TD Economics Report Feb 8, 2017

TD Economics brought to you by Dina Ignjatovic, Economist

 

Data Release: Housing starts kick off the year on strong footing

 

  • Canadian housing starts kicked off the year on a strong note, with homebuilders breaking ground on 207k units (annualized) in January.  This extends December's sharp gain, and pushes the 6-month moving average up just shy of the 200k unit mark.

 

  • The strength in January stemmed from the multi-family sector, which was up 4.2% following a 14% gain in December.  Meanwhile, single family construction was down 4.6% on the month, reversing some of December's gains.

 

  • Regionally, Ontario remained the key driver of growth, with starts up by a whopping 25% in January.  Homebuilding in the Atlantic Provinces was also up during the month while the remaining regions recorded declines.  B.C. experienced the largest pullback, as home starts slid 33% from the month prior.

 

Key Implications

 

  • Overall, housing starts have been hovering around the 200k mark annualized (on a trend basis) for the last six quarters, or just slightly above the current rate of household formation.  However, homebuilding construction should begin to slow over the course of the year, consistent with a cooling in overall housing market activity.

 

  • Still, the recent strength in multi-unit projects could have further room to run given the surge in building permit approvals seen over the second half of last year. This could be partly offset by single-family construction, which is already at relatively lofty levels.

 

  • The regional story will continue to reverberate across the housing markets, with central Canada leading the way, while B.C. and the oil-rich provinces lagging behind.

 

 

Category: Mortgage Tips & Advice (31 posts)

  • March 9, 2016 @ 7:37 PM
  • Posted by Jennifer Gaudet

Home staging and Redesign - by Makes Sense Home Staging and Redesign

Home staging and Redesign - by Makes Sense Home Staging and Redesign Check it out here http://makessensehomestaging.com/ Home staging is the act of preparing a private residence for sale

  • March 3, 2016 @ 2:20 PM
  • Posted by Jennifer Gaudet

Mortgage Financing after Bankruptcy

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  • March 1, 2016 @ 7:56 PM
  • Posted by Jennifer Gaudet

Thinking of buying your next home?

Thinking of buying your next home? Your first move should be to talk to us! Maybe you want to create the perfect house that fits your lifestyle. Or maybe your family needs more room to grow. Whateve

  • March 1, 2016 @ 7:54 PM
  • Posted by Jennifer Gaudet

Smooth move! Nine tips to survive the buy/sell

Smooth move! Nine tips to survive the buy/sell So there’s a move in your future. It can be a stressful juggling act: selling one home, buying another. We deal with this all the time, and have s

  • March 1, 2016 @ 7:46 PM
  • Posted by Jennifer Gaudet

Should you give your child a boost to home ownership?

Should you give your child a boost to home ownership?   With the financial demands of school loans, living expenses, and finding a career path, many young people struggle to purchase their firs

  • March 1, 2016 @ 7:25 PM
  • Posted by Jennifer Gaudet

Get the best mortgage rate: Five Tips to “financial fitness

Get the best mortgage rate: Five Tips to “financial fitness ”When the time is right for you to buy a home, make sure you are financially fit and eligible for the best possible mortgage ra

  • March 1, 2016 @ 7:22 PM
  • Posted by Jennifer Gaudet

Show me the money! What you need to know about your downpayment.

Show me the money! What you need to know about your downpayment. You’ve got your downpayment and you’re ready to go. Congratulations! Soon you’ll need to verify that downpayment for

  • March 1, 2016 @ 7:18 PM
  • Posted by Jennifer Gaudet

Homeowners locking into historically low mortgage rates

Homeowners locking into historically low mortgage rates    Many Canadians who need a new mortgage, are renewing or refinancing, or have a variable rate mortgage are concluding that long-te

  • March 1, 2016 @ 7:16 PM
  • Posted by Jennifer Gaudet

THAT LOW-RATE MORTGAGE COULD ACTUALLY COST YOU MORE

That low-rate mortgage could actually cost you more.   Cheapest is not always best. We know that’s true when we’re shopping for anything else. But we still tend to believe that lowe

  • March 1, 2016 @ 7:13 PM
  • Posted by Jennifer Gaudet

Check the fine print behind discounted no-frills mortgages

Check the fine print behind discounted no-frills mortgages Spring market 2012 is heating up with some low-rate no-frills mortgage promotions. They are certainly attention getting but these mortgages

  • March 1, 2016 @ 7:11 PM
  • Posted by Jennifer Gaudet

A peek behind deeply discounted 5-year rates.

A peek behind deeply discounted 5-year rates. When considering a deeply discounted 5-year rate, keep in mind that cheapest isn’t always best. Strangely, we know that’s true when we’

  • March 1, 2016 @ 7:09 PM
  • Posted by Jennifer Gaudet

When you’ve got “rate envy”, does it make sense to refinance?

When you’ve got “rate envy”, does it make sense to refinance? Who would have believed that mortgage rates would have such a continued downward trend? Mortgage shoppers are looking a

  • March 1, 2016 @ 7:07 PM
  • Posted by Jennifer Gaudet

The Mortgage Broker Advantage

The Mortgage Broker Advantage   Increasingly, Canadians are turning to mortgage brokers for their first and next mortgage, taking advantage of the value and convenience of their services. 

  • March 1, 2016 @ 6:59 PM
  • Posted by Jennifer Gaudet

People don’t fit in boxes

People don’t fit in boxes If you need a mortgage, you can try and fit into the neat little boxes at the bank, or you can come to us first.We don’t have boxes, we have solutions!  

  • March 1, 2016 @ 6:56 PM
  • Posted by Jennifer Gaudet

The biggest mortgage decision: bank or broker?

The biggest mortgage decision: bank or broker?   If you’re like most Canadian homeowners, chances are you didn’t buy the first house you saw. You browsed some listings, you walked a

  • March 1, 2016 @ 6:53 PM
  • Posted by Jennifer Gaudet

6 reasons to get unlimited private lessons with a Mortgage professional

6 reasons to get unlimited private lessons with a pro! If that was a poster at the golf course with the word FREE, you’d be signing up, right? Well, this is better. When you work with me, you g

  • March 1, 2016 @ 6:52 PM
  • Posted by Jennifer Gaudet

FACEOFF: Bank vs. Broker

FACEOFF: Bank vs. Broker We’re in hockey playoffs, so let’s talk about the faceoff: bank versus broker.  The fact is, there’s really no contest on this one. The broker wins the

  • March 1, 2016 @ 6:46 PM
  • Posted by Jennifer Gaudet

Your mortgage could be a goldmine of potential savings

Your mortgage could be a goldmine of potential savings A penny saved is a penny earned!  By making the right decisions, your mortgage could be a goldmine of potential savings. With access to a

  • March 1, 2016 @ 6:42 PM
  • Posted by Jennifer Gaudet

Ten great reasons to use a mortgage broker

Ten great reasons to use a mortgage broker   For many Canadians, mortgage payments are their single biggest expense. Yet most don’t comparison shop to ensure they’re getting the bes

  • March 1, 2016 @ 2:30 PM
  • Posted by Jennifer Gaudet

Understanding Collateral versus Standard Charge Mortgages

Understanding Collateral versus Standard Charge Mortgages   It’s important to understand the differences between a collateral and standard charge mortgage because they are suited to diffe

  • March 1, 2016 @ 2:25 PM
  • Posted by Jennifer Gaudet

Comparison of Collateral versus Standard Charge Mortgages

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  • March 1, 2016 @ 2:21 PM
  • Posted by Jennifer Gaudet

The cost to break your mortgage

The cost to break your mortgage   Most homeowners should expect to pay a penalty if they want to break their mortgage to get a better rate or for a complete refinance.  Homeowners in 5 yea

  • March 1, 2016 @ 2:17 PM
  • Posted by Jennifer Gaudet

All things being equal, choose your mortgage with the best prepayment penalty

All things being equal, choose your mortgage with the best prepayment penalty   It’s impossible to plan on many of the things that will happen in our lives, like a job loss, illness, divo

  • March 1, 2016 @ 2:13 PM
  • Posted by Jennifer Gaudet

The ins and outs of pre-approvals

The ins and outs of pre-approvals When you’re house hunting, it’s a great idea to know the amount of mortgage you qualify for, your monthly payments, and that your interest rate will be

  • March 1, 2016 @ 2:08 PM
  • Posted by Jennifer Gaudet

Pre-payment Privileges ….. speed up your mortgage pay-down!

Pre-payment Privileges speed up your mortgage pay-down!   The prepayment privileges that come with your mortgage are there for a reason – they help you pay off your mortgage faster and

  • March 1, 2016 @ 1:41 PM
  • Posted by Jennifer Gaudet

Fixed or Variable-Rate Mortgage?

  Fixed or Variable-Rate Mortgage?   “Wow!” look at the mortgage rate those guys are advertising!  Your worries are over, you’re thinking. Just lock in a rate like

  • March 1, 2016 @ 1:36 PM
  • Posted by Jennifer Gaudet

Mortgage choice - Monoline Lenders

Mortgage choice - monoline lenders   Finding a perfect mortgage that fits your life is like finding the perfect home. It’s an important decision that requires a lot of shopping around. Th

  • March 1, 2016 @ 12:52 PM
  • Posted by Jennifer Gaudet

Your Home and Mortgage - Income Verification Be Prepared

Your Home & Mortgage March 2016   Be prepared with your income verification One of the most critical components of a successful mortgage approval is verifying your income. Being prepared

  • February 29, 2016 @ 6:31 PM
  • Posted by Jennifer Gaudet

Mortgage Penalties - What you need to know

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  • April 8, 2015 @ 7:29 PM
  • Posted by Jennifer Gaudet

4 Strategies That Can Help You Get PreApproved

So, you've decided to take the big step and look into getting what will likely be the biggest loan of your entire life: a mortgage. Applying for a mortgage can be a bit of a nerve-wracking process, es

  • February 23, 2015 @ 12:54 PM
  • Posted by Jennifer Gaudet

5 easy ways to be mortgage free sooner!

We all know that paying off a mortgage as early as possible makes good financial sense. You’ll save significant interest costs and free up money for RRSPs and other investments, and changing l