Buying a home is more expensive than expected says BMO… CMHC boss says ‘no bubble’… Which of Canada’s cities are best for newcomers?… And Household costs push inflation index higher…
Buying a home is more expensive than expected says BMO
The Bank of Montreal’s Fall Home Buying Report shows that there is a large gap between what buyers expect to pay for their new home and what they actually end up spending. When buyers, especially first-times, begin their search for a new home they have a type of property and a budget in mind. The report says that what often happens is that buyers start looking at the market and decide to opt for another type of property or find that by the time they have found their perfect home the price has increased. On average buyers in Toronto, Calgary and Vancouver could need up to $100,000 more than they had planned with those in Montreal needing up to $50,000 extra. These additional finances amount to up to 19 per cent of buyers’ original budgets. Read the full story.
CMHC head says ‘no bubble’
In a speech on Friday, the CEO of the Canada Mortgage and Housing Corporation says there is no fear of a housing bubble. Evan Siddall told delegates at a conference on risk management that although there is an overheating and overvaluation in many sectors and areas of the market, nationally the CMHC is not overly worried by the picture and they believe that the market will moderate. However, Mr Siddall acknowledged that there are gaps in the data available so the corporation’s assessment tools cannot be 100 per cent accurate. He also pointed out that analysis is based on historical outcomes and there are no guarantees that things will always follow a set pattern. There was also talk of the banking sector taking extra responsibility for high-ratio mortgage risk through deductibles. Mr Siddall said that the CMHC is looking at options for helping to take some of the heat out of the market. Read the full story.
Is your city one of Canada’s best for newcomers?
Waterloo, Calgary, Ottawa, Richmond Hill, Vancouver, and St. John’s continue to appeal to newcomers, according to The Conference Board of Canada’s report assessing the attractiveness of Canadian cities. The report analyzes and benchmarks the features that make Canadian cities attractive to newcomer populations. The performance of these cities is compared on 43 indicators grouped into seven categories: Society, Health, Economy, Environment, Education, Innovation, and Housing. It’s the first time the Conference Board has done a study like this since 2010. Read the full report.
Household costs push inflation index higher
An unexpected rise in the core index for inflation could lead to a change in policy at Canada’s central bank. Figures from Statistics Canada show that the annual rate of inflation was 2.1 per cent in August which is slightly above the bank’s expectations and up from July’s figure of 1.7 per cent. The core index is used by policymakers to gauge longer term price rises. The increase is largely in household items, especially a hike in the cost of telephone and internet services. There was also a rise in costs of food and energy, although the increases were by smaller margins than in July. Read the full story.
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