The necessity of a licensed mortgage agent

Many Canadians are stunned by what has happened to the Canadian Real Estate market in our key cities. Some think it has been wealthy foreigners buying up our best houses and lands. Others believe the problem is due to the misdirected legislation federally and provincially — an absence of reasonable laws designed to protect the home prices for Canadian citizens from being artificially inflated. Still, others think it is the low-interest environment offering near-zero interest rates responsible for the crazy inflation. Or is due to houses being quickly flipped, increasing the value sometimes by up to or more than double what the home initially agreed to be sold for? During the pandemic, there was an extreme bidding up of house prices. It may be a mixture of all of the above.

Many intense studies are underway. Josh Gordon of Simon Fraser University has studied all potential causes. Historically, there is a lack of essential data available, despite being in an age when data influences our life decisions.

Michael Babad, of the Globe and Mail, published as far back as Apr. 21, 2016, that millennials — children of baby boomers — find it difficult, or near-impossible financially, to live in Vancouver or Toronto. 

Millennials who are just starting out and want to buy a home may find it hard to afford a mortgage. Michael Babad goes on to note that: 

“Paying for a house has become so difficult that saving for a down payment takes years in Toronto and possibly decades in Vancouver, new research suggests: Toronto is troublesome, and Vancouver positively out of sight, according to a National Bank Financial study, although it is far easier in other Canadian markets such as Montreal and Calgary” and “in Toronto and Vancouver, affordability for homes other than condos is the worst in National Bank records dating back to 2000, based on first-quarter data”.

National Bank’s senior economist Matthieu Arseneau and associate economist Kyle Dahms analyzed comparative real estate prices and increases, in contrast to incomes, required down payments and the mortgage payment required as a percentage of income (referred to as the MPPI). Vancouver and Toronto markets pop off the grid compared to other prices.

Based on the time it takes to save a down payment for a single-detached house, semi or townhome, you might consider using a mortgage specialist.

National Bank’s senior economist Matthieu Arseneau and associate economist Kyle Dahms, analyzed comparative real estate prices and increases, in contrast to incomes, required down payments and the mortgage payment required as a percentage of income (referred to as the MPPI). Vancouver and Toronto markets pop off the grid compared to other prices.