Keeping their promise to hold rates until mid 2010, Bank of Canada has held the key rate at .25%, stating underlying factors in the Canadian Recovery are unchanged as reported in The Wall Street Journal today. Canada's economic recovery is steamrolling ahead (as read in today's Montreal Gazette). While recovery is always good, it also means we must keep our eyes on the rates. If you're in a variable, you will inevitably make the decision to lock in, or stay floating. After you know how rates work, you can hopefully make an informed decision in the future. Earlier this week Finance Minister Jim Flaherty announced changes to the Canadian Mortgage Rules. The changes are subtle and have been well-received by economists and the public for calming down the market without de-railing it. The new policies are: -Applicants for CMHC backed mortgages must pass a credit test -Applicants must qualify on the 5-year rate (up from the 3-year) -You may only refinance your home to 90% loan to value (scaled back from 95%) -Minimum 20% down on rental properties We certainly share more news from the residential real estate and mortgage market in Western Canada than we do on commercial property investments across North America. Even still, we at Alta Pacific Mortgage Investment Co. keep our eye on all segments of the market. The following report from CB Richard Ellis gives good insight into "The Upside of the Downturn" for those interested in some additional reading. Global economic outlook improves modestly,central bank says, but benchmark interest rate to remain at record low 0.25 per cent This link will take you to the Ministry of Finance Tax notice for HST Rebates and Transitional Rules for British Columbia. 19 pages The Calgary Herald this morning reports (via Re/Max) that Calgary home prices are forecast to rise 5% in 2010... read the full article here. The article goes on to say that Re/Max is estimating MLS sales to hit 26,000 this year in Calgary for a 12 per cent gain from 2008 and it is expecting sales to continue to rise by another eight per cent in 2010 to 28,000 News yesterday in the Vancouver Sun (click here for article) states that the housing rebound in BC is the strongest on record. The article quotes Central 1 Credit Union Economist Helmut Pastrick; a former CMHC guy (his bio is here) The article states "The overall average home price in B.C. will climb to a new high of $463,800 by the end of 2009, erasing recession-era losses, before advancing to $497,800 in 2010 and $534,800 in 2011." First this news on Sep 8th - Edmonton Housing starts are up 32%. Then this on Oct 13th - Slide in local housing prices leads nation. Both from the Edmonton Journal. The simple Supply and Demand lesson in Economics 101 taught us all that this might happen. At Alta Pacific Mortgages we keep a watchful eye on all Western Canadian markets. Speak to us if you're interested in learning more about investing in Alberta or British Columbia real estate through mortgages. | NEWSMORTGAGE NEWS
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