Latest Housing Market Outlook

The Canadian Mortgage Housing Corporation’s latest Housing Market Outlook doesn’t expect to see housing sales and prices rebound to pre-COVID-19 levels until at least 2022. These findings are largely attributed to significant increases in unemployment across major Canadian cities. 

CMHC’s chief economist said in the agency’s report release that “ short-term uncertainty will lead to severe declines in sales activity and in new construction.”  The report focused on six major urban centres and goes into depth on the economic effects the housing market is expected to face post-COVID-19.

The uncertainty of home buyers and lenders headed into the rebound will be significant but confidence is expected to grow slowly as Canada returns to normalcy.

We have included below the breakdown of CMHC’s housing market performance forecast for end of 2021.


  • Average price in Q1 2020 – $892,238

  • 2021 forecast: +2% (best case) / -11% (worst case)


  • Average price in Q1 2020 – $962,184

  • 2021 forecast: -7% (best case) / -15% (worst case)


  • Average price in Q1 2020 – $438,194

  • 2021 forecast: -8% (best case) / -23% (worst case


  • Average price in Q1 2020 – $359,072

  • 2021 forecast: -9% (best case) / -24% (worst case


  • Average price in Q1 2020 – $498,000

  • Q2021 forecast: +2% (best case) / -14% (worst case)



  • Average price in Q1 2020 – $444,748

  • 2021 forecast: +2% (best case) / -9% (worst case

What is a broker?

What is a broker?

A broker is a person or company that buys, trades, or negotiates on your behalf. A broker isn’t actually selling you a product or service. Rather, they’re connecting you to a provider or buying a product for you, as an intermediary. Some common types of brokers are mortgage brokers, stock brokers (including online brokers), and GIC brokers.

A broker will buy, sell, trade, and negotiate on their client’s behalf. A broker provides intermediary service and connects their client to the entity selling or buying the products in questions. The most common brokers Canadians include mortgage brokers and stock brokers.

Pros and cons of using brokers

A broker will possess expertise in their field and often have autonomy in their operations. With that being said, brokers typically can offer independent and expert advice in their field and are not require to push certain products on their clients. Another benefit of brokers is their access to markets that may not be available to retail consumers.

What is a mortgage broker?

A mortgage broker serves homebuyers by searching the market for the mortgage with the lowest rate and desired structure and features. A mortgage broker will compare the rates of the banks and private lenders to find competitive offerings and often are able to secure special deals. A mortgage broker provides expert advice on the specific products and assesses the needs and circumstances. Mortgage brokers generally are paid in commission at the time of the mortgage deal closing.

Alternatively consumers are able to approach their own bank as well as other banks and lender to seek out the best mortgage option, the downside is the time spent searching and comparing and the advice provided may be tilted to favour the employee of the lending institution as they work for the bank, not the consumer.

Considering a home equity line of credit

They are considering securing a home equity line of credit (HELOC) worth $800,000. Ultimately they decide against the HELOC. Alternatively, they will have the option of a regular loan if they require a large amount of cash in retirement. A few years later, they decided they want to purchase a cottage in a peaceful lake 45 minutes from their principal residence.

Unfortunately, they do not qualify for the amount they require to purchase the cottage as their retirement income doesn’t meet the bank’s requirements. The Martins would have been able to utilize their home equity line of credit to complete the purchase cottage on the lake.

A home equity line of credit is a versatile financial tool that provides access to funds when it counts.


How does a home equity line of credit work?

A home equity line of credit is a form of secured debt, the debt is secured to your home. As we learned with the Martins, HELOCs are approved base on income, securing the HELOC prior to retirement could save the homeowner a headache down the road.

The beauty of a HELCO is that you are not required to use the loan, in fact, you may never access the funds. You will only be charged interest on the money you borrow and being able to borrow those funds quickly and without hassle provides huge peace of mind to homeowners.

A home equity line of credit is also flexible with respect to the payments. It is up to the borrow whether they would like to make payments that cover the principal and interest or just the interest.


When should you get a home equity line of credit?

The majority of banks do not seek out and offer homeowners a home equity line of credit. You will need to consult a mortgage professional to discuss the details of your situation.

You will need to have equity in your home that you are able to borrow, ideally, you will also be earning a stable income.

A home equity line of credit is another tool that Canadians use to ensure their financial success and peace of mind, we encourage homeowners to organize a HELOC sooner rather than later.

CMHC Mortgage Rule Changes Coming

CMHC Mortgage Rule Changes Coming

Our mortgage specialists have summarized the recent CMHC changes coming to Canada starting next month.

The announcement made by CMHC included more restrictive underwriting criteria. These changes will be effective on July 1, 2020, and apply to new purchases thereafter.

Below is a list of CHMC’s Changes to Underwriting Criteria

The maximum Gross Debt Servicing Ratio (GDSR) is decreasing to of 35% of income. Prior to the changes, the ratio was allowed to be as high as 39%. The sibling of the GDSR is Total Debt Servicing Ratio (TDSR) which will have a new maximum of 42% of income, previously the maximum was 44%. The effects of the changes will come through in purchasing power for homebuyers.

  1. The new credit score minimum for at least one borrower will be 680. Prior to the changes, the minimum credit score was 600.
  2. CMHC will no longer allow borrowed down payments, also known as flex down payments. The housing transactions with borrowed down payments account for a negligible percentage of home sales.

    What do these changes mean for homeowners and homebuyers? These changes may generate stagnation in the housing market and lead to fewer home sales, as well as home prices. Ultimately, these changes have overlap and will affect upwards of 25% of housing sales.

    If you need more information regarding mortgages or if you need any advice on your personal situation please contact our office at 1-885-869-8999 or email at

    Please complete the application here to begin the first steps to becoming a homeowner