The Minister of Finance this morning announced some provisions in regards to purchasing real estate. Here is a link to the announcement.
Important Changes to Mortgages
Feedback from the Canadian Real Estate Association (CREA)
CREA is pleased the government didn't increase minimum downpayments or reduce the amortization period; their impact on housing markets are potentially deep & damaging.
CREA is of the view that the Canadian resale housing market is healthy. Banks and governments should be cautious interpreting recent statistics, since comparisons are being distorted by recessionary activity a year ago and the subsequent rebound.
Current trends reflect the release of pent up demand when buyers moved to the sidelines during the recession. Additionally, the HST in Ontario and British Columbia and coming interest rate increases will likely moderate activity and price gains beginning in the second half of 2010..
CREA's analysis of housing activity on the Multiple Listing Service® Systems of real estate boards across Canada has emphasized that a number of temporary factors have been skewing average price comparisons. Its most recent forecast indicates that national activity and average price will decline in 2011.
Given these facts, we don't believe further regulatory moves are required.
I hope that you are enjoying watching the Olympics in Vancouver and our early medal success!
