Mortgage Bytes

• Ontario's land transfer tax rebate for first-time homebuyers now applies to resale properties! An estimated 50,000 first-time buyers will benefit from the new program in 2008.
• CIBC's Benjamin Tal expects the Bank of Canada to "cut [interest rates] again in January 2008...to provide additional liquidly to the market."
• November was the first month where more condos were sold in Toronto than houses. Toronto's average condo and house prices are $347,207 and $429,673 respectively.
• Ontario's Bill 152 helps ensure that ownership of a property cannot be lost due to a falsified mortgage. It also now requires that two lawyers register a land transfer.
• If you're contemplating buying a U.S. property, the Edmonton Journal's Ray Turchansky suggests waiting until "next summer or fall."
• For the first time since 1994, more Canadians left Alberta than moved in. Alberta Bubble Story
• Last month, Scotiabank shelved its pilot subprime venture The Mortgage Authority (TMA). In their announcement, Scotia said they've "decided to limit any further expansion in the non-prime market segment."
• CAAMP members now get a 50% discount on Continuing Education Network courses.
• Genworth has 10 new free continuing ed. courses.
• If you're an AMP mortgage agent and want more words behind your name, you can now elect to be called a "Residential" and/or "Commercial Mortgage Specialist."  Only the commercial designation has any significant standards, however. The "Residential Mortgage Specialist" title can be had with just an AMP and a signature-- and therefore seems relatively meaningless.
• Need help understanding Ontario's new mortgage regulations?  IMBA training has it covered.

Comments

[Brian Poncelet, CFP]

Hi MT,

I came across a story in the LA Times(12/28/07 business section)
"Defaults moving beyond sub-prime"
People with good credit got into pay option ARMs (option to pay less than interest) this made up about 9% of total mortgage volume last year in the US. California, Florida,and Nevada were the big states. If the story is true the real estate market may take years, not months to hit bottom.

regards,

Brian

[Mortgage Broker]

Hi Brian, You're right in that no one really knows how long it will take for the U.S. real estate market to bottom. Most seem to agree that it will take at least 2-3 more quarters for the worst to pass. However, the total correction could take a lot longer. Here's an interesting chart that shows how inflated prices have become south of the border. Melanie