Here are the latest headlines in the real estate and mortgage world as we near the end of October.
The Bank of Canada holds interest rates steady at 5.00% in their latest announcement.
The latest Bank of Canada policy interest rate announcement was held on Wednesday October 25 and was yet another hold from the central bank. With the current policy interest rate at 5.00% the Bank of Canada is putting a pause on future rate hikes while they wait for data on the economy and inflation to guide their decision making. If inflation trends downwards over the next few months while the economy slows we can expect that the next move from the Bank of Canada may be a potential future rate hike. If, on the other hand, inflation ticks upwards then it will mean a higher likelihood of another 0.25% rate hike in the future.
Scandal in the developer world as Markham firm sells hundreds of units without approvals.
With supply and demand issues fueling the fires of inn affordability in the housing market, some issues plaguing the construction sector are coming to light. In a recent scoop from the Toronto Star, one Markham developer sold hundreds of pre-construction units without valid permits to build said properties. The firm sold 450 units without receiving necessary approval from the Ontario Home Construction Regulatory Authority (HCRA) and Tarion, a new customer-protection organization put in place to ensure homeowners are protected and fully covered by builder’s warranty policy. Some say that these regulators are failing homeowners and buyers by prioritizing the interest of builders over consumers. In the aftermath of the Scandal the developer has become involved in legal proceedings related to the incident.
Some mortgage holders are feeling the pressure of current interest rates.
In a recent article for the Financial Post, our CEO Alex Leduc weighed in on the conversation surrounding the recent streak of rate hikes from the Bank of Canada. “The hard work is over regarding the slowing of the economy,” Said Alex in regards to the Bank of Canada’s goal to slow inflationary spending in the economy. When it comes to homeowners ability to afford their increased payments, the data doesn’t seem to show a significant increase in mortgage delinquencies. “With record wage inflation over the last five years, many people will be able to absorb the higher mortgage cost and those that can’t have the ability to extend their amortization to make things work.”
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