. To ensure timely processing of your warranty claim, please submit all required paperwork after closing on your new home. When you file a warranty claim, Tarion and the builder are made aware of your concerns, and Tarion can step in to mediate any disputes about the guarantee, if necessary. Be as detailed as possible when describing the type and location of the issue on the warranty form. Photos, movies, and other visual evidence might be helpful as well. How and when to fill out a warranty form? If you have a warranty claim, please fill out one of these forms and submit it to Tarion: 30-Day Form: A 30-Day Form must be submitted within the first 30 days of ownership. Fill out this form to inform your builder of any issues that have emerged since you took possession of your house that were not addressed during your pre-delivery inspection. If you want to report multiple issues under warranty, please submit separate 30-Day Forms for each. Year-End Form: A Year-End Form must be submitted during the final 30 days of the first year of ownership. Please use this form to document any current warranty issues. Remember that the one-year guarantee is the most thorough, and that this is your last chance to notify Tarion of problems with things that fall under that warranty. You may lose warranty coverage for some purchases if you miss the deadline for submitting your Year-End Form. There is only one Year-End Form that will be approved. Second-Year Form: Anytime during the second year of ownership is acceptable to file a Second-Year Form. This form should be used to document any defects that fall under the two-year guarantee. In this window, you may submit as many Second-Year Forms as you feel is necessary. Major Structural Defect Form: Anytime after the second year of possession and before the seventh year from the date of possession is acceptable for filing a Major Structural Defect Form. Please fill out this form to report any severe structural defects that fall under the seven-year warranty. It is acceptable to submit several Major Structural Defect Reports. Once a warranty form is submitted, what happens? If you submit your warranty form within the allotted time frame, your builder has 120 days to address any covered issues. You have 30 days from the conclusion of the original repair period to contact Tarion and request a conciliation if your builder hasn’t repaired or otherwise resolved warranted items. This is true regardless of which warranty form you’ve filled out and submitted (30-day, Year-End, 2-year, or Major Structural Defect). After receiving your warranty form, Tarion will evaluate any disputed or missing items and let you know if they are covered or not through the conciliation procedure. Conciliation usually entails an unbiased representative from Tarion coming to your home to conduct an inspection. When a conciliation is requested, the builder is given an additional 30 days to address the issues listed on the warranty form. Your builder will need access to your home during the designated repair periods, during which you are responsible for granting them access to make any repairs and working with them to resolve any issues that may arise. There is a deadline for requesting a conciliation, after which the elements on your form will be removed and Tarion will no longer be able to help you. The Mediation Process for Warranty Claims Tarion will conduct the conciliation to determine if the items on your form are covered by the warranty. This happens if the builder does not settle them within 30 days of your conciliation request. The Tarion inspector will also review the paperwork you and the builder submit after the home inspection. Following the conciliation, Tarion will provide you and your builder with a written report detailing their findings. If Tarion determines a problem exists with a warranted item, the builder has 30 days to address the issue. Related posts 26 January 2023 Process of warranty claim and what to expect? 25 January 2023 Home Snow Removal? Remember These Spots Home Snow Removal? Remember These Spots One constant of an Ontario winter is snow. Sometimes quite a… 23 January 2023 Lower Bond Yields Mean Lower Fixed Mortgage Rates Lower Bond Yields Mean Lower Fixed Mortgage Rates Mortgage debtors may finally see some relief after… 21 January 2023 Denied mortgage renewal: What happens next? Denied Mortgage Renewal:What happens next? If you want to keep paying down your mortgage after the current… 19 January 2023 Canada’s Bank Regulator Wants Tighter Real Estate Risk Rules Canada’s Bank Regulator Wants Tighter Real Estate Risk Rules More stringent rules on mortgage borrowing… 16 January 2023 Reasons a robust labour market could affect your mortgage interest rate Reasons a robust labour market could affect your mortgage interest rate Over the past year, Canada’s… 13 January 2023 Is it necessary to pay Toronto’s new vacant home tax? Is it necessary to pay Toronto’s new vacant home tax? The new Vacant Home Tax in the City of Toronto…

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Home Snow Removal? Remember These Spots

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Home Snow Removal? Remember These Spots One constant of an Ontario winter is snow. Sometimes quite a bit. Snow, like wind and rain, can do a lot of harm to our homes and health. During the winter months, it is crucial that we stay on top of the snow situation. Even if we’re all familiar with the process of shovelling snow or snow removal, how can you be sure that you’ve covered every inch of your property? Here are some popular (and some less common) areas that should always be part of your snow clearing routine, regardless of whether you’re a die-hard old schooler who swears by the shovel or an advocate for the ease and technology of a snow blower: Foundation It’s likely that you’ll move on to the areas immediately surrounding your house when you’ve finished with the driveway, front porch, and walkways. Keep the ground around your house’s foundation free as you work. It’s possible for snowmelt water to sneak into your home through foundation cracks. Before the winter season arrives, it’s important to check for cracks in these locations. In and out drives and sidewalks Preventing slips and falls and frost damage both necessitate clearing walks and roads. Hidden by snow, frost can wreak havoc on concrete and asphalt, causing cracks and other damage. You may avoid any unpleasant surprises in the spring by keeping these places free of snow. Roof Although many of us would rather leave the snow on our roof (it looks so pretty on holiday cards!) it is an area that need equal attention. Water infiltration can be caused by ice dams. These form when the roof surface is warm enough to melt snow but the air temperature is still cold enough to refreeze it. Use a roof rake to remove the first few feet of snow off your roof after a snowstorm. The alternative is to get some help from an expert. Pipes and valves for releasing exhaust gases outside As you clear the snow from around your home’s perimeter, check to see that the external exhaust pipes and vents. This is especially for your heating appliances (including your furnace, dryer, fireplace, and stove) are not blocked by snow or ice. Blocked exhaust pipes and vents can prevent these appliances from functioning properly, which can result in a fatal buildup of carbon monoxide. Wells in windows Get rid of the snow from the window wells of your home. When snow melts, it can seep into your basement and cause damage to your window frames, walls, and other finishes. This would be the case if it has accumulated in your window wells. Covering your window wells to keep the cold out is another option to think about. Related posts 25 January 2023 Home Snow Removal? Remember These Spots Home Snow Removal? Remember These Spots One constant of an Ontario winter is snow. Sometimes quite a… 23 January 2023 Lower Bond Yields Mean Lower Fixed Mortgage Rates Lower Bond Yields Mean Lower Fixed Mortgage Rates Mortgage debtors may finally see some relief after… 21 January 2023 Denied mortgage renewal: What happens next? Denied Mortgage Renewal:What happens next? If you want to keep paying down your mortgage after the current… 19 January 2023 Canada’s Bank Regulator Wants Tighter Real Estate Risk Rules Canada’s Bank Regulator Wants Tighter Real Estate Risk Rules More stringent rules on mortgage borrowing… 16 January 2023 Reasons a robust labour market could affect your mortgage interest rate Reasons a robust labour market could affect your mortgage interest rate Over the past year, Canada’s… 13 January 2023 Is it necessary to pay Toronto’s new vacant home tax? Is it necessary to pay Toronto’s new vacant home tax? The new Vacant Home Tax in the City of Toronto… 13 January 2023 Difference between Pre-qualification and pre-approval Difference between Pre-qualification and pre-approval The terms pre-qualified and pre-approved are often…

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Lower Bond Yields Mean Lower Fixed Mortgage Rates

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Lower Bond Yields Mean Lower Fixed Mortgage Rates Mortgage debtors may finally see some relief after months of steadily increasing rates. Five-year fixed mortgage rates have declined modestly over the past week in response to falling bond yields. Moreover, economic indicators suggest we may have already seen our last price peak. Bond yields on Canada’s five-year government issue have dropped below 3% again, to 2.8% as of January 18th. That’s a drop of 61 basis points from the last day of December, and a change of 22 basis points in just one week. The best mortgage rate in Canada has dropped to 4.39% from 4.54% last week. This has happened as a result of this trend among several financial institutions to reduce their fixed five-year rates. Of course, a difference of only 15 points may not seem like much. However, in the current high interest rate climate, it’s encouraging to see any glimmer of respite. In addition, if the economy continues on its current path, fixed-rate borrowers may see further rate stabilisation. The Canadian mortgage rate should be at or near its high right now, according to BMO Senior Economist Robert Kavcic’s research paper. The Bank of Canada is widely anticipated to increase rates by another 25 basis points next week. This may halt the ongoing rise in variable mortgage rates. Canadian five-year bond rates have fallen below the lows reached in December. This is due to the recent recovery in the U.S. Treasuries and Government of Canada bonds. The current interest rates are far higher than the 1.5–2% range that was accessible a year ago. He further says that the “pause in upward momentum should help at the margin, and offer some comfort that the worst of the rate shock is behind us.” A drop in bond yields Bond yields are currently falling due to optimistic inflation data due out this week. Moreover, due to the rising views that the Bank of Canada is finishing its rate hike cycle. Reason being, changes in the economy are immediately reflected in the yields. Demand for government bonds tends to rise when economic conditions are favourable. Thus, driving up bond prices and reducing bond rates. Let’s examine the bond market in more detail to help you understand it. What is a bond? Bonds are a sort of investment whereby the investor receives a return (sometimes called a yield) in exchange for investing funds for a specified period of time (the most popular are two-, five-, and 10-year terms). When a bond matures at the end of its term, the investor gets their initial investment back plus any interest accrued. Bonds compete with one another based on the amount of interest income they provide. Any bonds issued following the interest rate increase will be worth more than the existing bonds. That’s because current bonds lose value whenever the Bank of Canada raises interest rates, forcing sellers to cut prices. Bond yields need to rise as bond prices fall so that they can continue to attract buyers. They have risen by approximately 350 basis points from their lows due to the Bank of Canada’s decision to raise its benchmark interest rate by 4% between March 2022 and December 2022. Thus, bringing its Overnight Lending Rate to 4.25% today. The effects of inflation on bond prices Bond yields are lowered by inflation because of the erosion of purchasing power caused by rising consumer prices. The persistently high rate of inflation, which reached a 40-year high of 8.1% this June, has contributed to a rise in bond yields for the year 2022. But the most recent CPI in December indicated inflation rise had slowed to 6.3%. Further suggesting that the Bank of Canada would pause its rising cycle or delay any rate movement in its upcoming January 25th statement.  This has lifted bond demand (and hence lowered yields). To give you an idea of how inflation affects bond yields, consider that in September 1981, when Canada’s CPI was a stunning 12.47%. Moreover, the country’s highest ever five-year yield was 18.78%. In contrast, the lowest yield ever recorded was in March of 2020, when it hit a record low of 0.276 percent due to tepid price increases (0.9 percent). This was due to widespread panic over a potential pandemic. Why do yields have such an impact on fixed mortgage rates? Bonds issued by the Canadian government are widely regarded as a safe and lucrative investment option. This is due to their high liquidity and low risk profile. As such, consumer lenders use them to establish the benchmark cost for fixed-rate borrowing products. Typically a spread of 100 to 200 basis points above the five-year yield (the best five-year rate as of today is 4.39 percent, 159 basis points above the yield). If yields continue to decline, borrowers can anticipate even more substantial reductions in their fixed mortgage rates from their financial institutions. Conclusion Today’s fixed mortgage rates are still higher than they were a year ago. However, there is growing hope that inflation’s slowdown will help them stabilize or slightly decrease in the near future. This is wonderful news for anyone in the market for a mortgage. Borrowers should do their due diligence in the coming months. This is to ensure they are receiving the best rates possible. It is because rate conditions can change rapidly in response to shifting economic conditions. Free of charge, you can stay abreast of market shifts by establishing contact with a mortgage broker. Related posts 23 January 2023 Lower Bond Yields Mean Lower Fixed Mortgage Rates Canada’s Bank Regulator Wants Tighter Real Estate Risk Rules Mortgage debtors may finally see some… 21 January 2023 Denied mortgage renewal: What happens next? Denied Mortgage Renewal:What happens next? If you want to keep paying down your mortgage after the current… 19 January 2023 Canada’s Bank Regulator Wants Tighter Real Estate Risk Rules Canada’s Bank Regulator Wants Tighter Real Estate Risk Rules More stringent rules on mortgage borrowing… 16 January 2023 Reasons a robust

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