Disclosure of Representation in Trading Services Form – Overview

Disclosure of Representation in Trading Services Form – Overview

This video is an overview of of the Disclosure of Interest in Trading Services Form. We believe you should have as much information as possible to be informed about your relationship with your Realtor and the responsibilities and duties that you are owed. Please watch the video and contact your Real Estate Agent with any questions you may...

New Mortgage Rules Making Big Waves

We have a little over a month before Canada’s Banking Regulator launches the new controversial mortgage stress test. It’s aimed squarely at those who carry a heavier debt-load and more than 20% equity. Looking at where Canada’s home prices and debt levels are, this is quite clearly the most significant mortgage rule change to date. Uninsured borrowers can qualify today for a five-year fixed rate as low as 2.97%. In a little over 30 days that will jump to nearly 5%. If the changes affect you, you could need upward of 20% more income to qualify for the same mortgage that you could get today. Approximately one in six uninsured borrowers could feel the effects of these new rules based on the Bank of Canada estimates of “riskier borrowers” and predictions from industry economists. Those affected could be forced to defer buying, pay higher rates, find a co-borrower and/or put more money down to qualify. Why are the rules changing you ask? Well, forcing people to prove they can afford much higher rates will substantially increase the quality of borrowers in Canada’s banks. The Office of the Superintendent of Financial Institutions (OSFI) argues that this will insulate our banking system from economic shifts, which, if they’re correct, is a good thing. Many buyers with higher debt, relative to income, will resort to higher-cost lenders who allow more flexible debt ratio limits. At the very least, more borrowers will choose longer amortization periods and take longer to pay down their mortgage. Non-prime lenders will become pickier because they’ll see an influx of formerly “bankable” borrowers who are now being declined...

CREA Updates and Extends Resale Housing Forecast

Fri, 03/13/2015 – 08:58 Ottawa, ON, March 13, 2015 – The Canadian Real Estate Association (CREA) has updated its forecast for home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards and Associations for 2015 and extended it to 2016. The further decline in oil prices since CREA’s last forecast has shaken consumer confidence in the Prairies, pushing potential homebuyers to the sidelines and prompting more homeowners to put their home on the market. This has led to a rapid shift in market balance in Alberta, and to a lesser extent, Saskatchewan. Annual sales in these provinces are expected to come in well below elevated levels posted last year, with small declines in average residential prices in 2015. Additionally, the Canadian dollar has weakened further against the U.S. dollar, mortgage rates have declined and the U.S. economy has strengthened since CREA’s last forecast, which taken together are expected to benefit economic and job growth in other provinces. Accordingly, CREA has upwardly revised its forecast for sales activity for much of the rest of the country. The balance between supply and demand continues to tighten in British Columbia and Ontario. These are the only two provinces where tight supply relative to demand is expected to result in average price gains that surpass inflation this year. By contrast, average prices in Quebec and the Atlantic region are expected to remain relatively stable, as sales deplete elevated levels of supply. On balance, the forecast for national sales has been revised lower, reflecting downward revisions to the outlook for sales in Alberta. National sales are now projected to...

Bank of Canada keeps rates on hold

Thu, 03/05/2015 The Bank of Canada announced on March 4th, 2015 it was keeping its trend-setting overnight lending rate at 0.75 per cent. Six weeks earlier, the Bank surprised markets by cutting the rate by a quarter of a percentage point as insurance against economic damage from the drop in oil prices. The Bank of Canada announced on March 4th, 2015 it was keeping its trend-setting overnight lending rate at 0.75 per cent. Six weeks earlier, the Bank surprised markets by cutting the rate by a quarter of a percentage point as insurance against economic damage from the drop in oil prices. In its March announcement, the Bank was upbeat about recent and further expected strength from exports and investment. Only time will tell to what extent these factors offset economic fallout from lower oil prices, so speculation remains as to whether the Bank will cut interest rates again later this year. As of March 4th, 2015, the advertised five-year lending rate stood at 4.74 per cent, down 0.05 percentage points from the previous Bank rate announcement on January 21st, and down 0.25 percentage points from one year ago. The Bank’s next interest rate announcement is on April 15th, when it also releases its updated economic forecast. At that time and barring some unforeseeable economic calamity, it will keep rates steady rather than cutting them further. (CREA...

Oil shocks Bank of Canada into surprise rate cut

Wed, 01/21/2015 In a surprise move, the Bank of Canada announced on January 21st, 2015 that it was lowering its trend-setting overnight lending rate from 1 per cent to 0.75 per cent. This marks the first change to the Bank’s key interest rate in more than four years. In a surprise move, the Bank of Canada announced on January 21st, 2015 that it was lowering its trend-setting overnight lending rate from 1 per cent to 0.75 per cent. This marks the first change to the Bank’s key interest rate in more than four years. The decision to cut rates was the result of the recent sharp drop in the price for oil, which the Bank said “will be negative for [economic] growth and underlying inflation in Canada.”The Bank’s new Canadian economic forecast assumes that oil prices will average around US$60 per barrel, which means the Bank believes oil prices will rise from the mid-to-high $40 range where they stood at the time of the announcement. The Bank said that total CPI inflation was already starting to reflect lower oil prices and that inflation was expected to drop below the lower bound of its target range for inflation of between one and three per cent before returning to the target range in the fourth quarter of this year. “This points to interest rates staying lower over the rest of the year,” said Gregory Klump, CREA’s Chief Economist. The Bank said “the oil price shock is occurring against a backdrop of solid and more broadly-based growth in Canada in recent quarters. Outside the energy sector, we are beginning to see the...