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CMHC Stress Testing Confirms Ability to Withstand Extreme Scenarios

by Manoj Kumar Arora

CMHC Stress Testing Confirms Ability to Withstand Extreme Scenarios

OTTAWA, November 17, 2016 — In support of greater transparency with respect to risk management practices, CMHC released today the results of its 2016 stress testing exercise. None of the scenarios tested should be considered a prediction or a forecast.

“Stress testing involves searching out extreme scenarios that have a very remote chance of happening and planning for them,” said Romy Bowers, CMHC’s Chief Risk Officer. “Rigorous stress testing is an essential part of our risk management program and allows CMHC to evaluate its capital levels against these scenarios.”

This year’s tests confirm that CMHC’s capital holdings are sufficient for even the most extreme scenarios.

In 2016, CMHC tested its Mortgage loan insurance and securitization businesses against several extreme scenarios including:

  • Global economic deflation
  • Sustained low oil price shock
  • High-magnitude earthquake
  • Reverse stress test
  • U.S. style housing correction

Read the additional details on these scenarios on CMHC's website here

Ontario government gives tax break to first-time home buyers

by Manoj Kumar Arora

Ontario government gives tax break to first-time home Buyers

New LTT rebate will help more young families achieve their dreams of home ownership

The provincial government has announced significant changes to the Provincial Land Transfer Tax (PLTT), including a doubling of the rebate available to first-time home Buyers, bringing it in line with the City of Toronto's rebate, and an increase in the PLTT paid on the portion of the price of Properties over $2,000,000 to help pay for the increase in the first-time buyer rebate.

The provincial government is proposing to double the maximum rebate for first-time home Buyers from $2,000 to $4,000. This change would bring the PLTT rebate in line with the City of Toronto LTT rebate. The real estate industry welcomes this change, which will help to make housing more affordable in the GTA.

The provincial government is proposing to increase the PLTT for homes priced over $2,000,000 by charging 2.5% on the portion of the value above $2,000,000 (currently this portion is charged 2%).

For non-residential Properties, the provincial government is proposing to increase the PLTT on the portion of the value above $400,000 to 2% (currently this portion is charged 1.5%).

As a transitional measure, purchasers who entered into agreements of purchase and sale on or before November 14, 2016 would not be subject to the increased rates of tax.

TREB members welcome the increase to the provincial first-time buyer rebate to bring it in line with a similar rebate in the City of Toronto as long overdue. TREB, however, always has concerns with tax increases on property, and governments should be focused on measures to make property ownership in the GTA more affordable, not more expensive.

The provincial government is proposing to restrict eligibility of the first-time home buyer rebate to Canadian citizens and permanent residents, effective January 1, 2017. As a transitional measure, purchasers who entered into agreements of purchase and sale on or before November 14, 2016 would remain eligible for the refund, regardless of citizenship or residency status.

Market Watch Report - October 2016 by Toronto Real Estate Board

by Manoj Kumar Arora

Market Watch Report - October 2016 by Toronto Real Estate Board

Presented by Jason Mercer - Director, Market Analysis

Time for a Roof Checkup!

by Manoj Kumar Arora

Time for a Roof Checkup!
 

With winter just around the corner, now is the perfect time to inspect your roof to ensure that your home will be protected from the snow and rain that comes with it!   Depending on the age of your roof, environmental factors and building materials, it’s a good idea to complete inspections twice a year, with the best seasons being spring and fall.  While you can carry out a visual examination from ground, it’s always recommended to have a professional perform rooftop inspections.

Ironically, a roof inspection will typically start on the inside your home, as the attic could show indications of a possible leak or other potential issues.  It’s important to pay close attention to the chimney and joints as these are the areas which are most likely to have leaks.

Here are a few key things to look out for in your attic: 

  • Signs of water damage or leaking, which can present as dark spots and/or trails;
  • Light shining in from the outside;
  • Broken, damaged or sagging framing components.

Before you head outside for an inspection of the exterior, it’s a good idea to familiarize yourself with the components of a roof so that you know exactly what to look for, and can accurately describe any issues you do find.


Once you’re familiar with the components of a roof, you’ll want to keep an eye out for:

  • Broken, missing, buckling, curling or blistering shingles;
  • Shingle granules in your gutters
  • Moss build-up;
  • Presence of a metal drip edge along the roof’s edge;
  • Rusty, dented or damaged flashings;
  • Cracked or worn rubber around vent pipes.

In addition to keeping your family and home safe, bi-annual roof inspections can help protect your financial investment by identifying existing or potential issues before they become costly or unexpected emergencies. 

 

Real Estate prices increased by 21% in October 2016 for the Greater Toronto Area (GTA) Homes

TORONTO, November 3, 2016 – Toronto Real Estate Board President Larry Cerqua announced that Greater Toronto Area REALTORS® reported a record 9,768 sales through TREB’s MLS® System in October 2016 – up by 11.5 per cent compared to October 2015. For the TREB market area as a whole, the largest annual rate of sales growth was in the condominium apartment market segment. Detached home sales were up by 10 per cent year-over-year, driven predominantly by transactions in the regions surrounding Toronto.

“The record pace of GTA home sales continued in October, with strong growth observed throughout the month. As we move through November and December, we will be watching the sales and listings trends closely, in light of the recent policy changes announced by the Federal Minister of Finance. TREB will once again be conducting consumer survey work, in order to report on home buying intentions for 2017,” said Mr. Cerqua.

The MLS® Home Price Index Composite Benchmark was up by 19.7 per cent on a year-over-year basis in October 2016. Similarly, the average Selling price for all home types combined was $762,975 – up 21.1 per cent over the same time period. Double-digit increases were experienced for all major home types for the TREB Market Area as a whole.

“New listings were up slightly in October compared to last year, but not nearly enough to offset the strong sales growth. This meant that seller’s market conditions continued to prevail as Buyers of all home types experienced intense competition in the marketplace. Until we experience sustained relief in the supply of listings, the potential for strong annual rates of price growth will persist, especially in the low-rise market segments,” said Jason Mercer, TREB’s Director of Market Analysis.

Read the complete Market Watch Report Here

  

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Photo of Manoj Kumar Arora, Broker of Record Real Estate
Manoj Kumar Arora, Broker of Record
Ace Team Realty Inc., Brokerage
77 City Centre Drive, East Tower, Suite 501
Mississauga ON L5B 1M5
905-488-3101
1-888-355-3155
Fax: 1-888-443-3155

Contact Information

Photo of Manoj Kumar Arora, Broker of Record Real Estate
Manoj Kumar Arora, Broker of Record
Ace Team Realty Inc., Brokerage
77 City Centre Drive, East Tower, Suite 501
Mississauga ON L5B 1M5
905-488-3101
1-888-355-3155
Fax: 1-888-443-3155