CMHC defends mortgage stress test
The buying and selling of houses in Canada is in the middle of a political tug of war between the government and industry participants. Over the past decade the residential real estate market was red hot. Particularly in Toronto and Vancouver. The main reason was affordability. With historically low interest rates more people were able […]
New home mortgage stress test
Qualifying for a home mortgage became more difficult at the beginning of this year, and will add downward pressure on house values. This is not a prediction that the value of homes will decrease. Downward pressure could result in smaller increases in the value of houses or, in fact, a decline in prices. The government […]
Bank of Canada warns on record household debt levels
Does your out-of-control increasing debt keep you awake at night? It should. The governor of the Bank of Canada, Stephen Poloz, is concerned about soaring home prices and the increasingly high amount of household debt Canadians are accumulating. He says it keeps him awake at night. Debt can be your friend right up until the […]
The dream of home ownership could turn nightmarish
The sad reality of this crazy booming real estate market we have seen in Oakville recently, could end up hurting people. That financial pain could be felt for decades. One of the characteristics of owning a house is that mortgages are often much larger than the down payment. Financial leverage is a wonderful thing when […]
The financial and human sides to soaring house prices
A hot topic of conversation these days is real estate. Specifically, the exorbitantly high prices of houses in Oakville and other communities in the GTA. According to the April 4 numbers released by the Oakville, Milton and District Real Estate Board, Oakville’s median residential sale price for the month of March increased by 44.77 per […]
B.C.’s no-interest down payment loans and financial reality
Politics and good financial judgment are often at odds. An example of this has just happened in British Columbia. It has to do with the Canadian dream of home ownership. Many perspective home buyers across our land are wondering if they should take the plunge and commit themselves to a huge amount of mortgage debt. […]
The dangers of Canada’s real estate bubble will affect us all
Ottawa remains fearful of the dangers of a continuing rise in residential real estate prices. Last week, the federal government introduced new rules and restrictions that are designed to discourage speculation by foreign investors. Plus, the government wants to prevent homeowners from accumulating mortgage debt beyond their financial means. Finance Minister Bill Morneau continues to […]
The housing market: home sweet home or house of cards?
Is real estate a ticking time bomb? Is your house overvalued? The only people who are not afraid of the rapidly escalating house prices in Canada are those who own them and those who line up to pay record-breaking prices. The Canadian dream of homeownership is alive and well. However, many organizations or government bodies […]