Established in 1990, Northwood Mortgage Ltd. is one of the largest brokerages in the GTA. With a staff of over 150 professionals, we offer only the highest quality services and products to our clients, lenders and investors alike. At Northwood Mortgage all of our managers and agents are members of The Canadian Association of Accredited Mortgage Professionals(CAAMP), and subscribe to its by-Laws, code of ethics and standards of professional practice (CAAMP boasts most of Canada’s institutional lenders, including major chartered banks, as its members). We are also proud to be a part of the Independent Mortgage Brokers Association. We are experts in residential, commercial, industrial and investment mortgage placement. At Northwood Mortgage, we can help you to arrange loans from as little as $10,000, all the way up to $19,000,000. Our well-established relationships with over 36 mortgage lenders, including four of Canada’s largest banks, allows us to access the lowest possible mortgage rates for our clients. We are a one-stop mortgage broker, with a full range of services, providing a wide range of financing solutions to fulfill all of your lending requirements.
To match my clients with the best mortgage product and mortgage rate, to suite their individual, unique situations, while giving them the best possible service to establish a long-lasting relationship.
Housing Market Digest by Will Dunning, Economist for Mortgage Professionals Canada
The Office of the Superintendent of Financial Institutions (OSFI) now requires that all residential mortgages by federally-regulated lenders must be stress-tested, at two percentage points above the contract interest rate (or the 5- year posted rate, if that is higher). In combination with the requirements for mortgage insurance, about 90% of all new mortgages will be tested.
This can be expected to reduce housing activity by 10-15%. It is on top of the impact from recent rises for mortgage interest rates (another 5-10% drop in activity). The combined 15-25% drop in housing activity will affect the broader economy.
In two years, employment could be 150,000-250,000 lower than it would otherwise be. There is a risk that house prices will fall. In a modern economy, a sustained drop in house prices is one of the most dangerous things that can happen: as happened in the US a decade ago, falling house prices can turn into widespread economic decline.
Resale activity recovered a bit more in September, to 492,900, due to partial rebounds in BC and Ontario. Activity is flat in most other areas.
CREAs House Price Index was flat in September. The year-over-year change is now 10.7% (down from the peak of 19.7% that was seen in April).
The sales-to-new-listings ratio (SNLR) was 55.7% in September, slightly above the balanced market threshold of 51%. This indicator points to an outlook for stable prices (at worst). But, as noted, OSFIs stress test policy creates a risk of falling prices.
We should, in general, expect that resale activity will trend upwards over time, because the population is growing and the housing inventory is expanding. Therefore, it is useful to look at sales on a per capita basis. Recent activity is below the long-term average.
Employment increased by 35,000 in October
In October, employment rose for youth aged 15 to 24, while it was little changed for the core-aged population of 25- to- 54 year-olds, and for people 55 and older. The largest employment increase was in Quebec, followed by Alberta, Manitoba, Newfoundland and Labrador, and New Brunswick. At the same time, there was a decline in Saskatchewan.
Employment rose in several industries, led by other services; construction; information, culture and recreation; and agriculture. Employment declined in wholesale and retail trade.
The number of private sector employees increased in October, while public sector employment and self-employment were little changed.