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Stress Testing Now Required For All Canadian Mortgages
Stressed About the Mortgage Stress Test? It is not new news anymore, but it is a topic that should be explored by anyone with a mortgage or planning to apply for one. Last Octobers Government rule changes decreased borrowing amounts for consumers putting less than 20% down payment toward their home purchases (these applicants requiring mortgage insurance). Over the year we have seen increased interest rates and limited competition in the market for many types of loans. The end result of these changes is that, YOU - the consumer, has been greatly affected. With a year since the implementation of the Stress Test, the Federal Government being pleased with the result of this policy change, is now requiring Stress Testing for all uninsured mortgage loans as well (mortgages with down payments greater than 20% of the purchase price). This change being used to assist in further curbing Canadian households indebtedness, as well as cooling some of the real estate markets in Canada. The Stress Test is used in qualifying for your mortgage before you buy but what happens when your current mortgage comes to term. what options do you have? Do you renew with your current lender or are you able to move to a lower rate at a new lender? Mortgage rates are on their way up from our record lows in 2016 early planning for a new purchase or renewal could save you thousands of dollars in the future! It has never been a better time to work with an Accredited Mortgage Professional - our ability to provide choice, guidance, and support will help you make informed borrowing decisions.
Building permits up in Western Canada, down east of Manitoba
Four provinces reported increases in March, led by British Columbia with an increase of 12.8% (+$180 million). Meanwhile, all provinces east of Manitoba reported declines. The largest decrease was in Ontario, down 1.4% (-$43 million) due to lower construction intentions in the residential sector. Quebec drives movement in non-residential permits. The national value of permits for non-residential buildings rose 7.9% in March, due to higher construction intentions for both institutional (+$175 million) and commercial (+$166 million) buildings. Gains in both of these components stemmed from Quebec. A high value permit for an addition to the Centre hospitalier de lUniversit de Montral drove the increase in the institutional component. In the industrial component, the value of permits declined 15.6% in March (-$102 million). The decrease was largely the result of lower construction intentions in Quebec, where multiple high-value permits were issued in February.
Canadian home sales edge higher in March 2019
Home sales via Canadian MLS Systems edged up 0.9% in March 2019 following a sharp drop in February, leaving activity near some of the lowest levels recorded in the last six years. There was an even split between the number of markets where sales rose from the previous month and those where they waned. Among Canadas larger cities, activity improved in Victoria, the Greater Toronto Area (GTA), Oakville-Milton and Ottawa, whereas it declined in Greater Vancouver, Edmonton, Regina, Saskatoon, London and St. Thomas, Sudbury and Quebec City. Actual (not seasonally adjusted) sales activity fell 4.6% y-o-y to the weakest level for the month since 2013. It was also almost 12% below the 10-year average for March. That said, in British Columbia, Alberta and Saskatchewan, sales were more than 20% below their 10-year average for the month. By contrast, activity is running well above-average in Quebec and New Brunswick. It will be some time before policy measures announced in the recent Federal Budget designed to help first-time homebuyers take effect, said Jason Stephen, CREAs President. In the meantime, many prospective homebuyers remain sidelined by the mortgage stress-test to varying degrees depending on where they are looking to buy. All real estate is local, and REALTORS remain your best source for information about sales and listings where you live or might like to in the future, added Stephen.