Who are the top mortgage and insurance agents in the downtown Toronto condo market? Seems like a pretty basic question, so I went about looking into developments and agents to see who was on top and which parts of the downtown core they tended to dominate in.
Mortgage Insurance premiums have been rising fast and that goes for new builds as well as single family homes not including highrise developments. The Canadian Mortgage and Housing Corporation is currently the entity which is in charge of insuring mortgages against default.
Canada has a very stable banking and financial system and although there has been some talk of a condo bubble and a market crash none has yet to materialize. In fact even the threat of increased mortgage rates on new condos and new condo developments has done little to slow the appetite for financial products related to the industry.
If for even one instant there was any fear that the Toronto condo market, or the Canadian market in general could ever undergo a US style housing price collapse it would be very detrimental to the mortgage and financial services industry related to real estate and new condo highrise development. Many have stated that the sheer number of highrise projects in Toronto should warrant concern, however some do not realize that Toronto takes in some 100,000 new people every year.
On average mortgage insurance can add $15,000 dollars onto the price of a $420,000. Some have stated and speculated that this is the reason why many new prospective homeowners are being pushed out of the Toronto market.
A new fund is being set up to protect taxpayers from any breakdown in the mortgage insurance system, with the management being overseen by the Financial Institutions Supervisory Committee.