CMHC's Going To Make It Easier To Become A Landlord

Canada Mortgage and Housing Corp. is going to make it easier for homeowners renting out apartments in their principal residences to borrow money, a move that could further heat up markets in Toronto and Vancouver.

The Crown corporation, which controls a majority of the mortgage default insurance market in Canada, announced changes to its rules Monday and effective Sept. 28 which are aimed at boosting affordable housing.

A background document sent to lenders and obtained by the Financial Post suggests the change is aimed at what CMHC sees as a significant part of the housing market.

“Many municipalities across the country now formally recognize secondary rental suites as a source of affordable housing,” CMHC wrote in its document intended for industry partners. “Rents in secondary rental suites are often lower than those for apartments in purpose-built rental buildings.”

The Crown corporation has said Vancouver has 26,600 secondary units which comprise almost 20 per cent of the rental stock in the city.

Chinese Crash, Brings In Cash

Chinese investors could be looking to put more capital into the Canadian real estate market with the Chinese stock market on the verge of collapse, according to an industry vet.

“The Chinese people who may put more money in Vancouver's market are likely those who've already immigrated here or are in the process of immigrating,” Layla Yang, a real estate agent with ReMax in the Greater Vancouver area.

“For Chinese people from (or currently in) China, Vancouver (and other places in Canada, namely Toronto) and other popular countries such as Australia, the United States and some European countries will always be immigration hot spots.  But of course, Canada has always been their top choice.”

Her comments come as the Shanghai Composite Index fell 32 per cent and the more volatile, tech-oriented Shenzhen Composite Index has dropped 40 per cent after peaking on June 12th. When stock prices collapse, they prompt margin calls that require investors to either put up more money against the loans or sell the stocks, which only accelerates the selloff.

Record Sales and Strong Price Growth in June

Record Sales and Strong Price Growth in June

July 7, 2015 -- Toronto Real Estate Board President Mark McLean announced that Greater Toronto Area REALTORS® reported 11,992 sales through TREB’s MLS® System in June 2015. This result represented a new record for the month of June and an 18.4 per cent increase over the June 2014 result of 10,132.

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Maison Valley consists of Mase Dhirani and Sam Valimohamed, two top-producing RE/MAX Ultimate agents, who specialize in the various aspects of both residential and commercial real estate including selling properties, acquiring for buyers, investments & property management.

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