Toronto the Week in Condo Sales and Skyscrapers - October 5th, 2012

Yonge Street at Wellesley - looking North

Toronto Condo Sales - The Week That Was

 This week, we learned in detail of the Condo Project that is set to change the skyline of Toronto, yes, you've heard by now of the Mirvish-Gehry Proposal of three 85 floor towers on King West.  At the very same time we got confirmation that that sales in the Toronto Real Estate Market are softening. Making it very difficult at this time to launch a product of this size. I understand, that investment units, those smaller units that investors buy, to flip or to rent out have become less appealing in recent months, and the vice grip of the federal governments urge to shut down the Toronto Condo Market is also at work, as mortgage amortization rates have been dropped to 25 years from 30 years in effect to make the housing payments more difficult for new buyers, and thus keep them and their money out of the Toronto condo market.

If it's bringing down sales in Toronto, I wonder what the impact of these policy's will be in smaller and less affluent communities in Canda. It's one thing trying to shut down 100,00 over eager multi-millionaires in Toronto from buying condos, but what about Hamilton,  or Halifax. Those guys are probably getting killed by these new rules, as there are far few people in those communities with the means to help absorb the shock of these new guidelines. We'll find out soon, enough when their local construction industry dies off, and the jobs go with it, if they will cry to the feds, and try and get them to relent on the Mortgage payback period. If something happens in Quebec with their construction industry because of these new rules, all bets are off though.

Now more than ever, there is a fine microscope being pointed at the Toronto Market, inspecting every variance in the real estate market here, looking for some sign of an impending collaspe, the last months sales figures down over 70% might have been the beginning, but we'll be waiting for at least 3 months of confirmation before any conclusions are made. As for Projectcore, I wish them all the best with their mega project. I know because their intentions are good, buyers will line up for these properties no matter what. In fact even in a worst case scenerio, I don't see Toronto condo sales(new) falling below 15,000 units a year. The market has become entrenched, and it's now a lifestyle choice that is bringing people into the core to live the downtown lifestyle. The federal government, can't stop this, although, they will try. 






Getting a Mortgage and Mortgage Insurance through National Bank Insurance for financing a loan to purchase at FIVE Condos is actually a relatively easy process, and new rules from the federal government has required that company include new regulations, which have made the home loan and mortgage process a bit more difficult. Those changes at National Bank Insurance include shortening the amortization period for which the loan can be held by the consumer, and the degree to which the property is financed by the mortgage. They have also increased deposit requirements to lift the loan insurance amount. Mortgage insurance from National Bank Insurance is actually one of the major financing costs on home loans.

Investment Trusts have no taken to looking to purchase rental properties and acquiring mortgages through financing auctions by the banks looking to shore up their balances sheets in light of stricter government regulation. These regulations have actually made holding residential mortgages by the large financial institutions harder to hold. Currently investors are looking to increase their position in rental properties in Toronto, at the same time the federal government in co-operation with the financial institutions are making getting and qualifying for loans and mortgages more difficult

What is Condo Insurance?
Condo Insurance is required to protect your personal contents from theft or fire damage in your condo if these unforeseen events should happen you should make sure that you have adequate protection. Some items in your condo are will also be protected by your condo association insurance policy which covers the general building. The events that are covered by condo insurance include Fire, as well as Lighting. Other weather related causes such as Windstorms, and Hail are also covered. The major one that most people worry about is theft which is covered by condo contents insurance policies.