Lesley Bourget, CPA, CMA

According to Canada Mortgage and Housing Corporation (CMHC) Société canadienne d'hypothèques et de logement(SCHL), with the current resources, we should be able to build 400,000 new homes each year. But even with a record-high 650,000 construction workers in 2023, Canada's housing production of 240,267 units fell well short of that. Apparently one reason could be lower productivity from the Canadian workforce than peer countries. According to a report by the Business Council of British Columbia the Canadian workforce is less productive than several other countries including America, France, Germany, and Australia. Comparatively, the average Canadian worker would need to work almost 30% more hours to generate the same output as American and French workers, 25% more hours to match the output of German workers, 15% more hours to keep up with British workers, and 6% more hours to match the output of Australian workers. What's the fix? For more industry insight follow MatchBox Consulting Group and SiteNews. https://lnkd.in/g3Z2Zyts

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Something I've been talking about a lot in presentations lately is that, even though the Bank of Canada is cutting rates, the 5-year fixed mortgage rate may not come down much. The reason is that the Canadian yield curve is still quite inverted. To regain its normal upward sloping shape (there should be some compensation for lending for longer terms), the short-end needs to fall (achieved by the Bank of Canada cutting rates) and the long-end needs to rise. Right in the middle is the 5-year bond yield, which is currently around 3.5% and that is probably around where its going to stay. That implies a 5-year fixed mortgage rate of 4.9-5.1% depending on mortgage spreads. (For the hardcores, the graph is a forecast from a Diebold-Li yield curve model) #Canada #interestrates #mortgages

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Short term rental tax rule has teeth A recent ruling by the Tax Court of Canada mandates that homeowners who consistently rent their property on Airbnb or other short-term platforms must pay a 13% HST on the sale price when selling the property. This ruling, applied to a condo owner, clarifies that regular short-term rentals change the property's classification from residential to commercial, making it taxable. This could significantly impact short-term rental operators, as substantial taxes may be due upon sale. It highlights the need for professional advice when selling such properties.

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It's great to see how effective personal engagement can be. Ability to come across as genuine and relatable, despite the challenging circumstances, demonstrates the power of authentic communication. Meeting and connecting on a human level, discussing everyday topics , shows a commendable effort to bridge gaps and foster understanding. This encounter highlights the importance of listening and empathy in leadership, and it's encouraging to see such a positive example of these qualities in action. #truckingindustry #logisticsindustry #career #hiringnow #recruitment #applytoday #rfarrerandassociates #recruitmentpartner

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So many comments on this story. 1. If you have residential title insurance from when you purchased it "should" (policies in Canada are NOT standardized but need to be) cover what is called "post-policy" fraud. This means fraud that takes place after you bought your house. 2. In many US jurisdictions you can tell the County Clerk you want to be notified if something is registered against your title. In Ontario your title (and it is YOUR title) can be searched and a document (selling, mortgaging, encumbering your title) can be registered against your title without you knowing. Teranet sells this information to anyone that subscribes to its "Geowarehouse" service and they have no obligation to notify you, your lawyer or your title insurer that someone is checking out your title, or has registered anything. How do you suppose the criminals determine which house on the street has enough equity to scam the owners? 3. If the eventual Mortgagee is a legitimate Mortgagee that has been scammed to take out the NOSI, that Mortgagee will more than likely have a title insurance policy protecting it against the fraud. If you are wondering why the money the Bank lost is not mentioned in the story it is likely because they did not lose any money - the title insurer would have covered the claim. 4. Finally, and perhaps most gallingly, the title insurer has no obligation to report the transaction, or even the claim, to FINTRAC or anyone else. They report to FinCEN in the US!! Grrrr.

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I woke up a bit angry and frustrated this morning over the state of housing in Canada. This is not unusual for me lately because in my opinion the decision makers at the helm don’t seem to know how to steer this big ship and I think it’s in danger of capsizing. The headline of the article I read last night was something like “Government to the Rescue“. Um … yeah … not even close! (When is THAT ever the case anyhow?) I should not be reading “horror” right before bed like this. You know, I just “love” our Minister of Finance Chrystia Freeland! Haha! I simply cannot get my head around how she does not seem to understand how her short-sighted policies will play out. She recently announced that the limit for “insured mortgages” (people purchasing with less than required norm of 20% down) will increase from $999,999 to $1,499,999, but only for Canadians earning over $205,000 annually. First-time homebuyers and buyers of new builds will also be eligible for 30-year amortizations, allowing them to take on more debt. So effectively … spend more. Yay!! Par-Tay! We have the lowest amount of available housing per capita in the G7. There’s a 25-year low in construction workers. Population growth has been setting records year after year, creating a massive supply/demand imbalance … need I go on? The solution? I know! Let’s encourage first-time buyers, (often the most vulnerable), to take on more leverage and pay higher prices. Isn’t this a serious misstep on every level? When what we really need is just more homes built, period. Instead Krystia and her pals are allowing buyers to withdraw more of their savings (RRSPs, First-Time Homebuyer accounts) and qualify for larger mortgages, pushing them deeper into debt without ever addressing the core issue. CMHC will benefit with higher mortgage insurance premiums. Banks will benefit earning more interest from larger loans. Existing homeowners, brokers, and realtors will profit from rising prices too. Everyone without a home will get farther away from having one, as prices continue to soar. This is a problem for me personally because I am currently on the hunt for a new primary residence (while temporarily camped out in my oldest and smallest most uncomfortable rental house waiting for the right opportunity). Now with more competition for houses I might be entirely squeezed out, even in the mid to upper price points. How does this fix the problem? It doesn’t, it just pushes it further down the road. This housing shortage problem has been touted as a “crisis” since long before most of us were born. Can something even be considered a “crisis” if it’s at least four generations old? I thought that word was more often used to describe something more acute rather than chronic. Does anyone else think all of this is completely insane? #realestate #work #success #Winnipeg #Manitoba #Canada

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GTA Real Estate: Small steps, big laughs: Downsized life in retirement.✂️🤑 So, you've decided to downsize because of your retirement? Well, buckle up, my friend! Get ready to live large in a tiny space without breaking the bank! 🚀💰💼 First things first, say goodbye to that spacious mansion and hello to your cozy little abode. 🏰➡️ imagine: you'll have everything within arm's reach. Literally! You'll be able to reach your kitchen, your bedroom, and your bathroom simultaneously. Talk about efficiency! 🍳 Now, downsizing might mean getting rid of some stuff. 😱 But fear not! Remember, we're on a mission to make this process hilarious! So, when you start decluttering, play upbeat music 🎵🎶 and pretend you're competing in an extreme sport. Stack, squeeze, and slide those items like a pro! 🔨 But wait, there's more! Have you heard of the "Chic Minimalist" lifestyle? It's all about owning just a few essential items and embracing the freedom of simplicity. 📚 So,  show off your latest fashion statement with your limited wardrobe options. Who needs variety when you can rock the same outfit daily and call it your signature look? 👕👖 Now, let's talk about budgeting. 💸 Remember, you're on a fixed income, but that doesn't mean you can't have fun! Transform your downsizing process into a real-life game show called "Penny Pincher Paradise." Challenge yourself to find the best deals, compare prices, and hunt for discounts like a true bargain-hunting champion! 🛍️ Living in a small space can also lead to some interesting experiences. 😄 Say hello to the magic of multi-purpose furniture! Your coffee table will transform into a dining table, a desk and a bed. It's like a never-ending game of furniture Transformer tag! 🤖 So, my downsizing daredevil, embrace the challenge with a smile and an emoji in your heart! 🥳❤ Remember, downsizing doesn't mean shrinking your sense of humour. It's the perfect opportunity to discover how much joy and fun is in your travel future.🎈✨😄  . Call our downsizing team, and we will make the craze disappear with our no-commitment consultation. . Want to find out more? DM or call to chat. Cheryl Lansiquot | Broker of Record | The Team Group, Brokerage 289 838 9428

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I'm already tired of hearing about the "fair share" of taxes. Top earners already contribute over 50% of all taxes? Instead of focusing on dividing the current pie, we should be working towards growing the overall economy. By doing so, we can have a measurable impact on ALL Canadians. Let's focus on policies that promote economic growth and prosperity for everyone. #Economy #Prosperity #FairShare #CanadianTaxation

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To make matters worse for condo investors (see yesterday's post for pre-construction pain), rents may be inflecting to the downside which will likely make the cash flow of many condo investors who rent out their units even deeper in the red. In the article, RBC Economists point to lower immigration over the next few years combined with rental unit completions surging in recent years to reduce demand and increase supply - both should put steady downward pression on rents.

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🏘️ More nonsense Canadian housing policies just worsening a debt addiction. The latest move by the CMHC to extend loan terms to 55 years for defaulting real estate developers raises serious concerns about the state of our economy. While intended to stabilize the housing market, this approach might be masking deeper issues rather than solving them. Imagine arranging for financing for a longer term than the likely lifespan of the home or building. This isn’t the actions of a healthy economy, rather a sign of debt addiction. Extending loans to such lengths is not a sustainable solution and highlights the urgent need for more robust economic policies. Coupled with the Bank of Canada's rate cuts, which may be too little, too late, it’s becoming clear that we’re not going to be able to count on reasonable policies to address the underlying problems, or simply delay the inevitable. #RealEstate #Finance #Economy #Investment #HousingMarket #FinancialPlanning #GoldSealFinancial

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Let me break it down. Imagine someone earns $100,000 in the U.S. and pays $20,000 in U.S. income taxes. They still declare the full $100,000 to the CRA but receive a $20,000 credit against any Canadian taxes due on their U.S. earnings. That's the foreign tax credit in action. By setting up the right framework, they can claim this credit and sidestep double taxation altogether. #buyproperty #foreigninvestors #foreigninvestment #investment #foreigntax

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Alberta is calling louder than ever, and it seems more Canadians are ready to answer. The province's "Alberta is Calling" campaign is in full swing with its third phase, offering more than just a warm welcome—it's extending a $5,000 refundable tax credit to skilled tradespeople willing to move and contribute to building Alberta’s future. What’s drawing so many to Alberta? For starters, the cost of living is incredibly attractive, particularly when you compare it to the soaring prices in Toronto and Vancouver. Consider Edmonton, which has been hailed as Canada’s most affordable city. Here, the real estate market stretches your dollar further, enabling more people to buy homes and enjoy a comfortable lifestyle. In 2023 alone, Alberta welcomed over 200,000 new residents, lured by the affordable housing and plentiful job opportunities. The province stands out as a magnet for those looking to enhance their careers and lifestyle without the hefty price tag often found in major urban centers. However, this rapid growth isn't without its challenges. The surge in population is tightening the housing market in Alberta’s major cities, making it increasingly difficult for newcomers to find their perfect home as demand surpasses supply. Despite these hurdles, Alberta’s vibrant job market and lower cost of living continue to draw a diverse group of people seeking a new beginning. So, if you're pondering a change, Alberta might just be calling your name. With its affordable lifestyle, thriving job opportunities, and a truly welcoming campaign, why not consider answering the call? What do you think—could Alberta be your next home?

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On Thursday, the Bank of Canada warned that more mortgage hikes are coming. Remember that Governor Tiff Macklem said last week that excess spending in Budget 2024 was "not helpful" in bringing down punishing interest rates. Excerpt: "Since the Bank began raising its policy rate in March 2022, payments have increased for roughly half of all outstanding mortgages. Over the next two and a half years, most of the remaining mortgages will renew, and these borrowers are likely to face relatively larger payment increases." • In fact, the median monthly payment may increase by more than 60% for Canadians who have a variable rate mortgage. • Median mortgage payments for fixed-rate mortgages will increase by 20% by 2026. Also "renters are experiencing the biggest increase in financial stress ... the share of borrowers without a mortgage who carry a credit card balance of at least 80% of their credit limit has continued to climb." The message to government is clear: your excess spending is hurting, not helping, Canadians. #calgarycentre #yyc #cdnpoli #interestrates #mortgage https://lnkd.in/gvWtMU4X

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In what can only really be described as a blow to the hopes of a June rate cut, Canada's job numbers came in this morning well above expectations. The market was looking for job growth of around 20,000 positions and what we got was 90,000. After almost zero growth in the month prior, this is going to give Tiff Macklem reason for pause before going ahead and cutting rates for this first time in this cycle, as this shows the economy is still moving forward even with rates as high as they are. If you are looking for some reason for optimism though, you can point at the overall unemployment rate which was still unchanged from the month prior and also at Wage Growth which actually has slowed from the prior month as well. That, in particular, is something the Bank of Canada has stated that they watch very closely and a slowing in the wage growth figures will surely be seen as good news to them. The next, and last BIG data point that they will be watching closely is the April Inflation numbers, which will be released on May 21st. That will be a huge indicator as to whether we can expect our first cut in June, or if we will have to wait until July or later. Jordan Samery Mortgage Agent Level 2 Sherwood Mortgage Group License 12176 #MortgageRates #JobsData #Canada #BankofCanada #MortgageAdvice #MortgageAgent #TorontoMortgages https://lnkd.in/g2mBZRte

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Bosa Properties' robust Surrey pipeline shows confidence in growing city. Vancouver-based developer has thousands of homes in various stages of completion in B.C. municipality. Vancouver-based developer Bosa Properties says it has roughly 6,000 homes either recently completed, under construction or proposed in Surrey City Centre. It's a commitment motivated by a fast-growing population and surge in post secondary-related student demand. "Surrey is one of the most dynamic and fastest-growing cities in the province," Dan Cupa, Bosa Properties senior vice-president, residential, said. Surrey is expected to overtake Vancouver as B.C.'s most populous city by the end of the decade. To read more click on Image.. Daniela Peeva, LLB, BA.  Vice President, Financing.  Broker License #13234  M: 416 879 7404  Peakhill Capital.    #peakhill #realestateblog #commercialrealestate #commercial #construction #propertymanagement #landdevelopment #apartmentbuilding #Apartments #mortgage #mortgagebroker #commercialmortgages #commercialrealestatebroker #commercialproperty #realestatenews #commercialbuilding #realestatedevelopment 

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