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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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Renting is increasing among all ages. There is a need for better legal protection—and respect

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Renting is increasing among all ages. There is a need for better legal protection—and respect After decades of reliability, the Canadian dream of homeownership is beginning to look more like a pipe dream. Rising interest rates and stagnant property markets have put a strain on potential purchasers’ budgets, forcing them to look for alternative housing options, such as renting. Despite being a numerical underdog, renters are outpacing homeowners at a rate three times as fast. The tenants may not be who you expect them to be. One thing to keep in mind is that the emergence of the rental country is not limited to urban areas. According to census data highlighted in a report from Royal Bank this month, the growth of renters in smaller cities surpassed that of major urban centres during the past decade. And the rental population is ageing; baby boomers are the fastest-growing segment of renters. The analysis predicts that “demand for rental housing will continue to be driven by these demographic and behavioural trends” in the years to come. An increasing number of people are opting to rent rather than buy, highlighting the need to revamp inadequate financial and legal safeguards and our perception of tenants for the long haul. Owning a property in Canada has traditionally been seen as a symbol of social and economic achievement. Therefore, people who rented were assumed to be low-income or at least just starting out in life. We now know that account was never entirely accurate. And it’s drifted further and further away from the truth. Because of the high cost of living in major cities, a sizable annual income is required to qualify for a lease. Zumper, an apartment search website, reports that the median cost of a two-bedroom in Vancouver is $3,500 per month, meaning that landlords in the city are looking for tenants who can afford to spend no more than 35% of their income on rent. The median rent in Toronto is only $2,950 per month, making it only slightly more affordable. The cost is roughly $2,000 even in Montreal, which has traditionally had a more renter culture. The rental market is already saturated in both Vancouver and Montreal. The majority of Torontonians (around 50%) are renters. Now that there are five million renting households in the United States (up from 4.1 million a decade ago), the issue of rent control is more contentious than ever. Even though there are twice as many home-owning households, renters currently have the upper hand. These people should be treated with the same respect and consideration as everyone else. While this change will not happen overnight, there are steps that may be taken in the correct direction. Ten years after Canadians were allowed to use their mortgage payments to bolster their credit score, many renters still don’t have access to this option. Equifax began partnering with the Landlord Credit Bureau in 2020, allowing for rent payments to be factored into credit scores. However, renters in Quebec are out of luck and those who use Equifax’s main competitor, TransUnion, are out of luck as well. If you make your largest monthly payment on time, month after month, it’s possible that a credit reporting agency will ignore your payment history. This makes no sense. Even if you pay your rent on time every month, you can still lose your home. Landlords in some places can evict renters to move in with their own families. A landlord who wants to increase the rent and find a new tenant could take advantage of this condition. Furthermore, owner-use evictions are on the rise. The Tenant Resource and Advisory Centre in British Columbia reports that 36.3% of eviction-related calls this year are linked to owner use, up from 31.62% in 2020/2021. Tenants should be protected against unlawful eviction by stricter laws. The province of British Columbia is attempting to put a stop to this practise by enacting a provision last year that allows for a fine equal to one year’s rent, payable to the renter, though enforcing this law has proven difficult. Ottawa has increased its annual immigration quota to roughly 500,000. The majority will settle in the country’s urban areas, which will be unable to expand outward to accommodate them. Toronto Mayor John Tory is trying to do this with a housing plan that permits for tiny multi-unit structures everywhere to increase density. It’s also important to put more effort into the rental housing market. Protecting renters will require action from provincial and local authorities. And the rest of us will have to reevaluate how we view renters.

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New data reveals Canadian rentals exceed $2K for the first time

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New data reveals Canadian rentals exceed $2K for the first time In November, the average rental price in Canada topped $2,000 per month, according to a survey issued on Wednesday. Based on the numbers provided, it appears that renters in Canada are forking over an average of $2,024 monthly to cover their housing costs. This number includes anything from studio units to mansions. That’s a 12.4% increase from the same month a year ago, which is far higher than Canada’s inflation average of 6.9%. Vancouver has the most expensive one and two-bedroom rents in the country, at $2,633 and $3,598 per month. It was the second most expensive to rent in Toronto. The median monthly rent for a one-bedroom in the city is now $2,532, up 23% from the same period last year. According to the data, the median monthly rent for a two-bedroom unit is $3,347. Rental costs rose dramatically in other GTA municipalities as well. The cost of living increased by 28% in Brampton and by 19.2% in Mississauga compared to the previous year. Monthly rents in smaller areas west of the GTA also rose, by as much as 27.9% in London and 24.1% in Kitchener. Only one Canadian city, Halifax, had a higher median rent than the cities of British Columbia and Ontario combined. In Burnaby, British Columbia, tenants paid a whopping 32% more for a one-bedroom flat in October 2018 than they did in October 2021. The survey found that rising rental prices have shown no signs of slowing down. Since May, year-over-year increases have been in the double digits, with November’s increase being the largest yet. In a press statement, Urbanation president Shaun Hildebrand said, “Rents in Canada are rising at an extraordinarily fast speed, which is having a dramatic effect on housing affordability as interest rates continue to rise.” “Demand is shifting to more inexpensive locales in regions with rapid population growth,” the article states, because “the most costly cities are experiencing very low supply and the quickest rates of rent increase.” Nova Scotia, Newfoundland and Labrador, New Brunswick, and Prince Edward Island had the fastest annual rate of increase in rental prices, at a combined 31.8%, out of all of Canada’s provinces and territories. There was an average monthly cost of $1,716 for a one-bedroom apartment in Atlantic Canada in the month of November, while $2,032 was the average for a two-bedroom. The survey found that rent rises were slowest in Montreal, despite the fact that it is Canada’s largest rental market. Builders are cancelling ventures, and investors are afraid to put money into future real estate projects because of the high costs of borrowing. “Investment in real estate, especially in the condo area, loses some of its appeal as interest rates rise,” Tal added. So, “if you don’t have those units, that’s another factor pushing up the cost of renting what’s left.” The rising cost of rent is “becoming unaffordable” “We’re getting near to the point when rents are just becoming prohibitive for tenants,” said, Hildebrand. “It appears that a downturn in economic activity may begin sometime in the coming year. It follows that rentals may see a temporary lull in 2023 “the head of Urbania remarked. However, it is very evident that rents will continue to grow higher in the medium to long term due to strong immigration targets and rental building that has been halting recently due to high costs. When the weather turns cold, Hildebrand says renters should start looking elsewhere. There are fewer potential tenants, therefore landlords are often willing to negotiate a lower monthly payment in exchange for your business. Hildebrand argues that governments might introduce incentives to develop purpose-built apartments and make new rental projects more economically feasible, although this won’t help in the immediate term. Rentals.ca’s head of content, Paul Danison, has said that governments need to be more innovative with their zoning policies. One possible use for these buildings is as lofts with amenities like cafes, shops, and galleries. Alternatives he suggests are inclusionary zoning, laneway suites, and infill construction. There are responses to this problem, but governments are moving too slowly.

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Mortgage rates to rise with latest interest rate hike, but the end of raising cycle near

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Mortgage rates to rise with latest interest rate hike, but the end of raising cycle near The increase in interest rates by a half per cent that was implemented by the Bank of Canada on Wednesday signals greater hardship for indebted homeowners and those who are trying to enter the property market because they will now have to fight with even higher mortgage rates and borrowing costs. After the Fed increased interest rates, the Royal Bank of Canada was the first of the Big Six banks to hike their prime rate, taking it from 5.95 per cent to 6.45 per cent. On Wednesday afternoon, the lending rates of the Toronto-Dominion Bank, the Bank of Montreal, Scotiabank, National Bank of Canada, CIBC, Equitable Bank, and Laurentian Bank were all raised to 6.45 per cent, with the increase taking effect on December 8. Economists, on the other hand, have pointed out a potential silver lining in the fact that the most recent massive rate increase — which raised the central bank’s trend-setting policy rate up to 4.25 per cent — could indicate the end of the cycle of rate hikes. While the majority of real estate markets are beginning to feel the consequences of rising interest rates, which have now increased by 400 basis points this year, the real estate markets in Toronto and Vancouver have been affected the worst. The number of properties that changed hands in Toronto dropped by 49 per cent year over year in November, which contributed to the price of a home falling by almost seven per cent to approximately one million dollars. The housing market in Vancouver did not fare any better, with sales decreasing by more than 50 per cent in November and the benchmark price of a home falling from October. Even while home sales and prices are falling, homes are not becoming more affordable for people who are considering purchasing one. According to Victor Tran, an expert on mortgages and real estate at Ratesdotca, the most recent action taken by the central bank will most likely result in the prime lending rate being given by the major banks increasing to 6.45%. Tran also stated that a homeowner with a variable-rate mortgage can anticipate an increase in monthly payments of around $28 per $100,000 of mortgage balance for every increase of 50 basis points in the interest rate. “Previous rate hikes significantly cooled the housing market while rising rates pushed many homebuyers, including first-time homebuyers and investors, to the sidelines to wait out the instability in the market,” Tran said, adding that Wednesday’s hike will have the same effect. “Rising rates pushed many homebuyers, including first-time homebuyers and investors, to the sidelines to wait out the instability in the market,” Tran said. Before purchasers start returning to the market in the spring of 2023, we may be witnessing the bottom of the trough that the housing market has been in. Mortgage holders are already feeling the effects of higher interest rates, which the Bank of Canada is beginning to notice. According to the most recent data provided by the central bank, approximately half of all variable-rate mortgages with fixed payments and nearly one-fifth of the entire Canadian mortgage pool have already hit their “trigger rates.” This refers to the point at which monthly mortgage payments are only covering the interest and are not making any progress on the principal. Those looking for a new place to call home will be pleased to hear this. Clay Jarvis, an expert on mortgages and real estate who works for the personal finance website NerdWallet Canada, stated that despite the fact that the path to homeownership may have become a little more difficult as a result of this announcement, this fact should not be a deal-breaker for prospective buyers. According to Jarvis, prospective purchasers of homes should be encouraged by the possibility that the Bank of Canada is getting close to the conclusion of its cycle of interest rate hikes. If the central bank truly believes that inflation will be back down to around three percent by the end of 2023, then they must also believe that the rate hikes they’ve been making will start having a noticeable effect in the early to middle stages of next year. “The overnight rate could rise further in January and March, but if the bank truly believes that inflation will be back down around three percent by the end of 2023, then they must also believe that the rate hikes they’ve been making will start having a If inflation begins to fall, there should be a halt to interest rate increases. The economics team at the Royal Bank of Canada made the observation that the policy statement issued by the Bank of Canada in conjunction with the interest rate increase was not as hawkish as the increase itself. In today’s guidelines, rather than stating that “the policy interest rate will need to rise further,” RBC Economics senior economist Josh Nye noted that “Governing Council will be examining whether the policy interest rate needs to rise further.” That unquestionably leaves the door open for a pause as soon as the next meeting in January, and from our point of view, that decision can be framed somewhere between 0 and 25 (basis points).

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Canadian Real Estate Prices Fall 30%, Recession Starts: Ox Econ

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Canadian Real Estate Prices Fall 30%, Recession Starts: Ox Econ Neither the real estate market nor the economy in Canada looks particularly promising at the moment. This week, Oxford Economics issued a warning to its clients saying that a recession was starting to take shape. Higher interest rates meant to curb inflation are instead significantly lowering property prices and extending the recession. In addition, high inflation makes it unlikely that we would see a stimulus windfall, as it would work against efforts to reduce the economy’s temperature. EXPECTED 30% DROP IN CANADIAN REAL ESTATE PRICES WILL ERASE RECENT GAINS There will likely be more drops in Canadian real estate prices, but the gains made before the pandemic should survive. The business forecasts prices plummeting 30% from peak-to-trough, after surging more than 54% since March 2020. Those who bought in March would have seen their investment rise at a compound annual rate of about 2.3%, for those who don’t have a calculator handy (CAGR). Not quite the windfall some had hoped for, especially when rising prices are factored in. The percentage of GDP accounted for by new real estate is also predicted to decline, namely residential investment. In this year, the market declined by 10% from Q1 to Q3 because of rising interest rates. The firm predicts a further 8% fall in the coming year, which isn’t too hard to see with declining new construction sales. CANADIANS MIGHT EXPECT A DEEPER AND LONGER RECESSION THAN USUAL Early indicators of a recession have already developed, and this next recession is projected to be lengthier than typical. During this recession, homebuyers have cut back and businesses have become more cautious about spending money. The business is projecting a 2% fall in real GDP from Q4 2022 to Q3 2023. You can probably predict that the effect won’t be the same. Tony Stillo, the company’s director of economics, said, “This recession is slightly longer but milder than the average recession since 1970.” Canadians with large amounts of debt and overpriced homes will feel the effects the most. IMPORTANT BOOST NOT LIKELY AND COUNTERPRODUCTIVE Looking at the current economic downturn as a stimulus bonanza? Stillo advises against putting any stock in that possibility. The slump won’t be too terrible, and the completion of long-awaited infrastructure projects will ease its effects. However, excessive inflation has become a constraining factor. “To avoid undermining the Bank of Canada’s attempts to contain inflation, any fresh fiscal stimulus is unlikely unless the recession is severe,” said Stillo. Related posts. How does a home warranty differ from an insurance policy? Read More Deposit Protection Eases Homebuying Stress Read More Importance of the performance audit Read More How can Home Warranty Guard You Against Unexpected Expenses Read More Canada hopes to welcome half a million immigrants by 2025, but can the country keep up? Read More Canadian Real Estate Prices Fall 30%, Recession Starts: Ox Econ Read More

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Bank of Canada STATED: lower home prices are necessary for economic stability

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Bank of Canada STATED: lower home prices are necessary for economic stability Topping the list of Canada’s 99 concerns is it’s over $2 trillion in mortgage debt. Earlier today, Senior Deputy Governor of the Bank of Canada (BoC) Carolyn Rogers responded to worries over the country’s financial stability. She summed it up by focusing on two issues that have been around for a while but are mounting: consumer debt and the property market. She cautioned that homeowners may feel the effects of these measures over the next several months, but that they are important to bring the country’s markets back into equilibrium. RESIDENTIAL REAL ESTATE AND CONSUMER DEBT ARE A MAJOR RISK TO CANADA’S ECONOMIC GROWTH AND STABILITY When speaking about threats to financial stability, the senior deputy governor of the Bank of Canada zeroed primarily on consumer debt and housing prices. They stressed that neither issue is a recent development, pointing out that it has been discussed in central bank studies as far back as 2006. Despite the fact that no major catastrophe has occurred as of yet, growing systemic vulnerability is cause for alarm. What would have been a manageable problem in 2006 has ballooned into a major crisis because the Canadian economy is so dependent on the housing market. Prior to the epidemic, Rogers said, there were serious worries about cost and investor speculation. Issues that had previously only been affecting Toronto and Vancouver became national crises as the pandemic spread. In most markets, home values increased by over 50% in just over two years. She noted that “housing activity,” measured by the number of homes bought and sold, was roughly 30% greater than pre-pandemic levels. An essential clarification, as this wasn’t a time of low activity that low rates were attempting to boost. The market keeps adding fuel to the fire of stimulation provided by historically low-interest rates. FRONT-LOADING RATE INCREASES WILL LOWER RATES The simplest approach to guarantee a larger inflation spike is to pump the gas while the economy is thriving. Inflation had already reached sky-high levels before the invasion of Ukraine. A crisis exacerbated the difficulty of moving slowly, making swift action necessary. In order to quickly calm the economy and keep inflation expectations anchored, we have raised interest rates significantly. said Rogers, “greater rises in the future can be avoided.” She didn’t go into detail, but this is basic monetary policy. Inflationary pressures from interest rates will increase the longer it takes to raise them in an effort to rein in overheated demand. The resulting cycle of inflation and countermeasures is dubbed an “inflationary spiral” and is difficult to reverse. There are preliminary indicators that the monetary policy is having the desired effect, but we still have a ways to go until inflation returns to its target level. Sadly, there are unpleasant consequences to this transition. And we’re aware of that,” she said. FOR AN ADEQUATE BALANCE, CANADIAN HOME PRICES MUST FALL Canadian homeowners, especially those who were duped into assuming that current low-interest rates would persist for much longer, have been dealing with the aftermath. She pointed out that, while not a huge percentage of households, a larger than usual number had chosen to obtain mortgages with adjustable interest rates. Buyers today face interest rates that are substantially higher than they had bargained for, with interest eating up a growing portion of their original payments. Borrowers with fixed rates won’t feel the effects of rate hikes until it’s time to renew their loans. In a nutshell, property prices are going up significantly. Furthermore, a toxic market has developed due to the excessive lending that initially boosted investor demand and housing prices. To return to her original point, the 50% increase in property prices has exacerbated the affordability crisis that prospective buyers were already confronting. It’s not only in major cities like Toronto and Vancouver; it’s happening all around the country. Today, the Bank of Canada (BoC) unexpectedly acknowledged that housing prices are technically overvalued and would need to fall. The deputy governor has stated, “We need reduced house prices to restore balance to Canada’s housing market and make home ownership more attainable to more Canadians.” And he continued, “But reduced housing prices may increase stress for individuals who purchased recently. They’ll have less equity, which could make it harder for them to refinance. The least disruption will be seen by short-term end users because they won’t be leaving their current role for a long time. However, there may be instant liquidity difficulties for investors who considered extremely immediate bets. Especially if they’re part of the pre-sale market and haven’t yet taken possession of the home they’ve purchased. Related posts. How does a home warranty differ from an insurance policy? Read More Deposit Protection Eases Homebuying Stress Read More Importance of the performance audit Read More How can Home Warranty Guard You Against Unexpected Expenses Read More Canada hopes to welcome half a million immigrants by 2025, but can the country keep up? Read More Canadian Real Estate Prices Fall 30%, Recession Starts: Ox Econ Read More

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High mortgage rates to overwhelm Canadian housing

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High mortgage rates to overwhelm Canadian housing Canada and The real estate Industry have always walked hand in hand and soared high profits when it came to output. An all-time high housing market burns red with ultimately no sign of cooling down. From 2021 to February 2022 the real estate market in Canada bagged a solid profit because of the purchase of around roughly 552,000 homes. Despite such an increase and heavy profit rate, the real estate industry of Canada is worried about the future market rate of housing in Canada. It has become an ironic situation, with the government promising to double the housing production and cutting the costs to make housing affordable through the release of the fiscal budget meanwhile the market and mortgage rates are hitting an all-time high and are expected to escalate more during near summers. Such a condition really tells that there will not only be a shortage of housing possibilities but also warns about the phase where housing will be available for none. Price hike The end of 2021 concluded around a 19 percent rise in the prices above the borrowing capacity of a median- Canadian household. Such a rate is expected to rise to a 30 percent or more in the near future making housing in Canada a dream far-fetched. The reason for such a hike in pricing is mere because the supply is always low but the demand keeps increasing in the country. Low bank interest rates are just another crackle in the fire that will keep increasing the demand and the mortgage rates along with it. Rising Mortgage Rates The Government of Canada 5 Year Bond closed at the most elevated level in a decade nowadays. Five Year yields are critical to a genuine domain, affecting one of the key contract rates. As a result, Canadians ought to anticipate paying the most elevated contract intrigued in a decade — and these rates are fair getting begun. Bond yields impact the mortgage as well as the interest debt in the real estate industry. The hot red pricing of the 5-year bond yield has become the reason for worry in the estate market because such a bond yield directs the 5 years fixed mortgage. It has been a record, that the Canadian 5-year bond yield has not taken this big a leap since April 2011. Due to such conditions, the Canadian 5-year mortgage rates are also at an all-time high resulting in a 17 percent drop in the buyer estimate. The five-year fixed mortgage was relatively the preferred plan for buyers until a year before but now the buyers will seek new and variable buying options with different ranges of the mortgage. This leaves a gap in the market contributing to higher levels of inflation. Recently the bank hiked 0.5 percent of the interest rates which will invariably result in nothing since the demand soars up but the supply to suffice higher demand is not nearly abundant. A lot of buyers are now indifferent to the price hike since the interest rates are lower even than the pre-pandemic rates. The real estate market will be in a slump as the properties are decreasing and the number of buyers running to buy the estate is high. With this there is the expectation of a solid hike in interest rate which is instigating the buyers to buy in today, colling down an all-time hot-selling real estate market. This would not only result in higher prices and lower demands in the future but also a scarcity of property until the government’s housing plan comes to the rescue in real-time. But is the Government’s housing plan a tangible asset, well the economists say otherwise. An entirely new perspective While the distress of the real estate market is evident Canada’s president Christopher Alexander feels a cooling down of the market won’t happen. In an interview when asked about the rising prices and mortgage rates the Canadian president was heard saying “It will take some froth out, which I think we would all enjoy. But I think the market will adjust demand is still incredibly strong and Canadians really believe in the value of homeownership. So I think that will still continue to see people wanting to buy, just might take them a little bit longer than they had hoped.” Conclusion The fate of housing in Canada is dismal from some perspectives while ambitious from others, the future will only hold the decision of the winning perspective. Related posts. A collaboration on transit-oriented communities by admin123 High mortgage rates to overwhelm Canadian housing by admin123 Toronto’s Next Big Development Project: The Humber Bay- Lake Shore Site by admin123 A hit in the record price of $1.25 Million for the GTA Condos by admin123 Home Costs in Canada Reach a New Record: Current Scenario and Predictions. by admin123 10 million homes required in Ontario in next 10 years by admin123

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Supply fixing Canadian Real estate seems a tiny solution to the heap of problems

Supply fixing Canadian Real estate seems a tiny solution to the heap of problems

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Supply fixing Canadian Real estate seems a tiny solution to the heap of problems The fact that banks have become vocal critics of Canada’s real estate bubble is one of the biggest caution flags. Clients should remember that this isn’t a supply issue, according to BMO Chief Economist Douglas Porter. Last year, the bank cautioned that without demand measures, price growth would accelerate. Rather than heeding such counsel, policymakers clung to the supply store. After a year of near-record new house deliveries, the price increase is nearly double that of the previous year. Nothing like this has happened in Canada. Demand Measures Were Needed Last Year, and They May Be Needed Again This Year, according to BMO. The country’s oldest bank has been an outspoken critic of the government’s inaction on real estate prices. Home prices were already regarded as out of control and in need of intervention at this time last year. “We believe authorities and that in charge should move quicker, in some way, to address the housing pricing problem before the market faces more severe price hikes beyond anyone’s control,” Porter said. Last Spring, BMO cautioned that it would be too late to temper the market. However, policy actions aimed at limiting demand could have slowed the rate of price rise. Instead, policymakers emphasised the supply story, much to the delight of the sector. The promises to promote demand were much more explicit in the political platforms on which parties ran. It was difficult to find an economist who did not believe this approach would raise prices. He added “some indicated that the market was going to slow down and there was no requirement for urgency,” he continues, “while some others were just focused on supply (in slow motion) to resolve what was clearly an emergency. With rising supply, Canadian real estate prices are accelerating. So begins the tale of Canada’s failure to alter course, instead of adding fuel to the fire. According to the most recent CREA data, home prices increased by 29 per cent year over year in February. It was a problem last year, and it’s now less of a government worry than it was when the rate was half that. Existing homes may be scarce, but they are far from the only supply, according to BMO. New home starts came close to breaking records, while completions came close to breaking records as well. The number of new construction starts and completions is still substantially higher than it was before 2020. “Right now, prices in a lot of markets are going parabolic, and the price strength looks to be feeding on itself… “As a result, even with a robust supply response, the near lack of serious demand-control measures has allowed prices to go wild,” Porter argues. In Canada, supply is only a small part of the problem When it comes to supply, the bank isn’t saying stop building; rather, it’s saying it won’t address pricing at this point in the market. There is definitely a need to encourage supply. But, as he puts it, “it’s like bringing up a squirt gun to a raging flame of demand for fire, which is being increased by expectations of extra price hikes.” If it wasn’t evident already, this is one of Canada’s largest banks, and it has a vested interest in seeing prices rise. The motivation for them to obtain more and larger mortgages is obvious. That’s how messed up things are right now. Even those with a vested interest in the current market are concerned about systemic flaws.   Related posts. More options available for the buyers while prices are breaking records by admin123 Supply fixing Canadian Real estate seems a tiny solution to the heap of problems by admin123 Is the Housing Market Going to Cool Down in 2022? by admin123 Know why the real estate market is slowing down in Toronto by admin123 CMHC: mortgage debt climbed most since 2008 last year. by admin123 FACTS TO KNOW WHEN SHIFTING FROM VARIABLE MORTGAGE TO FIXED RATE by admin123

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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. Is the Housing Market Going to Cool Down in 2022? by admin123 Know why the real estate market is slowing down in Toronto by admin123 CMHC: mortgage debt climbed most since 2008 last year. by admin123 FACTS TO KNOW WHEN SHIFTING FROM VARIABLE MORTGAGE TO FIXED RATE by admin123 A transformation of Danforth Village neighbourhood by admin123 CIBC: Housing deficiencies linked to undercounted demand by admin123

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Know why the real estate market is slowing down in Toronto2

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. Know why the real estate market is slowing down in Toronto by admin123 CMHC: mortgage debt climbed most since 2008 last year. by admin123 FACTS TO KNOW WHEN SHIFTING FROM VARIABLE MORTGAGE TO FIXED RATE by admin123 A transformation of Danforth Village neighbourhood by admin123 CIBC: Housing deficiencies linked to undercounted demand by admin123 April witnessed an increase of 8% in Canada’s housing starts by admin123

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CMHC: mortgage debt climbed most since 2008 last year.

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CMHC: mortgage debt climbed most since 2008 last year According to a new report by Canada Mortgage and Housing Corp., residential mortgage debt climbed last year at the quickest pace since 2008. Mortgage debt increased by 9% last year, and by 10% in the first few months of this year before rising interest rates began to dampen the market, according to the Federal Housing Administration. “Family investments are rather high. Therefore, it’s a potential weak spot, “said CMHC senior economist and report co-author Tania Bourassa-Ochoa. There was a 43% increase in new mortgage originations and a 22% increase in refinances from 2020 to 2021, resulting in an increase of $400 billion in residential mortgages held by banks and a rise of $54 billion by credit unions. However, as central banks have raised interest rates in recent months to control inflation, real estate activity has slowed significantly. On Tuesday, the Real Estate Board of Greater Vancouver reported a drop of 35% in regional house sales compared to the previous June, while on Wednesday, the Toronto Regional Real Estate Board reported a drop of 41%. CMHC reports that when the discount on interest rates grew last year, borrowers favoured variable rate mortgages, which jumped from 34% to 53% of the overall mortgage market during the second half of the year. Since more people now have mortgages with adjustable rates, higher interest rates will affect them more acutely when it comes time to renew their loans. “Canadians who took out a new mortgage with variable interest rates will be the ones to experience that hike most, and most quickly,” said Bourassa-Ochoa. Mortgage defaults decreased across the board last year, indicating that borrowers were able to meet their financial obligations. This was due in large part to rising savings rates and a strong property market. Indigenous, Black, Arab, and Latino populations were found to have significantly lower homeownership rates than the national average as of the 2016 census, the most recent data available at the time the article was written. Homeownership rates were just under 50% across the board, with white and Chinese populations having somewhat higher rates than the national average (74% vs. 76%, respectively). Even after accounting for factors such as race, age, education, and income, the analysis found that Indigenous, Black, Latinx, Arab, and Filipino Canadians continue to have lower average property values than other Canadians. This disparity has grown since the 2006 census. It stated that huge disparities in home wealth between demographic groups are an indication that inequality would remain since housing wealth is a powerful determinant of future generations’ economic success. Related posts. CMHC: mortgage debt climbed most since 2008 last year. by admin123 FACTS TO KNOW WHEN SHIFTING FROM VARIABLE MORTGAGE TO FIXED RATE by admin123 A transformation of Danforth Village neighbourhood by admin123 CIBC: Housing deficiencies linked to undercounted demand by admin123 April witnessed an increase of 8% in Canada’s housing starts by admin123 The Finalization of 10Block Studio’s Plans for Luxury Condo by admin123

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CIBC: Housing deficiencies linked to undercounted demand

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CIBC: Housing deficiencies linked to undercounted demand Even though interest rates are moving higher, some economists think that a change in rates won’t have much of an impact on the housing market until something is done to address Canada’s chronic supply issue. This is because interest rates are negatively correlated with home prices. Benjamin Tal, managing director and deputy chief economist at CIBC Capital Markets, and Katherine Judge, director, and senior economist at CIBC Capital Markets, recently collaborated on a new article for In Focus with CIBC Capital Markets in which they explained why an increase in interest rates might not necessarily help the struggling housing market. There has already been a reaction in the market as a result of increasing borrowing costs; nonetheless, this will not solve the problems associated with housing affordability. Instead, a pause in market activity may simply alleviate symptoms or “worsen the supply-demand imbalance in the market.” “Entering a more relaxed housing environment should not ease the urgency in which the chronic lack of housing supply in the Canadian market is dealt with,” said the In Focus report. “After years of fighting supply issues using demand tools, governments at all levels finally recognize that over time, the housing affordability crisis will worsen without adequate supply policies.” The question then is, what causes the problem with the supply? Both Tal and Judge pointed the finger at the faulty methodology that was used to formulate housing policy as well as the industry’s inability to satisfy provincial and federal housing goals as a part of the problem. Comparison of Canadian Housing to others Comparison of Canadian housing performance to other countries is an overly simplistic method to use when attempting to evaluate the state of the housing market in Canada. A comparison between the housing stock and the population is typically done using the database maintained by the Organization for Economic Co-operation and Development (OECD), which is used in order to present a picture of the housing supply difficulties that Canada faces on an international scale. Comparing Canada to other countries was the approach that was taken for the drafting of the federal budget for 2022. This comparison, on the other hand, is susceptible to oversimplification due to the fact that variations in household formation and demographics can cloud its conclusions. According to the economists working with CIBC, “Furthermore, taking housing stock as a share of the population doesn’t account for differences in demographics or cultural preferences that shape household sizes or formation rates.” “Nor does it account for the different propensity to rent, as countries with higher shares of renters generally have more abundant housing supply.” the report states. Even when the housing market in Canada is compared to that in the United States, the results may not be realistic. According to Judge and Tal, both countries have housing stock that is comparable when measured against the norms of the OECD. However, this does not explain why property prices in Canada have increased at a rate that is twice as fast as those in the United States during the previous 20 years. According to the reports, “These shortcomings of international comparisons suggest that it’s more informative to look at Canada’s housing market in isolation to determine what’s behind the market’s imbalance” Inadequate picture of demands due to undercounting of households Tal and Judge highlighted that household formation is the most important element to evaluate when it comes to estimating the demand for housing; yet, the statistics that they provide are typically not correct. The Canadian Mortgage and Housing Corporation (CMHC) collects data on household formation by converting population growth into the number of households using the quality of households formed from a given number of individuals and then translating that number back into population growth. On the other hand, some information is being lost in the translation, which is leading to a “gross underestimate of the real number of households in Canada, and thus demand for housing.” “And if demand is undercounted, then of course the supply released by municipalities to meet that demand will be inadequate,” explained the report. For instance, the Demographic Division of Statistics Canada counts all individuals whose non-permanent residence visas have expired and who are still in the nation as having departed the country 30 days after their visas have expired. Nevertheless, during the epidemic, non-permanent residents who had expired visas were allowed to stay in the country through extensions. This means that those people are not included in any official figures, despite the fact that they still require housing. In a different example, Tal and Judge said that the estimates done by CMHC assume the same headship rate for new immigrants, non-permanent residents, and long-term residents. According to Tal and Judge’s estimation, the existing need for housing is undercounted by 500,000 households. Limitations imposed on the industry to meet the demands of housing The issue of housing supply in Canada “is serious and needs action” as implied by the undercounting of the demand for homes. Tal and Judge emphasized that although there is no shortage of ideas to generate housing, not enough attention is being paid to the reality that the industry’s means to meet higher housing targets is limited. The rise in the typical amount of time needed to finish a building project is one facet of the problem. “It takes twice as long to complete both low-rise and high-rise units today than it did two decades ago. And a lack of labour supply is a major cause of those delays,” said the report. “While large developers are usually able to secure their own labour pool, that’s not the case for mid-sized and small operators that account for 30 to 40 percent of activity.” Competition for labourers has intensified as a result of large-scale infrastructure projects, an issue that has become even more difficult as a result of shortages imposed by COVID-19. The construction industry did not return to its pre-pandemic employment levels until January 2022. This was a

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