Municipal governments are starting to put green standards in place for developers and builders to follow to help protect the planet. But will it really work?
The planned change and review of the mortgage stress test has slipped down the priority list for the Canadian government due to the COVID-19 coronavirus crisis.
Until the outbreak, it was expected that Office of the Superintendent of Financial Institutions (OSFI) would consider changes after a consultation with stakeholders. It was hoped this would make the rate used to determine affordability for uninsured mortgages more dynamic instead of its current rigidity.
But OSFI said late Friday that, in unison with other government agencies, it was focusing on ensuring the resilience of Canadian financial institutions and the financial system.
“As a result, the benchmark rate as currently published by the Bank of Canada will remain in force until further notice,” OSFI said in a statement.
But it’s not just the review for uninsured mortgages that are affected.
“The Minister of Finance has also announced the suspension of the April 6, 2020 coming into force of the new benchmark rate used to determine the minimum qualifying rate for insured mortgages,” the statement clarified.
Maintaining credit supply
To ensure that Canadian financial institutions have enough liquidity to continue lending, OSFI has also cut its buffer requirements.
The Domestic Stability Buffer, which large financial institutions are required to maintain in case of financial crisis, was due to be 2.25% as of the end of April 2020 but this has been cut to 1% immediately and remain in place for at least 18 months.
The regulator says the release of banks’ funds from the buffer should be used for lending to businesses and households and not for shareholder distributions.
OSFI says that financial institutions’ dividend increases and shareholder buybacks should be halted.
The survey shows that buying a home in a major city centre has risen 5% since last year.
The more time and money a developer spends navigating the extensive labyrinth of procedural processes, the costlier it becomes to build a new home.The more time and money a developer spends navigating the extensive labyrinth of procedural processes, the costlier it becomes to build a new home.
Coming to Toronto May 14-15 is an in-person event discussing multifamily investing and the benefits it can have for new and experienced investors.
For Real Estate News and Market Updates & VIP Access to Exclusive Real Estate Investment Opportunities
Canadian Real Estate Wealth Media Corp. needs the contact information you provide to us to contact you with news and market updates and to share real estate investment opportunities. You may unsubscribe from these communications at any time. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, please review our Privacy Policy.
Many Torontonians and GTA investors perceive Windsor in a different light. But the reality is, it's a growing city that has much to offer investors, homebuyers, students, immigrants, and retirees alike.
While Calgary has continued to increase in popularity, prices have remained steady unlike in markets like Toronto and Vancouver. It holds many benefits for investors.
The Scott McGillivray Real Estate Fund helps people understand passive real estate investing. Scott McGillivray himself has been speaking to people about how to invest in real estate for over 15 years.
From February 2022 to April 2022, there have already been significant price decreases. However, that doesn't mean affordability is around the corner.
According to OSFI, the real estate market in Canada has seen a massive run-up resulting from low-interest rates and supply/demand imbalances.
“Sign up for our daily newsletter to get the latest news, updates and offers delivered directly to your inbox.”