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.
Getting your home in 5 easy steps
March 1 2016 Posted by Jennifer Gaudet
Getting your home in 5 easy steps
- Meet with your Mortgage Broker
This important first step is where I get to know you, not just your plans for your new home, but also your goals for the future. I can also offer advice on boosting your credit rating so you are eligible for the best possible mortgage rate, and will outline the extra costs that come with buying and maintaining a home. Be sure to bring all of your questions!
- Know your purchasing power and buy your home!
Before you start house shopping, I can make sure you have a good idea of the amount of mortgage you can qualify for based on your downpayment, income, assets/liabilities, and credit score. This way you’ll know how much it will cost you to carry the mortgage, and both realtors and sellers will know you're serious. Now, go house shopping. Let me know if you need a realtor partner. Congratulations, you’ve bought a home!
- Get your mortgage
Your mortgage amount will be finalized based on your purchase price. I will submit your application to the selected lender and advise you of the documentation you need to support your mortgage request. Your lender may need an appraisal of the property. We’ll then receive a commitment from the lender, which includes the mortgage details and any conditions. You’ll need to make sure the conditions are met and forward any additional required documents. Once you have your approval, you can waive your financing condition if you had one.
- Prepare for the big move
Your lender will send your mortgage information to your lawyer. Please let me know if you’d like to be referred to one of my lawyer partners. Approximately 10 days prior to the closing of your home, you’ll meet with your lawyer to provide identification and your remaining downpayment, sign all of the documents that relate to your new home, and review your closing costs. Then everything will be in place for your completion date!
- Enjoy your new home!
On the day you take possession of your home, your mortgage funds are sent by your lender to your lawyer. Now you can move in and begin enjoying your new home! And thank you for your confidence and trust! The right mortgage is always a great beginning on a smart financial plan for your future.
Jennifer Gaudet
Associate Mortgage Broker - Military Mortgage Specialist
- 902-824-2906
- jennifer@jennifergaudet.ca
- Licence # 2024-3000814
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