September 2014 Canadian Economic Fundamentals

[Ally]

CIBC says Canadian economy can't sustain growth





TORONTO, - Unexpected growth in consumer spending and residential construction have seen the Canadian economy outperform in 2014, but continued low interest rates and a cheaper loonie are necessary to sustain growth going forward, finds a new report from CIBC World Markets.





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[Ally]

Could targeted land transfer taxes cool Canada's hottest markets?










Ontario`s real estate association has launched an ad campaign to explain why they believe land transfer taxes hurt the economy. But in a hot housing market, could the tax be used to cool particular regions, such as Toronto and Vancouver?





Officials in Ottawa have made it clear they see no need to cool the market right now. Prime Minister Stephen Harper said Wednesday that he doesn`t anticipate a housing crisis in Canada, although he says a small percentage of Canadians are overextended and vulnerable to rate hikes.





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[Ally]

Canada closer to surplus than thought





NEW YORK, N.Y. - There's positive fiscal news coming soon from the federal government, Prime Minister Stephen Harper revealed Wednesday during a public event in the United States.





The prime minister announced before a business audience that last year's deficit numbers will have to be revised, for the better.





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[Ally]

Joe Oliver says Canada won't make major changes to CMHC, housing finance





Canada won`t make any sudden changes to the country`s system of housing finance, even as the government looks at ways to reduce its role in the market, Finance Minister Joe Oliver said.





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[Ally]

How to avoid borrower remorse when mortgage rates drop










Imagine you`ve applied for a five-year fixed-rate mortgage. Then, before you close, the lender drops its best five-year fixed interest rate. You`d expect that new lower rate, right?





Most people in this position would. But with some lenders, that`s not the way it works.





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[Ally]

How does your property tax compare with the rest of Canada





Looking for a reason to grumble about property taxes? Depending on what type of property you own and where, we might have one for you.





The Real Property Association of Canada (REALpac), which represents commercial real estate owners such as pension funds and real estate investment trusts, has completed its 11th annual property tax survey. The association, which advocates for lower commercial-to-residential tax ratios, has crunched the numbers for the major municipalities in Canada. The association notes that while residential and commercial tax rates have generally been declining, that doesn`t translate into significantly lower tax payments because assessment values have been on the rise.





Read the full article here.

 

[Ally]

CMHC chief says housing agency considering passing on mortgage risk to banks





The Canada Mortgage and Housing Corp. is looking at changes to mortgage default insurance that would include sharing risk with banks, the Crown corporation`s chief executive told a Montreal audience Friday.





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[Ally]

Industrial construction surge overshadows uneven office market





TORONTO ` Lacklustre job creation continues to impact demand for commercial real estate in Canada. CBRE Limited`s National Office and Industrial Third Quarter 2014 Statistical Summary suggests that tepid job growth has undermined office leasing activity, but has been unable to stem an historic industrial construction boom.





`The Canadian economy may not be firing on all cylinders, but the Toronto and Calgary office markets turned out quite a performance last quarter,` said John O`Bryan, Chairman of CBRE Limited. `It was a bit of a have or have not summer. The standout office markets were exactly that, while other areas were fairly quiet. One assumes that strong office leasing activity in core markets will translate into more widespread office demand in the year ahead.`





Read the full article here.