It’s no secret that the federal government is considering investment property reforms to help bring down house prices.
In a mandate letter sent by the Prime Minister in December, Housing Minister Ahmed Hussen was specifically tasked with “reviewing down payment requirements for investment property” and developing policies to “limit excessive profits. In this segment of housing.
In 2021, more than a quarter of all home purchases were made by existing home buyers, investors in many cases, according to data from Teranet.
Government of Canada announcement today that it will make a “major” housing announcement on Thursday, in the presence of both the Minister of Housing, Diversity and Inclusion and the Minister responsible for CMHC.
Some believe the announcement could be linked to changes to the down payment requirements for investment property.
Unoccupied rental properties in Canada of up to four units currently require a down payment of at least 20% from most lenders.
Mortgage expert Rob McLister told the Financial post Wednesday that a five percentage point increase in the minimum down payment would likely slow down investment purchases “gradually”, while the implementation of a minimum down payment of 35% “significantly slow” such purchases.
He added that regulators could also implement restrictions on the use of borrowed money, such as home equity lines of credit, to fund down payments.
The announcement will take place at 11 a.m. ET and will be broadcast live. here.
Jason Ellis appointed CEO of First National
After serving in various roles at First National for nearly 18 years, Jason Ellis has been appointed President and CEO of the company effective today.
Ellis, who first joined the company in 2004, has been COO since 2018 and in 2019 added the title of President.
Outgoing CEO Stephen Smith, who has held the role since First National’s IPO in 2006, will continue to provide strategic guidance and direction to management in the new role of Executive Chairman.
Smith founded First National in 1988 with Moray Tawse, making the company one of the largest non-bank mortgage originators and underwriters in Canada with $ 121 billion in mortgages under administration.
“Jason is uniquely qualified to lead First National as my natural successor,” Smith said in a statement. “Passing the baton on to Jason is something I’m happy to do as I know he will take First National to the next level of achievement for the benefit of our employees, customers, partners and shareholders. “
British Columbia has record sales in 2021
More than 124,800 residential units were traded in British Columbia in 2021, according to final 2021 figures released by the BC Real Estate Association (BCREA).
This is a 33% increase from 2020. Meanwhile, the average MLS residential price in the province was $ 927,877, a jump of almost 19% from the previous year. In three of British Columbia’s largest markets, the average price of a home now exceeds $ 1 million.
“Last year was a banner year for home sales in British Columbia with seven market sectors setting new highs,” BCREA chief economist Brendon Ogmundson said in a statement. “Registration activity could not keep up with demand throughout the year. As a result, we start 2022 with the lowest level of active registrations on record. “
Total active listings are currently at a record high of just 12,179 units, down more than 41% from 2020.