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.
Five Tips for First-Time Homebuyers
March 1 2016 Posted by Jennifer Gaudet
Five Tips for First-Time Homebuyers
Although mortgage debt is ‘smart’ debt, buying your first home is a huge financial decision and there is a lot to think about. It’s one of the most important financial decisions that most Canadians will make in their lifetime. Here are five tips to help you get off on the right foot in your home buying journey.
Determine what you can afford.
Before you start shopping for a home – and long before you consider putting an offer on
one – build a realistic budget. Remember that home ownership involves costs beyond the
monthly mortgage payment such at utility bills, insurance, taxes, and home upkeep.
Consider opportunities that will help you manage your housing costs. Perhaps you
could rent out part of your home, or have a roommate to help offset expenses. Or if you
are in a condo, possibly rent out an extra parking space if you have one.
Start off small.
The dream house may be priced too high, so a starter home might be the right option.
A smaller home or maybe a house just outside of the expensive area will help get a foot in the door. You can take advantage of today’s low interest rates to pay off the home quicker and use the equity from the first home to buy that dream home later.
Get expert advice.
Work with a mortgage broker to sort through all of the mortgage options and get the right
combination of mortgage features, privileges and rate that is best matched to your needs.
The right mortgage goes beyond just the rate--it’s important to also consider term,
prepayment options, refinancing penalties, restrictions, and fees. I’d be happy to help you build a strong away team so that all aspects of your home buying experience are efficient and professional. Your team will include a realtor, lawyer, and a home inspector.
Plan for closing costs.
There are additional costs that come with buying a home – lawyer fees, reimbursements,
land transfer or similar tax, appraisal, home inspection, title insurance – so you’ll need to
have some extra funds set aside to cover these costs. Generally, you can expect to pay between 1.5% and 4% of the home’s selling price in total closing costs.
Accelerate your payments – early and often.
A mortgage is the largest debt you will probably ever take on, and paying it down
faster can mean large savings on interest costs over the long-term. Get in the habit of making lump sum payments whenever possible, and consider making bi-weekly payments as a way to decrease the life of the loan. I can also provide strategies to help you pay your mortgage off faster and shave thousands off interest costs.
There’s so much to consider. Working together you can get into the market and
start your wealth building with smart debt! I look forward to helping you achieve
your dream of homeownership!
Canforce Mortgage Inc. Greenwood, NS
Jennifer Gaudet, Owner/ Broker
Military Mortgage Broker
Jennifer Gaudet
Associate Mortgage Broker - Military Mortgage Specialist
- 902-824-2906
- jennifer@jennifergaudet.ca
- Licence # 2024-3000814
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