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How’s the Market? Canadian Housing Market Stabilizing in 2011

June 9, 2011 By 2 Comments

News on the national real estate market starts and sales can now be found at the CMHC’s website. According to Canada Mortgage and Housing Corporation’s (CMHC) second quarter Housing Market Outlook, Canada Edition, we are doing just fine.

Expect a moderation and a slight increase on the home prices this year:

“The recent increase in the average MLS® price reflected strong sales in Vancouver’s property resale market. For the remainder of 2011, we expect the average MLS® price to moderate. Nevertheless, the average MLS® price will experience an overall increase this year. As the existing home market moves to more balanced markets in 2012, growth in the average MLS®price in 2012 is expected to be more modest than in 2011.”

So, that’s great news for the country. Let’s check out now how our local market is doing. Stay tuned.

Filed Under: Canadian Real Estate Tagged With: ,

Canadian Home Buyers Savvy and Optimistic

June 15, 2009 By 2 Comments

Canada Mortgage and Housing Corporation’s (CMHC) 2009 Mortgage Consumer Survey results were released last week, and indicate that nearly 90% of recent home purchasers across the country believe that home ownership is a good long-term investment and that almost 70% think that now is a good time to purchase a home in their community.

Buyers are knowledgeable about the mortgage process and their lender’s assessment of eligibility. For example, 86% are of the view that the level of total housing and other monthly payments should generally not exceed 40% of gross household income, which is in line with generally accepted mortgage lending practices.

Recent buyers are prudent mortgage managers.
According to the survey, 75% of purchasers have a goal to be mortgage free sooner than their original amortization. In fact, 20% of recent purchasers report having made a lump sum payment to their mortgage. [Read more...]

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CHMC and Federal Government Refunds on Eco-Friendly Homes

March 2, 2009 By 3 Comments

CMHC (Canadian Mortgage and Housing Corporation) is now offering a 10% refund on the Mortgage Insurance Premium when purchasing a energy-efficient property. There are several green projects in the market right now, we’ve talked about Square Benny being one of them, and now with the explosion of eco-friendly developments, you have more options in finding an energy-efficient home in Montreal.

The CMHC discount is also extended to home-buyers or Home-Builders and existing home-owners who are planning on making energy-saving renovations.

Bonus: Longer Amortization

You could also have the added flexibility of a longer amortization (the period of time required to repay your mortgage) from 25 years to a maximum of 35 years for loan-to-value ratios in excess of 80% (or 40 years for loan-to-value ratios of 80% or less), significantly reducing your monthly payments.

To get the details of this program: How it works, who can apply for it, etc. Visit the CMHC website

Other Discounts by the Federal Government

“The Government of Canada actively promotes energy conservation and initiatives to reduce greenhouse gas emissions that contribute to climate change.”

This is another program I found through the CMCH website, the refunds are offered by the Federal Government. I’m not really sure if they’re both available at once, or if you get the refund from one entity you can’t get it from the other. Something to find out. In any case, here are the details:

Eco-Energy RetroFit (Homes): is available to owners of single family homes including detached, semi-detached and low rise multi-unit residential buildings. The maximum grant you can receive per home or multi-unit residential building is $5,000; whereas the total grant amount available to one individual or entity for eligible properties over the life of the program is $500,000. It also helps home buyers choose an energy efficient new home. Visit their website for more info.

Filed Under: Buying Real Estate, First Time Buyer, Home Improvement Tagged With: , ,

Montreal Market Forecast 2009 – CMHC

December 29, 2008 By Leave a Comment

montrealmarket2009

In 2009 the Montreal Real Estate market will become gradually more balanced, according to the CMHC 2009 market forecast.

Given that sales will fall and listings will rise, the market will ease slightly over the coming year. Average resale prices will continue to increase, but more slowly than in recent years.

A higher proportion of condominium sales will take place in the suburbs and in the less expensive sectors on the Island of Montréal, which will contribute to limiting the growth in prices. For the market overall, prices will therefore rise by 4 per cent in 2008 and by 3 per cent in 2009. Still, on the whole, the market will remain favourable to sellers in the short term and gradually ease toward more balanced conditions in 2009.

Here is the break down of the report:

  • Mortgage rates are expected to be relatively stable
  • Resale market will be moderately slow
  • Condominiums will maintain more demand than single family houses
  • Supply of home listings with increase slightly.
  • Affordable homes are expected to register increases in starts.
  • Prices for single family homes and plexes will go up by an average 4 % in 2009
  • Condo prices are expected to grow by 3%

Now, let’s take a look at the details >>

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Canadian Government injects $75-Billion into the financial system. Lower interest rates ahead.

November 24, 2008 By 1 Comment

Great news for home buyers. This is a clipping from the Newsletter of the Montreal Real Estate Board. The government injecting money to maintain the market growing, although no news for the 40 year mortgage or zero percent down payment- and we all wish it remains that way. If you can’t afford to buy, then you should not get a mortgage. But for those with the means, lower interest rates are coming ahead. 

Federal Government’s $75-Billion Purchase of Insured Mortgages Should Benefit Home Buyers

As part of its efforts to address the current financial crisis, the federal government announced that it will inject $75 billion of new money* into the financial system, by buying insured mortgage pools from Canadian financial institutions.

The purpose of this measure is to add liquidity to financial institutions – money they can then lend to businesses and consumers. The main effect of such an initiative is to increase the availability of credit while, at the same time, making the cost of credit more affordable. As a result of this plan, financial institutions’ mortgage interest rates should drop, which is likely to stimulate activity on the resale market.

This announcement is good news for our financial system and for the economy in general. Ultimately, it is borrowers who will benefit from this initiative, particularly future home buyers.

This federal government intervention was made necessary by the fact that the financial crisis has led to a significant reduction in the amount of credit made available by the private sector and, as a result, higher costs. In this context, banks’ financing costs increase, which translates into higher prime rates and mortgage rates.

The purchase will be made through the Canada Mortgage and Housing Corporation (CMHC) and will focus exclusively on mortgages that are already insured under its mortgage loan insurance program.

*Minister of Finance, Jim Flaherty, made an initial announcement of $25 billion last October 10, and announced an additional $50 billion on November 12.

Filed Under: Canadian Real Estate Tagged With: , ,
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