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FREE aug 9 to aug 15 2013 issue 03-31 www.crebnow.com facebook.com/crebnow twitter.com/crebnow
real estate news from industry experts
CMHC implementing
new rules
KELsey HIPKIN, Reporter/Photographer
Agency restricting banks and mortgage companies to $350 million of new guarantees this month
kelsey hipkin
reporter/photographer
T
he Canada Mortgage and Housing Corporation (CMHC) have implemented new rules on guarantees it offers banks and other lenders. A move CREB®’s president said is a step to control a market the agency feels is “overheated”. In a note to lenders, the agency said it would be restricting banks and mortgage companies to a maximum of
$350 million of new guarantees this month under the National Housing Act Mortgage-Backed Securities program. The federal corporation was given authority to guarantee up to $85 billion this year under the program with $66 billion of that committed to the end of July and approaching a total of $76 billion for the entirety of 2012. “As a result of this unexpected increase in issuance volumes to date and to better manage volumes going forward, CMHC will be introducing a formal allocation process in late
SINGLE FAMILY
1575
1638
1611 1209 1006
1174
1132
745
773
JUL11 AUG11 SEP11 OCT11 NOV11 DEC11 JAN12 FEB12 MAR12 APR12 MAY12 JUN12 JUL12 AUG12 SEP12 OCT12 NOV12 DEC12 JAN13 FEB13 MAR13 APR13 MAY13 JUN13 JUL13
722
879
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988
1036
1106
1153
1284
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1480
1609
1582
1398
1576
1710
1766
MLS® NUMBER OF UNITS SOLD* JUL ‘11 – JUL ‘13
*All statistics based on monthly data compiled by CREB via MLS activity. ®
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August,” the agency explained in the Aug. 1 note. “CMHC has been tightening up lending practices for the past couple of years,” said CREB® President Becky Walters. “This is one more step from them to control the market that they feel is overheated. The government has been saying that the interest rates will have to rise, and I think this will do just that. If the banks are incurring more costs to lend, they will pass that on to the consumers.” Economists from across the country
Manulife constructing 27-storey tower in downtown Calgary
have been weighing in on the decision. “The question for consumers is if they will be able to get low or lower interest rates. It seems this would be a constraint on that,” Central 1 Credit Union Economist Bryan Yu was quoted as saying in the Vancouver Sun. “Overall, the days of very cheap mortgages are going to be replaced by cheap mortgages,” Avery Shenfeld, CIBC chief economist, told Maclean’s.
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CREB® STAFF
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community
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anulife Real Estate has announced the construction of a 27-storey, 564,000 sq. ft., LEED Gold certified office tower dubbed 707 Fifth Street. “Manulife has a long-standing presence in the Calgary real estate market dating back to the early 1960s,” said Kevin Adolphe, president and CEO, Manulife Real Estate. “We look forward to carrying on that proud tradition with 707 Fifth Street, which will become a best-in-class office tower in Calgary.”
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MLS® Statistics
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July 2013