by Mortgage Brokers News
The next two years are expected to see housing starts rise due to demand and strong economic conditions, the CMHC reported in their forecast for new home construction and residential sales.
They expect housing starts of 182,000 units, which is up from 175,000 units in a previous view. In 2010, they are expected to see a range between 166,900 to 199,600.
Next year, the CMHC said it sees housing starts at 179,600 units, ranging between 148,600 to 208,800 units, compared with the forecasting for 2011 of 175,150 units last quarter.
The new government measures for the mortgage market, which took effect in April, will aid in the long-term stability of Canada’s housing market, CMHC’s chief economist Bob Dugan cited.
According to the rule changes, borrowers are now required to qualify on a five-year fixed-rate mortgage even if they choose a lower-cost variable mortgage. The government also lowered the maximum amounts that can be withdrawn when borrowers refinance their mortgages. A minimum down payment of 20 per cent is also required now for insured mortgages coupled with properties purchased as housing investments that the owner will not occupy.
In 2009 there were 149,081 housing starts.