Canadian Real Estate

Some mortgage clients could see up to 40% payment increases at renewal, BMO says - Mortgage Rates & Mortgage Broker News in Canada Like most other financial institutions, BMO said the bulk of its mortgage portfolio will be up for renewal in the coming three years, with the payment increases averaging up to 40%.

The main issues in the real estate sector in Canada are as follows:

High Housing Prices:
Home prices in Canada have reached unsustainable levels, making it increasingly difficult for Canadians, especially younger generations, to afford homes. The benchmark home price has more than doubled over the past decade.

Affordability Crisis:
Rising apartment rents and elevated mortgage rates have created an affordability crisis, with many Canadians struggling to find affordable housing options.

Public Opinion:
A significant portion of Canadians, about 70 percent, are willing to see home prices decrease to improve affordability for others. This sentiment contradicts the conventional belief that homeowners always want their property values to rise.

Preferred Solutions:
Canadians believe that the best solution to the high cost of housing is to build more homes, faster, including government-subsidized ones. This is the most favored approach among respondents. However, 12 percent of respondents believe that curbing immigration could address the issue.

Government Response:
Prime Minister Justin Trudeau and his government are under pressure to address the housing crisis. The challenge lies in improving affordability without causing a sharp decline in property prices.

Hurdles to Supply:
High building costs, interest rates, and regulations are identified as major obstacles to increasing housing supply.

Regional Disparities:
The housing market varies across regions, with cities like Toronto and Vancouver experiencing particularly high housing costs relative to income.

Popular Policy Measures:
While building more housing is the preferred solution, other popular measures include increasing government-subsidized housing and lowering mortgage rates. Few Canadians support policies that discourage second-home purchases or eliminating the capital-gains tax exemption on primary residence sales.

.com, we represent buyers and sellers of residential and commercial real estate. We provide practical, cost-effective legal representation and provide the highest level of service to our real estate clients.

We handle real estate transactions of all sizes and levels of complexity and provides guidance and representation in the following areas:
* Residential real estate purchases and sales;
* Commercial real estate purchases and sales;
* Drafting Agreements;
* Refinancing and Title Transfers;
* Residential and Commercial property leases;
* Documentation and registration of easements, rights-of-way and severance; and
* Private mortgages.

Contact us to arrange an appointment today at Pettlelaw.com or at 416 551 1990

Real Estate in Ontario is showing signs of strong growth in foreign demand and the Fear of Missing Out (FOMO), which set the Ontario’s Real Estate Market ablaze and has flared up as buyers compete vigorously for a limited number of listings.

Final Reminder for CMBA Members

We cordially invite all CMBA members to register for the upcoming symposium for free.

Please be advised that the complimentary registration for members concludes with the early bird deadline on October 1st.

Disclaimer: To qualify for free admission, it is imperative that your membership remains in good standing until November 1st. Should this condition not be met, attendees will be subject to the non-member fee of $85 plus HST.

For further details and registration, please visit our official site: https://cmbaontario.ca/symposium-november-9-2023/

Early-stage delinquencies for all credit products are on the rise: Equifax - Mortgage Rates & Mortgage Broker News in Canada Early-stage delinquencies on both mortgage and non-mortgage debt continued to rise in the second quarter, a sign that high interest rates are increasingly weighing on Canadian borrowers.

Mortgage interest costs now up over 80% since the start of the BoC's rate hikes - Mortgage Rates & Mortgage Broker News in Canada Canadian mortgage borrowers continued to see their interest costs climb in the second quarter, which have now soared over 80% since the Bank of Canada started raising interest rates.

The Primary Issues in the real estate sector in as of 2023 are as follows:

High Housing Prices: Home prices in Canada have reached unsustainable levels, making it increasingly difficult for Canadians, especially younger generations, to afford homes. The benchmark home price has more than doubled over the past decade.

Affordability Crisis: Rising apartment rents and elevated mortgage rates have created an affordability crisis, with many Canadians struggling to find affordable housing options.

Public Opinion: A significant portion of Canadians, about 70 percent, are willing to see home prices decrease to improve affordability for others. This sentiment contradicts the conventional belief that homeowners always want their property values to rise.

Preferred Solutions: Canadians believe that the best solution to the high cost of housing is to build more homes, faster, including government-subsidized ones. This is the most favored approach among respondents. However, 12 percent of respondents believe that curbing immigration could address the issue.

Government Response: Prime Minister Justin Trudeau and his government are under pressure to address the housing crisis. The challenge lies in improving affordability without causing a sharp decline in property prices.

Hurdles to Supply: High building costs, interest rates, and regulations are identified as major obstacles to increasing housing supply.

Regional Disparities: The housing market varies across regions, with cities like Toronto and Vancouver experiencing particularly high housing costs relative to income.

Popular Policy Measures: While building more housing is the preferred solution, other popular measures include increasing government-subsidized housing and lowering mortgage rates. Few Canadians support policies that discourage second-home purchases or eliminating the capital-gains tax exemption on primary residence sales.

Thank you for sharing your experience with us. Our real estate team at Pace Law ensures a seamless legal process with your best interests in mind. Way to go team!

A pause in the Bank of Canada’s monetary tightening campaign may bring relief to many mortgage owners, experts told BNNBloomberg.ca while noting that other indebted Canadians will continue to feel the weight of higher borrowing costs.

On Wednesday, the Bank of Canada held its policy rate at a 22-year high of five per cent. Canada’s central bank has raised interest rates by 475 basis points since March 2022.

Alana Riley, the head of mortgage, insurance and banking at IG Wealth Management, said prime rates are expected to remain at 7.2 per cent following the central bank’s decision.
Since the Bank of Canada has raised rates 10 times since March 2022, she said “the market impact of these changes in aggregate become material,” and will weigh on many borrowers even with the rate hold.

“This rate is burdensome to household cash flow for Canadians with variable rate mortgages, HELOCs and unsecured lines of credit,” Riley said in a written statement.
James Laird, co-chief executive officer of Ratehub.ca and president of CanWise Mortgage Lender, said fixed rates will remain at current levels due to the decision to hold interest rates, and that will be good news for some mortgage owners.

“Anyone with a variable-rate mortgage or balance on a home equity line of credit (HELOC) will be pleased that their rate has not gone up further,” Laird said. “Anyone that requires a mortgage in the fall - fixed or variable - will also be pleased with this rate hold.”

Leah Zlatkin, a mortgage broker and expert with LowestRates.ca, said in a Wednesday interview with BNNBloomberg.ca that the rate hold may “come as a great relief” to many variable-rate mortgage owners.

In the current environment, she said she recommends three-year fixed products to many clients, depending on their needs.

Zlatkin said individuals may struggle with renewals if they have a fixed-rate mortgage from around five years ago. Those people coming up for renewal will have challenges requalifying at either a new lender or their existing lender because rates are “much higher” than when they initially qualified, she said.

It’s back-to-school season! CanLII can be one of the most valuable online resources to any law student doing legal research, whether incoming or returning. Here’s a short guide to some of our most useful features: https://zurl.co/84Kz

C’est le temps de la rentrée scolaire ! CanLII est sans contredit l’une des ressources en ligne les plus précieuses pour les étudiants, nouveaux ou anciens, effectuant des recherches juridiques. Voici un petit guide de nos outils les plus utiles : https://zurl.co/Kvbw

Opinion: How to bridge the housing affordability gap for a generation without a home - Mortgage Rates & Mortgage Broker News in Canada Over the next few days, the new federal cabinet will gather in P.E.I. for their summer retreat.

Fixed rates back as top mortgage product of choice: National Bank - Mortgage Rates & Mortgage Broker News in Canada Despite interest rates potentially being at or near a peak, borrowers aren't betting on rate cuts anytime soon.

This week’s lowest fixed and variable mortgage rates in Canada A look at the lowest available mortgage rates on fixed and variable terms and HELOCs for the week ending July 6

Fresh round of fixed mortgage rate hikes now underway, with sub-5% rates a dying breed - Mortgage Rates & Mortgage Broker News in Canada Fixed mortgage rates are once again on the rise, with rates under 5% quickly becoming a distant memory.

Vol 3 no 3 (2022) of the Wrongful Conviction Law Review () is now available on CanLII! Featuring content by , , , Elizabeth Panuccio, Taylor C Lebensfeld, and more. https://zurl.co/2MC1

Brampton and Mississauga as well as Caledon among 26 municipalities granted ‘strong mayor’ powers The Ontario Government announced that Brampton, Mississauga and Caledon are among 26 municipalities whose mayors will be given additional powers.

Mortgage growth at a seven-year low and pockets of financial stress are growing: Equifax - Mortgage Rates & Mortgage Broker News in Canada Rising interest rates and a softening real estate market have applied the brakes to new mortgage growth, which fell to its slowest pace since 2018.

South Korea’s housing crunch offers a warning for other countries A bizarre rental system is not helping

Housing markets remained tight in March ahead of the busy spring homebuying season - Mortgage Rates & Mortgage Broker News in Canada Home prices in the country's large metro areas seem to be finding some support following a rise in sales in March and still tight inventory ahead of the traditionally busier spring homebuying season.

The Supreme Court clarifies that applications in criminal proceedings must be “manifestly frivolous” to be summarily dismissed. Read our plain-language summary here: https://www.scc-csc.ca/case-dossier/cb/2023/39635-eng.aspx