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.
4 Strategies That Can Help You Get PreApproved
April 8 2015 Posted by Jennifer Gaudet
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, especially if your financial history is anything less than perfect. However, you shouldn't let a few denials get you down. There are always some things you can do to regroup, reorganize, get a better handle on your finances, and improve your chances for an approval with your next application. Before applying for a mortgage loan you should consider...
1) Having good savings
Having decent savings is an absolute must before walking into a lender's office and asking for a mortgage. First of all, most lenders are likely going to require some sort of down payment, meaning that you will need to be able to make a large payment up front. Lenders are also much more likely to approve you for a loan if they see that you will actually have the means to pay them back in the foreseeable future. If you come in with very little cash to your name, then you may be seen as too much of a risk.
2) Trying to bring down your debt
On top of having some savings, you need to make sure to bring down your total debt before asking someone for yet another loan. You don't need to have every single one of your cards paid off in order to apply for a mortgage, but you also shouldn't have other creditors chasing you for overdue payments. Your mortgage lender will be interested in how much debt you currently have and how you are coping with payments, so try to have it under control before applying.
3) Setting your sights on a more affordable property
If your mortgage application is constantly getting denied despite the fact that you have decent savings and little debt, then you may need to think about choosing a different and more affordable property. It may be hard to lower some of your expectations, but sometimes setting foot on the property ladder means having to make certain compromises. If you need to ask for a smaller loan, then you'll have a much easier time getting approved.
4) Finding a financially stable co-signer
If none of the above strategies work and you really want to become a homeowner, then you can also consider getting a co-signer on your loan. You will need to find someone who is financially stable and who has a great deal of trust in you and your ability to make your monthly mortgage payments. Having a co-signer can help you appear as much less of a risk to potential lenders.
Jennifer Gaudet
Associate Mortgage Broker - Military Mortgage Specialist
- 902-824-2906
- jennifer@jennifergaudet.ca
- Licence # 2024-3000814
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