Toronto real estate: Condo rents hit record high as would-be homebuyers stay on sidelines
May 14, 2013
Would-be first-time homebuyers are fuelling such unprecedented demand for rental condos across the GTA, they’ve helped push average rents to a record $1,856 per month, says a new report by condo research firm Urbanation.
Since mortgage lending rules were tightened last July, pushing many first-time buyers to the sidelines, demand for rental condos has skyrocketed, says the report released Tuesday.
The number of condos leased via the MLS jumped 31 per cent in the first quarter of 2013 over the same period a year earlier.
Rents have climbed 10 per cent just in the last two years, the report notes, after a decade of largely flat or minimal increases.
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Toronto StarRegulator looking at whether low-risk, uninsured mortgages also need tightening
May 13, 2013
Canadian Mortgage Trends says it has been notified that the national banking regulator is looking at a possible further tightening of mortgage rules — this time for those with low risk mortgages that don’t require government-backed insurance.
The industry newsletter posted an item on its webpage Monday that the Office of the Superintendent of Financial Institutions verified it is looking at whether amortization periods should be limited to 25 years on mortgages with 20 per cent or more equity, that don’t require to be insured.
The current amortization period limit for such conventional mortgages is 35 years. In July, Finance Minister Jim Flaherty dropped the period to 25 years on mortgages with less than 20 per cent downpayment.
OSFI has said it would not make any changes until it has consulted with the industry.
“A decision in that regard would be taken once we hear back from the industry. Any proposed changes to our mortgage guideline that may result from this work would be subject to a public consultation process,” the regulator is quoted as saying.
In a recent speech earlier this month, OSFI head Julie Dickson said Canadian uninsured mortgages tend to be of higher quality than in many other countries but still warranted attention.
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Toronto StarWhy it’s harder for self-employed to get a mortgage
May 10, 2013
Vick Vij knows all about the challenges self-employed folks face when they try to get a mortgage.
The Markham-based chartered accountant went through the arduous process a few years back. He also regularly deals with self-employed clients looking to purchase a home. “It can definitely be more complicated for them,” he says.
Where mortgage applicants with steady, salaried jobs can document their annual income with a T4 slip, the self-employed — entrepreneurs, small business owners and freelance professionals with a changing clientele and no regular paycheque — are assessed based on stated income, or the amount the borrower claims to earn, which they must prove with tax returns, contracts and financial statements.
“They don’t have a lot of verifiable pieces of paper that substantiate their income,” Vij says. “So the bank or mortgage broker is going to have to do more due diligence to gain comfort about their numbers.”
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Toronto Star
