In Canada [...]]]> The U.S. Federal Reserve borrowed a play from Bank of Canada governor Mark Carney on Wednesday when they promised to keep interest rates low until at least the end of 2014. This is a good indication that Canadian rates will stay low as well, thus continuing the support of the real estate market here.

In Canada last year, the number of sales increased 2.2% over 2010 and the price of an average Canadian house increased 7.1%! In the GTA, the average house increased 10.8%.  Low interest rates will only cause this upward pressure to continue, just as our Bank of Canada has been warning that some real estate markets are overvalued.

This concern that low interest rates are increasing house prices beyond their reasonable value, will force Jim Flaherty, the Canadian finance minister, to make it harder for Canadians to qualify for a mortgage. He may have to reduce the CMHC insured amortization to 25 years or tweak the mortgage qualification in other ways to reduce the amount of new homebuyers.

I have seen clients choose to look for homes outside of Toronto, or even outside of the GTA, even though they work in Toronto because they consider the prices that homes are selling for inflated.  However, even on the fringes of the GTA house prices have ballooned to the same as they are here in Toronto.  A big drawback is the increased commute and plus out there you don’t get all the amenities like public transportation and availability of shopping like you would in Toronto.  Is there a winner in this situation?

The U.S. Fed also said they are considering printing more U.S. dollars, so expect the Canadian Dollar to raise above parity once again.  This will once again allow Canadians to take some of the equity out of their homes and purchase retirement homes in the sun.  Places like Arizona, Texas and the Mayan Riviera are sure to benefit.

Having a safe, affordable place to call home is about more than four walls and a roof. A home is an important source of

To help create easier access to housing and better housing conditions on-reserve, Canada Mortgage and Housing Corporation (CMHC) offers three innovative loan [...]]]>

CMHC Loan Insurance Helps First Nations Access Housing Financing Options

Having a safe, affordable place to call home is about more than four walls and a roof. A home is an important source of

To help create easier access to housing and better housing conditions on-reserve, Canada Mortgage and Housing Corporation (CMHC) offers three innovative loan insurance options that can enable First Nations to borrow the funds to buy, build or renovate a home of their own.

pride and is essential to the health and well-being of families and communities across the country.

To help create easier access to housing and better housing conditions on-reserve, Canada Mortgage and Housing Corporation (CMHC) offers three innovative loan insurance options that can enable First Nations to borrow the funds to buy, build or renovate a home of their own:

1. Loan Insurance with a Ministerial Loan Guarantee. This loan insurance option may assist First Nation members living on reserve in accessing financing for the construction, purchase and/or renovation, of housing. First Nation members must be able to obtain a Ministerial Loan Guarantee (MLG) from the Minister of Aboriginal Affairs and Northern Development.
2. Leasehold Market Housing On-Reserve. This loan insurance option may assist First Nation members in accessing financing for the construction, purchase and/or renovation, of leasehold market housing on- reserve (e.g. designated lands). First Nation members must be able to obtain a Ministerial Loan Guarantee (MLG) from the Minister of Aboriginal Affairs and Northern Development. An MLG is not required in cases where First Nation members are able to provide a minimum 10 percent down payment from one of the following sources: cash savings, withdrawal from the borrowers Registered Retirement Savings Plan (RRSP), proceeds from the sale of another property.
3. CMHC Insurance for Loans Facilitated Through the First Nations Market Housing Fund (FNMHF). Eligible First Nation members who wish to buy, build or renovate a home on-reserve may obtain a CMHC-insured housing loan from an Approved Lender designated as an eligible lender by the FNMHF. The First Nation must also be qualified by the FNMHF and agree to provide a guarantee for the members’ housing loans. For more information about the FNMHF visit www.fnmhf.ca.

Eligibility for CMHC’s On-Reserve Loan Insurance options may require prior participation from the First Nation. As well, First Nation borrowers must also be able to satisfy the Approved Lender financing requirements including, for example, minimum down payment requirements and be able to support repayment of the loan.

For more information on CMHC’s On-Reserve Loan Insurance options, or for information on any other aspect of owning, maintaining or buying a home, visit our web site at www.cmhc.caor call CMHC at 1-800-668-2642. For more than 65 years, Canada Mortgage and Housing Corporation (CMHC) has been Canada’s national housing agency and a source of objective, reliable housing expertise.

Photo Courtesy of Steve F

 detached garages, driveways, pools fences, etc.) and easements, which are certain rights others have to access that part of the property. (An easement may exist so that utility [...]]]> A property survey is a map of the property showing the specific location of the property line and any structures, (houses, sheds,

Photo Courtesy of Steve F

 detached garages, driveways, pools fences, etc.) and easements, which are certain rights others have to access that part of the property. (An easement may exist so that utility contractors can provide service to the surrounding areas.)

The first survey of your house was done when it was built, and as long as no new structures have been added to the property, it is still valid.

A property survey is important. Before you purchase your property you can inspect the survey to see if there are encroachments on your property, and ask the seller to correct any that exist. Your bank will often require seeing a valid survey as part of the conditions of their loan. You will need a valid survey if you are planning on an addition or any other major renovations to your property.

Title insurance does not replace a survey, as they often do not cover all the deficiencies a survey will reveal. If you are buying from a builder, the survey is the only method to ensure you are buying the actual house you wanted, and not the one next door.

A seller does not legally have to provide a survey to the buyer as long as they provide the legal description of the property, but it is still good to have the survey. If you buy your property with me, I will always make providing a valid survey part of the agreement.