Michelle McCullough

🏠 Canada's Housing Crisis: A Closer Look! 📉💔 Canada is currently facing a serious housing crisis, impacting countless families across the country. PMJT spoke yesterday while in Hamilton regarding the housing crisis. He claimed that even though the Federal Government is working on helping Canadians get in to more homes at affordable prices, he also stated that “Housing isn’t a Primary Federal Responsibility”. Let's dive into five key factors that the Federal Government DOES have control over: 1. Interest Rates: The Bank of Canada's monetary policies, including interest rates, play a crucial role in influencing housing markets. With fluctuating rates, it becomes challenging for potential homebuyers to plan and budget for their dream homes as well as Developers securing affordable financing to build homes. 2. CMHC (Canada Mortgage and Housing Corporation): The CMHC is a vital player in the housing market, providing mortgage insurance to lenders and helping make homeownership more accessible. However, with average home prices pushing closer to $1M (the CMHC cut off) fewer Canadians can afford the massive jump in down payment to 20% down past the $1M mark. 3. OSFI (Office of the Superintendent of Financial Institutions): OSFI regulates Canada's financial institutions, including banks and mortgage lenders. Their policies and stress tests are aimed at ensuring financial stability but might inadvertently limit access to mortgage credit for some buyers. 4. Department of Finance: The federal Department of Finance plays a significant role in shaping housing-related policies and initiatives. Striking a balance between encouraging housing market growth and safeguarding against a potential bubble is an ongoing challenge. 5. Immigration: Canada has been a destination of choice for immigrants worldwide, and while this enriches our society, it also impacts the demand for housing. High immigration numbers can exert substantial pressure on an already competitive housing market. Last year alone, Canada welcomed more than 1 Million newcomers. Here’s the question: Is Housing a Federal Issue now? Has it always been, or should it be left to the Provinces and Municipalities who are taking on this population growth? It's essential for all levels of government and stakeholders to collaborate on sustainable solutions, promoting housing affordability and addressing supply constraints. Let's raise awareness and advocate for measures that can alleviate the burden faced by many in our communities. All political parties and levels of Government need to talk openly about this and find a solution. 🤝 💙❤🧡💚 🤝

If the BoC increases rates today by 25 BPS, your Variable Rate mortgage will increase $12 per every $100k borrowed (25 year am, 1.45% rate at origination) Its not the end of days, folks. Canned beans increase in price 60% YoY.