Ontario Passes Real Estate Legislation, Which Brings in New Laws to Tackle Housing Affordability.


Ontario passes real estate legislation

The Ontario government has passed its Budget Measures Act which brings in new laws to tackle housing affordability.

The measures include a 15 per cent non-resident speculation tax targeting certain foreign buyers in the Greater Golden Horseshoe, including corporations and trusts.

The tax applies to all residential properties bought in the region from April 21 2017 but there will be rebates for those who become permanent Canadian residents within 4 years of purchase, who work in Ontario for a continuous 12 month period following purchase, and for foreign students subject to conditions.

“Our government is working to make life more affordable for everyone in Ontario,” commented Charles Sousa, Ontario’s finance minister, following the passing of the act Thursday. “This legislation will help to both address the recent price increases in our housing market.”

The lawmakers also passed legislation to reduce the cost of public transit for seniors.

Source: Canadian Press, Repmag

https://gtarealtyagent.wordpress.com/2017/06/02/ontario-passes-real-estate-legislation-which-brings-in-new-laws-to-tackle-housing-affordability/

The Bank of Canada is sticking with its trendsetting interest rate of 0.5 per cent, saying uncertainties continue to overshadow the economy’s stronger-than-expected start to the year.


Bank of Canada makes interest rate announcement

The Bank of Canada is sticking with its trendsetting interest rate of 0.5 per cent, saying uncertainties continue to overshadow the economy’s stronger-than-expected start to the year.
In explaining its decision Wednesday to hold the rate, the central bank once again highlighted weak wage growth and the softening rate for underlying inflation as examples the economy still has room for improvement.

The bank’s scheduled rate announcement comes after it raised its 2017 growth projection last month following a surprisingly healthy start to the year in areas such as employment, consumer spending and the housing markets. In Wednesday’s statement, the bank added better business investment numbers to the list.

“Recent economic data have been encouraging,” the bank said.

“Consumer spending and the housing sector continue to be robust on the back of an improving labour market, and these are becoming more broadly based across regions.”

The bank’s statement, however, also predicted that the “very strong growth” over the first three months of the year will be followed by some moderation in the second quarter, even though at the same time it expects the U.S. economy to rebound.

Analysts had widely predicted governor Stephen Poloz to keep the rate locked at its very low level of 0.5 per cent, as significant unknowns underlined by the bank in the past continue to swirl around the U.S. agenda on trade and taxation.

“The uncertainties outlined in the April (monetary policy report) continue to cloud the global and Canadian outlooks,” said the bank, without making any specific mentions this time about the potential policy path of Canada’s largest trading partner.

With no monetary policy report released Wednesday, observers will scrutinize the commentary in the bank’s one-page statement for clues about its thinking on the trajectory of the economy.

The bank’s statement also said while recent government policy measures on real estate have contributed to more sustainable outlooks for household debt, the rules have yet to have a substantial cooling effect on hot housing markets.

On core inflation, the bank noted that recent readings for its three measures, which reduce the influence of some more volatile consumer items like gasoline, have stayed below its ideal target of two per cent. That signals the entire economy has yet to catch up to the recent momentum.

by The Canadian Press | May 24, 2017

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The Ontario government has announced 16 new housing measures, in a comprehensive housing package aimed at cooling a red-hot real estate market on Today


The Ontario government has announced 16 new housing measures, what it calls a comprehensive housing package aimed at cooling a red-hot real estate market on Thursday. 

Here are those 16 proposed measures:

  • A 15-per-cent non-resident speculation tax to be imposed on buyers in the Greater Golden Horseshoe area who are not citizens, permanent residents or Canadian corporations.
  • Expanded rent control that will apply to all private rental units in Ontario, including those built after 1991, which are currently excluded.
  • Updates to the Residential Tenancies Act to include a standard lease agreement, tighter provisions for “landlord’s own use” evictions, and technical changes to the Landlord-Tenant Board meant to make the process fairer, as well as other changes.
  • A program to leverage the value of surplus provincial land assets across the province to develop a mix of market-price housing and affordable housing.
  • Legislation that would allow Toronto and possibly other municipalities to introduce a vacant homes property tax in an effort to encourage property owners to sell unoccupied units or rent them out.
  • A plan to ensure property tax for new apartment buildings is charged at a similar rate as other residential properties.
  • A five-year, $125-million program aimed at encouraging the construction of new rental apartment buildings by rebating a portion of development charges.
  • More flexibility for municipalities when it comes to using property tax tools to encourage development.
  • The creation of a new Housing Supply Team with dedicated provincial employees to identify barriers to specific housing development projects and work with developers and municipalities to find solutions.
  • An effort to understand and tackle practices that may be contributing to tax avoidance and excessive speculation in the housing market.
  • A review of the rules real estate agents are required to follow to ensure that consumers are fairly represented in real estate transactions.
  • The launch of a housing advisory group which will meet quarterly to provide the government with ongoing advice about the state of the housing market and discuss the impact of the measures and any additional steps that are needed
  • Education for consumers on their rights, particularly on the issue of one real estate professional representing more than one party in a real estate transaction.
  • A partnership with the Canada Revenue Agency to explore more comprehensive reporting requirements so that correct federal and provincial taxes, including income and sales taxes, are paid on purchases and sales of real estate in Ontario.
  • Set timelines for elevator repairs to be established in consultation with the sector and the Technical Standards & Safety Authority.
  • Provisions that would require municipalities to consider the appropriate range of unit sizes in higher density residential buildings to accommodate a diverse range of household sizes and incomes, among other things.

Source: The Canadian Press – April 20, 2017

Speculating:Ontario government will place a 15-per-cent tax on non-resident foreign buyers as part of a much-anticipated package of housing measures to be unveiled today.


The Canadian Press has learned that the Ontario government will place a 15-per-cent tax on non-resident foreign buyers as part of a much-anticipated package of housing measures to be unveiled today.

The measures are aimed at cooling down a red-hot real estate market in the Greater Toronto Area, where the average price of detached houses rose to $1.21 million last month, up 33.4 per cent from a year ago.

Premier Kathleen Wynne and Finance Minister Charles Sousa have said the measures will target speculators, expedite more housing supply, tackle rental affordability and look at realtor practices.
Sousa says investing in real estate is not a bad thing, but he wants speculators to pay their fair share.
He says the measures will also look at how to expedite housing supply, and he has appeared receptive to Toronto Mayor John Tory’s call for a tax on vacant homes.
Sousa has also raised the issue of bidding wars, and has suggested realtor practices will be dealt with in the housing package.
The Liberals have also said that the government is developing a “substantive” rent control reform that could see rent increase caps applied to all residential buildings or units. Currently, they only apply to buildings constructed before November 1991.

Source: The Canadian Press – April 20, 2017

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The Bank of Canada held its trendsetting interest rate unchanged on Wednesday 12 April, 2017


BREAKING NEWS…April 12, 2017

Bank of Canada announces rate


The Bank of Canada held its trendsetting interest rate unchanged on Wednesday, despite a recent run of stronger-than-expected data, saying it believes the economy has yet to show it can stick to the higher growth trajectory

In holding the rate at 0.5 per cent, the central bank said it also considered significant uncertainties still weighing on its outlook, including the potentially adverse impacts of the U.S. economic agenda.

Canadian growth exceeded the bank’s expectations and it now predicts real gross domestic product will expand at an annual rate of 2.6 per cent in 2017  up from its January forecast of 2.1 per cent.
The recent improvement, it said, was largely fuelled by unexpectedly robust residential investment as well as temporary factors such as the resumption of expenditures in the energy sector and the consumer-spending lift from bigger child-benefit cheques.

However, the bank noted export growth was uneven and that there were signs of weakness in areas like business investment and within underlying employment indicators such as hours worked and wages.

“While the recent rebound in GDP is encouraging, it is too early to conclude that the economy is on a sustainable growth path,”the bank said in a news release that explained its interest rate decision.

TD Bank senior economist Brian DePratto said the bank is attempting to “throw cold water”on discussion that the economy has been improving.

“The growth outlook may be sunnier, but it seems to be all about the negatives for Governor Poloz,”DePratto said in a research note.
“Poloz remains focused on the soft spots in Canadian labour markets and exports, and is not yet ready to declare Canada ‘out of the woods’ when it comes to unevenness in economic growth.”

Beyond 2017, the bank predicted growth will moderate and become more balanced.

It anticipates greater contributions from exports and business investment. The bank also expects the powerful pace of household spending  particularly in residential investment to eventually slow next year as debt levels and borrowing costs rise.

For this year, however, the bank believes hot housing markets in cities like Toronto will help residential investment deliver a “significantly higher” contribution to Canada’s growth performance than it had anticipated in January.

The bank also warned that climbing real estate prices in the Toronto area appear to now be driven, in part, by speculation.
Economic growth, it said, is now expected to expand by 1.9 per cent in 2018, down from the bank’s January forecast of 2.1 per cent, and to hit 1.8 per cent in 2019.

The future, however, looks murky.

The statement said the bank’s governing council was “mindful of the significant uncertainties” faced by the Canadian economy.

In its quarterly monetary policy report, which was also released Wednesday, the bank said its outlook once again factored in some of the effects caused by ongoing unknowns around the potential introduction of U.S. changes, especially in relation to trade and fiscal policies.

With the timing of any U.S. policy changes still unclear, the bank said its base-case projection includes only the estimated impact of 

“prolonged and elevated trade policy uncertainty” on trade and investment in Canada and internationally.
Changes under discussion in the U.S. include the renegotiation of the North American Free Trade Agreement, corporate and personal tax cuts, regulatory easing and a potential border tariff.

The bank said Canadian firms “remain wary” over potential U.S.-related developments that could increase protectionism and reduce competitiveness in the event of corporate tax reductions and regulatory changes.

Due to an expected additional drag on global investment connected to U.S. trade policy uncertainty, the report included slightly lower projections for export growth in 2017 and 2018 compared to the bank’s earlier predictions.
The bank also pointed to the U.S. trade-policy unknowns, and the fact it now expects them to drag on longer than expected, in its decision to revise down its prediction for business investment in 2017.
“A notable increase in global protectionism remains the most-important source of uncertainty facing the Canadian economy,” the bank said.
Source:The Canadian Press

https://gtarealtyagent.wordpress.com/2017/04/12/the-bank-of-canada-held-its-trendsetting-interest-rate-unchanged-on-

Toronto home sales up 18 per cent, prices up by a third, Hot Spring Market


Toronto home sales up 18 per cent, prices up by a third

The heat in the Greater Toronto Area’s housing market shows no signs of slowing with sales increasing year-over-year by 17.7 per cent in March to 12,077.

Toronto Real Estate Board reports that listings were up 15.2 per cent year-over-year to 17,051 with detached homes seeing the biggest gains.

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However, the added supply did not soften prices as high demand and competition between buyers saw the HPI benchmark price rise 28.6 per cent and the average sales price across the TREB area up 33.2 per cent to $916,567.

“Annual rates of price growth continued to accelerate in March as growth in sales outstripped growth in listings. A substantial period of months in which listings growth is greater than sales growth will be required to bring the GTA housing market back into balance. As policy makers seek to achieve this balance, it is important that an evidence-based approach is followed,” said Jason Mercer, TREB’s Director of Market Analysis.

Source:http://m.repmag. ca/market-update/toronto-home-sales-up-18-per-cent-prices-up-by-a-third-223822.aspx

Visit www.gtarealtyagent.com for your real estate needs in GTA-Toronto-Ontario-Canada.

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#MPC: Mortgage Industry wants Lender Risk Sharing Halted, Eased Stress Tests.


Mortgage industry wants lender risk sharing halted, eased stress tests

Mortgage Professionals Canada is concerned Ottawa’s recent changes to mortgage rules are making homes less affordable for Canadians and dampen housing activity, which could impact economic growth. The association’s President and CEO, Paul Taylor explains how and what they want to see done about it on BNN.

Source:http://www.bnn.ca/video/mortgage-industry-wants-lender-risk-sharing-halted-eased-stress-tests~1072572?platform=hootsuite


Mortgage Needs? Any-situation !! 

Using A Professional Mortgage Broker Can Save You A Lot Of Time & Stress.

Call : ( 647 ) 267-6338   www.centumfirst.ca

Service Area : Toronto | Ontario | Canada

Vijay Gandhi, MBF,B.Sc., Mortgage Broker

CENTUM Metrocapp Wealth Solutions Inc., Licence #: 12147

204A-716 Gordon Baker Rd. ,Toronto, ONM2H 3B4

vijay_gandhi@centum.ca

www.centumfirst.ca

Direct: 647-267-6338

Office Fax: 888-813-9403

Lowest Rates* in Canada  | copyright 

The Bank of Canada is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.


The Bank of Canada on Mar 1st 2017 announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.

CPI inflation rose to 2.1 per cent in January, reflecting higher energy prices due in part to carbon pricing measures introduced in two provinces. The Bank is looking through these effects, as their impact on inflation will be temporary. The Bank’s three measures of core inflation, taken together, continue to point to material excess capacity in the economy.

Overall, recent data on the global and Canadian economies have been consistent with the Bank’s projection of improving growth, as set out in the January Monetary Policy Report (MPR). In Canada, recent consumption and housing indicators suggest growth in the fourth quarter of 2016 may have been slightly stronger than expected. However, exports continue to face the ongoing competitiveness challenges described in the January MPR. The Canadian dollar and bond yields remain near levels observed at that time. While there have been recent gains in employment, subdued growth in wages and hours worked continue to reflect persistent economic slack in Canada, in contrast to the United States.


The Bank’s Governing Council remains attentive to the impact of significant uncertainties weighing on the outlook and continues to monitor risks outlined in the January MPR. In this context, Governing Council judges that the current stance of monetary policy is still appropriate and maintains the target for the overnight rate at 1/2 per cent. 

http://www.bankofcanada.ca/2017/03/fad-press-release-2017-03-01/

Mortgage Needs ?? Visit www.centumfirst.ca

Single-family homes in GTA average above $1 million mark



Single-family homes in GTA average above $1 million mark

A new record has been set in the Greater Toronto Area with the average single-family ground-oriented home now surpassing $1 million, the Building Industry and Land Development Association says.

Figures from its official data source the Altus Group, show that the average price in January was $1,028,395 with prices up 25 per cent in just one year. A new detached house averaged $1,316,325 with a townhouse averaging $879,619.

“The GTA is facing a severe shortage of housing supply, particularly for single-family homes which sell as soon as they come to market,” said BILD President and CEO Bryan Tuckey. “When there aren’t enough homes to satisfy demand, prices increase and that is exactly what has been happening in our region over the last decade.”

The inventory of new ground-oriented homes hit a record low last month, just 1,524 available for purchase compared to 18,000 ten years’ ago.

There was also a decline in availability of new condo units with 11,529 available, a ten-year low. That pushed prices to a new record $507,511 on average for an apartment, up 13 per cent in a year.

“Today in the GTA there are less than half the overall number of new homes available to purchase than there were a decade ago,” Tuckey said. “Lack of serviced developable land, excessive red tape and frequent delays in the development approval process have all been large contributors to our housing supply crisis.”

Ref:http://m.repmag.ca/ market-update/singlefamily-homes-in-gta-average-above-1-million-221687.aspx

Looking for Real Estate or Mortgage Deals?

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CMHC’s current premium rates will apply for applications submitted to CMHC prior to March 17, 2017 regardless of the closing date.


img_9953

We know we’ve at CENTUM, mentioned it before but we can’t claim that “We are Looking Out for Your Best Interest™” if we don’t remind you 👇🏼

Effective March 17th, CMHC’s mortgage loan insurance premium rates will be increasing. CMHC’s current premium rates will apply for applications submitted to CMHC prior to March 17, 2017 regardless of the closing date.

This will result in an increase of approximately $5-$10 to the monthly mortgage payment for our CMHC-insured homebuyers. Here’s what the premium schedule looks like as above table.

 

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Vijay Gandhi, Mortgage Agent
Centum Metrocapp Wealth Solutions Inc.*, License #12147 *Independently owned & operated
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