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Mortgage and Housing Market Going Strong North of the Border announces MortgageBrokers.com
Company predicts Canadian Refinance boom for 2007-2009
VANCOUVER, BC March 19 / - As the U.S. housing market falters,
with the demise of Subprime lenders such as Accredited home lenders and New
Century Mortgage the latest figures show all aspects of the Canadian market
going strong with experts predicting a refinance boom.
Alex Haditaghi, CEO of MortgageBrokers.com says the housing market was
"quick out of the gate this year," driven by many aspects including moderate
interest rates, high employment, continued strong immigration to Canada and
strong consumer confidence. We expect a very healthy 2007 for both the housing
and Mortgage market.
Haditaghi's enthusiasm echoes reports released by Remax, CIMBL, and Bank
Of Nova Scotia. Adrienne Warren an economist for Bank of Nova Scotia called
the Canadian market "the rabbit that just keeps on going and going." Although
the market is likely to cool some by the end of the year, home resales set a
record in January and housing starts hit a 29-month high with the assistance
of mild weather, Warren said.
Prices remain great as well, Warren noted. "The trend in national new-
and existing-home prices, while off the highs of last spring, is still
averaging about 10 per cent year-over-year." The Canadian market is in a very
different situation than the United States.
The U.S. is currently burdened with higher default rates as a direct
effect of the amount of high-risk subprime loans. In Canada subprime loans
make up 5 percent of outstanding mortgages compared to the 20 percent in the
United States. At the present time Canadian Default rate is around 0.5%
The Canadian market has remained robust, with the highest number of home
sales in its history between 2001 and the present. The housing market has
become stronger and more insulated as immigrants continue to flood into the
country, ultimately buying homes and local economies continue to diversify.
Undoubtedly, the strong Canadian housing market will create a resurgence
of refinancing as well. With approximately 95% of Canadian mortgage terms at
5 years or less, there is sure to be a huge refinance opportunity created in
Canada. As real estate continues to be a solid investment more borrowers will
look at refinancing to get into better terms or to utilize their equity.
Additionally, up and coming companies such as MortgageBrokers.com with
unique business models that are built for slower times could benefit from this
turmoil in the market, Mr. Haditaghi said. Such opportunities could range from
buying portfolios of assets, intellectual property rights, and picking up
talent, he said. |
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