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.
FACEOFF: Bank vs. Broker
March 1 2016 Posted by Jennifer Gaudet
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 faceoff every time. That’s a heck of a game advantage. But let’s talk about why it happens: because it’s worth reminding ourselves why the smart money is always on the broker.
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Available from a Mortgage Broker |
Available from a Bank |
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Mortgage Choice |
Over 50 lenders, including most of the major banks, credit unions, and national, regional and private lenders. |
Every bank has its own menu of house mortgage products. |
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Mortgage Rates |
Mortgage brokerages negotiate discounted rates with lenders, and have access to rate promotions and specials. |
Rates are set by the Bank. If there’s a better deal in the marketplace, you’ll have to find it yourself. |
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Independence Objectivity |
A mortgage broker works for you, not any one lender. |
Naturally, mortgage specialists are there to build business for the bank. |
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Ongoing Service |
Brokers offer ongoing advice and conduct annual mortgage reviews, showing you how to pay off your mortgage faster, power down debt, finance renovations, or invest in property. |
No proactive advice is typically provided. You will get an annual mortgage statement. |
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At Renewal |
Your broker will go to bat for you again – to make sure you have the best product and rate. |
You may not be offered the best deal initially, requiring you to proactively contact the bank to negotiate. |
Time to buy a home, refinance or renew your mortgage? Get the advice you deserve. Call today!
Jennifer Gaudet
Associate Mortgage Broker - Military Mortgage Specialist
- 902-824-2906
- jennifer@jennifergaudet.ca
- Licence # 2024-3000814
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