Category: Toronto Personal Finance Posts

Category: Toronto Personal Finance Posts Canada housing market has become riskier, IMF has warned

  Canada’s housing market has become riskier over the past two years, with risk levels similar to those seen during the financial crisis a decade ago, the International Monetary Fund (IMF) said in a report released this week.   But there is good news: The measures Canadian policymakers have taken over the past several years — particularly foreign buyers’ taxes and tough new mortgage rules — are the right ones to prevent a debt crisis, the report suggested..   In its latest Global Financial Stability Report, the Washington-based agency dedicated to global financial co-operation said the U.S. and Canadian housing

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Category: Toronto Personal Finance Posts 40% of Canadians are paying no income taxes, Prime Minister Trudeau knows this is right

  40% of Canadians are paying no income taxes, Prime Minister Trudeau knows this is right   The top 20 per cent is likely paying 70 per cent or more of all income taxes   Trudeau was speaking the complete truth when it comes to income taxes (HST, realty taxes and other consumption taxes are another story). It is just a truth that he may not want many Canadians to know.   On average, two of every five Canadian households do not pay anything towards federally and provincially funded expenses such as health care, education, community and social services, national

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Category: Toronto Personal Finance Posts New Rent control rules may spark return to sky-high rent increases for Toronto tenants

  New Rent control rules   With new Rent control rules and the province of Ontario scrapping rent control for new units across Ontario as of November 15, 2018, affordable housing advocates are warning that the changes could may spark return to sky-high rent increases for thousands of Toronto tenants.   The Progressive Conservative government revealed the details on November 15, 2018 through the fall economic statement, announcing legislation which ends rent control for all newly-built or newly-converted rental units going forward — while maintaining rent control for current tenants — as part of a new Housing Supply Action Plan.   “Everybody who’s

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Category: Toronto Personal Finance Posts Interest Rate up inject to homebuyers’ challenges, more first-time buyers may not qualify

  The interest rate up and third Bank of Canada rate hike this year could shut more first-time buyers out of the Toronto region’s housing market. It will increase hundreds of dollars to some homeowners’ challenge mortgage payments. More first-time buyers may not qualify for mortgage.   The central bank has raised its key lending rate 0.25 to 1.75 per cent on October 24, 2018. Similarly, Canada’s big banks boost their prime rates by a quarter of a percentage point to 3.95 per cent from 3.70 per cent, effective October 25. The bank previously raised rates by 0.25 percentage points

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Category: Toronto Personal Finance Posts Toronto home sales continue to decline, sign to a return to normal market

    Toronto real estate market has seen the effects of a confluence of policies: Ontario’s Fair Housing Policy, including a foreign buyers’ tax aimed at cooling the market; a new mortgage stress test targeted at protecting Canadians from dangerously high household debt levels; and the Bank of Canada’s moves to increase interest rates.   The Ontario government needed to act to cool the over-heated market when it peaked at more than 30 per cent year-over-year price growth last April, 2017..   If the government’s policy target was to increase affordability of buyers, that has not happened yet. The short

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Category: Toronto Personal Finance Posts OSFI’s new mortgage rules decreases home affordability

  OSFI’s new mortgage rules decreases home affordability. OFSI’s (Canada’s banking regulator) has published final guidelines for its mortgage qualification rule. It will impose tighter standards on the uninsured market. Lenders will be required to “stress test” all uninsured mortgage loans at the greater of the Bank of Canada’s five-year (5) posted rate or 200 basis points (2 percentage points) higher than the negotiated contract rate. The rule is applicable where the buyer makes a down payment of at least 20 per cent of the home’s purchase price or higher. Home affordability will undoubtedly affect as a result of the

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Category: Toronto Personal Finance Posts How much you need to earn to pay for a home in Toronto

  Looking at the Toronto housing market through an analytical lens of percentages, shifting sales numbers and interest rates may be the go-to method for industry insiders, but for many average customers, there’s really one thing that matters: “What can I buy?” To help answer that question, let’s calculate what level of family income you or your household are going to need to induce in order to purchase a home, based on average prices in 2017 so far. First, we looked at prices for the entire Greater Toronto Area (both the 416 and suburban 905) by property type.   There’s

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Category: Toronto Personal Finance Posts Major changes to Canada’s housing and mortgage lending rules

  In toronto real estate, the Liberal government has announced sweeping changes aimed at ensuring Canadians aren’t taking on bigger mortgages than they can afford in an era of historically low interest rates. The changes are also meant to address concerns related to foreign buyers who buy and flip Canadian homes. Below is a breakdown of the four major changes Finance Minister Bill Morneau announced Monday. The current rules In toronto mortgage, buyers with a down payment of at least 5 per cent of the purchase price but less than 20 per cent must be backed by mortgage insurance. This

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Category: Toronto Personal Finance Posts Vancouver homeowners become Canada’s first ‘city of millionaires,’ study notes

   In toronto real estate, a strong housing market is making Canadians wealthier, on paper, as the value of their homes outstrips a rising amount of debt. In toronto personal finance, household debt across the country grew by 4.1 per cent last year to an average of $133,170 while average household net worth increased slightly more, rising by 4.3 per cent to $680,098, according to the latest WealthScapes analysis by Environics Analytics. That leaves many households in decent financial shape despite challenging market conditions. Households in British Columbia are the richest, according to the study, with net worth growing by

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