Mortgage Bytes

November 12, 2008

General Mortgage News

Despite higher rates and tighter credit, Canadian mortgage lending volumes are up 7.7% in the past year.
Are more subprime customers on the way? CIBC economist Benjamin Tal says personal bankruptcies could jump 15% in the next 12 months. They were already up almost 30% in September.
"Past studies indicate that when times get tough, investment properties are the first to go into default." - Mortgage Centre's Peter Kinch
“You will see a lot of smaller players going by the wayside. They just can’t get credit,” says developer Ward McAllister. “Many projects are being shelved right now." (Journal of Commerce)
Some alternatives to 100% financing.
Mortgage credit tips.
Million Dollar Journey has a primer on reverse mortgages.
No U.S.-style mortgage meltdown here says BMO.

Housing Trends

13%. That's Central 1 Credit Union's median projected decline in BC housing prices in 2009. For 2010 they see prices falling another 5%. (Kelowna Capital News)
"Historically, real estate prices increase by about 3% per year plus inflation." - RE/MAX Condos Plus
CMHC expects Canadian housing prices to rise a lusty 0.25% next year. (Financial Post)
Montreal home prices are up 6% over last year. Tres bien!
TREB says Toronto home prices are down 10% versus last year. (Globe & Mail)
About 1/2 of the condo investors in downtown Toronto rent out their units. - Financial Post
This story from Real Estate Intelligence shows that home prices in 7 provinces/territories are up year-over-year...a lot in some cases.
"Real Estate is a local market...national stats...mean nothing." - RE/MAX Condos Plus
"Headline [housing price declines] reflect a current weighting for each city, which leads to a significant bias to the overall average price...the national headline number is down by close to 6% (year-over-year) last month, but if properly weighted, house prices fell by only 1%." - CIBC economist Benjamin Tal
"There appears to be a good chance that housing will be more affordable in late winter due to a combination of softer prices and lower mortgage rates." - Gordon Pape
Merrill Lynch economist David Wolf warns there is a "high correlation" between Canada's home prices today, and those in the U.S. a few years ago. (Financial Post)

Economy

"The Bank of Canada will likewise ease another quarter point before year-end." - CIBC World Markets
It's not just the U.S. Credit markets around the globe are in desperate straights. Take the UK for example. They slashed rates 1.5% last week--which is almost unheard of. Only during the 1981 recession have they ever cut more.
"The worst part for the economy is largely still ahead of us. The speed at which things are deteriorating is alarming.'' - Scotia Capital's Derek Holt (TheRecord.com)

Miscellaneous

Even the Donald has financing troubles.
The U.S. government hands out a 38% discount on mortgage payments to selected homeowners.
26 Ways to make your home sell faster.

Comments

General Mortgage News

Despite higher rates and tighter credit, Canadian mortgage lending volumes are up 7.7% in the past year.
Are more subprime customers on the way? CIBC economist Benjamin Tal says personal bankruptcies could jump 15% in the next 12 months. They were already up almost 30% in September.
"Past studies indicate that when times get tough, investment properties are the first to go into default." - Mortgage Centre's Peter Kinch
“You will see a lot of smaller players going by the wayside. They just can’t get credit,” says developer Ward McAllister. “Many projects are being shelved right now." (Journal of Commerce)
Some alternatives to 100% financing.
Mortgage credit tips.
Million Dollar Journey has a primer on reverse mortgages.
No U.S.-style mortgage meltdown here says BMO.

Housing Trends

13%. That's Central 1 Credit Union's median projected decline in BC housing prices in 2009. For 2010 they see prices falling another 5%. (Kelowna Capital News)
"Historically, real estate prices increase by about 3% per year plus inflation." - RE/MAX Condos Plus
CMHC expects Canadian housing prices to rise a lusty 0.25% next year. (Financial Post)
Montreal home prices are up 6% over last year. Tres bien!
TREB says Toronto home prices are down 10% versus last year. (Globe & Mail)
About 1/2 of the condo investors in downtown Toronto rent out their units. - Financial Post
This story from Real Estate Intelligence shows that home prices in 7 provinces/territories are up year-over-year...a lot in some cases.
"Real Estate is a local market...national stats...mean nothing." - RE/MAX Condos Plus
"Headline [housing price declines] reflect a current weighting for each city, which leads to a significant bias to the overall average price...the national headline number is down by close to 6% (year-over-year) last month, but if properly weighted, house prices fell by only 1%." - CIBC economist Benjamin Tal
"There appears to be a good chance that housing will be more affordable in late winter due to a combination of softer prices and lower mortgage rates." - Gordon Pape
Merrill Lynch economist David Wolf warns there is a "high correlation" between Canada's home prices today, and those in the U.S. a few years ago. (Financial Post)

Economy

"The Bank of Canada will likewise ease another quarter point before year-end." - CIBC World Markets
It's not just the U.S. Credit markets around the globe are in desperate straights. Take the UK for example. They slashed rates 1.5% last week--which is almost unheard of. Only during the 1981 recession have they ever cut more.
"The worst part for the economy is largely still ahead of us. The speed at which things are deteriorating is alarming.'' - Scotia Capital's Derek Holt (TheRecord.com)

Miscellaneous

Even the Donald has financing troubles.
The U.S. government hands out a 38% discount on mortgage payments to selected homeowners.
26 Ways to make your home sell faster.

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