Bank of Canada holds interest rate for now, but hikes still to come
The Bank of Canada held its target for the overnight rate at 1.75 per cent on Jan. 9, where it has been since October 2018, and is lowering its growth forecast this year for Canada and around the world.
After raising the rate three times last year, some experts expected the Bank would do so again, either in late 2018 or early this year.
So, what does this latest non-action mean, and what can Canadian consumers expect in the coming months?
“The Bank gave several reasons for its decision to keep rates steady,” says Rubina Ahmed-Haq, personal finance guru and Homes Publishing columnist. “This includes lower oil prices, a weaker outlook for the global economy and Canada’s economy slowing more than expected.
Weaker investment
“It was a surprise that market pessimism did not come up,” she adds. “Despite stock market volatility making headlines for the last two months, there was no mention of the wild swings investors have been experiencing. The Bank did talk about weaker consumer spending and housing investment. This could be because of Canadian investors watching their portfolios and not feeling as confident in their spending.”
Sill, Ahmed-Haq says, the Bank remains very rosy on Canada’s economy, noting it has performing well overall. In its statement, the Bank says, “Growth has been running close to potential, employment growth has been strong and unemployment is at a 40-year low.” But still not enough to raise rates at this time.
Energy sector a concern
“The energy sector has been a concern for the Bank for some time now, but there seems to be a new focus on the housing sector, especially on the impact of mortgage guidelines changes and the five rate increases that have happened in the past 18 months,” James Laird, co-founder of Ratehub Inc. and President of CanWise Financial mortgage brokerage, told Homes Publishing.
Ahmed-Haq and Laird agree we should still expect higher rates in the coming months.
“The policy interest rate will need to rise over time into a neutral range to achieve the inflation target,” says Ahmed-Haq.
Rate hikes to come
Forecasters are now predicting two rate hikes this year, is down from earlier predictions of as many as three rates hikes in 2019.
“The Bank’s moderated outlook in the last two announcements has caused bond yields in Canada to drop lower than any point in 2018,” says Laird. “However, we are yet to see a corresponding decrease in mortgage rates. We would advise consumers to keep a close eye on mortgage rates in coming weeks.”
Highlights from the Bank’s announcement
Bank of Canada maintains target for overnight rate at 1.75 per cent
Canadian economy performing well overall
Employment growth strong
Unemployment rate at 40-year low
Canadian consumption spending and housing investment weaker than expected
Housing markets adjusting to municipal and provincial measures, new mortgage guidelines and higher interest rates
Household spending to be dampened by slow growth in oil-producing provinces
The Bank of Canada held its target for the overnight rate at 1.75 per cent on Jan. 9, where it has been since October 2018, and is lowering its growth forecast this year for Canada and around the world.
Multi-family homes – namely townhomes and condos – led the way in price growth among resale homes in 2018, according to the latest statistics from the Toronto Real Estate Board (TREB).
It may be a new year, but not necessarily a happy one for everyone. A new CIBC poll finds paying down debt is the top financial priority for Canadians heading in 2019. Almost a third (29 per cent) say they've taken on more debt in the past 12 months, citing day-to-day expenses as the key reason for piling up debt.
Pantone’s 2019 Colour of the Year “Living Coral” can do almost anything, proving itself to be much more than just an accent colour. We sat down with Nicholas Rosaci, interior design expert and upcoming speaker at the 2019 GTA Home & Reno Show, to talk decor trends and learn how to incorporate this vibrant hue into our home for the upcoming year.
A team of volunteers from Great Gulf recently prepared and served food at Ronald McDonald House Charities (RMHC) in Toronto, by participating in the Home for Dinner program bringing smiles and a delicious, hot dinner to 150 people.
The GTA new home market saw more typical activity levels in November, both in new home sales and new project openings, after a relatively strong October, the Building Industry and Land Development Association (BILD) reports.
While retirees may be exempt from the morning alarm and the daily grind that follows, they unfortunately aren’t exempt from paying tax – and filing as a retiree can be complicated.
Luxury home builder and land developer, Kylemore Communities/Angus Glen Development, embraced the spirit of giving this season with a donation to benefit Markham Stouffville Hospital Foundation and by hosting an annual Holiday Celebration for consultants, suppliers and staff.
Saunacore is a world leader in the manufacturing of premium quality sauna and steam bath products. Saunacore manufactures sauna heaters, steam bath generators, far infrared sauna rooms, traditional indoor and outdoor saunas, material liner kits, accessories and much more.
Canadian Appliance Source has become the fastest growing provider of Major Home Appliances in Canada for over 10 years, we have grown to include over 13 locations across Ontario & Quebec.
For four decades, we’ve built a reputation as a leader in premium and luxury space-management, delivering truly custom products and unparalleled service.
Sharing Passion & Performance. With our unique expertise and sensibilities, gained from our devotion to sound and music, we are committed to creating excitement and cultural inspiration together with people around the world.
Euro-Line Appliances has brought elite European engineered appliances to Canadian homes for over 25 years. Our brands exceed expectations and have earned awards in design, engineering, performance, and energy efficiency. All of our cooking, refrigeration, dishwashers, and laundry appliances are created to conserve our non-renewable resources.
More than a kitchen and bath luxury showroom, The Water Closet offers unparalleled service, selection and solutions for all your plumbing and heating needs. Our goal is to be your full-service showroom while “Enhancing the Flow of Life”.
At Riobel we design, create and assemble faucets, shower systems and accessories in our Canadian facility located in St-Jérôme, a suburb of Montréal. Our modern and fashionable products are designed to fit all kitchens or bathrooms. They are easy to install, while mechanical parts are accessible from above the counter to facilitate cleaning and maintenance. Riobel: a benchmark of excellence since 1995!
With over 90 years of experience, BLANCO is the leading kitchen sinks and faucets manufacturer. From handcrafted in Germany Steelart® sinks and the beauty of Silgranit®, to the European design faucets, BLANCO products are celebrated worldwide for their unmatched quality and design. Blanco Silgranit® sinks are proudly manufactured in Canada TRADE ONLY.
X-Tile is sure to have whatever you need to express your unique individual style. We offer you an exceptional variety of wall and flooring options in ceramic, porcelain, natural stone, glass, mosaic and much more from leading suppliers around the world. Let our knowledgeable and friendly staff help you in your dream renovation or building project.
Over the past 14 years Factory Tile Depot has become #1 for everything tile and stone. With 5 locations showcasing the latest and greatest trends in the tile industry, we have built the confidence of trade and retail clients alike. We are proud to offer well thought out showrooms, extensive selections of hard to find tile-stone, on site designers, and some of the best after care support in the industry. Experience the FTD difference on your next project.
Since 1873, Kohler Co. has been improving the level of gracious living by providing exceptional products and services for our customers’ homes and their lifestyles.
Through our customer feedback, we have learned the importance of ‘service’. You said and we listened. We addressed your needs and improvised; bringing you services and quality no one in the industry offers.
Listen better, plan better, build better. That’s Corrente Construction Management, and we are always working for our clients, to deliver for our clients.
All-electric fireplace showroom and design centre with the largest selection in Toronto and York Region. Combining specialized expertise with over 20 years' interior design experience. On-wall, in-wall, fireboxes, retrofit inserts, mantels, custom cabinetry, stone and brick veneers. Residential and commercial. Trade and volume inquiries always welcome.
Established in 1987, Caesarstone pioneered the original quartz surface and continues to be a leading developer and manufacturer of premium surfaces. Highly functional and design forward, Caesarstone surfaces have endless application possibilities including kitchen countertops, bathroom vanities, wall paneling, furniture and more.
Since 1989 Men At Work has specialized in renewing and enlarging older houses in core Toronto neighbourhoods. We are experts in managing the challenges of renovating sensitive old buildings into beautiful, functional, comfortable living spaces.
Created by fusion of exceptional design, superior quartz quality and cutting-edge technology, HansStone Quartz weaves together intriguing patterns and colours inspired by the diverse Canadian landscape.
BONE Structure has designed and patented a structural steel frame and insulation system that is the best integrator to build Net-Zero Energy custom homes. Using an integrated process inspired by the aerospace industry, we design and build high-performance, sustainable homes.
Cosentino is a global, family-owned company that produces and distributes high value innovative surfaces for the world of architecture and design, leaders in their respective segments such as Silestone® Quartz surfaces and Dekton® Ultracompact surfaces. Technologically advanced surfaces that create unique designs for the home and public spaces.
As a cooperative with 1,000 stores worldwide, we not only have enormous buying power, but we have partners in all of the major brands, mills and manufacturers.
Fisher & Paykel incorporates the world’s most innovative technologies and produce the most technically advanced, efficient and contemporary styled appliances. DCS created the first line of high end, commercial quality appliances and expanded to pioneer indoor and outdoor kitchen solutions for the at home chef. TRADE ONLY.
We've been proudly serving the community for more than 160 years. We deliver natural gas safely and reliably to two million homes and businesses across Ontario. With safety as our ongoing priority, we're committed to making communities better places to live.
Fusion Stone is an easy and budget-friendly way to beautifully upgrade your home, inside and out. A patented Shouldice innovation, Fusion Stone is a thin stone veneer that is easily installed with the included stainless steel clips & screws. You just screw it to the wall and it’s “Hooked for Life”.
A boutique hardware store that caters to clients with discerning tastes when it comes to outfitting their homes and commercial buildings with high-quality, stylish hardware.
Bell Lifestyle Products began over 18 years ago, and has since helped tens of thousands of men and women. For Nick, his vision to contribute to society and serve a cause greater than himself is realized every day as more and more people turn to Bell Lifestyle Products.
[caption id="attachment_37585" align="alignnone" width="600"] Left to right, Frank Spaziani, Klaus Meyer (Hampers of Hope), Cailey Stollery and Russell Foy (Hampers of Hope).[/caption]
Luxury home builder and land developer, Kylemore Communities/Angus Glen Development, embraced the spirit of giving this season with a donation to benefit Markham Stouffville Hospital Foundation and by hosting an annual holiday Ccelebration for consultants, suppliers and staff.
An important part of the company’s annual holiday celebration is a toy drive, and the total donations made an impressive display once again. The donated toys and games were divided between local organization Hampers of Hope, as well as SickKids Hospital.
The celebration was hosted by Cailey Stollery, CEO, Lindsay Stollery Jephcott CIO of Angus Glen and Kylemore Group of Companies, and Kylemore vice-president Frank Spaziani.
“We truly appreciate the loyalty, support and contribution of our tradespeople, suppliers and consultants that together make a Kylemore home among the best and most desirable in the GTA,” says Spaziani. “We have some exciting major new communities coming in 2019 and 2020, and with the continued dedication of our staff and suppliers we’ll bring these to fruition.”
Bear Necessities
Kylemore’s donation to the Bear Necessities program will benefit Markham Stouffville Hospital Foundation. The program helps the hospital to purchase life-saving equipment that government funding doesn’t cover.
“We have a decades-long commitment to Markham where many of our team live, work and play,” says Stollery. “Through our Kylemore Kares charitable initiative, we are pleased to be supporting the local hospital, which provides a vital service to area residents.”
There’s still time to join Kylemore in lifting someone’s spirits this holiday season, with the purchase of a plush Teddy Bear, soft sleep sack for a newborn, or a warm blanket for a patient. Learn more at lifesavinggifts.ca or call 905.472.7059.
Kylemore Communities is the recipient of a Heritage Markham 2017 Award of Excellence for the restoration and integration of the historic Colty’s Corner Schoolhouse into The Shoppes of Angus Glen; a 2014 Markham Design Excellence Award for Angus Glen Community, which also received BILD Association’s 2013 Places to Grow Community of the Year Award. Kylemore’s The 6th at Angus Glen has captured numerous prestigious design awards from BILD, OHBA and an Award of Merit from the Association of Registered Interior Designers of Ontario (ARIDO).
For more information, visit kylemorecommunities.com
Metrie offers interior finishing solutions including mouldings and interior door collections to help professionals transform spaces and set the stage for every room to tell a story. Founded in 1926, our dedication to creating high-quality, finely crafted architectural elements has helped us grow to become the largest supplier and manufacturer of solid wood and composite mouldings in North America.
Atlantis Bath Centre is committed to providing clients with exceptional service and quality plumbing products that reflect their personality and lifestyle. Channeling the latest design trends and the desires of the client, Atlantis is the one-stop-shop for every kitchen and bathroom project. Visit one of our locations and experience the Atlantis difference.
Interest rate hikes may not cost you as much as you think
By Wayne Karl
When the Bank of Canada announced an interest rate hike on Oct. 24 – and within hours all of Canada’s major banks followed suit in hiking their prime lending rates – consumers largely groaned.
All of CIBC, TD Canada Trust, Scotiabank, RBC Royal Bank and BMO Bank of Montreal almost immediately issued virtually the same statement, word for word: “(Insert bank name here) announced that it has increased its prime lending rate by 25 basis points from 3.70 per cent to 3.95 per cent, effective Oct. 25, 2018.”
Yes, the numbers, too, are identical.
BoC had already raised its influential overnight rate target three times since July 2017, to 1.5 per cent from 0.75 per cent, and now this most recent hike to 1.75 per cent, while hinting that further increases are likely.
For mortgage holders, though, the increases may not cost you as much as you fear.
Fixed rates
The majority of Canadian mortgage holders are on fixed-rate products, which is why a more moderate pace of rate increases likely won’t impact the market significantly, according to Canada Mortgage and Housing Corp. (CMHC).
Nearly half of existing mortgages in Canada will come up for renewal in 2018, according to a data release from CIBC Capital Markets. However, despite having to renew their mortgage in a rising interest rate environment, a borrower with a five-year mortgage rate may be able to get a better deal on their mortgage renewal today than when they entered the housing market five years ago.
According to calculations from mortgage rate comparison website Ratehub.ca:
The best five-year fixed rate in September 2013 was 3.29 per cent. With that rate, a borrower with a $400,000 mortgage amortized over 25 years would have had a monthly mortgage payment of $1,953 over the last five years.
If that same borrower renewed their mortgage at today’s best five-year fixed rate of 3.19 per cent, their monthly mortgage payment would decrease by $17 per month to $1,936.
“Canadians who require a new mortgage in coming months should lock in a fixed rate as soon as possible,” says James Laird, co-founder of Ratehub Inc. and president of CanWise Financial. “This includes those who are purchasing a home, and homeowners whose mortgage is coming up for renewal.
“Remember that, on average, mortgage providers will offer their existing customers a discount of 0.25 per cent off their posted rate on a renewal. However, there may be more competitive rates out there. Be sure to shop around online or use a mortgage broker to negotiate the best rate for your renewal.”
Laird says borrowers should begin shopping around 120 days in advance of their renewal date in order to negotiate a competitive mortgage rate.
A rising interest rate environment could put downward pressure on home prices, he says, but upward pressure will come from predicted economic growth, lack of housing supply, immigration and first-time homebuyers.
Variable rates
“Borrowers should expect variable rates to perfectly correlate with Bank of Canada rate increases,” Laird says. “Variable rate mortgage holders should also be prepared for several increases to their interest rate in coming months and, with general interest rates in Canada on the rise, fixed rates will rise as well. However, those currently in fixed rates have nothing to worry about until their next mortgage renewal date.”
Choosing your finishes is a joyful rite of passage when buying a new condo – the first step in putting a personal stamp on a new home. But what if the finishes have been chosen for you? Or worse, were chosen by the builder 25 years ago?
The countdown is on! Only days remain till the annual Interior Design Show, Canada’s premier showcase of design taking place Jan. 17 to 20 at the Metro Toronto Convention Centre but this year, in a new location in the South Building.
Pantone’s 2019 Colour of the Year “Living Coral” can do almost anything, proving itself to be much more than just an accent colour. We sat down with Nicholas Rosaci, interior design expert and upcoming speaker at the 2019 GTA Home & Reno Show, to talk decor trends and learn how to incorporate this vibrant hue into our home for the upcoming year.
Whether by slow drips or sudden pipe bursts, water leaks can lead to substantial home repair costs – a per-case average of about $6,000 in Canada, in fact.
It’s essential to take time to maintain your windows this winter, since drafty windows can account for up to 40% of a home’s heat loss. Here are a few tips on how to keep the heat in.
At Riobel we design, create and assemble faucets, shower systems and accessories in our Canadian facility located in St-Jérôme, a suburb of Montréal. Our modern and fashionable products are designed to fit all kitchens or bathrooms. They are easy to install, while mechanical parts are accessible from above the counter to facilitate cleaning and maintenance. Riobel: a benchmark of excellence since 1995!
Listen better, plan better, build better. That’s Corrente Construction Management, and we are always working for our clients, to deliver for our clients.
Created by fusion of exceptional design, superior quartz quality and cutting-edge technology, HansStone Quartz weaves together intriguing patterns and colours inspired by the diverse Canadian landscape.
Sharing Passion & Performance. With our unique expertise and sensibilities, gained from our devotion to sound and music, we are committed to creating excitement and cultural inspiration together with people around the world.
With over 90 years of experience, BLANCO is the leading kitchen sinks and faucets manufacturer. From handcrafted in Germany Steelart® sinks and the beauty of Silgranit®, to the European design faucets, BLANCO products are celebrated worldwide for their unmatched quality and design. Blanco Silgranit® sinks are proudly manufactured in Canada TRADE ONLY.
Euro-Line Appliances has brought elite European engineered appliances to Canadian homes for over 25 years. Our brands exceed expectations and have earned awards in design, engineering, performance, and energy efficiency. All of our cooking, refrigeration, dishwashers, and laundry appliances are created to conserve our non-renewable resources.
Since 1873, Kohler Co. has been improving the level of gracious living by providing exceptional products and services for our customers’ homes and their lifestyles.
Over the past 14 years Factory Tile Depot has become #1 for everything tile and stone. With 5 locations showcasing the latest and greatest trends in the tile industry, we have built the confidence of trade and retail clients alike. We are proud to offer well thought out showrooms, extensive selections of hard to find tile-stone, on site designers, and some of the best after care support in the industry. Experience the FTD difference on your next project.
As a cooperative with 1,000 stores worldwide, we not only have enormous buying power, but we have partners in all of the major brands, mills and manufacturers.
More than a kitchen and bath luxury showroom, The Water Closet offers unparalleled service, selection and solutions for all your plumbing and heating needs. Our goal is to be your full-service showroom while “Enhancing the Flow of Life”.
X-Tile is sure to have whatever you need to express your unique individual style. We offer you an exceptional variety of wall and flooring options in ceramic, porcelain, natural stone, glass, mosaic and much more from leading suppliers around the world. Let our knowledgeable and friendly staff help you in your dream renovation or building project.
Saunacore is a world leader in the manufacturing of premium quality sauna and steam bath products. Saunacore manufactures sauna heaters, steam bath generators, far infrared sauna rooms, traditional indoor and outdoor saunas, material liner kits, accessories and much more.
Fusion Stone is an easy and budget-friendly way to beautifully upgrade your home, inside and out. A patented Shouldice innovation, Fusion Stone is a thin stone veneer that is easily installed with the included stainless steel clips & screws. You just screw it to the wall and it’s “Hooked for Life”.
All-electric fireplace showroom and design centre with the largest selection in Toronto and York Region. Combining specialized expertise with over 20 years' interior design experience. On-wall, in-wall, fireboxes, retrofit inserts, mantels, custom cabinetry, stone and brick veneers. Residential and commercial. Trade and volume inquiries always welcome.
Established in 1987, Caesarstone pioneered the original quartz surface and continues to be a leading developer and manufacturer of premium surfaces. Highly functional and design forward, Caesarstone surfaces have endless application possibilities including kitchen countertops, bathroom vanities, wall paneling, furniture and more.
Canadian Appliance Source has become the fastest growing provider of Major Home Appliances in Canada for over 10 years, we have grown to include over 13 locations across Ontario & Quebec.
Fisher & Paykel incorporates the world’s most innovative technologies and produce the most technically advanced, efficient and contemporary styled appliances. DCS created the first line of high end, commercial quality appliances and expanded to pioneer indoor and outdoor kitchen solutions for the at home chef. TRADE ONLY.
BONE Structure has designed and patented a structural steel frame and insulation system that is the best integrator to build Net-Zero Energy custom homes. Using an integrated process inspired by the aerospace industry, we design and build high-performance, sustainable homes.
Cosentino is a global, family-owned company that produces and distributes high value innovative surfaces for the world of architecture and design, leaders in their respective segments such as Silestone® Quartz surfaces and Dekton® Ultracompact surfaces. Technologically advanced surfaces that create unique designs for the home and public spaces.
Whether you're looking for the latest in home furnishings or creating a custom unit for the living room, bedroom, dining room or home office, Alta Moda has it all.
For four decades, we’ve built a reputation as a leader in premium and luxury space-management, delivering truly custom products and unparalleled service.
We've been proudly serving the community for more than 160 years. We deliver natural gas safely and reliably to two million homes and businesses across Ontario. With safety as our ongoing priority, we're committed to making communities better places to live.
Since 1989 Men At Work has specialized in renewing and enlarging older houses in core Toronto neighbourhoods. We are experts in managing the challenges of renovating sensitive old buildings into beautiful, functional, comfortable living spaces.
Through our customer feedback, we have learned the importance of ‘service’. You said and we listened. We addressed your needs and improvised; bringing you services and quality no one in the industry offers.
The Scenic City offers many opportunities for relaxing and rejuvinating -- winter, spring, summer and fall! Whether you are staying a few days or a lifetime, you'll find many sources of inspiration.
Beauti-Tone paint is a proud Canadian company, available exclusive to Home Hardware stores across Canada. We manufacture a full range of exceptional high quality products with outstanding value. An extensive colour offering, including exclusive collections from Style at Home, Chatelaine, Simon Chang and Sesame Street. That’s why we are Canada’s paint experts.
The Building Industry and Land Development Association (BILD) is the voice of the home building, land development and professional renovation industry in the Greater Toronto Area. We are a non-profit, industry funded organization that works to improve the communication between our industry and government, provide enhanced opportunities for our members, promote the welfare of the industry, and protect the interests of consumers.
“Potential homebuyers will need to alter their expectations and possibly delay entry into homeownership,” Dana Senagama, manager, market analysis for Canada Mortgage and Housing Corp. (CMHC), told Homes Publishing.
Not exactly the most hopeful outlook for those – especially first-timers – looking to buy a home in and around the GTA.
But it’s not all bad. Let’s look at what’s going on in the market, and what would-be buyers can do to help their cause.
1 Return to price growth
Following the introduction of the Ontario Fair Housing Plan in April 2017, recent interest rate hikes and other changes, sales and prices in the GTA have seen some moderation.
But the slowing will be short-lived, Senagama says. Key economic fundamentals such as population and employment growth will continue to drive housing market demand, but the supply of new homes is not being addressed. The result? A return to price growth.
“CMHC is working on data gaps like supply with many industry stakeholders and partners,” she says. “Currently, we are participating in a working group with the province of Ontario to find solutions and best practices.”
PwC says the region is feeling the effects of demographic shifts. Millennials have begun to compete with Baby Boomers for real estate, and over the next decade, almost 700,000 first-time buyers will target the GTA or Hamilton markets, according to a May 2018 report from the Ontario Real Estate Association.
2 Risk of overvaluation
Senagama cautions, however, that the Toronto market is still showing signs of overvaluation.
“This happens when house price growth is surpassing the population and income growth. So, despite some of the moderation you’re seeing, we’re still calling for a high degree of vulnerability in Toronto in the foreseeable future.”
3 Inelastic supply
The GTA housing market is characterized by inelastic supply. “Supply is slow to respond to any change in price, and we’re seeing that time and time again,” she says.
Recent research from CMHC and Altus Group, in fact, shows that of the lowrise new home projects that were started in 2016 and 2017, it took 15 years for those developments to go from the initial land purchase to product hitting the market.
Source: CMHC
“We have a problem, in terms of supply.”
With very limited new home supply hitting the market, once buyers get used to temporary shocks to the system brought on by policy issues and rising interest rates, they return to buying homes, which in turn drives up prices.
4 Condo demand
With lowrise home prices enjoying spectacular growth in recent years, there was a compositional shift in demand toward less expensive product – namely condos – particular among first-time buyers.
But now, with price growth even in this category – with average condo prices rising 8.4 per cent year-over-year to $552,269 in the third quarter this year – and pre-construction units in the $700,000 range…
“These are not price points for first-time buyers,” Senagama says, “so we’re still looking at very high prices across the GTA.”
5 Mortgage rates
The Bank of Canada has already raised its influential overnight rate target three times since July 2017, to 1.5 per cent from 0.75 per cent. Experts expect at least one more increase this year, possibly as early as the next rate announcement on Oct. 24.
A more moderate pace of rate increases could impact the market, but not significantly since the majority of mortgage holders are on fixed-rate mortgages, CMHC research shows.
6 Rental market
Any discussion about affordability needs to include the rental market, Senagama says. “Much like the ownership segment, supply is a huge constraint in the Toronto rental market.”
With the average vacancy rate in the GTA 1.1 per cent, and 0.7 per cent for condo rentals, rental rate increases are picking up steam. “Because we have a supply problem. And because we don’t have enough supply of the purpose-built rental units, the gap has been filled in by the condo market.”
About 33 per cent of all condos in Toronto are being rented out by investors, according to CMHC. This results in renters paying a much higher premium to rent a condo versus a purpose-built apartment – on average 50 per cent more, for a two-bedroom unit.
“We talk about affordability, and this raises so many other concerns, especially in a market that is supply-strapped,” Senagama says.
7 Catch 22
investors are buying into the condo market to rent out their units, taking advantage of the tight rental market. But first-time buyers – who typically aren’t equity-rich or wealthy – have to compete for available condo product, which again drives up prices.
5 REASONS TO BUY A HOME NOW (OR AS SOON AS YOU CAN)
1 Affordability
More supply of new homes is a big part of the solution. But despite ongoing lobbying from the housing industry, and apparent increasing awareness of new elected municipal leaders, this problem won’t be solved overnight. It will take time. Lots of it. In the meantime, as PricewaterhouseCoopers says: The affordability issue is not going away. It might even get worse before it gets better.
2 Market moderation waning
With little relief on the supply side expected, price growth will continue to be strong, even if somewhat muted compared to the double-digit increases seen over the last few years. In short, the longer buyers wait, the more it could cost you.
3 Interest rates
Experts expect at least one more increase this year, possibly as early as the next rate announcement on Oct. 24. To protect yourself against a more moderate pace of rate increases, consider a fixed-rate mortgage product.
4 Pent-up demand
Buyers believe prices are going to increase, but not to the same degree we’ve seen in recent years. This will lead to pent-up demand, which when released over the next year, will contribute to increasing buying activity and rising prices. So, if you’re able to buy before then, you could beat the rush.
5 Rental market
If you’re a Millennial planning to move out of home and into the rental market, consider this: Toronto is the most expensive Canadian rental market, with average rates for one-bedroom units at slightly more than $1,900 per month (up 2.8 per cent from August to September); $2,374 for two-bedrooms (up 7.1 per cent). Try saving up for a down payment at those rates; maybe staying at home a little longer isn’t so bad after all.
Wayne Karl is Senior Digital Editor at Homes Publishing. wayne.karl@homesmag.com
The Bank of Canada held its target for the overnight rate at 1.75 per cent on Jan. 9, where it has been since October 2018, and is lowering its growth forecast this year for Canada and around the world.
Multi-family homes – namely townhomes and condos – led the way in price growth among resale homes in 2018, according to the latest statistics from the Toronto Real Estate Board (TREB).
It may be a new year, but not necessarily a happy one for everyone. A new CIBC poll finds paying down debt is the top financial priority for Canadians heading in 2019. Almost a third (29 per cent) say they've taken on more debt in the past 12 months, citing day-to-day expenses as the key reason for piling up debt.
Pantone’s 2019 Colour of the Year “Living Coral” can do almost anything, proving itself to be much more than just an accent colour. We sat down with Nicholas Rosaci, interior design expert and upcoming speaker at the 2019 GTA Home & Reno Show, to talk decor trends and learn how to incorporate this vibrant hue into our home for the upcoming year.
A team of volunteers from Great Gulf recently prepared and served food at Ronald McDonald House Charities (RMHC) in Toronto, by participating in the Home for Dinner program bringing smiles and a delicious, hot dinner to 150 people.
The GTA new home market saw more typical activity levels in November, both in new home sales and new project openings, after a relatively strong October, the Building Industry and Land Development Association (BILD) reports.
While retirees may be exempt from the morning alarm and the daily grind that follows, they unfortunately aren’t exempt from paying tax – and filing as a retiree can be complicated.
Luxury home builder and land developer, Kylemore Communities/Angus Glen Development, embraced the spirit of giving this season with a donation to benefit Markham Stouffville Hospital Foundation and by hosting an annual Holiday Celebration for consultants, suppliers and staff.
Saunacore is a world leader in the manufacturing of premium quality sauna and steam bath products. Saunacore manufactures sauna heaters, steam bath generators, far infrared sauna rooms, traditional indoor and outdoor saunas, material liner kits, accessories and much more.
More than a kitchen and bath luxury showroom, The Water Closet offers unparalleled service, selection and solutions for all your plumbing and heating needs. Our goal is to be your full-service showroom while “Enhancing the Flow of Life”.
With over 90 years of experience, BLANCO is the leading kitchen sinks and faucets manufacturer. From handcrafted in Germany Steelart® sinks and the beauty of Silgranit®, to the European design faucets, BLANCO products are celebrated worldwide for their unmatched quality and design. Blanco Silgranit® sinks are proudly manufactured in Canada TRADE ONLY.
Canadian Appliance Source has become the fastest growing provider of Major Home Appliances in Canada for over 10 years, we have grown to include over 13 locations across Ontario & Quebec.
As a cooperative with 1,000 stores worldwide, we not only have enormous buying power, but we have partners in all of the major brands, mills and manufacturers.
Over the past 14 years Factory Tile Depot has become #1 for everything tile and stone. With 5 locations showcasing the latest and greatest trends in the tile industry, we have built the confidence of trade and retail clients alike. We are proud to offer well thought out showrooms, extensive selections of hard to find tile-stone, on site designers, and some of the best after care support in the industry. Experience the FTD difference on your next project.
Established in 1987, Caesarstone pioneered the original quartz surface and continues to be a leading developer and manufacturer of premium surfaces. Highly functional and design forward, Caesarstone surfaces have endless application possibilities including kitchen countertops, bathroom vanities, wall paneling, furniture and more.
Created by fusion of exceptional design, superior quartz quality and cutting-edge technology, HansStone Quartz weaves together intriguing patterns and colours inspired by the diverse Canadian landscape.
Since 1989 Men At Work has specialized in renewing and enlarging older houses in core Toronto neighbourhoods. We are experts in managing the challenges of renovating sensitive old buildings into beautiful, functional, comfortable living spaces.
Fisher & Paykel incorporates the world’s most innovative technologies and produce the most technically advanced, efficient and contemporary styled appliances. DCS created the first line of high end, commercial quality appliances and expanded to pioneer indoor and outdoor kitchen solutions for the at home chef. TRADE ONLY.
All-electric fireplace showroom and design centre with the largest selection in Toronto and York Region. Combining specialized expertise with over 20 years' interior design experience. On-wall, in-wall, fireboxes, retrofit inserts, mantels, custom cabinetry, stone and brick veneers. Residential and commercial. Trade and volume inquiries always welcome.
Euro-Line Appliances has brought elite European engineered appliances to Canadian homes for over 25 years. Our brands exceed expectations and have earned awards in design, engineering, performance, and energy efficiency. All of our cooking, refrigeration, dishwashers, and laundry appliances are created to conserve our non-renewable resources.
X-Tile is sure to have whatever you need to express your unique individual style. We offer you an exceptional variety of wall and flooring options in ceramic, porcelain, natural stone, glass, mosaic and much more from leading suppliers around the world. Let our knowledgeable and friendly staff help you in your dream renovation or building project.
Sharing Passion & Performance. With our unique expertise and sensibilities, gained from our devotion to sound and music, we are committed to creating excitement and cultural inspiration together with people around the world.
At Riobel we design, create and assemble faucets, shower systems and accessories in our Canadian facility located in St-Jérôme, a suburb of Montréal. Our modern and fashionable products are designed to fit all kitchens or bathrooms. They are easy to install, while mechanical parts are accessible from above the counter to facilitate cleaning and maintenance. Riobel: a benchmark of excellence since 1995!
Cosentino is a global, family-owned company that produces and distributes high value innovative surfaces for the world of architecture and design, leaders in their respective segments such as Silestone® Quartz surfaces and Dekton® Ultracompact surfaces. Technologically advanced surfaces that create unique designs for the home and public spaces.
Listen better, plan better, build better. That’s Corrente Construction Management, and we are always working for our clients, to deliver for our clients.
We've been proudly serving the community for more than 160 years. We deliver natural gas safely and reliably to two million homes and businesses across Ontario. With safety as our ongoing priority, we're committed to making communities better places to live.
For four decades, we’ve built a reputation as a leader in premium and luxury space-management, delivering truly custom products and unparalleled service.
BONE Structure has designed and patented a structural steel frame and insulation system that is the best integrator to build Net-Zero Energy custom homes. Using an integrated process inspired by the aerospace industry, we design and build high-performance, sustainable homes.
Fusion Stone is an easy and budget-friendly way to beautifully upgrade your home, inside and out. A patented Shouldice innovation, Fusion Stone is a thin stone veneer that is easily installed with the included stainless steel clips & screws. You just screw it to the wall and it’s “Hooked for Life”.
Through our customer feedback, we have learned the importance of ‘service’. You said and we listened. We addressed your needs and improvised; bringing you services and quality no one in the industry offers.
Since 1873, Kohler Co. has been improving the level of gracious living by providing exceptional products and services for our customers’ homes and their lifestyles.
Headquartered in New York City, New Tang Dynasty (NTD) Television serves more than 100 million potential viewers in China and around the world. Founded by Chinese Americans, and rooted in traditional Chinese culture, NTD serves as a unique bridge between the East and the West.
Eco Choice Windows & Doors is a leading supplier and installer of quality windows and doors. We have been in business for over 15 years, installing windows and doors for many satisfied customers across the province. Simply put, we supply the best quality products, expertly installed, and built to enhance energy efficiency throughout the home.
Home Reno Direct is a leading innovator in the renovation and remodeling industry, offering a one-stop design service and retail experience for both homeowners and independent interior designers.
