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Mortgage Broker News | 06 Oct 2016, 08:15 AM Agree 0
The measures will mitigate the risks introduced by Canada’s overheated real estate markets to the national economy
  • James | 06 Oct 2016, 09:54 AM Agree 0
    The new "rules" will burst the housing and debt bubble that the banks/government created in the first place.
  • Kris Kooblall | 06 Oct 2016, 07:37 PM Agree 0
    Canada's Housing Crisis

    The Federal Government of Canada has responded with an impressive array of actions perhaps designed to stabilize the nation's housing market and the overall effects will be borne out over time.

    Whether these actions will stem the tide of a lack of affordability in key residential housing markets for Canadian families with regard to vulnerabilities as pointed out by the Bank of Canada is not very clear just yet, however, these are sweeping changes and point to the federal government's commitment to frontally address the issue of affordability for Canadian families.

    Accordingly the Government of Canada has earned a note of commendation and merit and sends a very strong message to municipalities and provinces esp. Toronto and Ontario respectively.

    Doing nothing is simply not an option in the Prime Minister's cautionary note.

    /“The feds clearly wanted to puncture the housing market and they have certainly done so,” Sherry Cooper, chief economist at Port Coquitlam, B.C.-based mortgage broker Dominion Lending Centers, said in a note to clients. “These measures will provide a tipping point, encouraging those who have been waiting to sell to put their properties on the market post haste. The combination of increased supply and significantly reduced demand will weaken prices everywhere.”/

    With specific reference to the city of Toronto, Mr. John Tory, our Mayor and our provincial Finance Minister Mr. Charles Sousa, if in fact you are both opposed to the implementation of the 15% tax charged to the purchase of residential real estate here in Toronto by foreigners, please explain the plausibility of your views.

    We are in an acute housing crisis here in Toronto and the importance of your key positions do not confer observer status and an inordinate amount of time to respond.

    Leadership which undoubtedly both Mr. John Tory and Mr. Charles Sousa are very capable of, is urgently needed to mitigate against the effects of this housing crisis.

    Perhaps we can all learn from Mr. Bill Morneau, our Federal Finance Minister when he said on June 8th, that he was going to take a nose dive into the nation's housing markets.
    /Finance Minister Bill Morneau has promised a “deep dive” into Canada’s housing markets to find “real evidence” behind the country’s red-hot sector and the role of foreign investors in those record-high prices./

    A nose dive indeed and the Bank of Canada has endorsed today.

    /We think that, over time, the measures announced by the federal government on Monday will help mitigate risks to the financial system posed by household imbalances/
  • Christopher | 12 Oct 2016, 06:12 PM Agree 0
    Stats Can reported back in 2006 that 2/3 of Canadians owned their homes and 1/3 rented their homes.

    What amazes me is that everyone is just accepting these over-inflated home prices as the new normal, when it should be anything but.

    These million dollar inflated prices were caused mainly by foreign investment and lax oversight in real estate and banking. This is a massive amount of extra money that homeowners were never supposed to have (without this intrusive investment) and for the government, let alone the people, to just accept these new prices as "normal" at the expense of 1/3 of Canadians who will likely never be able to afford a home now, is wrong.

    Bring on a 40-50% correction - that's what homes should be valued at. Yes, a small percentage of people will lose out (because they bought at the wrong time) but that number is inconsequential compared to the millions of people already negatively affected by the over-inflation, and life-constricting situation that over-inflated home/rent prices have forced on them.
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