The Governor of the Bank of Canada doesn't really feel Trudeau's budget will curb inflation! If inflations remains the same or even goes higher, expect rates not to change and possibly increase! [read more]

Prime Minister Justin Trudeau is pressuring Canada’s provinces to remove barriers to building more housing, including requiring them to freeze municipal development charges and allow up to four units on every lot. Trudeau announced his government will provide CA$5 billion ($3.7 billion) in new infrastructure funding for provinces, but only if they sign an agreement by Jan. 1, 2025, to make certain reforms to allow for increased housing supply. But as Trudeau’s government sinks... [read more]

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The Canadian Economy will likely “remain stuck in neutral” throughout much of 2024, with lingering inflation, increasing business insolvencies, and a rise in mortgage delinquencies according to a Report by Deloitte! A true recovery is dependent  on the Bank of Canada’s response to inflation. After taking aggressive steps in 2022 to raise the key interest rate from near zero to 5%, signs of cooling inflation have prompted Deloitte to forecast interest rate cuts... [read more]

Statistics Canada says households owed $1.79 in credit market debt on average for every dollar of disposable income [read more]

Benjamin Tal , Chief Economist for CIBC, feels there may be an announcement of lower interest rates in June.  There are so many factors that influence the rate of inflation.    The primary factor influencing a higher inflation is housing costs.  Listings are down, yet ,sales are up.  Our Real Estate Market operates on a " Supply and Demand Principle".  The supply is just not there!  There have been promises of more housing but that will take... [read more]

There's been lots of talk that interest rates will be coming down this year but is that really enough, and  the solution to our housing crisis?  Interest rates are certainly an influencing factor, but there are other challenging factors.  If there is not enough supply and the demand increases , it will push prices higher.  If the Economy wains due to lack of customer spending while interest rates  even remain the same, Companies may continue cut back on ... [read more]

Canada has lengthened a ban on foreign home buyers for two additional years amid concerns about the cost of shelter in cities like Toronto and Vancouver. Prime Minister Justin Trudeau’s government acted to prohibit non-Canadians from buying residential real estate in 2022, with the measure to expire on Jan. 1, 2025. That date has now been moved to Jan. 1, 2027. “By extending the foreign buyer ban, we will ensure houses are used as homes for Canadian families to live in and do... [read more]

The federal government's Canada Greener Homes Grant, aimed at subsidizing eco-friendly home renovations, has seen an overwhelming  in demand, leading to the early closure of its application portal. Energy minister Jonathan Wilkinson revealed that with over half a million applications already submitted and the program's $2.6-billion budget nearly maxed out, they're set to stop accepting new applications. Enbridge Gas, which has been working alongside the federal government... [read more]

Brownfield sites,can also be  abandoned or underutilized commercial or industrial properties where environmental contamination has previously been caused but which retain potential for redevelopment or economic opportunities, currently number around 30,000 across Canada. Brownfield sites do not have to be large in scale. Gas station and dry cleaner operations, which can be and often are located outside designated commercial and industrial areas, typically produce a range of... [read more]

Canadians shouldn't expect housing affordability to bounce back to pre-pandemic levels anytime soon.  Desjardins principal economist Marc Desormeaux pointed out: “It’s important to highlight that while periods of softer economic activity do tend to result in weaker home price growth, they also mean poor income growth. Moreover, while we expect mortgage rates to come down from current levels over the next two years, they won’t likely reach the rock-bottom levels of... [read more]

The Bank of Canada announced on January 24,  that it will keep it's policy rate at 5%, but is still keeping an eye on inflation and  is  ready to adjust the rate as it sees fit.  The broad-based nature of inflation, particularly in goods excluding food and energy, food inflation, and services excluding shelter,  is challenging a return to the bank's  desired target  of 2% . The core inflation measures lingering between 3.5% and 4%.  [read more]

Canada Mortgage and Housing Corporation (CMHC) estimates 2.2 million mortgages are set to face interest rate shock in 2024 and 2025, a figure that accounts for 45% of all outstanding mortgages in Canada. [read more]

Building permits in Canada fell by 3.9% on a monthly basis to settle at $10.9 billion in November, with declines posted across almost all asset classes, according to the national statistics agency. Despite positive momentum in residential construction intentions across eight provinces, residential permits in Canada saw a 2.8% drop to $7 billion in November, Statistics Canada said. [read more]

TransUnion’s Consumer Pulse showed that Canadians are becoming increasingly concerned about their household finances, with 43% saying that they believe that their financial situations are worse than anticipated. A clear majority of Canadians (59%) also said that there was no change in their financial capabilities over the past three months, while 21% acknowledged an increase and 19% reported a decrease. The study found that 48% of Canadians project household income to stay the same... [read more]

The recent decision by the Office of the Superintendent of Financial Institutions (OSFI) to maintain the mortgage qualifying rate for Canadian banks is a welcome positive that helps reinforce credit stability, according to Fitch Ratings. Fitch said that OSFI’s move is consistent with the regulator’s stated commitment to tightening regulations and capital requirements, which will help mitigate  risks that Canadian banks are facing WITH  lingering economic... [read more]

 CEOs of the country’s big banks say they’re confident the resulting interest-rate hikes won’t crush customers or lead to a wave of defaults.   About  14% of Canadian mortgage holders set to renew their loans this year! [read more]

A majority of Canadians believe higher immigration has worsened the national housing crisis and put further pressure on the healthcare system. About three-quarters of the poll’s respondents agreed that an increasing number of immigrants contributed to strain on the housing market and the healthcare system. Around 63% also said that the large number of newcomers added to the pressure of Canada’s educational systems. Still, about three-quarters of respondents said a higher... [read more]

 With unemployment rising,  inflation stable,  Real Estate prices dropping  or remaining stable along with huge mortgage debt taken on to purchase a home. I don t feel interest rates will rise this Wednesday.  Whether will will be a decrease in interest rates in 2024, that is yet to be seen.  [read more]

In its latest economic statement, the federal government pledged to continue incentivizing the development of more housing supply at a quicker pace by removing the zoning, financial, and regulatory barriers to construction, particularly of rental and affordable housing. Ottawa is planning to spend approximately $20.8 billion over six years, with much of this amount focused on the top priorities of affordable housing and clean energy. Ottawa is planning to spend approximately $20.8 billion... [read more]

The Canada’s inflation rate fell to 3.1% in October, down from September at  3.8%. This should lead to another pause in interest rate hikes from the BOC.  If inflation continues to go down possibly ther will be a rate cut but , I expect if there is one it would not be more than .25%.   [read more]

For the second year in a row, lack of housing affordability has been cited by Canadians as a top concern alongside inflation and access to healthcare, according to a new survey by Habitat for Humanity Canada. The study found that nearly half of Canadians (49%) reported that they are spending 50% or more of their household incomes on housing costs. [read more]

Canada’s central bank will have to cut interest rates faster and further than markets expect to get ahead of a wave of mortgage maturities that threaten a fifth of the country’s discretionary income, according to economist David Rosenberg. The Bank of Canada will be forced to cut 2 percentage points from its policy rate over the next 12 to 18 months, taking it down to 3%, with the process kicking off in the first quarter of next year, Rosenberg, founder and president of Rosenberg... [read more]

Housing affordability is currently at one of its worst levels since the 1980s, according to National Bank of Canada. Taking current market trends into account, the situation is not likely to improve any time soon, said NBC analysts Stéfane Marion and Daren King. “Given the unprecedented population growth that continues to far exceed the capacity to build housing, we believe that affordability challenges will persist in the short and medium term, even if... [read more]

Underlying risks in Canada’s mortgage market are becoming more evident as borrowers face the sharpest spike in interest rates for over four decades, the national housing agency has said. Tania Bourassa-Ochoa (pictured), senior specialist of housing research at Canada Mortgage and Housing Corporation (CMHC), told Canadian Mortgage Professional that the agency’s just-released residential mortgage industry report highlighted the impact that rate hikes to date have had on... [read more]

The Bank of Canada’s interest rates are not likely to return to the low levels they were at prior to the COVID-19 pandemic, according to the central bank’s senior deputy governor Carolyn Rogers. The central bank’s hikes over the past 18 months, which saw the benchmark policy rate spike from 0.25% to 5%, represented its most aggressive rate-hike campaign in decades. Rogers said that looming significant changes to global demographics – particularly boomers and their... [read more]

Canada Mortgage and Housing Corporation (CMHC), the national housing agency, said in the latest edition of its Residential Mortgage Industry Report said the value of uninsured mortgages issued by non-bank lenders crept up by 9% year over year, while 73% of outstanding residential mortgages issued by chartered banks were uninsured in the second quarter of 2023.   [read more]

The risk of heavily-indebted homeowners being forced to sell their homes is increasing in Canada, according to independent economic research business Capital Economics, which emphasized concern for mortgages being refinanced with non-bank lenders. With homebuyers needing default insurance in Canada when their loan-to-value ratio is more than 80%, this often meant that their finances have already been stretched in order to purchase the home. “These borrowers won't pass the stress... [read more]

October sales in Toronto’s housing market were down over the same time last year as affordability concerns and economic uncertainty continue to weigh on buyers – although prices ticked higher year over year, the city’s real estate board has revealed. The Greater Toronto Area (GTA) saw 4,646 home sales last month, a decline of 5.8% compared with October 2022, the Toronto Regional Real Estate Board (TRREB) said on Thursday. The average selling price, though, jumped by 3.5%... [read more]

Seventeen people have been arrested in Montreal in connection with an alleged $5-million real estate fraud scheme, police officials said. The arrested individuals, seven women and 10 men, were described by police as being members of a fraud ring. They allegedly used fake identification documents to borrow using five properties they do not own, and subsequently fraudulently open bank accounts in the real owners’ names. [read more]

Canada’s unemployment rate ticked higher in October, rising to 5.7% as the national economy continued to cool. New figures released by Statistics Canada showed that the labor market added 18,000 jobs last month in a clear sign that the Bank of Canada’s efforts to tap the brakes on economic growth are having an impact. The October jobs figures mean that the national unemployment rate has now increased four times in the past six months, with last month’s rate up from 5.5%... [read more]

BMO chief economist Doug Porter says.,“Our view is that the housing market has not completely digested the latest rising rates as well as the run-up in long-term bond yields, which is being reflected in longer-term mortgage rates,” he told Canadian Mortgage Professional last week. Indeed, there’s likely to be more pain ahead for homeowners, with current high rates and projected milder activity set to see home prices take a further dip in the months... [read more]

a new research conducted by the Institute for Canadian Citizenship and the Conference Board of Canad found that there haS been a steady increase  in immigrants leaving the country since the 1980s, with a recent spike suggesting that the newcomers may not be seeing the benefits of residing in Canada.  Between 2001 and 2021, the number of permanent residents who have taken up citizenship within 10 years following their arrival to the country dropped by 40%.  This is due... [read more]

Mortgage renewals at much higher rates are also a risk to Canadian banks, with the possibility of rising credit losses from 2025 if rates remain near their current levels. Around 60% of Canadian mortgages are due for renewal in the coming three years, and an increase in payments at renewal “could be significant and represents a tail risk to Canadian banks,” according to RBC Capital Markets analyst Darko Mihelic. [read more]

FINTRAC announced today that it has imposed an administrative monetary penalty on Norwich Real Estate Services Inc., also operating as RE/MAX Kelowna. This real estate broker in Kelowna, British Columbia, was imposed an administrative monetary penalty of $156,750 on August 28, 2023, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations. [read more]

The layoffs at National Bank, Canada’s sixth-largest bank, come amid a wave of job cuts at other Canadian lenders over the past few months that have totaled at least 6,000. Bank of Montreal, Royal Bank of Canada and Bank of Nova Scotia have announced layoffs representing 2% to 3% of their workforces. [read more]

Consumer confidence slipped into negative territory , as a growing number of Canadians say their own financial circumstances are worsening. according Bloomberg Nanos Pole. In the survey, 50.3% of respondents said their personal finances were worse off over the past year, versus 48.9% a week ago. And 16.7% said they believed that the value of real estate in their neighborhood will decrease in the next six months, the highest percentage since late April.  “Real estate has been a... [read more]

More Canadians are now struggling with their mortgage amid lingering fears of potentially higher payments come renewal time, according to a new study by the Angus Reid Institute. A significant share of mortgage holders said that they are either worried (40%) or very worried (39%) that they will have to contend with higher payments once they need to renew with their banks. Fully 57% admitted that they are “very worried” that their monthly payments will sharply rise... [read more]

Canada will narrowly avoid an outright recession, but economic growth downturn is a result of  the multiple interest rates hikes.  This will continue for a prolonged period, according to the consensus of economists recently polled by Bloomberg. The poll, which was conducted from October 13-18, also found that Canadian GDP will be essentially flat in the fourth quarter, only slightly ticking up to a 0.3% annualized pace by Q1 2024. [read more]

Consumer Protection BC, British Columbia’s consumer protection agency, has fined Canadian Imperial Bank of Commerce (CIBC) over $3.4 million after it was found to have violated mortgage discharge rules.  Financial sectors must provie a  consumer with a discharge document within 30 days of a mortgage loan being paid in full. Mortgage lenders must provide borrowers with a discharge document so the Land Title and Survey Authority of British Columbia can clear the property... [read more]

 The Office of the Superintendent of Financial Institutions (OSFI) had announced in January that it was considering introducing additional mortgage qualification requirements, including heightened stress test conditions.  Due to negative backlash, this will not be the casse for  now. [read more]

According to CIBC deputy chief economist Benjamin , the central bank is reaching an endpoint on rate hikes, with its trendsetting rate likely to stay around its current level for the first half of next year before ticking downwards again.  We are very, very close to the end of monetary tightening.” The next scheduled interest rate  announcement by the BOC  will take place October 25. The next question that I’m sure everybody’s asking is:... [read more]

Banking giant Scotiabank has announced its intention to reduce its global workforce by around 3%, a decision it said was driven by changes to customers’ day-to-day banking preferences, efforts to streamline processes, and growing digitization and automation. [read more]

Almost half of millennial and Gen Z Canadians have said that in order to purchase a home, they’ll need financial assistance from family members, according to a new survey by Zoocasa. This is compared to just 28% of Gen X-ers and 10% of boomers. [read more]

The Office of the Superintendent of Financial Institutions (OSFI) has warned that elevated borrowing costs represent a growing risk to the country’s financial system, with housing and commercial real estate in particular being areas of extreme vulnerability. “The most significant developments [this year] are a domestic inflation rate that remains above the Bank of Canada’s target rate, the resulting monetary policy tightening and elevated interest rate environment, and... [read more]

The arrival of COVID-19 started a work-from-home revolution that saw millions of Canadians transition to remote-working arrangements resulting in  downtown cores emptied and offices shuttered.   Few companies have since mandated employees to return to attending the office five days a week, with continuing hybrid and remote schedules.    What is in store for the future of the office space? [read more]

Immigration levels will have an  influence the Bank of Canada’s view of upcoming labour market data – and how that data will affect inflation in turn, Conference Board of Canada chief economist Pedro Antunes said in an interview with BNN Bloomberg. “We’re adding to the supply of labour with the strong immigration numbers, and that is helping to slacken the labour market,” Antunes said. “I think the Bank of Canada is very aware of that. When you... [read more]

Canada’s inflation rate fell to 3.8% down, from 4% the previous month mainly by lower grocery prices. Mortgage interest and rent costs were the major contributors to the 12-month change in the consumer price index (CPI).  The  cost of servicing a mortgage compared with the previous September rose by 30.6%, and  rents  increased  at a yearly rate of 7.3%. Benjamin Tals's  ( Managing Director and Deputy Chief Economist. CIBC Capital Markets... [read more]

 The housing market’s sluggishness will almost certainly persist for the foreseeable future, according to Dawn Desjardins, chief economist at Deloitte Canada. “I think we’re seeing the impact of higher interest rates on the economy, especially during the second quarter,” Desjardins said in an interview with the Financial Post. “We did see a decline in GDP output – a very small decline, but nonetheless, much leaner than what we saw in the first... [read more]

The Bank of Canada’s rate hikes from March 2022 to now succeeded in slowing the economy, making a soft landing more likely, according to former deputy governor Paul Beaudry. The central bank’s policy rate,  of 475-basis-points has pushed the annualized inflation rate closer to the BoC’s 2% target. “I think it’s a plausible scenario [to get a soft landing], it’s the most likely one,” Beaudry said in an interview with BNN Bloomberg. At the... [read more]

The Greater Toronto Area (GTA) saw home sales drop by 7.1% in September on a yearly basis as high borrowing costs continued to push buyers out of the market. A total of 4,642 homes changed hands in the city and its surroundings last month, according to new data by the Toronto Regional Real Estate Board (TRREB), as semi-detached houses and townhouses posted significant sales declines compared with the same time last year. [read more]

Canada’s population grew by the highest rate in a single year since 1957 as the number of temporary workers, foreign students and immigrants surged. The country’s population rose 2.9% in the 12-month period ending July 1, one of the world’s fastest growth rates, bringing the number of residents to 40.1 million. The jump was driven by the largest recorded increase in temporary residents in data going back to 1971. The new demographic figures, released by... [read more]

A new consumer pulse report by Dye & Durham Limited.  concluded  many Canadians prefer to wait and see until purchase prices  and/or  ,interest rates decline.  Only 10% of respondents said that they are expecting to sell their primary residence and purchase a new one in the next year. This was a rate twice as high as that of the previous 12 months, Dye & Durham said. The share of those planning to buy their first owned home in the next year also doubled from... [read more]

Canada’s rate of inflation accelerated by more than expected for the second straight month to  0.4%, double the expectations.  What does that mean?  Higher interest rates????   Waiting for the next move by the BOC! [read more]

The City of Toronto’s Committee of Adjustment process add anywhere from $21,000 to $58,000 annually to the cost of building projects, according to a study conducted by Altus Group Economic Consulting for the Building Industry and Land Development Association. “Toronto is a rapidly growing city, and the building of infill homes and renewal of existing housing stock add much-needed housing supply for current and future residents,” said Justin Sherwood, senior vice president... [read more]

Royal Bank of Canada is cutting jobs in its capital markets operations, part of broader reductions announced in August that maybe more than 1,000 positions hoping to  help the bank deal with a challenging economic times. Canada’s largest bank last month said it plans to cut as much as 2% of its full-time equivalent staff in the coming quarter after a surge in expenses weighed on third-quarter results.  Non-interest expenses climbed 23% to CA$7.86 billion for... [read more]

I agree!!  More and more people are working from home or hybrid!  The Canadian government should seriously consider accelerating the conversion of unused office spaces into more housing units if it plans to address the ongoing affordability and supply crisis, according to former deputy prime minister Sheila Copps.  The federal government should go further in applying this step to other types of housing developments like unused office space.   “I... [read more]

A major driver of this decline is the ongoing shortfall in housing construction. “Materials have gotten more expensive, labor is in short supply, and it’s harder to get financing for construction,” [read more]

The Bank of Canada decided not to increase the prime rate in its September announcement, but Canadian homeowners and buyers shouldn’t assume the central bank is done on its rate-hiking path. The central bank kept its policy rate unchanged on September 6, it also reiterated its commitment to restoring inflation to its 2% target, emphasizing it was willing to hike again if economic indicators don’t play out as expected.  Inflation doesn't seem to be going in the... [read more]

 Prime Minister Justin Trudeau and Minister Sean Fraser made a major housing announcement that will help increase supply and help Canadian families find affordable homes that meet their needs. The initiatives the Federal Government announced include:  Introduction of legislation to remove GST on the construction of new purpose-built rental apartments. A call for provinces that currently apply provincial sales taxes to match the federal rebate for... [read more]

Canadian consumer debt reached a new peak of $2.4 trillion during the second quarter, according to Equifax! The central bank’s interest  policy rate at a 22-year high of 5%, have done their work in slowing down consumer spending, Equifax said. Mortgage debt showed a mere 1% increase from Q1 to Q2 2023. Mortgage delinquencies are on the rise, especially in provinces like Ontario (up by 86.9% annually) and British Columbia (up by 33.9%). House price increases, larger loan... [read more]

According to Transunion ,49% of Canadians have reported being targeted by fraud recently! In Canada have ramped up their scam attempts against telecommunications (up by 400% annually), insurance (up by 90%), and online communities such as forums and dating apps (up by 75%). Digital fraud attempts, where transactions originated in Canada and targeted global businesses, also spiked by 40% when comparing the first half of 2022 to the first six months of 2023. “As consumers and... [read more]

During the first half of the year has pushed the share of detached home sales up to 44.7% in the Greater Toronto Area and up to 29.3% in Greater Vancouver. Detached homes are what a buyer really wants!  The Condominium is a compromise to Home Ownership, just to get in on the market or as an investment! [read more]

The Royal Bank of Canada, the country’s largest lender, disclosed that 43% of its Canadian residential mortgages had an amortization period of longer than 25 years, as of July. That’s up from 40% a year earlier! [read more]

The latest Teranet-National Bank composite index showed that average prices in the country’s 11 largest cities increased by 1.8% between June and July !  Halifax, Hamilton, Vancouver, and Toronto accounted for the largest proportional monthly growth. [read more]

 Placing the housing crisis on the shoulders of foreign students has become the “latest flavor of the month!   Previously the  blame was on developers, greedy homeowners, and bureaucracy!   [read more]

Canada’s inflation rate increased to 3.3% in July. Not yet target desired!  The Bank of Canada’s  ideal target  rate is 2%.   With grocery prices still increasing  by 8.5% on an annual basis and mortgage payments increasing by over 30% in the past year , the next rate announcement is a tough call with these 2  influencing factors. Mortgage interest costs has contributed heavily to the higher inflation rate.  The July... [read more]

Fabricated identity documents  are some of the most prominent types of suspected mortgage wrongdoing being investigated by Ontario’s financial services regulator in 2023, according to the organization’s director for forensic analysis and investigations. [read more]

Canada has seen an influx of private lenders whose practices don’t have borrowers’ best interests ! Private lenders,are not regulated like the banks. At the banks, you can’t do anything considered unreasonable when it comes to fees or penalties! Chris Cheng (pictured top), chief operating officer of the RESCO mortgage investment corporation, told Canadian Mortgage Professional that brokers and agents needed to be aware of hidden fees and penalties that... [read more]

Canada is set to continue with its immigration targets despite the current housing crisis , reported by BNN Bloomberg. Miller said the government needs to keep or raise its yearly immigration target for permanent residents to around half a million. This is because of the decreasing number of working-age people in relation to the number of retirees as it poses risks to public service funding. Canada needs to address that in a smarter way, by attracting a younger  and skilled people,... [read more]

Unrefinanceable” mortgages – cases in which mortgages cannot be refinanced because of home price depreciation, according to a prominent broker i,Daniel Vyner of DV Capital in Toronto, told Canadian Mortgage Professional .   The protracted downturn of property values across variousmarkets over the past year, along with an increasingly cautious approach by lenders, was seeing plenty of borrowers of  private mortgages running into problems at the end of the term. [read more]

Inflation measures suggest that the Bank of Canada’s policy rate will likely remain high for some time, according to Priscilla Thiagamoorthy, senior economist and vice president of economics with inflation at the lowest level  at 2.8% since March 2021. [read more]

Benjamin Tal (pictured), deputy chief economist at CIBC World Markets, told Canadian Mortgage Professional that a surprisingly hawkish statement by the central bank had paved the way for another 25-basis-point hike in September, a move that would bring the trendsetting rate a full 5% above its March 2022 level. [read more]

Seasonally adjusted sales were down in Toronto’s housing market in June compared with the previous month, although demand for homeownership remained stronger than the same time in 2022. That’s according to the latest market figures released by the Toronto Regional Real Estate Board (TRREB), whose president Paul Baron said in an accompanying statement that uncertainty over inflation and possible further Bank of Canada rate hikes had “hampered” June activity. The... [read more]

 With Bank of Canada raising its key borrowing rate to 4.75% in early June, it’s only a matter of time before the institution puts a cap on its series of rate hikes – and the hard stop might come sooner than expected, according to economists polled by Bloomberg. The central bank is anticipated to increase its policy rate to 5% by the third quarter of this year to reach its highest point since 2001, per Bloomberg’s latest monthly survey of 25 economists. [read more]

Pressure on home prices,  is worsening by way of building costs, thus causing higher higher prices! Residential construction prices have  risen 51% since the first quarter of 2020, outpacing the 13% gain for the consumer price index, Royal Bank of Canada economists said in a report published Wednesday. “The cost of building a home in Canada — or any structure for that matter — has never been higher,” the economists said in the report,... [read more]

“Prices will continue to fall, after the record growth of the recent past,” Morguard said in its 2023 Canadian Economic Outlook. “Market activity will continue to slow, as mortgage rates continue to rise.” [read more]

While home ownership remains an important financial milestone for many Canadians, lingering concerns about interest rates and inflation coupled with the threat of recession are making them more cautious when it comes to buying residential properties, according to BMO. [read more]

The Bank of Canada just raised interest rates 25 basis points.  The new BOC  rate now stands at 4.75%.  This move was made to help curb "INFLATION" [read more]

Canada is currently labouring under the highest household debt level among the G7 nations, according to Aled ab Iorwerth, deputy chief economist at Canada Mortgage and Housing Corporation. [read more]

FINTRAC imposes an administrative monetary penalty on Niavaran Canada Inc. FINTRAC  has imposed an administrative monetary penalty on Niavaran Canada Inc., also operating as Niavaran Currency Exchange. This money services business in North York, Ontario was imposed an administrative monetary penalty of $57,255 for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations. [read more]

The Canadian laborU market’s latest performance, which saw the addition of 41,000 jobs in April, essentially invalidates the possibility of any rate cuts by the Bank of Canada in the near term, according to CIBC Capital Markets. [read more]

Special Bulletin on Russia-linked money laundering activities FINTRAC has increased the awareness and understanding of Canadian businesses about the characteristics of financial transactions that may be connected to the laundering of the proceeds of crime from Russia-linked activities. This Special Bulletin can be used by Canadian businesses to identify and assess their money laundering and terrorist activity financing risks, apply controls and measures to mitigate these risks,... [read more]

Canada’s annual inflation rate rose in April.   Major contributors to that increase were the surging costs associated mortgage costs  and renting a home. New figures released by Statistics Canada  ,  showed that mortgage interest costs ballooned by a huge 28.5% last month from the same time last year, with year-over-year rental costs spiking by 6.1% and accelerating over the previous month. [read more]

FINTRAC’s financial intelligence was recognized by the Waterloo Regional Police in relation to a fraud investigation where over $100,000.00 in forged cheques were deposited into accounts. As a result of the investigation, one individual was charged with several criminal offences, including fraud over $5,000, possession of credit card (two counts), possession of property obtained by crime, and laundering proceeds of crime. [read more]

Interest rates are not expected to go down until possibly 2024.  Although inflation has been steadily moving down, the problem now is " FOODFLATION."  Rising food prices are having an influence on the rate of inflation.  As  I have mentioned before, interest rates are very much tied into the rate of inflation.  An ideal target rate for the BOC is 2%.  We still have some distance to travel! [read more]

Fraud for shelter was the most common form of mortgage fraud, whereby an individual falsifies their own documents to qualify for a larger loan than they would otherwise be eligible for. There has been a rise in mortgage fraud that is an actual title, where they impersonate the homeowner and sell the property without the real homeowner knowing.  Much of this was due to Covid whereby clients   met virtually.  Nobody met anybody in person, and that kind of... [read more]

FINTRAC  has imposed an administrative monetary penalty on Vision Bank Ltd., also operating as Vision Bank (Canada). This money services business in Markham, Ontario, was imposed an administrative monetary penalty of $33,000 on March 8, 2023, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations. [read more]

Confidence in the prospects of Canadian real estate is now apparent across all demographics, with 49% of urban Canadians anticipating real estate performance to match and even surpass financial investments within 12 months, according to a new survey by Sotheby’s International Realty Canada. Canadians are even more confident in the projected performance of real estate over the following decade, with 60% of urban Canadians between the ages of 18 and 77 believing that a residential... [read more]

FINTRAC announced today that it has imposed an administrative monetary penalty on Wealth One Bank of Canada. This bank in Toronto, Ontario, was imposed an administrative monetary penalty of $676,500 on February 15, 2023, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations. These administrative deficiencies are not related to money laundering or terrorist financing offences. The administrative monetary penalty has... [read more]

The Bank of Canada finally hit pause on rate hikes in its latest announcement – and its language in the statement suggests its preference is to keep its benchmark rate unchanged for the remainder of the year, according to a prominent economist, Benjamin Tal! [read more]

The Bank of Canada kept its policy rate unchanged today!  It's trendsetting interest rate at is at 4.5%, ending a run of eight straight rate jumps.  This decision reflects the Bank’s apparent confidence that its aggressive strategy on interest rates to date , is having the desired effect, with inflation ticking steadily downwards in recent months and economic growth largely remaining flat at the end of 2022. [read more]

Following public feedback received earlier this year, Tarion is increasing the new home warranty coverage provided by builders in Ontario. The changes involve boosting the warranty compensation limit to $400,000 for new freehold homes and creating a new Temporary Relocation Warranty. Warranty Compensation Limit The warranty compensation limit increase from $300,000 (current) to $400,000, applies to freehold homes in which the homeowner owns the land and the home,... [read more]

                                          WILL THERE BE A PAUSE ON INTEREST RATE INCREASE? Canada’s annual rate of inflation fell to 5.9% in January, a higher drop than expected as yearly price growth continued to slow. Statistics Canada said on Tuesday that prices were up by 4.9% without taking into account increases in the cost of food and gasoline, although mortgage interest... [read more]

Realtors have been warned that Real Estate is a perfect target for FRAUDSTERS and it is on the rise! [read more]

The annual pace of housing starts in Canada slowed by 13% in January, the country’s national housing agency has said [read more]

Using an experienced Realtor like myself is most important, when it comes to the biggest investment you make in your lifetime.  With over 40 years of experience,  ongoing training,  staying up to date with issues that affecting the Real Estate Market, contacting me would be a smart move! [read more]

National home sales in January hit a 14-year low for the month, according to the Canadian Real Estate Association (CREA), as Canada’s housing market continued to slow. January sales tumbled by 37.1% compared with the same time last year, the association said, also falling by 3% since December. [read more]

While prices are down nationally, in Ontario they are up almost 7% year-over-year with the average price of a home coming in at $932,000 in 2022, according to CREA’s residential sales data. Thanks to increasing interest rates and a lack of homes on the market, affordability of home ownership for young families is at historic lows. According to the Royal Bank of Canada (“RBC”), middle-class families now have to dedicate 85% of their after-tax income to carrying the costs of a... [read more]

Home sales in the Greater Vancouver Area (GVA) fell by 21% last month compared with December and came in at less than half the total from January 2022, according to the region’s real estate board. [read more]

The Bank of Canada has probably reached the end of its rate-hiking cycle for now – but it still needs to keep Canadians on their toes about the possibility that that could change, according to,  Chief Deputy Economist at CIBC's Capital Markets- Benjamin Tal! Tal,  told Canadian Mortgage Professional that the central bank had to toe a delicate line in its messaging to Canadians as it planned to hit pause on hikes to its benchmark rate after Wednesday’s... [read more]

After complex drug investigation, four individuals have been charged and the RCMP seized, as proceeds of crime, over $800,000 in Canadian currency, 88 units of Ether cryptocurrency, a 2022 Mercedes Benz G-wagon and over $2,000,000 in jewelry, watches and other items [read more]

FINTRAC’s contribution recognized FINTRAC’s financial intelligence was recognized by the RCMP Federal Policing Transnational Serious and Organized Crime (TSOC) team in relation to an extensive investigation into a large-scale drug importation network in the Greater Toronto Area. As a result of the complex investigation, four individuals have been charged and the RCMP seized, as proceeds of crime, over $800,000 in Canadian currency, 88 units of Ether... [read more]

WE have been number Real Estate Brokerage for 10 years in a row and we are not a Franchise! [read more]

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The Bank of Canada just raised interest rates for the 8th time another .25%.  Is this the end of rate increases?  The BOC  may take a breather for now, but if inflation is not more controlled , expect further hikes.  I don't think any hike again is in the near future as people are quit challenged financially with everything costing more!  A pause will allow people to adjust to the new rates-do their math and plan better! [read more]

The Canada’s central bank is expected to slow the pace of interest rate hikes at next week’s policy decision. And odds are that the 25 basis point increase we anticipate (down from the 50 basis point increase in December) could be the last of this hiking cycle. [read more]

OSFI which introduced the stress test in 2012, has kicked off the year by announcing that it’s seeking public input on whether to introduce increase hurdles for prospective borrowers including loan-to-income and debt-service coverage restrictions. A move  could be necessary, as mortgage lending risks, particularly related to debt serviceability, have increased considerably since the onset of the pandemic.” [read more]

The rate of inflation has dropped from 6.8% to 6.3%, as announced today.   Does that mean on January 25th 2023, that the Bank of Canada will lower the Prime Rate or not increase the current rate?  The  BOC Prime rate is  been tied to the rate of inflation.  2% has always been an acceptable, peak,level for inflation.  We still have a long way to go.  Economists, are predicting another increase of .25%.  We soon will see! # SANDI HALPERN # REAL... [read more]

FINTRAC’s contribution recognized FINTRAC’s financial intelligence was recognized by the Alberta Securities Commission following an investigation by the Joint Serious Offences Team. As a result of the investigation, one individual has been convicted of 12 counts of fraud over $5,000 under the Criminal Code. The individual defrauded 11 victims out of a total of $2 million in fees charged allegedly to obtain access to billions of dollars in financing, which never materialized. [read more]

The good, the bad and the ugly from latest Bank of Canada BOS... [read more]

Home sales over the course of 2023 are likely to be 0.5% lower than last year, CREA said, with the average price expected to decrease by 5.9% annually to $662,103. # SANDI HALPERN# REAL ESTATE  # SOLD # LEASED # SLOES AND PRICES DOWN [read more]

This year will likely see the weakest sales year for Canada’s housing market since 2001 as affordability challenges continue to weigh on homebuying activity, according to a new report. In its latest provincial housing market outlook, TD Economics said the “poorest affordability backdrop” since the late 1980s and early 1990s would probably have a significant impact on the market this year, although it also indicated that the months-long decline in home sales would likely end... [read more]

Home sales in Toronto were down by nearly 50% in December compared with the same month in 2021  [read more]

 Prohibition on the Purchase of Residential Property by Non-Canadians Act has come into effect as of January 1, 2023 by the Federal Government.  The Act prevents non-Canadian individuals and non-Canadian corporations from purchasing residential property in Canada for two years.  Definitions: Non-Canadian: An individual who is not a Canadian citizen, permanent resident, or a person registered as an Indian under the Indian Act. This also... [read more]

2022 was a challenging year!   Looking forward to a more rewarding 2023.  If you want to know want is happening in the Real Estate Market, follow me on Social  Media! [read more]

FINTRAC’s financial intelligence was recognized by the Alberta Law Enforcement Response Teams in relation to a three-year investigation that resulted in the dismantling of a professional money laundering organization that was supporting some of Canada’s largest crime groups. In total, 71 criminal offences are being pursued against seven suspects, including participation in a criminal organization, laundering proceeds of crime and trafficking property obtained by crime. Charges were... [read more]

An economic slowdown, now appears to be inevitable in the very near future, according to Canadian economists recently polled by Bloomberg. The Bloomberg survey, which took stock of 26 economists’ viewpoints between November 4 and 11, arrived at a consensus scenario of back-to-back quarterly declines at the beginning of 2023. The poll projected an economic contraction of an annualized 0.5% in Q1 2023, followed by a 0.6% slowdown in the succeeding quarter.# Sandi Halpern # Real Estate #... [read more]

FINTRAC revokes 32 registrations of money services businesses between April and September 2022 Money services businesses (MSBs) operating in Canada have legal obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations, including keeping records, verifying their clients’ identity, implementing a compliance regime, reporting certain types of financial transactions to the Centre and registering... [read more]

                                                                          NEW NON RESIDENT TAX!   Effective October 25, 2022, the Non-Resident Speculation Tax (NRST) rate increased from 20 per cent to 25 per cent. The NRST applies on the purchase or acquisition of an interest in residential property... [read more]

While the Bank of Canada appears to be nearing an end on its interest rate-hiking cycle for now, the possibility that inflation remains stubbornly high or gets worse. # SANDI HALPERN # REAL ESTATE # SOLD # LEASED # INTEREST RATES # INFLATION [read more]

The Bank of Canada is highly likely to implement another series of rate hikes following its 50-basis increase, according to economist Sherry Cooper. Cooper warned of the implications of this week’s hike – which was the central bank’s sixth straight increase – on the housing market. “The prime rate will now quickly rise to 5.95%, increasing the variable mortgage interest rate another 50 bps, which will likely take the qualifying rate to roughly... [read more]

WHAT'S IN STORE FOR INTEREST RATES?   Benjamin Tal (pictured), deputy chief economist at CIBC, told Canadian Mortgage Professional that the Bank’s decision on Wednesday to increase its benchmark policy rate by 50 basis points, rather than the 75 anticipated by markets, showed that it was nearing the end of its series of hikes, but still had a way to go. [read more]

Canadian net wealth is likely to suffer its sharpest decline in decades due to a significantly weaker housing market, according to RBC Economics.# SANDI HALPERN # REAL ESTATE #SOLD #LEASED # NET WORTH [read more]

Canadians are ,pausing under recent economic pressures, opting to delay making real estate transactions or major purchases due to the interest rate increases seen this year. According to a survey conducted by software company Dye & Durham, 33% of Canadians have chosen to delay making a real estate transaction or major purchase, with 9% saying they’ve delayed buying a house this year and 10% expecting to delay their home purchase in the next year. Seventeen per cent (17%) also said... [read more]

The Ford Government introduced the More Homes Built Faster Act, 2022 ("MHBFA”) - their third housing supply bill in the last 5 years. This is the second major pro-housing announcement of 2022 under Premier Doug Ford, and Ontario is on-track to becoming one of the most pro-housing jurisdictions in Canada. The MHBFA includes five major REALTOR® recommendations including: Enabling and expediting additional residential units in existing residential areas (OREA... [read more]

Airbnb and housing crisis: How are they connected? The current housing crisis in Canada has forced a greater level of scrutiny on short-term rentals, particularly Airbnb. A study by the School of Urban Planning at McGill University conducted in 2019 estimated that short-term rentals have taken away 31,000 units of from long-term markets in cities across Canada. That number is based on entire-home listings that are frequently rented, available for six months at least, and rented for 90 days... [read more]

The Bank of Canada has announced a further 50-basis-point hike to its benchmark rate, marking a sixth consecutive increase as the central bank continues its aggressive action aimed at cooling the economy and tamping down inflation. # SANDI HALPERN # REAL ESTATE # SOLD # LEASED # INTEREST RATES [read more]

The Ontario government has announced proposed changes the NEW HOME CONSTRUCTION LICIENCING ACT, that will double the maximum fines for new home builders and sellers who cancel a project or purchase agreement without due cause. Penalties will rise from $25,000 to $50,000 per violation, “with no limit to additional monetary benefit penalties,” the Ontario government said. Developers with repeat violations , could face fines of $100,000 (up from $50,000), and corporations could be... [read more]

“September was another month of lower sales activity, although, with many sellers also opting to play the waiting game, the market remains on the tighter side of balanced market territory,” said Jill Oudil, Chair of CREA. [read more]

Scotiabank is now expecting growth to slow from 3.2% in 2022 to 0.6% in 2023. # SANDI HALPERN # REAL ESTATE # SOLD # LEASED # MILD RECESSION [read more]

Royal Bank of Canada was the first major bank to predict the Canadian economy will see back-to-back quarters of negative growth in mid-2023. Now, it sees the downturn arriving as early as the first quarter of next year. The cooling housing and jobs markets, slowed down by the aggressive rate hiking cycles ever by the nation’s central bank, will speed up the arrival of a recession next year, the country’s largest lender said. # SANDI HALPERN # REAL ESTATE # SOLD #... [read more]

FINTRAC imposes an administrative monetary penalty on Cathay Pacific Realty Ltd. FINTRAC announced today that it has imposed an administrative monetary penalty on Cathay Pacific Realty Ltd. This real estate broker in Vancouver, British Columbia was imposed an administrative monetary penalty of $206,250 on July 25, 2022 for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing  [read more]

The Bank of Canada may risk overshooting on interest rates if it took its overnight rate above 4%, according to CIBC deputy chief economist Benjamin Tal ,  although he indicated that improving supply chain conditions are a positive sign for Canada’s inflation rate.  He feels the central bank could avert a deep recession by ending its rate-hike trajectory after one or two further jumps, potentially by 50 basis points followed by another 25-point increase. # SANDI HALPERN # REAL... [read more]

CMHC is predicting housing prices will continue to drop in 2023, but is warning the fall will do little for affordability. Patrick Perrier, the housing agency’s deputy chief economist, said in a report last Thursday Perrier, stated he expected the national average home price to fall 15% from $770,812 - the peak seen in the first quarter of this year - by the end of the second quarter of 2023. On an annual basis, he sees prices growing 2.6% in 2022 compared with 21.3% in 2021 , BUT,... [read more]

Toronto’s housing market took another tumble in September, with new figures from the Toronto Regional Real Estate Board (TRREB) revealing that home sales fell by 10% over the previous month – and were down a stunning 44% compared with the same time last year. # SANDI HALPERN # REAL ESTATE # SOLD #SALES DOWN [read more]

Royal LePage has revised its forecast for Canadian home prices and said that aggregate prices in Q4 will likely be lower by 0.5% on an annual basis, in effect nullifying the increases seen during the earlier parts of the year.  [read more]

The Toronto housing market is currently the biggest real estate bubble worldwide, according to a recent UBS Group AG study. The analysis, which looked at urban markets that face the greatest risk of home price declines over the next few months! # SANDI HALPERN # REAL ESTATE # SOLD # HOUSING BUBBLE [read more]

FINTRAC DOES IT AGAIN! FINTRAC , has imposed an administrative monetary penalty on LaBoutique Realty Ltd., also operating as LeHomes Realty First. This real estate brokerage in Vancouver, British Columbia was imposed an administrative monetary penalty of $275,385 on July 21, 2022, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations. # SANDI HALPERN # REAL ESTATE # SOLD # FINTRAC [read more]

Canadian home prices were down again in September, a seventh consecutive month of decline OF nearly 9% below their March peak. New data from the Canadian Real Estate Association (CREA) showed that the benchmark price of a home in September was $766,000, a fall of 1.4% from August, with the Greater Toronto Area (GTA) accounting for an especially significant decline.# SANDI HALPERN # REAL ESTATE # SOLD # DECLINE [read more]

OREA has become aware of a new CBC Marketplace story scheduled to air tonight regarding “how networks of mortgage brokers and real estate agents are perpetrating mortgage fraud for a fee, and securing their own commissions by submitting forged documents for approval”. Real estate agents who break the law and violate the trust of Ontario’s consumers have no place in the province’s real estate industry. OREA has consistently argued that it is too easy to get a real... [read more]

The downturn in the Canadian housing market still has some way to go before settling, according to RBC Economics. “Both activity and prices continued to trend lower in the vast majority of local markets. Demand-supply conditions generally eased some more.” Housing markets should also brace for “more of the same” slowing in the near future considering that the Bank of Canada is likely to hike its rates even more in the coming months, RBC said. Canada saw its seventh... [read more]

 A recent BMO study found that there were enough houses for everyone, even when the housing crisis was at its height. The issue was that investors were purchasing extra properties with the hopes that the prices would rise. And while it may be tempting to blame the issue on foreign investors, BMO’s research found that many Canadians purchased second and third properties, usually to rent them out or with the aim of flipping them for profit. The result of all this is a sustained rise... [read more]

interprovincial migration in Canada spiked during the COVID-19 pandemic. Alberta appears to have surged ahead as a prime destination for relocation. The province saw an influx of newcomers in the second quarter of this year, with the number of people moving there from other parts of the country exceeding departures by almost 10,000. That finding, released in Statistics Canada’s Q2 numbers for 2022, showed that over 37,000 migrants flooded to Alberta from elsewhere in Canada, mainly... [read more]

The average price of detached homes across the GTA took a substantial hit, dropping by 10% compared with the same month last year to just under $1.37 million. Semi-detached properties posted a 6.5% decline (to $1.04 million) and condos saw their average price tick upwards to $730,818 – an increase of about 3%. # SANDI HALPERN # REAL ESTATRE # SOLD # LEASED [read more]

Canadian consumer confidence has dropped to near record lows again amid growing angst about the global economy. The Bloomberg Nanos Canadian Confidence Index, a measure of sentiment based on weekly polling, declined for a fifth straight week to touch some of the weakest levels ever outside of the last two economic crises.  Canadians have rarely been so pessimistic about the economy since the index was launched in 2008. Half of Canadians expect the economy will weaken over the next... [read more]

                                                                                     FINTRAC DOES IT AGAIN! FINTRAC announced today that it has imposed an administrative monetary penalty on Pan Pacific Platinum Real Estate Services Inc., also operating as LeHomes Realty. This real... [read more]

The total value of private and alternative mortgages in Ontario surged from $13 billion in 2019 to $22.4 billion in 2021, according to the Financial Services Regulatory Authority of Ontario. The share of private lenders in the province also expanded from 9.3% of funded mortgages in 2019 to 11.6% in 2021. Antoinette Leung, of the FSRA, said that current housing market trends and decreasing purchasing power are fuelling this demand. Another major contributor was the restrictive underwriting... [read more]

Home prices across Canada are projected to fall further into the early part of next year, the housing market is in the midst of a correction rather than a crash, according to a prominent Economist, Robert Hogue! with RBC! # SANDI HALPERN # REAL ESTATE # SOLD # LEASED MARKET CORRECTIOIN [read more]

Landlords have taken occupation of almost half of Canada’s newly constructed homes in the past five years, providing less supply to actual end-users who need them the most, according to the latest from Statistics Canada (StatCan). # SANDI HALPERN # REAL ESTATE # SOLD # LEASED #HOME OWNERSHIP # LANDLORDS [read more]

While many economists have predicted the Bank of Canada’s interest rate will peak at 4%, the Organisation for Economic Co-operation and Development (OECD) has gone five basis points further, predicting a rate of 4.5% in 2023. # SANDI HALPERN # REAL ESTATE # SOLD # LEASED # INTEREST RATES [read more]

Canada’s national housing agency plans to revamp its forecasts to call for a drop of as much as 15% in home prices, as higher mortgage rates threaten to cause a protracted slump in real estate. # SANDI HALPERN # REAL ESTATE # SOLD # LEASED # HOME PRICES DROP [read more]

The national average home sale price will fall 2.2% in the remaining months of the year, according to a new report by RE/MAX Canada. # SANDI HALPERN # REAL ESTATE # SOLD # LEASED [read more]

Proposals by the federal government to restrict foreign access to the Canadian housing market run the risk of complicating mortgage financing while not adequately addressing the affordability crisis facing buyers, which will come into effect at the beginning of 2023 and remain in place for two years. Samantha Gale of the Canadian Association of Private Lenders (CAPL) told Canadian Mortgage Professional that the measures, could have significant negative repercussions for lenders and borrowers... [read more]

Preventing current inflation levels from becoming entrenched in the public’s expectations is a crucial strategy in ensuring that recession risks do not materialize. Existing trends point to private sector firms making price- and wage-setting decisions in response to mounting inflation – a development that could further push up inflation instead, Poloz said. “The risk is [inflation] infects our economy, it gets embedded and stays there, to some degree,” Poloz said.... [read more]

The Office of the Superintendent of Financial Institutions (OSFI), who sets the minimum qualifying rate for uninsured mortgages in Canada, indicated earlier this month that it intended to stick with no changes to the current STRESS TEST! The mortgage stress test is doing its job in protecting the economy , while at the same time, this safeguard ,is in place to protect Canada’s housing market. It does presents difficulties for homeowners, whose mortgages are coming up for renewal and who... [read more]

While Canadian inflation is trending towards the “right direction” ,the central bank will continue to provide understandable messaging that will assure the public of its commitment towards its 2% target, according to Bank of Canada Deputy Governor Paul Beaudry. [read more]

Canada’s annual inflation rate was down again in August, falling to 7%. Figures released by Statistics Canada on Tuesday showed that last month’s decrease in the inflation rate was even greater than economists, who expected the rate to hit 7.3%. Gas prices plummeted by 9.6% in August on a month-over-month basis, although food prices saw a 10.8% spike compared with the same time last year. The national statistics agency said that multiple factors had contributed to that... [read more]

“Labour markets remain exceptionally strong across most advanced economies with unemployment rates still around the lowest levels in decades,” RBC said. “But central banks at home and abroad continue to push ahead with aggressive interest rate hikes intended to cool overheating demand and tame inflation pressures.” [read more]

The Canadian Real Estate Association (CREA) has cut its forecast for home sales in 2022 and indicated lower price growth expectations amid a protracted housing market cooldown. The association said the number of properties sold via Canadian MLS systems this year will likely fall by about 20% compared with 2021, with just over 532,500 sales anticipated. Those projections, revealed in its latest housing market outlook, reflect a starker forecast than its previous report in June. Then, CREA... [read more]

THE INTEREST RATE INCREASES IS DEPENDENT ON THE RATE OF INFLATION! The Bank of Canada’s announcement last week on its benchmark policy rate was a clear indication that it intends to continue its rate-hiking path in the coming months, according to a prominent economist. Benjamin Tal (pictured), deputy chief economist of CIBC World Markets, told Canadian Mortgage Professional that the central bank had used “very hawkish” language in its statement on Wednesday, which saw a... [read more]

TD Securities thinks there’s more room to run for the Bank of Canada as it increases interest rates from the pandemic lows. In a note to clients Wednesday, TD Securities Chief Canada Strategist Andrew Kelvin raised his view of the terminal rate – the point at which the central bank will top out in the current hiking cycle – to four per cent from his prior call for 3.5 per cent, and said an even higher rate could potentially be in the cards. “The BoC's hawkish... [read more]

The Office of the Superintendent of Financial Institutions has maintained that it will not yield to pressure from various sectors that have called for the easing of its strict mortgage qualification standards. [read more]

The Canadian economy is likely to see more volatility in the very near future, a fact that central banks have to face up to, according to Jean Boivin, head of BlackRock Investment Institute and former deputy governor of the Bank of Canada. #SANDI HALPERN # REAL ESTATE # SOLD # LEASED # ECONOMY [read more]

With inflation over 8% , the Bank of Canada will most likely, implement  another large increase in the Prime Rate! # SANDI HALPERN # REAL ESTATE # SOLD # BANK OF CANADA # INTEREST RATES [read more]

A sharp decline in Canadians’ net worth was registered during the second quarter amid sustained volatility in financial markets and the housing sector, according to Statistics Canada. Household net worth saw a 6.1% quarterly decrease to settle at $15.2 trillion in Q2, representing a precipitous drop of $990 billion. While household wealth remained nearly $3 trillion higher than pre-pandemic levels, the Q2 figure was also the largest decrease in at least 22 years. # SANDI HALPERN #... [read more]

In my opinion ,the Bank of Canada should never have allowed interest rates to remain at such historic lows, for as long as it has. Low rates have encouraged people to spend way beyond their means for an extended period of time. Now the BOC is aggressively increasing interest rates and freaking people out. The only good move was adding the "stress test" to make certain when it came to a home purchase, a buyer would be prepared for a slightly higher rate. The BOC rate has historically... [read more]

The total value of building permits in Canada declined 6.6% in July to $11.2 billion, mainly due to weakness in the residential sector, which fell by 8.6% to $7.6 billion. The latest figures from Statistics Canada showed that the drop in residential intentions was largely driven by Ontario single-family permits down by 13.9%. # SANDI HALPERN # REAL ESTATE # SOLD #LEASED # BUILDING PERMITS DOWN [read more]

As much as 81% of Canadians are concerned about current inflation trends, while 10% said that they are already unable to handle further price increases, according to a new survey conducted by Leger for BNN Bloomberg and RATESDOTCA. This worry is particularly widespread among homeowners earning less than $60,000 annually, with 89% saying that inflation trends represent a significant threat to their finances.# SANDI HALPERN # REAL ESTATE # SOLD # LEASED [read more]

Toronto home prices fell for a fifth straight month, the longest skid since 2017, as the property market adjusts to sharply higher interest rates from the Bank of Canada. The benchmark price for a home in Canada’s largest city dropped 2.8% in August compared with the month before to reach CA$1.12 million, according to data released Friday by the Toronto Regional Real Estate Board. # SANDI HALPERN # SOLD # LEASED # REAL ESTATE [read more]

Prime Minister Justin Trudeau has announced a new $2 billion in investments towards the development of more affordable housing across the country. The tranche will primarily go towards the development of 17,000 new homes, intended to fulfill the need for lower-cost housing in Canadian markets # SANDI HALPERN # REAL ESTATE # SOLD #MORE HOUSING [read more]

Canada’s banking giants released their third-quarter financial results over the course of the past week, with those reports reflecting how the economy has shifted gears throughout 2022. Lower profits due to funds set aside for potential future loan losses were the name of the game for the country’s major players, a trend that showed financial institutions are ramping up preparations for an economic downturn next year, according to an expert market analyst.   Banks have... [read more]

By the first quarter of 2023, the average home price across Canada could fall anywhere between 20% and 25% from its record high seen earlier this year, according to a new report by TD Bank. This would wipe out a significant chunk of the price gains seen over the past two or so years – essentially bringing prices to more reasonable levels despite being the greatest decline since the late 1980s, TD said. # SANDI HALPERN # REAL ESTATE # SOLD # LEASED # REAL ESTATE MARKET [read more]

It’s been on a pronounced cooldown for much of the year – and the Canadian housing market is now close to entering “bear” territory, according to a leading bank economist. Doug Porter, chief economist at Bank of Montreal (BMO), indicated in a research note that aggressive moves by central banks had contributed to a rise in the inventory of unsold homes in Canada, a clear sign that the market is returning to its calmer pre-pandemic state.# SANDI HALPERN # REAL ESTATE #... [read more]

Global inflation is finally coming off the boil, even if it’s set to remain far too hot for the liking of the world’s central bankers. # SANDI HALPERN # REAL ESTATE # INFLATION [read more]

Filings at the Office of the Superintendent of Financial Institutions showed that home equity line of credit (HELOC) outstanding balances went up by 0.6% monthly and by 2.9% annually in June, reaching $171.1 billion. Annual growth is the highest rate in nearly a decade, # SANDI HALPERN # REAL ESTATE # DEBT [read more]

Prominent Bay Street economist David Rosenberg said recession is “unavoidable” for the Bank of Canada as it pursues its fight against inflation. In a TV interview with BNN Bloomberg, the founder and president of Rosenberg Research shared his thoughts on the Bank of Canada’s “aggressive posture,” noting that there’s nothing about the recent drop in Statistic Canada’s consumer point index that would cause the central bank to hit pause on its... [read more]

Year-over-year inflation in Canada recorded its first deceleration since June 2021 last month, with the national statistics agency revealing that the annual inflation rate was 7.6% in July. That also represented the smallest monthly increase since December 2021, Statistics Canada said on Tuesday, as gas price growth finally began to slow – rising by 35.6% on a yearly basis in July compared with 54.6% the previous month. Food prices at grocery stores spiked by nearly 10% on a yearly... [read more]

Canadians 55+ currently represent over 33% of the total population. Research consistently shows that remaining in their homes for as long as possible is a priority for them – but the numbers also tell us that many are financially unprepared to achieve that goal. # SANDI HALPERN # REAL ESTATE # SOLD [read more]

Approximately 10.2% of non-resident property owners in Canada hold multiple properties within the same region, according to a survey from the Canadian Housing Statistics Program. With 3.5% of owners in Canada being non-residents, the numbers suggest that this demographic has a considerable effect on housing supply and prices, Better Dwelling said in its analysis of the CHSP figures. [read more]

FINTRAC announced today that it has imposed an administrative monetary penalty on Cheetah Consulting Ltd. This money services business in Richmond, British Columbia, was imposed an administrative monetary penalty of $33,000 on July 20, 2022, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations. News release: https://fintrac-canafe.canada.ca/new-neuf/nr/2022-08-16-eng [read more]

Crown Attorney ,asked for a sentence of 10 to 12 years ,for a Calgary man who bilked clients out of millions of dollars in a Ponzi scheme. Arnold Breitkreutz, 74, was convicted on June 29 of fraud over $5,000 for what the Crown described as a multimillion-dollar scheme in which investors believed they were putting money into safe first mortgages. Money from his company, Base Financial, was instead loaned to an energy industry promoter and used in a risky oil play in Texas that was... [read more]

New home sales in Ontario continued to ease in June. That was especially apparent in the Greater Toronto Area (GTA), according to Altus Group and the Building Industry and Land Development Association. A total of 1,694 new homes were sold in the GTA in June, representing an annual decline of 56%, and hovering 52% below the 10-year average for that month. New condo home sales totalled 1,519 units, down 44% annually and 36% below the region’s 10-year average. # SANDI HALPERN # REAL... [read more]

The rising-interest-rate environment that has gripped Canada in 2022 is having a significant impact on the country’s commercial financing market, with a noted shift seeing builders gravitate away from purpose-built apartment projects and towards condo construction. # SANDI HALPERN # SOLD # LEASED # BUILDERS [read more]

FRUSTFLATION! Too expensive-food-housing-gas-etc.-etc.-etc.! [read more]

The majority of Canadians are willing to relocate if it means they can afford a home elsewhere, according to a Leger survey commissioned by RE/MAX Canada. It was also revealed that more than 50% of those open to relocating said they would travel for more than 100km just to attain homeownership. # SANDI HALPERN # REAL ESTATE # SOLD @ LEASED [read more]

Toronto rent prices are expensive enough as it is without landlords jacking the cost up whenever they can, and various levels of government have been taking some steps lately — like looking at a new framework to stop renovictions. The guideline for how much landlords in Ontario can increase rent annually for existing occupants, though it is going up next year in light of inflation, 2.5%! # SANDI HALPERN # REAL ESTATE #SOLD # LEASED # RENTS [read more]

“Once again, the bank asserted it is ‘resolute in its commitment to price stability and will continue to take action as required to achieve the 2% inflation target.’”# SANDI HALPERN # SOLD # LEASED [read more]

The Bank of Canada had long indicated that more aggressive action on interest rates was coming but surprised most observers  with a 1% benchmark rate hike on Wednesday, a bigger move than markets expected! The central bank said, with inflation remaining more persistent than it had envisaged in April and further hikes  are imminent. Inflation is likely to hover around 8% . While expectations of an oversized hike had risen in the weeks leading up to the announcement, markets... [read more]

47% of young adults in the city are living in the same households as at least one parent. Young adults are described as anyone between the ages of 20 and 34 years-old. # SANDI HALPERN # REAL ESTATE # SOLD # LEASED [read more]

Canadian housing market activity could decline by double-digit levels this year and remain depressed through most of 2023, according to a new report from TD Economics. “Rising borrowing costs will continue to weigh heavily on housing activity. We forecast a 33% peak-to-trough decline in Canadian home sales from 2022 Q1 – 2023 Q1. Beyond that timeframe, activity should begin to firm, (while remaining at low levels) through the remainder of next year, as interest rates drop from... [read more]

The Office of the Superintendent of Financial Institutions (OSFI) has announced that it will be implementing stricter requirements for some types of loans to protect homeowners who are now wrestling with the added risks from mounting interest rates. “OSFI is taking action to ensure that federally regulated financial institutions are well prepared to address the risk of persistent, outstanding consumer debt that can make lenders more vulnerable to negative economic shocks,” the... [read more]

Average monthly rent rates across all property types in the Greater Toronto Area grew by 16.5% annually in May, rising from $1,998 last year to reach $2,327 last month.# SANDI HALPERN # LEASED # SOLD # REAL ESTATE MARKET [read more]

Average monthly rent rates across all property types in the Greater Toronto Area grew by 16.5% annually in May, rising from $1,998 last year to reach $2,327 last month. # SANDI HALPERN # LEASED # SOLD # FORE RENT [read more]

Over half of Canadians intending to renovate their home are still pushing ahead with those plans despite the country’s economic challenges, according to a new survey – although that figure has fallen significantly from about 75% in March. Home reno network HomeStars found that 53.6% of respondents to its latest poll had not been deterred by surging inflation and interest rate hikes in recent months, even if the declining numbers since the spring suggest growing hesitancy around... [read more]

The government absolutely want to hit inflation and rising home valuations right between the eyes – everybody understands that,” he said. “They may think they’re doing a great job because they’re seeing a decline in prices by as much as 20-25% already. # SANDI  HALPERN [read more]

More than half of Ontarians (57%) indicated a belief that they might never be able to afford a home in their current city or town, according to a new poll by independent brokerage Right at Home Realty. Approximately 54% of parents in Ontario also said that they are not planning on helping their children buy a home in the future. “The impact of rising mortgage rates has reduced the buying power of potential homebuyers. Additionally, the minimum mortgage stress test rate will climb to... [read more]

Two founders of Fortress Real Developments have been charged with fraud after a multi-year investigation of a syndicated mortgage scheme. The Royal Canadian Mounted Police said that Jawad Rathore and Vince Petrozza were among those who orchestrated “an ongoing scheme whereby they did not disclose the various risks to brokers and investors.” The Fortress founders were each charged with one count of fraud under the Criminal Code and one count of “secret commissions.”... [read more]

FINTRAC imposes an administrative monetary penalty on Sokhom Ung FINTRAC announced today that it has imposed an administrative monetary penalty on Sokhom Ung, also operating as Bureau de Change Saint-Michel. This money services business in Montréal, Quebec, was imposed an administrative monetary penalty of $33,000 on March 29, 2022, for non-compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations. [read more]

Analysts are warning that Canadian bank earnings estimates for 2023 could fall by 16% according the RBC Capital Markets. Scotiabank and CIBC are among the Big Six bank stocks leading losses this year. Both banks, Canada’s third- and fifth-largest banks, could have further to fall as they rebuild loan loss provisions previously released as pandemic restrictions unwound earlier this year. Scotiabank’s core earnings per share for 2023 could decline by 22.5%, RBC analyst Darko... [read more]

Bank of Canada will keep raising rates until inflation falls to 2 per cent even if it thrusts the economy into recession and the housing market into correction.# Benjamin Tal  [read more]

Ottawa has launched the first phase of its plan to offer interest-free loans to Canadians planning upgrades that will have a significant impact in reducing their home’s environmental footprint. The program will provide interest-free loans of up to $40,000 per household to help finance eligible retrofits. The first phase is open to eligible homeowners who are applying or have an open application to the Canada Greener Homes Grant. The second phase will begin in early... [read more]

Nearly one in four Canadian homeowners said that they will have to sell their home if interest hikes continue pushing prices up, according to a new survey by Manulife Bank.# SANDI HALPERN # REAL ESTATE # SOLD # LEASED [read more]

FINTRAC’s contribution recognized FINTRAC’s financial intelligence was recognized by the Saskatchewan RCMP Federal Serious and Organized Crime Unit following an investigation of a sophisticated crime group that resulted in 70 charges and the seizure of significant amounts of illicit currency and drugs. With the financial transaction reports received from Canadian businesses across the country, FINTRAC is providing valuable assistance to law enforcement and national security... [read more]

Canadians should show sings of concern, with the cost of living going up-food prices up-interest rates up-gas prices up!  What's next? [read more]

Some degree of real estate uncertainty looks likely to continue until the country’s central bank deems hikes to its benchmark policy rate are no longer necessary, according to a prominent mortgage executive. # SANDI HALPERN # REAL ESTATE MARKET [read more]

House prices are set to continue falling across Canada as a result of the current market cooldown, with the only question being by how much, according to a well-known economist. Benjamin Tal (pictured), deputy chief economist at CIBC World Markets, told Canadian Mortgage Professional that the decline in value was likely to be most evident among low-rise properties, although he said that should be taken in the context of skyrocketing price appreciation in recent years. “I... [read more]

By the end of 2023, Canadian home prices could fall by 15% from their heights seen last February, according to Randall Bartlett and Hélène Bégin of Desjardins. # SANDI HALPERN # REAL ESTATE MARKET [read more]

The Bank of Canada’s second 50-basis-point hike this year, along with subsequent increases, will continue to spur a cooling effect on residential property values across the country, according to Ratehub.ca. James Laird, co-CEO of Ratehub.ca and president of CanWise, predicted another 50-bp hike at the central bank’s next policy announcement on July 13, “based on the Bank’s strong language.” In a statement earlier this week, the BoC said that inflation... [read more]

The Bank of Canada is in the midst of an aggressive cycle of rate increases – and some observers are sounding the alarm on the possible risk those hikes pose to the housing market.# SANDI HALPERN # REAL ESTATE # INTEREST RATES #housing [read more]

A POTL is a freehold property with a common element that is registered under the Condominium Act. They can include parking, roadways, sidewalks, parks, trails, and more. If your buyer wishes to purchase a home with a POTL, they will be required to pay a common element fee.# SANDI HALPERN # SOLD # LEASED # POTL [read more]

Canada is currently in the throes of a housing market cooldown, with the pace of home sales falling in April and national house prices also on the way down. New figures released by the Canadian Real Estate Association (CREA) revealed that the country’s home price index fell 0.6% between March and April, its first decline for over two years, as home resales also dropped by 12.6%. # SANDI HALPERN # REAL ESTATE # SOLD # LEASED #COOLDOWN [read more]

Approximately three or four more hikes in the neighbourhood of 0.25% are likely after those substantial increases, with the central bank set to stop at around 3%, according to economists polled by Bloomberg.# SANDI HALPERN# real estate # SOLD # LEASED #INTEREST RATES [read more]

The Bank of Canada will likely hike its overnight rate by another 50 basis points on June 1, according to a unanimous prediction by economists in a recent Reuters poll. This will build on a previous 0.5% upward adjustment in April, which was the central bank’s largest hike in 22 years. The consensus prediction was a stark departure from forecasts as recently as a month ago, which saw economists peg a 25-bp hike for June. [read more]

After two years of record-setting activity in Canada’s housing market, with bidding wars escalating and home prices skyrocketing, something had to give. The slowdown of recent weeks has been pronounced, if market data from the Canadian Real Estate Association (CREA) is anything to go by: home resales posted a 12.6% decline across the country between March and April, while the actual national average home price also fell (to about $746,000) for the second month in a row. [read more]

Four in five Canadians are still concerned about the possibility of a recession, even as the Bank of Canada (BoC) guarantees it won’t happen in the next two years, according to the latest Nanos Research survey commissioned by The Globe and Mail. [read more]

New home prices across Canada showed some signs of moderating from their average increase of 1.1% in the first three months of 2022, with just a 0.3% monthly increase in April, according to the national statistics agency. [read more]

Sales in Toronto’s housing market dropped 27% in April compared with the previous month and posted a 41% year-over-year decline over the same time last year, according to the Toronto Regional Real Estate Board (TRREB). [read more]

The Vancouver government has announced that it is raising its empty homes tax in a bid to return vacant properties to the market and boost the region’s housing supply. The measure to hike the tax from 3% to 5% of a property’s assessed value, along with doubling the volume of annual compliance audits to 20,000, was unanimously backed by the city council. The move would be a “big blow to housing speculators,” said Mayor Kennedy Stewart. Depending on how the... [read more]

Falling victim to financial fraud appears to be a growing concern for many Canadians .  In  a recent survey done by The Professional Institute of Professional Accountants ,revealed a large majority of respondents (69%) as being more concerned about fraud than five years previously, with nearly half (46%) saying that they had fallen victim to fraud at some point during their lives. Last year, Statistics Canada said the police had reported an increase in... [read more]

The Office of the Superintendent of Financial Institutions (OSFI) has released its first Annual Risk Outlook report, emphasizing the “unprecedented run-up” in home prices that has led to overleveraged borrowers and overexposure to a market correction. Although lenders are believed to be “well-capitalized and appear to be financially resilient,” the regulator said “such a sequence of events could lead to borrower defaults, a disorderly market reaction and broader... [read more]

Governor Tiff Macklem acknowledged there’s potential for even larger increases to borrowing costs as the Bank of Canada aggressively wrestles inflation down from a three-decade high. [read more]

Governor Tiff Macklem acknowledged there’s potential for even larger increases to borrowing costs as the Bank of Canada aggressively wrestles inflation down from a three-decade high. [read more]

With the 6.7% annual inflation rate in March surging far beyond experts’ predictions, the likelihood of another large hike in the Bank of Canada’s next interest rate announcement has increased, according to Andrew Grantham of CIBC Capital Markets. “Inflation continues to run well ahead of expectations from earlier in the year, linked not just to commodity price spikes but also to stronger underlying price pressures as well,” Grantham said. “The upside... [read more]

Real estate bodies, pushing back on Government plan to ban blind bidding- part of the Liberal Party’s budget proposal on April 07. Blind bidding is the widely used practice in which offers are kept secret. [read more]

BOC increases it's benchmark rate again! # Sandi HALPERN # SOLD # LEASED # REAL ESTATE # INTEREST RATES [read more]

Canada will ban most foreigners from buying homes for two years and provide billions of dollars to spur construction activity in an attempt to cool off a surging real-estate market.  #SANDI HALPERN # SOLD # LEASED #REAL ESTATE # FOREIGN BUYERS [read more]

The average price of a Toronto home dipped in March as a slight cooling of activity allowed the pace of new listings to close the gap with sales, even as the market remained heavily tipped in sellers’ favour compared with historic standards. The average home price in Canada’s largest city dipped 2.6% to just under CA$1.3 million in March from the month before, data released Tuesday by the Toronto Regional Real Estate Board show. The number of sales fell 30% from last year as new... [read more]

Market observers are pegging the Bank of Canada’s next hike to be at least 0.5%, with a new poll from the central bank indicating that as much as 70% of business executives are expecting inflation to remain above 3% over the next two years. CIBC is now anticipating that the BoC will hike its overnight rate by 0.5% this month, followed by an even sharper 0.75% increase in June, one more 0.5% hike in September, and followed by two 0.25% upticks in 2023 to end up at 2.25% by June next... [read more]

A survey of approximately 2,000 Canadians found the vast majority (96%) see accessibility as the major problem in ownership. Residents of Canada’s most expensive real estate markets, Ontario and BC feel especially excluded, with 90% and 92% of residents respectively classifying housing accessibility as a major/moderate problem. 76% said that they are unable to save for the necessary 20% down payment. # SANDI HALPERN #realestate # AFFORDABILITY # housing [read more]

The Ontario Government released new housing legislation, the More Homes for Everyone Act. This is the second pro-housing bill that has been introduced by the Ford Government ,continuing tomaking home ownership more affordable. The More Homes for Everyone Act will: Use financial incentives to encourage municipalities to speed up zoning by-law amendments (OREA recommendation). Increase the certainty of development charges to bring down prices on new homes. Strengthen... [read more]

While the Bank of Canada’s rate hikes are more than justified by the current macroeconomic climate, policymakers should take care not to fall into the other extreme and introduce too many increases in too short of a period of time, according to market observers. # SANDI HALPERN # SOLD # LEASED # REAL ESTATE # INCREASED INTEREST RATES [read more]

Ontario is raising a tax on home purchases by some foreigners to 20% and making it harder to avoid as it tries to cool a scorching real estate market.   The so-called speculation tax will apply to homes bought anywhere in the Canadian province by foreign nationals and foreign companies, provincial Finance Minister Peter Bethlenfalvy said in a statement Tuesday. Currently, the tax is 15% and applies only to homes in Toronto and surrounding areas.  # SANDI HALPERN # SOLD #... [read more]

Given current market conditions and trends, the inflation rate is highly likely to stay above 3% over the next five years, according to RBC Economics. This will be largely driven by faster price growth in goods and services, which in turn will intensify further due to geopolitical tensions and the resulting commodity price volatility, RBC said. In particular, Ukraine and Russia “account for roughly one-quarter of global wheat and barley exports and 14% of corn exports,” said... [read more]

Canadians’ confidence towards the economy, the housing market, and their finances has been labouring under prolonged “negative pressure”, according to polling by Bloomberg and Nanos Research released last week. “The past three weeks have shown some negative pressure on Canadian consumer confidence. The proportion of Canadians who report their personal finances [are] worse off has increased to a level not seen since July 2020, nearer the beginning of the... [read more]

Canada’s 10-year yield rose to the highest since 2018 as a top Bank of Canada official said household finances are in good shape and that monetary policymakers are prepared to “act forcefully” to quell inflation. Deputy Governor Sharon Kozicki reiterated the central bank’s “unwavering commitment” to wrestle inflation back to the 2% target and said more aggressive action -- including shrinking holdings of government bonds, known as quantitative tightening... [read more]

The Ontario government has announced that it will be implementing stricter measures, such as increased fines and other penalties, for “unethical” condominium developers. Among the practices targeted by the new regulations are price gouging, often in the form of people making “a commitment to purchase at one price, and then those prices are being extraordinarily increased,” said Ross Romano, Ontario’s Minister of Government and Consumer Services. # SANDI HALPERN... [read more]

The new home market in the Greater Toronto Area saw another highly active month in February, according to new data from Altus Group and the Building Industry and Land Development Association. A total of 3,630 new home sales took place in the region in February, a level that was 17% above the 10-year average for that month. The new condominium apartment segment accounted for the majority of these transactions, with 3,048 sales that were 78% higher on an annual basis and 67% above the... [read more]

Amid ever-stronger inflationary pressures, household mortgage debt grew by 0.5% ($10.2 billion) to reach nearly $1.966 trillion in January 2022, according to Statistics Canada. The gains were largely driven by growth in average home prices, which more than made up for lower home sales volume in January, StatCan said. The average residential sale price climbed to approximately $750,000, representing a 0.9% monthly increase.# SANDI HALPERN # SOLD # LEASED # STATS # INFLATION [read more]

Prime Minister Justin Trudeau’s power-sharing deal with an opposition party promises to tackle the soaring cost of housing in Canada and may target real estate investment trusts that own homes. The agreement between Trudeau’s governing Liberals and the New Democratic Party says the government will act on the “financialization of the housing market by the end of 2023.” No details were given yet. The Liberal-NDP deal also promises to move ahead with... [read more]

New supply bounced way up in February (+23.7% month-over-month), which is similar to what we saw play out in 2020 and again in 2021,” said Shaun Cathcart, CREA’s Senior Economist and Director of Housing Data and Market Analysis. [read more]

Canadian consumer prices increased by 5.7% on an annual basis in February, up from 5.1% in January. February marked the second straight month where headline inflation exceeded 5%, a trend impelled by price increases that threaten to further eat into Canadians’ wealth. “Consumers paid higher prices for gasoline and groceries in February 2022 compared with the same month a year earlier,” Statistics Canada reported. “Shelter costs continued to trend higher, rising at the... [read more]

After months of speculation, the inevitable finally arrived at the beginning of March: the Bank of Canada announced the first hike to its benchmark policy rate of the COVID-19 pandemic era, bringing an end to nearly two years of rock-bottom low rates. The move was the first of several anticipated rate increases for 2022, with the Canadian Real Estate Association (CREA) noting in its updated Resale Housing Market Forecast that those hikes were likely to play a significant role in impacting... [read more]

FINTRAC announced today that it has imposed an administrative monetary penalty on Taiwanese Canadian Toronto Credit Union Limited. This credit union in Markham, Ontario, was imposed an administrative monetary penalty of $297,000 on November 1, 2021, for non-compliance with Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its associated Regulations. [read more]

The Canadian household savings rate noticeably declined over the second half of 2021, according to Statistics Canada. [read more]

Russia’s aggressive onslaught against Ukraine has created an escalating humanitarian crisis with over 2.3 million Ukrainians flee the country since the invasion began. It’s also sent global financial markets into a tailspin, with energy prices soaring across the world and putting further upward pressure on inflation  in many countries, including Canada. Canadian financial institutions have also  taken a hit from the sanctions, with the Toronto Star reporting... [read more]

I am pleased to announce that the Ontario Real Estate Association has featured my volunteer work at the Royal Ontario Museum under the Real Heart Program! [read more]

Mounting inflation and geopolitical turmoil will take a large chunk off the savings that Canadians have hoarded during COVID-19, RBC Economics warned. “Household purchasing power is unusually strong. Canadians socked away a stunning $300 billion in excess of pre-pandemic saving levels over the last two years. That amounts to more than 11% of annual Canadian GDP, or six times the amount of pre-pandemic annual spending on gasoline,” RBC said. The far-reaching economic shockwaves... [read more]

A markets analyst has downgraded Scotiabank’s rating amid the unique risks posed by the bank’s cross-border coverage and a lack of major growth prospects through major acquisitions similar to the recent ones made by other Big Six banks. [read more]

This will be spurred by the seemingly inexorable growth of housing prices in major markets like Toronto, Vancouver, and Montreal, a trend that will impede economic growth by cutting into other categories of household spending, McKay said. “We’re increasingly becoming concerned that, with the lack of supply of labour, the lack of supply of goods, the cost of energy increasing, that we’ll consume these savings — and will the spending power just lead to an... [read more]

                                        FINTRAC’s contribution recognized FINTRAC’s financial intelligence was recognized by the RCMP NL Federal Serious and Organized Crime Unit in relation to Project Broken, an organized crime investigation with convictions rendered against five individuals, including for money laundering. The investigation led to the largest single seizure of... [read more]

REALTOR'S !!!!! THERE IS STILL TIME TO VOTE FOR ME AS A DIRECTOR FOR THE REAL ESTATE COUNCIL OF ONTARIO! With over 39 years of experience I feel I would add value to this position. Your support would be most appreciated! [read more]

Sellers might be gradually making their way back into Canada’s housing market, with early results from local real estate boards indicating notable month-to-month increases in new listings across major markets, according to RBC Economics. The trend was particularly apparent in Calgary and Edmonton, where large infusions of new listings are paving the way for historically high sales numbers for February, RBC said .  However, RBC stressed that the impact of this development elsewhere... [read more]

With the Russo-Ukrainian conflict pushing the price of crude oil nearly two-fold from its lows in mid-December, the Bank of Canada has lost a vital tool – a stronger currency – against inflation, according to a Reuters analysis. An unexpected consequence of the Russian invasion and the resulting oil crisis is the Canadian dollar’s apparent decoupling from its traditional commodity partner, said strategists polled by Reuters. “The era of ‘drill, baby... [read more]

The Bank of Canada introduced its first policy rate increases since 2018 in its latest announcement – and it’s not likely to wait long before it hikes that rate again. That’s the view of BMO Financial Group chief economist and managing director Doug Porter (pictured top), who told Canadian Mortgage Professional that further quarter-point raises in each of the Bank’s next two rate announcements were a very real possibility. “Historically, the Bank of... [read more]

James Laird (pictured), RateHub.ca co-founder and CanWise Financial president told Canadian Mortgage Professional that the announcement contained no deviations from the Bank’s indication of its course in January, except for references to the Russia-Ukraine crisis that has escalated since then. “I think it was the right move and except for the conflict [Russia’s invasion of Ukraine], it was a very close continuation of their January announcement,” he said.... [read more]

What the Toronto Regional Real Estate Board  (TRREB)says statically about the Real Estate Market! [read more]

[read more]

Toronto-Dominion Bank, Royal Bank of Canada and Bank of Montreal have indicated that they will increase prime lending rates, following hot on the heels of the Bank of Canada’s benchmark policy rate increase earlier today. The lenders said that they would raise the higher prime rate to 2.7%, with that change set to take place on Thursday – marking the first prime hike since October 2018.     [read more]

New home sales in the Greater Toronto Area are off to a strong start in January as low inventory levels persist, according to Altus Group and the Building Industry and Land Development Association. A total of 2,853 residential transactions were closed in the GTA last month, which were 18% higher on an annual basis and 47% above the region’s 10-year average. This level represented a 19-year high in number of new homes sold in the region in January, Altus said. Condo activity... [read more]

Contrary to expectations, the upward path for interest rates will be slower and lower, not faster and higher, in Canada compared to the United States, according to CIBC’s Benjamin Tal. # SANDI HALPERN # SOLD # LEASED # INTEREST RATES [read more]

An increase of 25 to 50 basis points in the Bank of Canada’s interest rate will not suffice in moderating the expected enthusiasm of the upcoming spring housing market, according to James Laird, co-founder of Ratehub.ca. A major driver of market dynamism will be the reopened borders, after nearly two years of pandemic-era restrictions. “With an annual target of more than 400,000 new immigrants to Canada, this influx of additional buyers will increase demand in a housing... [read more]

The average rent for a two-bedroom home across Canada increased to $1,167 in 2021, representing a 3% rise from $1,128 in 2020 and $1,080 in 2019. This trend was impelled by a supply-demand imbalance and by the different speeds that markets have recovered from the worst effects of the pandemic, said Bob Dugan, chief economist at the CMHC. The increases were most prominent in Vancouver (up 2.4% to $1,824) and the Greater Toronto Area (up 1.5% to $1,666). # SANDI HALPERN # SOLD # LEASED # RENT [read more]

BE PREPARED! The Bank of Canada will likely raise interest rates today! [read more]

The Toronto housing sector is slated for a more expensive, more competitive spring market with an unprecedented scarcity of supply, according to industry players speaking with the National Post. “We’ve been in a tornado market since about late May 2020 and it hasn’t slowed down,” said Lauren Haw, CEO of fintech brokerage Zoocasa. “What we truly need in the GTA, and in Canada, is housing supply. We do not have enough homes and I don’t know where this... [read more]

Sellers are currently in a stronger bargaining position in almost all Canadian housing markets, not just the largest ones, according to RBC Economics. This has been spurred by consistently tight supply and surging home sales prices, influenced by major markets like Toronto and Montreal, RBC said. Data from the Canadian Real Estate Association showed that the national average home price grew by 21% to reach a new high of $748,450 in January. “Growth has been slower in the Prairie... [read more]

The annual inflation in Canada rate hit 5.1% in January – the first time it has surpassed the 5% mark for over 30 years, according to Statistics Canada. That increase, which followed a 4.8% rise in December, marked the highest rate of inflation since September 1991, the national statistics agency said this morning. StatCan noted that housing was one of the sectors most significantly affected by rising prices for goods and services, with Canadians also feeling the squeeze on food and... [read more]

With a Bank of Canada benchmark rate increase seemingly inevitable in its next announcement (March 02), one of the most notable mortgage trends of late has seen homeowners reassessing their options and pondering a possible refinance. # SANDI HALPERN # SOLD # LEASED # MORGAGE RATES [read more]

Just how damaging has the COVID-19 pandemic been to population levels in Toronto, Canada’s new priciest market? In January, figures from Statistics Canada revealed that the period between July 2020 and 2021 had seen a record number of departures from the Greater Toronto Area (GTA) to other parts of Ontario, with over 64,000 people leaving the city and its surrounding region for pastures new. With the City of Toronto registering an overall population decline of just over 16,500... [read more]

Canada, a country that relies heavily on immigration to grow its labour force, has set an ambitious plan to bring in more than 1.3 million newcomers over the next three years to support its post-pandemic growth. Prime Minister Justin Trudeau’s government aims to add more than 431,000 permanent residents this year, 447,000 in 2023 and 451,000 in 2024, according to the 2022-24 Immigration Levels Plan released on Monday. Figures for this year and 2023 have been revised higher from earlier... [read more]

It’s a space that’s witnessed a significant transformation in recent years – and one whose growth could be set to accelerate throughout 2022. While private lending may once have been viewed as a niche or fringe area of the mortgage market, it’s cementing its status as a more mainstream option for brokers and their clients, not least because of its ability to find solutions where institutional lenders can’t. Hali Noble (pictured top), senior vice president at... [read more]

US inflation hit a 40-year high in January after a larger-than-expected rise in the consumer price index, driven by increases in the cost of food, electricity and shelter. The inflation numbers have led financial markets to price in a higher chance that the Federal Reserve will hike rates by 0.5 percentage points in just over two weeks. [read more]

According to a new report by RBC Economics, Toronto’s composite MLS HPI benchmark inched above Vancouver’s in January, numbering $1.26 million, compared to the western city’s figure of $1.255 million. [read more]

A new high-level report by Ontario’s Housing Affordability Task Force has once again stressed the core role of improving housing supply to ensure more reasonable price levels, recommending a provincial target of adding 1.5 million homes over the next 10 years. To facilitate the development of this boosted supply, the report called for changes to planning and zoning policies – changes that would “allow for greater density and increase the variety of housing,” the task... [read more]

Working from home brings better mental and physical health for many workers, according to a recent report. Specifically, 36.7% say their mental health has been impacted positively since working from home, according to Prodoscore, an employee visibility and productivity intelligence software provider. Overall, 82.3% of all workers working from home (31.5%) are happier working remotely versus having to work on-site in an office.# SANDI HALPERN # SOLD # LEASED # WORK FROM HOME [read more]

Nearly one in four Canadian professionals (24.3%) now permanently work from home, driving seismic shifts into the residential and commercial property segments, according to Statistics Canada. [read more]

It was one of the most striking trends to impact Canada’s housing and mortgage markets at the onset of the COVID-19 pandemic: the so-called “urban exodus” that saw thousands of city dwellers up sticks and move to smaller or more rural areas. That phenomenon arose thanks to a hurricane of factors: a remote-work revolution that allowed Canadians to work from virtually anywhere, skyrocketing house prices that made the hottest markets more unaffordable than ever, and a desire... [read more]

Toronto’s record-breaking surge in home prices is likely coming to an end soon amid expected rate hikes by the Bank of Canada this year, according to the region’s real estate industry association. This is despite the market’s 6.9% monthly home price gain in January, reaching an average selling price of $1.24 million. The January upswing was the largest monthly gain in almost five years, but the Toronto Regional Real Estate Board said that selling prices are already... [read more]

Property prices in Canada are set to fall as rising interest rates bring an end to a “speculative fever” in the housing market, the country’s banking regulator said on a podcast. An extended run-up in home prices, readily-available mortgages, and a propensity among Canadians to buy and flip homes have all fuelled the buying frenzy, Peter Routledge, head of the Office of the Superintendent of Financial Institutions, said on The Herle Burly podcast on... [read more]

No interest rate increases were included in the Bank of Canada’s opening rate announcement of the year – but they’re on their way, the central bank indicated. With its next statement penciled in for early March, a policy rate hike at that time is all but inevitable, according to observers including Canadian Imperial Bank of Commerce (CIBC) deputy chief economist Benjamin Tal. Not only will variable mortgage rates climb in line with that benchmark Bank of Canada... [read more]

The government’s First Home Loan Deposit Scheme was launched in January 2020, well before inflation spiked. Now, however, house-price increases are eating into home buyer assistance plans, according to a report by The Australian. Mostly used by buyers under 30, the government-guaranteed home loans allow the purchase of a property with as little as a 5% deposit and without the need to take out mortgage insurance. The government guarantees the difference between the buyer’s deposit... [read more]

THE PETERBOROUGH EXAMINER Peterborough County townships continue to grapple with short-term cottage rentals - and what to do about their “polarizing” effects on lakeside communities.   “The public consultation process has reiterated that this subject and the proposed licensing program are very polarizing,” states a staff report presented to Trent Lakes council summarizing the results of a November citizens’ survey and public meeting on the topic at... [read more]

Property prices in Canada are set to fall as rising interest rates bring an end to a “speculative fever” in the housing market, the country’s banking regulator said on a podcast. An extended run-up in home prices, readily available mortgages, and a propensity among Canadians to buy and flip homes have all fuelled the buying frenzy, Peter Routledge, head of the Office of the Superintendent of Financial Institutions, said on The Herle Burly podcast on... [read more]

Was the Bank of Canada’s decision not to hike its policy rate in the first announcement of this year a surprise? Not at all, according to Canadian Imperial Bank of Commerce (CIBC) deputy chief economist Benjamin Tal (pictured top), who said that the statement represented little more than a “huge PR exercise.” Many economists had anticipated that the Bank would react to the threat posed by inflation, currently at a 30-year high in Canada, with a hike from the rock-bottom... [read more]