December 13, 2018    中文(简体)   

UPDATE: Bank of Canada Increases It's Benchmark Rate

13. July 2018 04:36

 

 

The Bank of Canada has decided to raise its benchmark rate to 1.5%. The bank's rate, also known as the overnight rate, is the interest that retail banks have to pay for short term loans. This consequently affects what the consumer pays for things like mortgages, lines of credit and savings accounts! 

Every Six weeks, the Bank of Canada meets to decide on what it's interest will be. The decision is based on what it sees happening in the economy and raising it when wanting to keep a lid on inflation. According to statistics Canada, the economy is expanding, the job market is doing well and inflation is inching higher! 

In its decision to hike, the bank noted in a statement that the housing market is stabilizing, commodities such as oil are startting to rally, and businesses are starting to spend again. From the bank's point of view, these are all good signs for the economy! However, the bank also said that it is keeping an eye on the ongoing tariff dispute, specifically those on Canadian Steel and Aluminum. The bank does not think the impact will be too harsh though. 

The bank's next decision on interest is expected on September 5th. 2018! 

GTA Homes Finally Heating Up??

10. July 2018 05:05

 

It's really happening! Toronto Home Sales jumped the most in more than a decade this past month! This is a sign that Canada's biggest housing market is rebounding from the restrictions brought on by tighter lending regulations and higher borrowing costs in the past few months. 

Sales in June rose 2.4% from the same period a year ago, according to data released from the Torotno Real Estate Board. Seasonally adjusted sales climbed 18% from May signifying the biggest monthly gain since 2004. Prices have also been stabilizing. The average home price rose 2% from a year earlier to $807,871 and increased 3.3% from May on a seasonally adjusted basis. 

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Updates on Canada's Wide Vacation Property Prices

26. June 2018 10:48

 

 

British Columbia's new speculation tax on out-of-province buyers wil likely convince a wave of owners to sell their properties, pushing down home prices. By the end of September, the average price of a recreational home in British Colombia is expected to reach $531,333; a 2.8% drop from last years average of $546,444. 

Under British Colombia's speculation regulations, owners outside the province will be taxed 0.5% this year. The rate will climb to 2% next year for foreign investors and 1% for Canadian citizens and pemanent residents not living in B.C. but owning properties within the province. This is expected to lead to a price dip in British Colombia's recreational housing sector. 

Furthermore, a 0.9% dip in recreational prices in Manitoba as well as a 7.5% fall in prices in Atlantic Canada is expected to occur, leading to an average price of $228,754. These price dips are expected in Manitoba due to it's increase of supply. As for Atlantic Canada, the price falls are expected from individuals moving out of the province and a boom in people choosing to renovate instead of move. 

Ontario and Alberta could experience spikes in recreational pricing. Ontario recreational homes will average $535,885, a 10.4% increase from last year. Alberta will hit $770,100, signifying an 8.9% increase from the previous year. 

Alberta will benefit from an increased amount of people looking away from British Colombia for recreatioal properties and will see price increase because of improved emplyment opportunities as well as an increase in recreational property demand. Similarly, Ontario will be driven by large numbers of people moving into the province as well as an expected decreases in inventory due to an increase in demand! Not to mention, Baby Boomers who are increasingly turning to recreational homes as viable alternatives will also spark a price hike in these markets! 

Mortgage Market Changes

25. June 2018 10:33
 
After some time away, I am back bringing you up-to-date on the mortgage market.
 
Period Current Week End 15-Jun-18 Previous Week End 12-May-18    
  5-Year Fixed # of Companies that Changed Rates 5-Year Variable # of Companies that Changed Rates
  Best Median Best Median
Insured 3.24% 3.34% 10 2.36% 2.45% 7
Rentals 3.34% 3.79% 3 2.45% 2.58% 4
Self-Employed 3.34% 3.34% 4 3.34% 3.34% 5
 
Variable Rate Mortgages continue to offer great opportunities.

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Buying a Condo? Watch out for Kitec Plumbing!!

20. June 2018 09:07

 

With condominium sales on the rise, it's important to understand the concept of kitec plumbing and its effect on the condominium owner! Whenever a condominium displays (through a status certificate for example) that the unit contains kitec plumbing, you should take that information as a red flag. Here are some reasons why: 

1. Kitec is a brand of plastic piping used in hot and cold water supplies to plumbing fixtures. This piping was made from 1995 to 2007. The pipes are usually colored blue to specify cold water pipes and orange to specify hot water pipes. Although there's a notion that Kitec plumbing weakens over time resulting in leaks and water damages, there actually have been few reported failures over the years. However, the perception is still prevalent that Kitec plumbing is a problem that needs to be addressed. 

2. There is always the question of whether Kitec plumbing will affect the value of a condominium unit. Although you cannot give an exact number, a good guideline to follow is $5000 for a one bedroom, $10,000 for two bedrooms and up to $15,000 for a three bedroom condo. In addition to that, it is good to know whether there is Kitec plumbing in the coomon elements and whether they need replacing. In most cases, it may only be in bathrooms or kitchens in party rooms or similar common areas of the building. 

3. If a condo contains Kitec plumbing, this should be addressed and disclosed as it is a material fact! In addition, every buyer should disclose this to their lender, as it could impact the buyers ability to successfully obtain a mortgage. 

4. Condominium corporations, alothough not required, by law, to disclose Kitec plubming, should be disclosing such information to their insurer, as it may impact any coverage the building has for flooding! 

In order to protect yourself, it is advisable to have in the agreement a clause that the seller represents and warrants that the unit does not contain any kitec plumbing to the best of their knowledge. It is also advisable to have the condominium unit inspected to be extra sure that Kitec plumbing is not within your unit of purchase. A home inspector should be able to tell if the unit has Kitec plumbing by looking under the sinks in the kitchens and washrooms. 

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