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.
5 easy ways to be mortgage free sooner!
February 23 2015 Posted by Jennifer Gaudet
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 lifestyle needs. Here are 5 strategies to help you become mortgage free sooner:
- Add a bit to your monthly payment.Most of us can find an extra $50 per month by cutting out a restaurant meal. Add that money to your mortgage and you’re saving big on interest down the road.
- Make a yearly pre-payment. Paying an extra one or two thousand on your mortgage once per year on the anniversary date of the mortgage could yield significant savings over the life of the loan. Take advantage of a tax refund or bonus from work. Lump-sum mortgage prepayments have a much greater impact on the total amount of interest you’ll pay if they are made early in the mortgage.
- Increase your mortgage payment if your income increases. Pretend your income didn’t increase and maintain your usual lifestyle.
- Choose accelerated bi-weekly payments. Instead of paying your mortgage on a monthly basis 12 times per year, pay your mortgage every two weeks for a total of 26 payments, effectively giving you one more mortgage payment each year.
- Stay informed. Don’t let your mortgage go on auto pilot. Let me stay in touch with you throughout your mortgage years. I can help you save money at renewal, and will keep you up-to-date on interest rates and new mortgage options. You can save thousands just by understanding what your options are and by taking advantage of opportunities.
Let me help you build a plan to become mortgage free sooner!
Jennifer Gaudet
Associate Mortgage Broker - Military Mortgage Specialist
- 902-824-2906
- jennifer@jennifergaudet.ca
- Licence # 2024-3000814
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