When comparisons are made with 2007 prices, the base level of the new housing price index, it becomes clear that prices in the Vancouver market have risen by a meager 0.1% on the month and are actually down 0.9% than the previous year’s figures.
Toronto, Ontario (PRWEB) August 14, 2012
Comparing the housing industry stats from the past year and data collected during the previous month, mortgage expert and CEO of Syndicate Mortgages, Marcus Arkan, has put forth a concrete analysis of the current situation for Canada mortgage rates and how they can affect borrowers during the next quarter.
Stats are released by financial institutions including the Bank of Canada, the Real Estate Board of Toronto and survey firms including Royal LePage and Urbanation. Major news sources including CBC and Huffington Post confirm that the aggressive Toronto housing market had helped push up the price of homes by 0.3% before the government announced its tighter mortgage rules. These figures, however, cover only single-family homes, not condominiums and multi-unit apartments. The concerns of a possible housing market bubble were fueled by the bullish housing market of Toronto, particularly its condominium sector.
As a mortgage expert with years of experience in the industry, Mr. Arkan agrees with economists from the Bank of Canada who assert that the housing market and high household debt might be the two biggest domestic risks to Canada's financial outlook. Royal LePage Real Estate survey states that the Canadian market seems to be at a tipping point, considering housing prices could not grow faster than salaries and the core economy.
According to Royal LePage Report, the housing market of Canada saw a price increase of 2.4% this year, which is a slight decrease from last year’s 2.5%. Toronto-Oshawa saw an increase of 5.5% in its real estate prices over the year.
The price rises in Vancouver market can also be of concern to the authorities. Regina, Saskatchewan, is also up by 54%. Analyzing these eye-opening stats as calculated and verified by both the Royal LePage and the Bank of Canada, Mr. Arkan said, “When comparisons are made with 2007 prices, the base level of the new housing price index, it becomes clear that prices in the Vancouver market have risen by a meager 0.1% on the month and are actually down 0.9% than the previous year’s figures.”
Under the new rules that went into effect, borrowers will be able to use up to 80% of their property’s worth as collateral for home-equity loans; this figure is down from 85%. Also, the maximum amortization period has been reduced to 25 years from 30 years for government-insured mortgages. Flaherty also asserted that government-insured mortgage will be limited to homes with an acquisition price of less than $1 million.
Concluding the analysis of latest stats, Mr. Flaherty said, “The changes are supposed to cool down Canada’s housing industry. However, current stats suggest that the market was already beginning to cool down without any intervention, so it may be some time before the compound effect of these changes will become noticeable.”
For more news and information regarding Canada mortgage rate and housing market, please visit the website http://www.syndicatemortgages.com/.
About Syndicate Mortgages Inc.
Syndicate Mortgages Inc. is one of the leading Canadian mortgage brokerage firms. Founded in 2008 in Ontario, the company specializes in residential, commercial and construction financing across Canada. With years of experience and expertise in the mortgage industry, and access to an array of lending institutions across Canada, Syndicate is known for finding the best mortgage rates for their customers. Syndicate has branch locations across Canada. For contact, please use the following details.
Syndicate Mortgages Inc.
Toll Free: (888) 646-1062