Home Ownership in Canada: A Chronological List of Programs for Buyers
1954: Introduction of the Mortgage Loan Insurance- by the Canada Mortgage and Housing Corporation
1971: Principal residences were exempted from Capital Gains in The Income Tax Act
1992: There were two programs created by the federal government.
The first was the Home Buyers’ Plan (HPB) allowing buyers to withdraw up to $20,000, tax-free, from their Registered Retirement Savings Plan (RRSP) and use it as a down payment to buy or build a home.
The second, was a test program called the First Home Loan Insurance Program (FHLIP) which decreased the down payment needed to buy a first home from 10% to 5%
1994 The federal government announces the HPB as a permanent program.
1998 The FHLIP was replaced by a permanent program. And instead of 10%, all buyers were now allowed a 5% downpayment.
2006 The CMHC launched CMHC Flex 100- (Remember the zero-downpayment mortgage?) a mortgage loan insurance product for owner-occupiers that allows them, under certain conditions, to buy a property by taking out a loan up to the total value of the property (no down payment required).
The amortization period for owner-occupiers were also extended to up to 40 years, under certain conditions.
2008 The maximum amortization period for new mortgages was reduced to 35 years and the minimum down payment increased from 0 to 5 per cent.
2009 The maximum amount that can be withdrawn as part of the HBP increased to $25,000
2011 The maximum amortization period for new mortgages was reduced to 30 years
Adapted from and Article from the Market Analysis Department of the QFREB
Sources: Government of Canada, CMHC, Industry Canada and the Department of Finance Canada.
Posted By: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in high end condos in downtown and Old Montreal. For buying or selling contact Deya at: 514.917.7889 http://montrealrealestateblog.com/
VIDEO: Micro Condos – Radio Canada Documentary
On the topic of Micro Condos in Canada and the United States, Radio Canada made a documentary covering the different condo markets in the cosmopolitan cities of Montreal Vancouver and San Francisco. It shows us the differences between our (montreal) micro-condos and what they have to offer in space and layout in comparison to the ones in San Francisco, for example.
A snapshot of the micro-condo owner’s minimalistic lifestyle, the way their unit’s layout and furniture is used to maxime the space available is quite interesting, even for those who own larger units.
If you’re wondering what the hype about Micro condos is about or whether or not small units are for you, then this is a must watch! – This version is in french. We’ll be publishing an english one as soon as we know of its existence.
Enjoy,
http://www.youtube.com/watch?v=COQePZ9ttis
Source: McGill Immobilier
Posted By: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in high end condos in downtown and Old Montreal. For buying or selling contact Deya at: 514.917.7889 http://montrealrealestateblog.com/
International Real Estate Market: How Does Canada Rank?
The residential real estate activity from 12 developed countries were analyzed and compared from the first quarter of 2010 to the same period this year. And despite the comments on: “High property prices, the tightening of mortgage insurance rules and the increase in mortgage rates limited demand, particularly among first-time buyers.” – ( and blah blah blah…) Canada ranked pretty darned high.
Here are the International Top 3 Markets:
The first place: Ireland (+12%). {data from the 2010 market}
Second place: France (+6.8%)
Third place: Canada !!! (+5.3%)
In contrast, the countries with the largest price decreases in 2011 were:
Spain ( 8.5%)
The United States ( 4.8 %)
The United Kingdom ( 4.2 %)
Source: the Scotia Economics department at Scotiabank. Click here to read the report.
Seeing where we are ranking worldwide, gives us a better perspective on where we’re standing in terms of growth. We have a strong and stable economy by comparison. Here in Quebec, the market isn’t as volatile as the rest of the country. We have a moderate and steady growth, which makes it a great place for a sound investment.
Posted By: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in condos and revenue property in the metropolitan area of Montreal. For buying or selling contact Deya at: 514.917.7889
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Report says: Canada’s housing bubble close to bursting
A report by Capital Economic says Canada’s housing bubble is now close to bursting as housing valuations have “lost touch with fundamentals” and household debt is at a record high.
House prices could fall by as much as 25 per cent over the next three years.
“House prices have been growing rapidly for nearly a decade now and it has reached the point where housing is so overvalued relative to incomes that a downward correction seems unavoidable,” says Capital Economics.
The report says the downturn in the housing sector will severely constrain economic growth over the next couple of years as consumption expands at a more “muted” pace and housing investment “shrinks.”
“We also anticipate that the end of the housing boom will lead to a marked decline in housing-related activity and employment,” it says.
Capital Economics says signs of over-building are evident as unoccupied housing units are at historically high levels, similar to 1994-95 when housing construction was last mired in a slump.
“Another sign of over-building, or perhaps over-consumption, is the sharp increases in the home ownership rate over the last 10 years,” it says. “This run-up has coincided with a housing price boom fuelled by rising financial leverage.
“Our concern is that these excesses will eventually lead to a house price correction, which would greatly impact household wealth, consumer confidence and the economic recovery.”
Source: Montreal Gazette
… Good thing that here in Quebec the market remains stable. Not up, not down. Just stable.
Posted By: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in condos and revenue property in the metropolitan area of Montreal. For buying or selling contact Deya at: 514.917.7889
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How’s the Market? Canadian Housing Market Stabilizing in 2011
News on the national real estate market starts and sales can now be found at the CMHC’s website. According to Canada Mortgage and Housing Corporation’s (CMHC) second quarter Housing Market Outlook, Canada Edition, we are doing just fine.
Expect a moderation and a slight increase on the home prices this year:
“The recent increase in the average MLS® price reflected strong sales in Vancouver’s property resale market. For the remainder of 2011, we expect the average MLS® price to moderate. Nevertheless, the average MLS® price will experience an overall increase this year. As the existing home market moves to more balanced markets in 2012, growth in the average MLS®price in 2012 is expected to be more modest than in 2011.”
So, that’s great news for the country. Let’s check out now how our local market is doing. Stay tuned.
Posted By: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in condos and revenue property in the metropolitan area of Montreal. For buying or selling contact Deya at: 514.917.7889
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Housing performance expected to accelerate in 2010
The year isn’t over yet, but you can definitely expect new Market forecast coming this month, telling us how the year did so far and what to expect for 2010. This is the first we’re publishing here. The report was done by RE/MAX. More reports coming soon.
As economic stability returns to Canadian markets, housing performance expected to accelerate in 2010.
The RE/MAX Housing Market Outlook for 2010 examined residential real estate trends in 23 markets. The report found that sales are forecast to recover in almost all major centres by year-end 2009
“Canadians continue to demonstrate their commitment to homeownership – regardless of the economic climate,” says Sylvain Dansereau, Executive Vice President, RE/MAX Quebec.
“No where in Canada is that more evident than in Quebec. The province, with one of highest percentage of renters in the country, is well-poised for an escalation in homeownership levels as renters enter the market en masse to take advantage of ideal market conditions. Prices remain well under the national average, making ownership more attainable and leaving more room for appreciation that’s been long overdue.”
More on the Market Outlook Nationwide:
- Approximately 465,000 homes are expected to change hands nationally in 2009, a 7% increase over one year ago.
- Canadian housing values are forecast to close the year at $318,000, up 5% from $303,594 in 2008.
- By year-end 2010, the number of homes sold is predicted to climb another 2% to 475,000 units.
- The average price of a home is also expected to experience an uptick, rising 2% to $325,000 – the highest level in Canadian history.
Posted By: Deya Bautista - Affiliated Real Estate Agent working as part of the McGill Immobilier team. Specializing in condos and revenue property in the metropolitan area of Montreal. For buying, selling or renting contact Deya at: 514.917.7889
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Related Articles:
- RE/MAX Housing Market Outlook 2010: Greater Montreal
- RBC Housing affordability forecast for 2008
- Canadian Housing Market News Evening Recap