Home ownership costs to rise: Report
Filed Under Main Content · Tagged: Benchmark, Bungalow, Canada, Condominium, Economics Research, Economist, Exceed, First Quarter, Hogue, Home Ownership Costs, Household Income, Housing Affordability, Interest Rates, Peak Levels, Percentage Point, Percentage Points, Rbc, Rose, Straight Quarter, Townhouse
Times Colonist- Home ownership costs in Canada rose for the third straight quarter in early 2010, and those costs are going to get higher as interest rates rise this year, according a housing report released Tuesday by RBC Economics Research.
The RBC Housing Affordability measure, which identifies how much pre-tax household income is needed to own a home, rose nationally across all housing types in the first quarter of 2010.
The detached bungalow benchmark measure rose by 0.9 of a percentage point to 41.1 per cent, the standard townhouse inched up by 0.4 of a percentage point to 33 per cent, the standard condominium climbed by 0.5 of a percentage point up to 28.2 per cent and the standard two-storey home increased by 0.6 percentage points to 46.8 per cent.
Robert Hogue, senior economist at RBC said in the report that although home ownership became more costly in the first quarter of 2010, affordability is still below peak levels reached in early 2008 and is not expected to exceed those peaks…
Home ownership costs to rise: Report
CMHC Mortgage Regulations to Restrict Real Estate Investment
Filed Under Main Content · Tagged: Borrowers, Cmhc Mortgage, Debt Service, Household Income, Invest, Kicker, Kitchener Waterloo, Mortgage Investment, Mortgage Regulations, People, Real Estate Investment, Real Estate Investment Properties, Rental Property, Waterloo Real Estate
Kitchener Waterloo Real Estate Investment Properties- Currently when you buy a rental property, CMHC will allow you to use a 80% rental offset, which means that they used to take 80% of the gross rental income that the income property generated, and subtract that from the borrowers total debt, to establish the total debt service (TDS) ratio.
What that means is that you don’t have to have the household income to cover 100% of the value of the rental property, like you do with a home you live in, because the bank will let you offset the debt using 80% of the revenue the rental produces (does that make sense?).
They’re changing this amount to 50%, which makes it much tougher for people to qualify for investment properties, but the real kicker is that…
Victorians pay highest home costs
Filed Under Main Content · Tagged: Carrying Costs, First Quarter, Fixed Rate, Household Income, Property Taxes, Second Quarter, Times Colonist Victoria, Times Colonist Victoria Bc, Victorians, Year Mortgage
Times Colonist, Victoria, BC – But in Victoria mortgage carrying costs slipped to 56.6 per cent in the second quarter, just 0.1 per cent less than the first quarter of 2009. Those costs reflect the portion of pre-tax household income needed to cover a mortgage, excluding property taxes and utilities. The number is based on a 25-year mortgage at a five-year fixed rate, and 25 per cent down payment. …
Victorians pay highest home costs
There’s no secret subprime mortgage problem in Canada
Filed Under Main Content · Tagged: British Columbia Canada, Canada Vancouver, Foreclosure, Foreclosures, Household Income, Human Tragedy, Mortgage Canada, Mortgage Problem, Nbsp, Recession, Subprime Mortgage, Vancouver Sun
Vancouver Sun – British Columbia, Canada – A foreclosure on a family home is a heartwrenching human tragedy. As the recession takes its toll on household income, the number of foreclosures is increasing…
