Recently Canada Mortgage and Housing Corporation (“CMHC”), a federal crown corporation, announced that it would tighten rules for mortgage insurance starting on July 1, 2020 Tightening the rules Mortgage insurance is essentially “default insurance” which is required in Canada for borrowers who cannot put down 20% or more for a down payment on a home. Insuring the mortgage makes the loan is essentially “risk-free” to a bank, so it can… Read More »Making it harder to borrow: Is CMHC on the right track?
Vancouver resident, Jason Weselowski was unfortunately caught by the draconian “deeming provision” set out in s.7 of the Vancouver Empty Homes Tax Bylaw. Mr. Weselowksi was levied with an $8,000.00 tax penalty (1% of the assessed value of his property) for failing to file the EHT declaration even though his home was occupied during the relevant time period. His reason for missing the deadline was due to his ongoing medical… Read More »City of Vancouver finally extends its Empty Homes Tax Declaration Deadline
BC has extended the State of Emergency (“SOE”) in this province until the end of April 2020 in view of the COVID-19 pandemic. It would not be a surprise if it was extended again for the month of May. During the SOE, rent cannot be increased and tenants cannot be evicted for: Unpaid rent or utilities Cause (i.e. breach of the tenancy agreement) Landlord or purchaser use (i.e. landlord or… Read More »Tenants’ Rights during the State of Emergency in BC
“Across Canada about 65,000 homes traded hands in the first two months of the year, and many of those sales are now closing in a completely different environment than when the deals were made. Vancouver real estate lawyer Ken Pazder is already seeing the fallout. He says some clients are wondering if they have to close on deals made before the pandemic. He has to tell them that, under the… Read More »In the News: Canadian real estate markets hit hard by pandemic
The disingenuous Empty Homes Tax (“EHT”) was predicated on the theory that there were 25,000 empty homes in Vancouver. When the city’s own data revealed that the actual number was closer to 2,500 empty homes -a mere drop in the bucket in a city with some 300,000 households, it made no difference, as the tax generated over $30,000,000 in revenue in its first year for the ever cash strapped city… Read More »Robbing Peter to pay Paul
Recently, insurance companies have been in the news for increasing condominium deductibles and insurance premiums by huge amounts. In a new twist, this story causes even more concern. A seller of a strata unit in the Lower Mainland had a firm sale agreement in place, but shortly before the completion date last week, the buyer’s notary could not obtain insurance confirmation on the seller’s building. A condition of mortgage financing… Read More »Condo Owners Beware: Some insurers are declining to renew strata policies
Despite the Mayor’s hyperbole that Vancouver’s decision to allow 4 story rental apartment buildings in residential neighborhoods is a “big deal,” it actually isn’t. In a best case scenario, this decision would add about a 1,000 rental units a year for the next 7 years. In the city of Vancouver, which had about 310,000 dwellings (about half were rental households) in 2016, that change will not even make a dent… Read More »More Smoke and Mirrors from the city of Vancouver on the Housing File
The Vancouver Empty Homes Tax proves to be a continuing cash cow, despite its limited success in driving more rentals into the market.
A busy month The October 2019 real estate market was 45% busier than last October, with 2,858 resale transactions – the most in any month this year. It was also busier than September this year by about 25%. Prices are still about 5-8% lower than last year’s, but they are stabilizing. While it’s still possible to negotiate on a purchase without having 10 people behind you ready to make unconditional… Read More »Metro Vancouver home sales surge 45% this October. Are price declines coming to an end?