• As a homeowner and as a mortgage broker I really believe in studying my craft. Every day I will read opinions on the economy, the mortgage market, the Canadian real estate market and our low mortgage rates to get a pulse of the what is happening in the market. This past weekend I looked over the headlines for the Financial Post for the past month and these are the headlines that caught my eye:

    1. A new tax of 15% will be applied on foreign ownership in Vancouver.

    2. CMHC housing prices overvalued in 9 Canadian cities (including Hamilton).

    3. Canada’s top banks regulate to do stress tests if home prices fall.

    4. Canada’s top banking regulation tightens scrutiny of mortgage lending practices amid soaring prices.

    5. I started to think about these headlines and why they would intrigue me so much?

    Here are some of my own thoughts:

  • Every one of the headlines indicate to me that they believe the market is overheated.
  • Government and banks do not worry the public but they sure are talking among themselves.
  • Toronto and Vancouver continue to give the country the most stress.
  • If banks are worried (usually employing some of the smartest Canadians we have) we should start to think about this housing market as well.
  • Mortgages will be more difficult to get.
  • Am I worried? Well, of course. I do not want Canadians to get hurt. In my previous blogs I was worried about true Hamiltonians who were finding it difficult to afford their own city. Since then, it has only gotten worse as Hamilton is now on the watchlist of CMHC as one of the overvalued cities. I believe for the most part good Torontonians have come to the Hammer and strengthen our city.

    I have stated many times that my biggest fear housing is not interest rates alone. One of the biggest reasons for the increase of mortgage housing prices is the continuing lowering of mortgage interest rates. Interest rates in general are artificially low to help the economy. This is my biggest fear, our Canadian economy. As I have stated many times, we have not had a recession in many years. This will not go on forever. It will happen and when it does, the psychology will change with it. Our number one focus will be to keep our jobs and to maintain our income. When will this happen? I am not smart enough to answer that question. The silver lining for Hamilton is that it will not be hurt as much as Toronto. With low interest rates and our home prices, rents will be like mortgage payments. Beware of what is going on!

    Robert Floris is a mortgage broker, member of Mortgage Architects, located on the East Hamilton Mountain. He specializing in finding the best mortgage rates for clients in Hamilton, Ontario and Canada but more so, he is ethical and honest and advises the clients on the best plan for them – not always the best thing for him. He specializes in debt consolidation, refinancing and new and existing home purchases, investment and rental properties. Do not hesitate to call (905-574-9200 Ext. 215), email (mortgages@robertfloris.com) or chat with Robert for no obligation and no pressure, honest advice.

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