Last week, there was no Friday mortgage news recap due to Good Friday, but we hope everybody had wonderful long weekend. News from this week: the housing market in Toronto took a couple of negative hits due to their condo over-production and reports of poor build quality.
The condo market in Toronto is poised for a cooldown – The Toronto Star
High-rise construction in Toronto hasn’t slowed in 2012 and is actually up 36% from the first quarter of last year. We’re starting to see the effects of over-supply affecting prices. Over the past year, Toronto condo prices have slightly increased at 3%, which is down 7% from last year’s price growth mark.
Canadians continue to mount non-mortgage debt – CBC News
Despite government warnings, Canadian consumers continue to pile on credit debt. According to Equifax, consumer indebtedness grew an additional 3.4% (year-over-year), excluding mortgage debt. Household debt is already the highest it has ever been in history and continues to grow. Currently, it is the biggest domestic risk to the Canadian economy.
Condo glass balconies continue to pose a threat – Toronto Life
Will downtown Toronto experience more ‘glass rain’ in the future? Should Torontonians start wearing hard hats as they walk down the street? Condo developer Concord Adex, which recently had one of their buildings rain glass shards, has put up a safety mesh on their latest development as a safety precaution. This is because the company that supplied the glass balconies for their current project also provided the glass that shattered in a building last year.
Bank offers you should refuse– The Financial Post
A great article detailing bank mortgage marketing and what you need to look out for. There are lots of mortgage products out there, but buyer-beware, as that mortgage product might not work out in your favour.
Banks will barely feel a cut in federal mortgage support – The Globe and Mail
The six biggest banks in Canada represent about $700 billion dollars in mortgages (about 70% of the market). The CMHC, which is Canada’s largest mortgage insurance provider, is approaching its cap. Canadian banks are waiting for Ottawa to make a move to tighten mortgage lending, however, one analyst believes even if the government were to make such a move, the impact on bank capital levels or funding costs would be minimal.