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.
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