Canada

This Week’s Top Stories: Half of Canada’s Mortgages Renew Over The Next Year, and Your Questions About Canadian Real Estate Cycles Answered

This Week’s Top Stories - Half of Canada’s Mortgages Renew Over The Next Year, and Your Questions About Canadian Real Estate Cycles Answered

Time for your weekly cheat sheet, on the most important stories in real estate.

Canadian Real Estate

Bank Of Canada: Half Of Canadian Real Estate Mortgages Will Renew By Next Year

Bank of Canada released its quarterly review of risks to the Canadian financial system, and mortgages were near the top. Turns out an estimated 47% of mortgages will renew in the next year. In 1 to 3 years, another 31% of mortgages will need to be renewed. Over the next 3 years, we have the other 22% of mortgages that will renew. Curious what that might mean for risk? We run through the pros and cons.

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So… Are We Talking About These Canadian Cities Where Multiple Mortgages Are Rising?
Multiple mortgages on the same property are on the rise in Canada’s hottest real estate markets. In Toronto, 26,534 new mortgages were issued to properties that already have a mortgage, a 2.7% increase from the year before. Vancouver saw 13,573 mortgages on already mortgaged homes, a 25.4% increase from the year before. Montreal had 17,532 new mortgages on already mortgaged homes, a 0.7% decline from the year before. Only secondary mortgages that increased the outstanding balance of the home by over 10% were used. Which brings up an interesting question, what’s everyone using these downpayment sized equity withdrawals for?

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You Had Questions About Canadian Real Estate Cycles, So Here’s Some Answers
Last week we summed up some notes we presented during National Housing Week, on Canadian real estate cycles. Since then, we were flooded with more emails than usual, many asking the same questions. Instead of answering all of them individually, we thought we would try a Question and Answer format. Here’s some of the most frequently asked questions we had on real estate cycles this week, and what we’re seeing.

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Canadian Real Estate Is Pricey, Here’s How Much You Have To Earn To Buy A Home
Canadian real estate prices have been making a steep climbs, much faster than incomes. To check where the market gap is, we crunched the numbers on how much you need to make in order to buy a typical home across Canada. Vancouver is the most expensive urban area, with a household income of $157,000 required to qualify for a mortgage on a typical home. Fraser Valley and Toronto tied for second, with an income of $115,000. Click through to find out how far off these are from other cities, and median incomes.

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Toronto Real Estate

Toronto Real Estate Now Has The Fastest Growing Gap Between Sales And New Listings
The Canadian Real Estate Association (CREA) often uses the sales-to-new listings ratio to determine whether or not a market is hot. The higher the ratio, the hotter the market, and the lower the cooler the market. The closer the ratio is to 50%, the more balanced the market. Toronto has 14,903 new listings in October, contrasted with 7,118 sales. This gives Toronto a sales-to-new listings ratio of 54.7%. To contrast, suburban areas surrounding Toronto have substantially higher ratios. Kitchener-Waterloo has a ratio of 75.9%, and Windsor has a ratio of 75.1%. Is the city overly cool, or are the suburbs way too hot?

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