Mortgage Bytes

  • BC-Mortgages We hate to be the bearers of bad news but according to the Vancouver Sun, the average BC home value is “only” expected to rise 6% next year.  That means the average mortgage payment will only jump $160 a month!  (assuming 10% down, 6% interest, and a 25-year am.)
  • ICICI Bank Canada, the subsidiary of India’s 2nd largest bank, is rumoured to be starting a Canadian mortgage broker division by early 2008.
  • Canadian housing starts by year:
    • 2006:  227,395
    • 2007:  227,530
    • 2008:  214,000 (estimated)

Why the expected dip in 2008?  Analysts say rising home prices and mortgage rates…

  • Existing home sales should break a record this year.
  • An estimated 50,000+ people will have moved to Toronto in 2007.  That’s helped downtown Toronto condo prices jump 15.7% this year.
  • 1 million British Columbians rent–largely because it’s a lot cheaper than carrying a BC mortgage. Toronto has the highest rents in Canada, however, followed by Vancouver. Montreal is the most affordable.
  • Scotia Capital’s Kevin Choquette says it is surprising “how Canadian banks have essentially missed the U.S. subprime mortgage debacle, while a significant number of global players have large exposure.”
  • Dorado, a U.S. based lending systems developer, wants to give industry leader Filogix a run for its money.  Dorado has partnered with First Canadian Title to distribute Dorado’s mortgage origination applications to Canadian lenders and mortgage brokers.
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