B.C. the ‘bright light’ for Canada’s economy

[Source: Journal of Commerce, October 20, 2017] Economic indicators are looking good for British Columbia, Canada and the world. At a provincial level, the economy is in great shape, Central 1 deputy chief economist Bryan Yu said at the recent CanaData West conference in Vancouver. "British Columbia is doing phenomenal regarding the economy and the outlook going forward is positive," Yu said. The province's economy is showing strong job growth and consumer demand as well as positive indicators for wages, population and [...]

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OSFI sets new mortgage rules beginning January 1, 2018

[Source: BIV, October 18, 2017] Starting January 1, 2018, Canadian homebuyers will need to meet stiffer guidelines in order to qualify for a mortgage with a federally regulated mortgage lender. As expected, Canada’s banking watchdog, the Office of the Superintendent of Financial Institutions Canada (OSFI), confirmed October 17 that starting next year, all borrowers – even those who have down payments of 20% or higher and do not require mortgage insurance – will need to qualify for mortgages that are two [...]

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“Breaking Bad – News” – Big Changes Ahead

[Source: Synergy Mortgage, October 18, 2017] Stringent NEW Canadian Mortgage Rules take affect January 1st, 2018. Office Of The Superintendent Of Financial Institutions (OFSI) has finalized NEW mortgage rules applicable on all federally regulated banks.  The new rules officially start January 1, 2018.  This will dramatically change the lending landscape. The new rules apply to all bank mortgages and will make borrowing more difficult even for clients who have substantial down payments, strong income and excellent credit.  Alternative lenders with relaxed qualification [...]

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OSFI is reinforcing a strong and prudent regulatory regime for residential mortgage underwriting

[Source: OTTAWA - October 17, 2017 - Office of the Superintendent of Financial Institutions Canada] Today the Office of the Superintendent of Financial Institutions Canada (OSFI) published the final version of Guideline B-20 − Residential Mortgage Underwriting Practices and Procedures. The revised Guideline, which comes into effect on January 1, 2018, applies to all federally regulated financial institutions. The changes to Guideline B-20 reinforce OSFI’s expectation that federally regulated mortgage lenders remain vigilant in their mortgage underwriting practices. The final Guideline [...]

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Bank of Canada raises overnight rate to 1 per cent

[Source: CTV News, September 6, 2017] OTTAWA -- The Bank of Canada is once again raising its benchmark interest rate as it sees the economy's powerful performance pointing to broader, more self-sustaining growth. The central bank hiked its rate Wednesday by one-quarter point to 1.0 per cent, its second 25-basis-point increase since July. The move, which will likely be a surprise for some, came less than a week after the latest Statistics Canada numbers showed the economy expanded by an impressive 4.5 [...]

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What’s the Average Value of a New Mortgage in Vancouver?

[Source: REW, August 8, 2017] Number of new mortgages across Canada and in BC rose in 2016, CMHC reports – but Vancouver loan amounts decrease. With Greater Vancouver home prices increasing exponentially each year and now at record highs, there is a widespread – and understandable – assumption that most buyers must be taking out huge mortgages to afford real estate in the region. However, the average value of a new mortgage loan in the Vancouver Census Metropolitan Area (CMA) in 2016 [...]

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Metro Vancouver sees fewer home sales and more listings in July

[Source: REBGV, August 2, 2017] The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 2,960 in July 2017, an 8.2 per cent decrease from the 3,226 sales recorded in July 2016, and a decrease of 24 per cent compared to June 2017 when 3,893 homes sold. Last month’s sales were 0.7 per cent above the 10-year July sales average. “Housing demand is inconsistent across the region right now. Pockets of the market are still [...]

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Federal banking regulator proposes new stress test for uninsured mortgages

[Source: CTVnews, July 6, 2017] OTTAWA -- The federal banking regulator is proposing a new stress test for all uninsured mortgages as part of efforts to tighten lending rules. The Office of the Superintendent of Financial Institutions (OSFI) recommended the measure as part of draft changes that it has published for public consultations. The change would mean that homebuyers who have a down payment of 20 per cent or more -- and therefore don't require mortgage insurance -- will still face a [...]

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Foreign buyers’ tax, other measures under review: B.C. housing minister

[Source: Vancouver Sun, July 31, 2017] British Columbia's new Housing Minister Selina Robinson says she is reviewing the tax on foreign buyers of Vancouver real estate and the province's interest-free loan program to first-time homebuyers. The provincial government is reviewing the foreign buyers’ tax in the Vancouver area and the interest-free loan program to first-time homebuyers to determine whether they have been effective in improving affordability, the province’s new housing minister says. In an interview Monday, Selina Robinson said she and provincial [...]

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‘Disproportionate’ growth still flowing into housing as B.C. economy revised upward: BCBC

[Source: BIV, July 12, 2017] Higher than expected job growth and consumer spending helps the BCBC revise an earlier economic forecast from 2.2% growth in 2017 to 2.7% A “disproportionate” amount of growth is still flowing into the B.C. housing sector this year even as business investment remains soft, according to a report from the Business Council of British Columbia. Meanwhile, higher than expected job growth and consumer spending also helped the BCBC revise an earlier economic forecast from 2.2% real GDP [...]

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