15 Jan

Saskatchewan Residential Sales in 2022

Latest News

Posted by: Kim Seifert

Saskatchewan Residential Sales in 2022

Saskatchewan continues to report sales that are stronger than pre-pandemic levels.

Saskatchewan Residential Sales in 2022 continued to report record sales of apartment condominiums but this wasn’t enough to offset declining sales in detached homes, resulting in a 12% decline in residential sales in 2022. “Without question, higher lending rates are contributing to the pullback in sales. We saw the Bank of Canada raise interest rates seven times in 2022.

Regional Highlights: Source — SRA

Sales eased across all regions of the province this year, with declines ranging from 27 per cent in Melfort to two per cent in Swift Current. Despite the pullback in sales relative to 2021, a record year, all regions reported sales that were either consistent with or above long-term trends. All regions across the province also saw a pullback in both new listings and inventory levels. Average annual inventory levels not only declined relative to last year but were well below long-term trends across all regions.

City of Regina 

Easing sales in December contributed to a year-to-date decline of three per cent. The decline in sales was driven by pullbacks in the detached sector, as sales activity improved in every other category. While total residential sales have eased relative to a record 2021, the 3,609 sales reported in 2022 is over 23 per cent higher than long-term trends and well above pre-pandemic activity.

Both new listings and inventory levels experienced a pullback in 2022, with the decline in inventory largely in products priced below $500,000. Shifts in both sales and supply resulted in increasing months of supply when compared to levels experienced early in 2022. While this did take some pressure off prices, especially in Q4 2022, the benchmark price increased by over three per cent on an annual basis.

City of Saskatoon

The City of Saskatoon reported 4,587 sales in 2022, a 15 per cent decline over last year’s record high but over 12 per cent higher than 10-year trends. Supply continues to be a challenge, as new listings have eased significantly and were 14 per cent below long-term averages in 2022. Meanwhile, inventory levels eased even further, resulting in average supply levels 31 per cent below long-term trends.

While a pullback in sales relative to inventory levels in the second half of the year did allow the months of supply to rise, the market remains far tighter than what we would traditionally see in Saskatoon. On an annual basis, benchmark prices rose nearly five per cent over 2021 levels.

Further to Saskatchewan Residential Sales in 2022 —

Homes Listed for 30+ days!

You can typically make the assumption it won’t sell at the asking price. Currently, only 21.9% of properties are selling over asking. Low Volume + What is NOT Selling in the Canadian Market = Pricing.

Let’s Talk Mortgages… Apply Here

15 Jan

OSFI Leaves Mortgage Stress Test

Latest News

Posted by: Kim Seifert

OSFI leaves mortgage stress test unchanged:

OSFI will launch a full review of B-20 mortgage underwriting standards in January. The Stress Test created an environment of parents/ grandparents to not only helping with down-payments but also co-signing mortgages to meet new Stress Test requirements of 5.25% or Contract Rate + 2%, whichever is higher!
With co-signers and help with a down-payment did OSFI regulations solve what it was intended to do?

OSFI Canada unveiled 3 proposed measures that would further restrict mortgage lending:

Pending the just-launched consultation period, if adopted.

1) Loan-to-income & debt-to-income restrictions.
2) Debt service coverage restrictions.
3) Interest rate affordability stress tests.
“Rising household debt is a significant vulnerability to mortgage lenders.”

Let’s Talk Mortgages… Apply Here

15 Jan

Prohibition on the Purchase of Residential Property by Non-Canadians Act

Latest News

Posted by: Kim Seifert

Prohibition on the Purchase of Residential Property by Non-Canadians Act:

On January 1, 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act is in effect for a period of two years.

This means that certain customers are not allowed to buy residential property in Canada, and Brokers should not submit applications for mortgage, Home Equity financing for a purchase.
Let’s Talk Mortgages.

The stated intention of the Act is to make residential homes more affordable for Canadians. To that end, Section 4 of the Act provides that “it is prohibited for a Non-Canadian to purchase, directly, or indirectly, any residential property.”

The Act defines Non-Canadian as:

  1. an individual who is neither a Canadian citizen nor a person registered as an Indian under the Indian Act nor a permanent resident;
  2. a corporation that is incorporated otherwise than under the laws of Canada or a province;
  3. a corporation incorporated under the laws of Canada or a province whose shares are not listed on a stock exchange in Canada and that is controlled by a person referred to in paragraph (1) or (2); and
  4. a prescribed person or entity,

The Act defines “residential property” as:

  1. a detached house or similar building, containing not more than three dwelling units;
  2. a part of a building that is a semi-detached house, rowhouse unit, residential condominium unit or other similar premises;
  3. prescribed real property or immovable,

Section 6 of the Act makes it an offence for a Non-Canadian to purchase residential property covered by the Act. It also creates an offence for every individual that counsels, induces, aids or abets a non-Canadian to purchase any residential property covered by the Act knowing that the non-Canadian is prohibited. All such persons are liable on summary conviction to a fine of not more that $10,000.

For More Details: Click Here

Updated March 2023:

Prohibition on the Purchase of Residential Property by Non-Canadians Act Changes:

➡️Work permit holders can buy homes.

➡️Non-Canadians can buy land for residential/mixed-use.

➡️Non-Canadians can buy residential property for development.

➡️Corporation foreign control threshold to 10% from 3%.

Let’s Talk Mortgages… Apply Here

15 Jan

Mortgage Assets

Mortgage Tips

Posted by: Kim Seifert

Why mortgage lenders ask for proof of Mortgage Assets when applying for a mortgage?

Mortgage Assets show your net worth and allows a lenders to get a better picture of how you will make your mortgage payments, down payment and closing costs.

In addition to considering your employment history and income, the lender will also consider whether you have any additional assets that you could convert into cash. That’s because these assets provide you with a potential source of cash flow in case of a job disruption or job loss – could you stay afloat for a few months?

What are considered Mortgage Assets?

  1. Savings/ Chequing Account Balances.
  2. Investments (RRSP, TFSA, Bonds, Mutual Funds, etc.).
  3. Life Insurance (Private & Work).
  4. Pensions.
  5. Vehicles.
  6. Properties Owned.

What Information will you need to provide for Assets?

  1. Investments/ Savings/ RRSP/ TFSA/ Pension/ Life Insurance: Institutions Name, Type of Investment, Approximate Value.
  2. Vehicles: Make/ Model, Year, Approximate Value.

Generally the lenders do not ask for supporting documents on Assets unless they are being used for Down Payment and Closing Costs. Required Supporting Documents:

  1. 90-day bank History showing available funds.
  2. Must show your name, Account Number and Full 90-day History.
  3. Nothing can be edited or Blanked out.
  4. If moving funds from Investments accounts to general accounts you must show a 90-day history for each account following the funds from one account to another.

What are the general requirements to qualify for homeowner mortgage loan insurance?

Find out which requirements you must meet to qualify for CMHC’s Homeowner Mortgage Loan Insurance. Here

Let’s Talk Mortgages… Apply Now