News Articles - Archive | Kelleway Mortgage Architects

Housing Starts: "July’s seasonally adjusted annual rate of urban starts decreased 14.8 per cent in British Columbia,
2.6 per cent in Ontario, and 0.4 per cent in Quebec. Urban starts increased 37.7 per cent in the Atlantic
Region and 14.4 per cent in the Prairie Region."

CMHC Monthly Housing Statistics
Canada Mortgage and Housing Corporation
Press Release dates: July 2010 and August 10, 2010

"If Carol works to age 65, she would be eligible for what might be 80% of maximum Canada Pension Plan benefits, currently $11,210 a year. That would provide $8,968 a year. She will also be eligible for full Old Age Security benefits of $6,222 a year. Both amounst are indexed and taxable. To her current RRSP balance of $80,900, she adds $200 a month plus a $4,000 lump sum from her husband, from whom she is separated. If these numbers continue, with 3% average annual real growth, she will have a balance of $357,300 at her age 65, Mr. Moran estimates."

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Single mom worries she won't save enough to retire
by Andrew Allentuck, Financial Post
August 20, 2010

"The Bank of Canada on Tuesday became the first G7 central bank to raise interest rates since July 2008, hiking its key overnight lending rate one-quarter of a percentage point to 0.5 per cent in a long-anticipated move aimed at keeping Canada's recovering economy from overheating."

Rate bump not necessarily a harbinger of hikes to come:

Uncertainty over global economy might ease pressure for future interest rate increases
by Derrick Penner, Vancouver Sun
June 2, 2010

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House prices to fall in 2011: economists
Sunny Freeman, The Canadian Press, Toronto
June 3, 2010

"The once white hot resale housing market is cooling significantly and prices should remain flat the rest of this year and fall in 2011, economists say."

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CMHC: May Housing Starts
Daily Commercial News and Construction Record
Wired In: Connecting the Canadian Construction Industry
Real Estate - June 8, 2010, Ottawa

"The seasonally adjusted annual rate of housing starts was 189,000 units in May according to Canada Mortgage and Housing Corporation (CMHC), down from a revised 201,800 units in April."

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ATTENTION: BC Property Taxes are due July 2, 2010
See linked example of how to sign up for preauthorized monthly instalments
Maple Ridge, BC - June 2010

Property taxes are coming due on July 2, 2010. Now is the time to review whether:

1) your lender is paying your property taxes on your behalf (i.e., review your mortgage statement), or
2) if you are paying your taxes by annual lump sum (i.e., see your property tax assessment & statement), or
3) if you are paying by pre-authorized monthly instaments through your municipal tax office (i.e., see your property tax statement).

PLEASE NOTE: Regardless of which option you are using to pay your property taxes, you will still need to apply directly to the municipal tax office for any homeowner grants for which you are eligible. BC eligibility for homeowner grants differ from Alberta.

Kelleway Mortgage Architects usually recommends option (3) if you are able to pay by pre-authorized monthly instaments through your municipal tax office.

Each municipality has its own policies and procedures for signing up to pay property taxes by pre-authorized monthly instalments. For your reference, here is an example of a notice provided by the Maple Ridge, BC, municipality. Check with your own municipality tax office and ask if they provide a similar program. Normally, you will need to sign up for pre-authorized payments within 1 to 2 months after your property tax due date or at the time you purchase a property.

PDF Link to notice

Canadians have mortgages on their minds: survey
by TNS Newswire (Research International, Kantar consultancy network)
Toronto, ON (May 5, 2010)

"In spite of some softness in April, consumer confidence has risen considerably over the quarter and is now higher than it has been since the downturn began in the fall of 2008." - Brook Tyler, research director of TNS Canadian Facts

"Key findings from the 2010 survey: 1) The internet, an important tool for mortgage consumers; 2) First-time buyers get informed on mortgage options; 3) Mortgage broker share is stable; and, 4) Mortgage consumers are confident with homeownership"

2010 Mortgage Consumer Survey
CMHC report
April 23, 2010

"The Bank now projects that the economy will grow by 3.7 per cent in 2010 before slowing to 3.1
per cent in 2011 and 1.9 per cent in 2012."

Bank of Canada maintains overnight rate target at 1/4 per cent; removes conditional commitment
by Bank of Canada, Jeremy Harrison
April 20, 2010

"Alex Haditaghi, Chairman and Founder of Pacific NA, and Bob Ord, CEO of Mortgage Architects, are pleased to announce that Pacific NA has acquired myNext Lending Corp., which includes national mortgage brokerage Mortgage Architects and myNext Mortgage Company."

myNext Lending Corp. and Mortgage Architects vault into virtual bank capability

by Press Release
Toronto, ON (March 30, 2010)

CAAMP March 2010 Update on Canadian government policy changes

letter by Hali Standlund, Chair and Jim Murphy, President & CEO
March 2010

"Canadian government recent policy changes affecting the residential mortgage market include: 1) mortgage insurance and risk assessment, 2) prepayment penalties, 3) bonds as a funding source for mortgages, 4) credit unions to incorporate federally, and 5) impact of GST/HST tax exemption on financial services."

"Canadian housing starts dipped in March as an increase in construction in single-family homes was offset by a decline in condo starts, the Canada Mortgage and Housing Corp. said."

Canadian housing starts dip in March

by QMI Agency
April 12, 2010

"Finance Minister Jim Flaherty has announced new rules aimed at preventing homebuyers from getting into financial difficulty when mortgage rates rise."

Flaherty tightens mortgage taps
by CBC News
February 16, 2010

"In stark contrast to the Greek budget tragedy unfolding in Europe, Canada is expected to forecast a deficit of less than 3 percent
of gross domestic product, the lowest of any Group of Seven nation."

Bay Street - Canada due for "boring is beautiful" budget
by Thomson Reuters Deal Analytics
February 28, 2010

"As the housing industry begins to rebound, about two-thirds of builders expect single-detached house prices will increase during the year."

Buyer confidence, home sales rising
by Marty Home, Calgary Herald
February 27, 2010

"The global economic recovery is under way, supported by continued improvements in financial conditions and stronger domestic demand growth in many emerging-market economies."

Bank of Canada maintains overnight rate target at 1/4 per cent and reiterates conditional commitment to hold current policy rate until the end of the second quarter 2010
by Jeremy Harrison, Bank of Canada Press Release
January 19, 2010

Homebuilding poised for revival: Developers are moving ahead from a dismal 2009, with CMHC forecasting 13, 000 starts this year
by Derrick Penner, Vancouver Sun
January 22, 2010

"It's not so much a new building boom, though, as a crawl up from the dismal bottom of 2009, which saw builders start work on just 8,339 new homes in Metro Vancouver as counted by Canada Mortgage and Housing Corp."

"...suggests that Canadian mortgage lenders and borrowers, including first time home buyers, are being extremely prudent with their borrowing and lending."

Press: Research shows Canadian mortgage market can manage risks
by Renee Mellow and Jim Murphy, CAAMP Press Release
January 14, 2010

"The movement towards savings accounts is a trend that began surfacing last year as Canadian investors have become more conservative in their risk tolerance, and are perhaps waiting for an opportune time to lock in their money,"" said Mr. Pyle [Wealth Advisor, ScotiaMcLeod]"

Current Economy Continues to Shape Canadian Investor Behaviour: Scotiabank Study
a Scotiabank study
January 4, 2010

"Mr. Flaherty sat down with the Financial Post's Paul Vieira a few days before 2009 ended to talk about what lies ahead for the Canadian economy–expected to lead the G7 in growth in 2010 –in the coming decade."

Stay the course
by National Business, Canwest News Service
January 2, 2010

"How can average folks possibly know whether to buy or sell, invest or save, borrow or hunker?"

El predicto
by Garth Turner, HoweStreet.com
December 31, 2009

Canada to lead G7 growth in 2010: RBC
by Tavia Grant, Globe and Mail Update
December 14, 2009

"Stimulus spending, improving credit conditions and consumer spending will be the main drivers of growth,
the bank [RBC] said, with Saskatchewan leading the country's economic expansion next year."

CMHC - Housing Now: BC Region
by CMHC Market Analysis Centre
Fourth Quarter 2009

"Developers have been taking a more cautious approach to the housing market this year, delaying some large projects due to global financial uncertainty, a slower rate of new housing absorption and a rising inventory of newly completed and yet to be sold homes."

CAAMP - Stats December 2009
Website - Canadian Association of Accredited Mortgage Professionals
www.caamp.org

$US - $CAD Exchange Rate, Government of Canada Bonds, Housing Starts & Completions and Average MLS resale prices.

Bank of Canada Overnight Rate Announcement
Press Release
December 8, 2009

"Bank of Canada maintains overnight rate target at 1/4 per cent and reiterates conditional commitment to hold current policy rate until the end of the second quarter of 2010."

PDF Links to articles

CMHC - The Provincial Outlook
by Carol Frketich, BC Regional Economist
November 9, 2009

15th Annual Housing Outlook Conference - Vancouver, attended by Glen Kelleway

PDF Link to presentation

CMHC - Vancouver Housing Outlook
by Robyn Adamache, Senior Market Analyst
November 9, 2009

15th Annual Housing Outlook Conference - Vancouver, attended by Glen Kelleway

PDF Link to presentation

CMHC - Canada's Economic Action Plan
Website - Canada Mortgage and Housing Corporation
http://www.cmhc.ca/en/co/buho/buho_008.cfm?chsi=de

"Canada's Economic Action Plan Offers Incentives for Homeownership"

PDF Link to webpage

Mortgage Interest as a Deduction in 2009 - dealing with GAAR (General Anti-Avoidance Rule)
David Ingram's US/Canada Tax Services
October 21, 2009

"I first conceived of this method in 1975/76 when a client of mine had a rental duplex and had a tenant who was injured in a car accident."

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Octogenarian loan applicant gets boost from ombudsman
The Toronto Star, thestar.com
by Ellen Roseman, Personal Finance Columnist
October 21, 2009

"Seniors are living longer and becoming more educated, forcing bankers to think outside of the box."

CMHC's growth fuels worries over new risks
The Globe Advisor.com, October 17, 2009
by Boyd Erman and Tara Perkins

"For the second time since the beginning of 2008, Ottawa has raised the amount of mortgage insurance CMHC
can have outstanding. The increase moves the cap to $600-billion, up from $450-billion and nearly double the
$350-billion limit in place at the end of 2007."

Lenders tighten on condo mortgages
mortgage brokerNews.CA, CMHC
October 5, 2009

"Condo buyers are facing stricter lending guidelines, dropping values (especially for in-construction buildings) and, if they're self-employed or buying for investment purposes, new rules and restrictions."

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CAAMP Stats - October 2009 Issue
Press Release: Canadian Association of Accredited Mortgage Professionals (CAAMP)
October 2009

Housing starts are down across Canada but sales and housing prices are on the rise.

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Mythical Creatures of the Housing Market
Mortgage Journal - October 2009
by William Dunning, Chief Economist for CAAMP

"I've often heard of "demographic demand for housing" and "balanced housing markets" but I can't recall seeing them..."

PDF Link to articles

Bank of Canada maintains overnight rate target at 1/4 per cent and reiterates conditional commitment to hold current policy rate until the end of the second quarter of 2010
Press Release: Bank of Canada
September 10, 2009

"Global economic and financial developments have been broadly in line with the Bank's expectations."

A rebuilt Wall Street
LA Times editorial
September 15, 2009

``It's hard to measure how much those [government]actions helped, just as it's hard to deny that things would have been considerably worse had Congress, the Treasury Department and the Federal Reserve not gone to extraordinary lengths to restore the credit markets."

With mortgage rates dropping, it's strategy time
The Globe and Mail
September 14, 2009

"Fixed-rate mortgages declined a little last week, but the most dramatic changes can be seen in variable-rate
mortgages."

Let the Healing Begin
The Globe and Mail
September 1, 2009

"Pessimism gives way to optimism as four industry experts see signs of a gradual - though slow - recover in buying, selling and leasing"

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Canada Loans Rebound as Government Pares Liquidity (Update1)
Bloomberg.com by Greg Quinn
September 1, 2009

``Canadian household and corporate borrowing rebounded in the second quarter, spurred by lower interest rates, while the federal government scaled back borrowing related to emergecy credit programs."

CAAMP Stats August 2009
Canadian Association of Accredited Mortgage Professionals
July-August 2009

Highlights: Nationally housing starts are down, average MLS resales vary by province, and housing prices started to climb in the second quarter compared to the first quarter.

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Bank of Canada maintains overnight rate target at 1/4 per cent...
Canada Mortgage and Housing Corporation (CMHC)
July 21, 2009

"The Bank Rate is unchanged at 1/2 per cent and the deposit rate is 1/4 per cent."

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Sales of existing homes in Canada jumped 31.5%...
Reuters
Friday, July 17, 2009

``...consumers are venturing back into the home market, encouraged by low mortgage rates and signs that the worst of the recession is over."

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Is economic worst now behind us?
Marty Hope, Calgary Herald
July 18, 2009

"From a housing perspective, things have been turning around for the past two or three months."

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Home Maintenance Schedule: Regular Maintenance is the Key
CMHC - About Your Home - General Series
July 2009

"Inspecting your home on a regular basis and following good maintenance practices is the best way to protect your investment in your home."

PDF Link to this article

2009 Mortgage Consumer Survey - First-time Buyers Increase Their Use of Mortgage Brokers
Canada Mortgage and Housing Corporation (CMHC)
June 2009

"Most notably, broker share among first-time buyers has increased to 44%, up from 35% in 2007."

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Government of Canada Helps to Improve Affodability and Choice
Press Release: Office of Minister Finley
Ottawa, Ontario, Canada, June 23, 2009

"``...today announced 17 new grants that will improve housing affordability for Canadians. The grants, totalling more than $84,000, are being awarded under CMHC's Affordability of Choice Today (Act) Initiative."

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CANADA FINANCE - Canada bank rules don't fit U.S. Model --experts
Reuters, Thursday, May 25, 2009
guardian.co.uk

"Elliott said it was easier to set up a regulatory regime for Canada, with just five major banks, than inthe United States, where many more banks are involved. And he suggested cultural differences benefited Canadian regulators."

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CAAMP Stats April 2008 compared to April 2009
Canadian Association of Accredited Mortgage Professionals (CAAMP)
June 3, 2009

Average MLS resale prices are down from April 2008 to April 2009 as follows: Vancouver (-8.17%), Victoria (-7.9%), Edmonton (-7.36%) and Calgary (-10.15%). On the more positive side, the top four incentives for first-time home buyers (FTHB) to purchase are: lower housing prices, low interest rates, the FTHB tax credit and job security.

PDF Links to full article

Budgetary deficit of $3.6 Billion in March
National: Release of the Fiscal Monitor
Department of Finance, Canada, May 29, 2009

"This year-over-year difference reflects $55.0 billion in initial purchases of insured mortgage pools through Canada Mortgage and Housing Corporation under the Insured Mortgage Purchase Program, as well as the Budget 2007 announcement that the Government would meet all of the borrowing needs of Canada Mortgage and Housing Corporation, the Business Development Bank of Canada and Farm Credit Canada through direct lending."

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Genworth Files for Canadian Mortgage Insurer IPO (Update2)

Bloomberg.com, May 29, 2009, updated June 3, 2009
New York

"Genworth Financial Inc., the insurer that failed to get a U.S. bailout, filed a plan to sell as much as 49 percent of its Canadian mortgage guarantor in an initial public offering."

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CMHC: April
New Home Construction in Vancouver
PR-USA.Net, Thursday, May 14, 2009

"Fewer multiple unit and single detached homes started construction in the first four months of the year....Builders will remain on the sidelines until some of the existing new and resale supply is absorbed."

Statistics Canada: Ottawa
New home prices decline in March
Financial Post, May 11, 2009

"The biggest price declines in March were in Calgary and Edmonton, with prices falling 1.2 per cent in
both cities. Vancouver saw a 1.1 per cent decline and Victoria was down 0.9 per cent, the federal
agency said."

Dollar rises after news of job gain in April
The Canadian Press, May 9, 2009
Toronto

"Yesterday's upward move came after Statistics Canada reported the economy added 35,900 jobs last month -- confounding economist expectations that losses would continue for a sixth month, likely by 50,000."

Spring rally won't last, realtors say
Globe & Mail, Report on Business, May 6, 2009
Virginia Galt

Mr. Soper agreed that the spectre of rising unemployment is a concern. However, prospective home
buyers tend to be more greatly influenced by low interest rates and improved affordability when it
comes to making purchasing decisions, he said. Low interest rates and softer prices spurred an
increase in the volume of Canadian home sales in February, March and April and - after a typical
summer slowdown - will likely result in increased sales activity again in the fall, Mr. Soper
predicted.

More banks lower residential mortgage rates
The ChronicleHerald, April 28, 2009
The Halifax Herald Limited

"TORONTO (CP) — More Canadian banks lowered their mortgage rates on Monday following
a historic rate cut last week by the Bank of Canada."

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Building value in the net-zero home: Actually saving money has been considered the last hurdle for the green movement, which got sideswiped by the economic crisis
Financial Post, April 26, 2009
by Janet Whitman

"A number of states allow "net metering," in which homeowners can receive money for selling excess
energy back to the utility grid. Most Canadian provinces haven’t come on board with this, although
Ontario and British Columbia are the exceptions."

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Bank of Canada lowers overnight rate target by 1/4 percentage point to 1/4 per cent and, conditional on the inflation outlook, commits to hold current policy rate until the end of the second quarter of 2010
Bank of Canada press release, April 21, 2009
by Jeremy Harrison

"While more aggressive monetary and fiscal policy actions are underway across the G20,
measures to stabilize the global financial system have taken longer than expected to enact. As a result, the
recession in Canada will be deeper than anticipated, with the economy projected to contract by 3.0 per cent in
2009. The Bank now expects the recovery to be delayed until the fourth quarter and to be more gradual. The
economy is projected to grow by 2.5 per cent in 2010 and 4.7 per cent in 2011, and to reach its production
capacity in the third quarter of 2011."

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Overpriced and Overbuilt: Canadian Housing Market Returns to Fundamentals
TD Economics, Special Report, April 7, 2009
by Grant Bishop, Economist, and Pascal Gauthier, Economist

Looking back on the boom in Canadian homebuilding from 2002 to 2008, it is now clear that unsustainable price increases drove unsustainable levels of building. This overbuilding will weigh on markets over at least the next three years.

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Lenders must be careful who they provide mortgages to: B.C. Court of Appeal
Vancouver Sun, April 7, 2009
by Fiona Anderson

Homeowners can rest easier, but lenders may be scrambling, as British Columbia's highest court rules in favour of the owners and leaves lenders holding the bag when someone fraudulently takes out a mortgage on property they don't own.

PDF Link to full article

Banks begin to decline federal aid in first sign of recovery
Credit conditions easing, banks no longer struggling to raise funds to make loans
From Tuesday's Globe and Mail

March 17, 2009 at 2:00 AM EDT

by Tara Perkins

"Canadian banks are turning down some of the funding that the government is making available to them, a sign that they are recuperating from the financial crisis."