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.
Mortgage Financing after Bankruptcy
March 3 2016 Posted by Jennifer Gaudet
You CAN get a mortgage after bankruptcy. Here’s what you need to know
Buying a home after bankruptcy is not the same as buying a home with good credit having no previous bankruptcies or consumer proposals on file. Two things that you will be asked by your mortgage broker is:
- How long ago was your bankruptcy discharged, or your consumer proposal completed?
- How long have you been re-establishing your credit and what trade lines do you have?
So what kind of mortgage can I get? It all depends on how you answered the questions above.
Mortgage after bankruptcy with an A MORTGAGE LENDER.
With a prime lender, you will be able to purchase a home at the best rates available. In addition, you will be able to use a down payment of as little as 5% of the purchase price of the home. One thing to note: if your down payment is less than 20% of the home’s purchase price, lenders will require default insurance through either CMHC or Genworth.
In order to qualify with a prime lender after bankruptcy, you need to fulfill the following criteria:
1. The down payment must be from your own resources – either in a savings account, an RRSP, investment account, etc. As of February 16, 2016, you need to have at least 5% available for the first $500,000 of your purchase, 10% for any amount over $500,000.
2. To work with a prime lender, you need to wait for a minimum of two years after discharge of your bankruptcy. Each lender is different.
3. To work with an “A” lender after bankruptcy, you must also be able to show at least two years of solid, re-established credit.
Mortgage after bankruptcy with an alternative mortgage lender, or “B” lender
An alternative lender will work with you as early as one day after your bankruptcy discharge, and with little or no re-established credit.
1. Your down payment will need to be at least 15% of the purchase price of your home. each lender is different.
2. Your costs will be higher with a “B” lender- First, your interest rate will be a bit higher.
3. You’ll need to obtain a full appraisal before the lender will sign off on the mortgage.
contact me for more information on purchasing after bankruptcy or comsumer proposal
Jennifer Gaudet
Associate Mortgage Broker - Military Mortgage Specialist
- 902-824-2906
- jennifer@jennifergaudet.ca
- Licence # 2024-3000814
Blog Categories
- Blog Main
- EVENTS (1)
- First Time Home Buyers (14)
- Industry News (5)
- Industry Trends (4)
- Mortgage Tips & Advice (31)