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.
Homeowners locking into historically low mortgage rates
March 1 2016 Posted by Jennifer Gaudet
Homeowners locking into historically low mortgage rates
Many Canadians who need a new mortgage, are renewing or refinancing, or have a variable rate mortgage are concluding that long-term fixed-rate mortgages are looking very attractive. And for some, the longer the better.
A longer term mortgage offers the security of knowing exactly what your rate will be for the term chosen, which means that whatever happens to the rate environment, you can plan your payments until the end of the term. Typically, the majority of those who lock into a fixed-rate mortgage choose a five-year term, although some are now taking a look at the security of longer terms.
With today’s opportunity to lock in rates that are among the lowest in history, some homeowners who locked into a very good rate a few years ago are even willing to pay an interest penalty to lock into a new mortgage at today’s rates. I can do a review of your situation to see if you can benefit. Other homeowners are putting this historic opportunity to use for other money-saving reasons, which include:
- consolidating more than $25,000 in high-interest loans or credit cards and rolling those bills into a lower-rate mortgage to boost monthly cash flow, have one monthly payment and save on interest costs; or,
- taking equity out for a renovation or home repair project, an investment opportunity, or a large looming expense – tuition, wedding, or dream vacation.
If you are wondering whether a fixed-rate mortgage is right for you or if it is time to lock in your variable rate, get in touch for a review of your situation, especially if it has been over a year since your last mortgage review. I can help you make sure your mortgage continues to meet your needs.
The right mortgage, of course, depends on many factors: including your personal financial situation, goals and risk tolerance. That’s why it’s a great time to talk. I am always aware of the current environment and the resulting implications, so I can help you find a mortgage that gives you an edge and meets your current needs and future goals. In fact there are many reasons to get in touch today - if you’re a first-time buyer or trading up, looking to manage your debt or manage a new business, whether you need a renewal, a refinance, or a renovation, and even in tough situations - divorce, job loss, or bad credit - I’ll help you use today’s great rates to get you where you’re going..0000
Jennifer Gaudet
Associate Mortgage Broker - Military Mortgage Specialist
- 902-824-2906
- jennifer@jennifergaudet.ca
- Licence # 2024-3000814
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