GRATEFUL AND FLEXIBLE
Happy Thanksgiving weekend to all our family, friends and colleagues!
Before we celebrate and relax a little, we’re reviewing the head-spinning changes and news that are rolling through this week.
JOBS:
- Overall Canada added 47,000 jobs. This is the net from an increase in full-time jobs of 112,000, and a loss of part-time jobs of 65,000. An interesting tidbit this month is that 61,000 jobs were added from the private sector (this is 0.5% growth, but we still see improvement). Even with all the strike activity, wage growth was down to 4.7% in September, from 5.1% in August.
- For the quick and dirty unemployment rates:
- Canada’s unemployment is down minimally to 6.5% in September, from 6.6% in August
- Alberta’s unemployment is down to 7.5% in September, from 7.7% in August
- Calgary’s unemployment is essentially stable at 7.4% in September, from 7.5% in August
- Edmonton’s unemployment rate went up to 9.0% in September, from 8.6% in August
- https://www150.statcan.gc.ca/n1/daily-quotidien/241011/dq241011a-eng.htm
- https://www.atb.com/company/insights/the-twenty-four/atb-economics-the-seven-october-11-2024/
CMHC:
- https://www.canadianmortgagetrends.com/2024/10/new-mortgage-rules-spark-debate-in-canadas-housing-sector/
- As of Dec 15, there will be new rules for ALL purchasers of new construction homes, AND first-time homebuyers (new construction or resale homes) will be able to get an insured mortgage, up to 30 year amortization, and up to $1.5 million purchase price.
- Will it improve affordability? As is noted in the article, the insurance premium ADDS to the cost of the home. The debate continues …
OSFI:
- https://www.canadianmortgagetrends.com/2024/09/osfi-to-end-stress-test-requirement-for-uninsured-mortgage-switches/
- As of Nov 21, there will no longer be a mortgage stress test for uninsured borrowers who want to switch lenders. Please note, this does not involve a refinance. The mortgage amount and amortization schedule must stay the same for this new rule to apply.
FEDERAL GOVERNMENT:
- https://www.canada.ca/en/department-finance/news/2024/10/deputy-prime-minister-announces-new-actions-to-build-secondary-suites-and-unlock-vacant-lands-to-build-more-homes.html
- Starting Jan 15 (maybe), there are new plans to encourage secondary suites and accessory dwelling units. “Borrowers will be able to access financing of up to 90 per cent of the home value, including the value added by the secondary suite(s), and amortize the refinanced mortgage over a period of up to 30 years.” The limit will be up to $2 million, and will be on the After Renovated Value (home appraisers are about to be even busier!)
- Anyone else see any risk in 90% loan to value? Just sayin’
- There is also a proposed secondary suite loan program, but we don’t have any of the details about that yet.
- Personally, we’re curious about how the new Renovation Code (like the Building Codes, but for renovations), will intersect with all these planned suites. And where will the skilled labour come from? So many questions!!
First of all, we’re grateful that we’re not mortgage brokers. Their heads must be just about to explode with a plethora of new rules!
We’re also thrilled to see Calgary’s job market looking so stable! As affordability chasers head north to Edmonton, their unemployment numbers shouldn’t surprise anyone.
And we’re thankful for our ability to adapt to this ever-changing real estate market. The challenge will be to focus, stay calm, and get ultra-clear on which strategies bring each of us to a bountiful harvest of Financial Freedom.
