New, Tougher OSFI Rules Coming In 2018!

October 17th, 2017

New OSFI rules taking effect January 1, 2018.

OSFI is setting a new minimum qualifying rate, or “stress test,” for uninsured mortgages:

Guideline B-20 now requires the minimum qualifying rate for uninsured mortgages to be the greater of the five-year benchmark rate published by the Bank of Canada or the contractual mortgage rate +2%.

OSFI is requiring lenders to enhance their loan-to-value (LTV) measurement and limits so they will be dynamic and responsive to risk:

Under the final Guideline, federally regulated financial institutions must establish and adhere to appropriate LTV ratio limits that are reflective of risk and are updated as housing markets and the economic environment evolve.

OSFI is placing restrictions on certain lending arrangements that are designed, or appear designed to circumvent LTV limits:

A federally regulated financial institution is prohibited from arranging with another lender a mortgage, or a combination of a mortgage and other lending products, in any form that circumvents the institution’s maximum LTV ratio or other limits in its residential mortgage underwriting policy, or any requirements established by law.

Prices Stable, Sales Down and Supply Up In The GTA!

October 17th, 2017

On a year over year basis, the average sales price at the end of September 2017 was up by 2.6% compared to September 2016 ($775,546 vs $756,021). However, the number of sales was down (6,379 vs 9,830) and supply was up (16,469 new listings vs 15,050 new listings) compared to the month of September 2016. Given supply has been high recently and demand has been falling, we may very well see prices fall slightly this Fall and Winter.

Supply Up, Demand Down In July 2017

August 14th, 2017

Demand and number of sales down, supply up and prices up in July 2017 (compared to July 2016). After a strong Q1 2017, many homeowners are selling to take advantage of high prices. Buyers, however, are taking a break to see if prices will come down. Eventually buyers will re-enter the market to scoop up all the excess listings and the market will finally stabilize.

Prices Up 33.2%!!!

April 23rd, 2017

The trend continues ladies and gentlemen. The demand is simply outweighing supply and prices are continuing to soar. The average sales price in March 2017 was $916,567 which is 33.2% higher than March 2016 (which was $688,011). Number of sales in March 2017 increased to 12,077 from 10,260 in March 2016 (an increase of 17.7%).

With our population set to double over the next 20 years, land will remain scarce and prices will continue to increase.

Toronto 2016 Numbers Are Out…Another Record Year!

January 17th, 2017

No surprise here. The number of sales in Toronto increased from 101,213 (for the year of 2015) to 113,133 (for the year of 2016) which is an annual increase of 11.78%. At the end of 2016, the average sales price in the GTA was $729.922 which is up from $622,121 in 2015.

It’s worth noting that a recent study was done to measure the amount of foreign real estate transactions in the GTA over the past year (from September 2015 to September 2016). Less than 5% of real estate transactions involved a foreign party which shows that FOREIGN BUYERS ARE NOT THE MAIN CAUSE FOR TORONTO’s INCREASING REAL ESTATE MARKET.