The type of wiring in residential homes generally depends on when the home was built, where it was built and if it has been updated. In the older homes, knob and tube type wiring was the norm, replaced later by plastic-sheathed wiring.

In most cases the newer plastic-sheathed wiring is copper, insulated with plastic and then wrapped with insulation and another layer of plastic for protection. Breaker boxes are another story; sometimes a well-meaning home owner can inadvertently make things unsafe.

It is always wise to consult a reputable home inspector and even an electrician before you buy. A little homework today can save you a lot of money down the road. More on home wiring is available here.

Or it could be a newly married couple, who is hoping to break into the housing market but want to maintain digs downtown near their jobs and friends.

What each of these examples has in common is that they would make perfect condo dwellers. But just because their profile seems to fit well with condo living doesn’t mean they have the personality for it.

So how do you go about determining if a condo is right for your client? You start by finding out if your client is right for a condo.“I’ve had many clients who hated condo living,” says Toronto Century 21 real estate sales rep Laurin Jeffrey. “But it’s what they can afford, which is not always what they want.”

Being close to restaurants, bars, museums, public transportation and your job are big pluses of condo living. And given that nearly 50 per cent of residences sold in Toronto last December were condos, it seems a lot of people agree. But Jeffrey believes those who buy condos are doing so mainly for economic reasons.

“They are often the first-time buyer who can’t afford anything else,” he says. “When your budget is under $300,000, a condo is your best bet. And even then, it’s getting hard to find a condo for that money.”

If privacy and independence are big issues your client might want to reconsider buying a condo, recommends Kelowna mortgage broker Julia Krause, who’s been a member of her townhouse’s strata (a multiple housing property in B.C. comprising condos or townhouses or a mix of both as is the case with Krause) council for 12 years. Condo living can be difficult for people who don’t like rules and who are accustomed to doing what they want when they want to. Residents, for example, can’t simply park where they feel like parking or plant shrubs where they think they’ll look attractive.“You need to have respect for your neighbours because you’re in closer proximity to them,” says Krause. “Privacy is sometimes an issue too.”

Krause recalls former neighbours who virtually lived outside. Whenever her husband, a cigarette smoker, ventured outside for a puff, he was confronted by the neighbours each and every time which started to annoy him. Fortunately, the neighbours moved. Because of the way the housing corporation is set up, there can be a level of small-mindedness among some of the homeowners. When an issue arises with a homeowner complaining of, for example, someone parking in the wrong spot, the housing council issues a letter to the target of the complaint informing them of the issue and requesting that they not repeat the wrongdoing.“The person who got complained about will sometimes go around looking for other rule breakers so there’s a degree of pettiness,” admits Krause. “We can never get condo owners to get on the strata (housing) council. They won’t do it. But they sure want to complain.”

Krause advises realtors not to assume they can rent out any old condo as many strata councils have limits as to the number of renters allowed in the multiple dwelling (Krause’s corporation allows a maximum of three). If an investor is interested in purchasing a condo with the intention of renting it out contact the condo council to determine what’s permitted.

Don’t assume that because you pay condo fees that pre-empts you from never having to lift a finger while living in your unit. Krause has received some strange calls such as residents complaining that their fridge has died or that someone left trash in the hallway.“A lot of people who buy these units are coming out of rentals and they think it’s just the same,” says Krause. Be sure to check the condo’s financial situation, she urges. Pay attention to contingency funds for emergencies and make sure the complex or building is insured for replacement value.“If you can, go to the condo without your realtor and hang around and ask people how do you like living here,” she says. In Vancouver, where the average detached home price in the city’s sought-after west-end is over $2 million, it’s clearly not a question of whether condo living is right for you, says Remax sales rep Sam Wyatt.

“It’s the norm here,” Wyatt says, adding that the average sale price of west Vancouver condos in December was over $640,000. “People either get used to it or they move out to the suburbs.”

For those of you who still aren’t sure if your client is right for living in a condo get them to take the following test provided by www.sphinxlegal.com:

1. My privacy is: ___ Not important to me. ___ Somewhat important to me. ___ So important I used to be a hermit. 

2. My need to be in control of my living environment can best be described as: ___ NOT a control freak. ___ Need to be in control, at least to some degree. ___ As a matter of fact, someone DID die and make me king. 

3. Amenities such as swimming pools and tennis courts are: ___ Very important to me. ___ Not that important to me. ___ I’m not the athletic type. 

4. I would respond to the following statement, “I like mowing the lawn, landscaping, and gardening,” with: ___ Are you kidding? ___ I don’t mind it. ___ I love working outdoors. 

5. The following describes my position on doing my annual maintenance chores exactly on time: ___ I thought gutters flushed themselves out. ___ I am on top of it, give or take six months. ___ I have a laminated schedule taped on the refrigerator. 

6. Home resale value is important to me: ___ Because I may be moving within the next three years. ___ But I expect to be here for a while. ___ Even though I plan to live here forever. 

7. Living in an urban environment is: ___ Vibrant, exciting, and convenient. ___ Something I can either take or leave. ___ Not for me—give me the country life. 

8. Meeting and interacting with many different types of people is: ___ Very important to me. ___ Relatively important. ___ I hate people. 

Total all your points, giving yourself 1 point for each first answer, 2 points for each second answer, and 3 points for each third answer. Evaluate your score as follows: 8 to 10 points: Future president of condominium association 11 to 20 points: A good candidate for CID life 21 to 24 points: Thanks for buying the book anyway

 The BOC surveys major financial institutions whether it has become harder or easier for businesses to get credit over the last 3 months of 2010. . The indication was that business financing saw widespread easing.  During the recession the difficulties of obtaining credit was one of the biggest roadblocks to economic recovery and forget about growth.

 Access to bank financing for small and medium sized companies is important in Alberta, where energy firms thrive on capital. This is another indication that things are generally looking up for 2011.

  In today’s market interest rates are still very low, there is an ample supply of homes on the market and our economy is rebounding. Today the difference in value between the condo and the house is $135,000 and interest rates are 3.89% for a fixed 5 year term. If you finance the entire difference of $135,000 today, your monthly payments will increase by $586.40/mo. Now suppose you wait and try trading up in 5 years. If home values increase by 4% per year for 5 years the difference in value between the condo and the house will then be $162,248. Assuming that interest rates have returned to 6.89% for a fixed 5 year term and you also finance the entire difference at that time, your monthly payments will now increase by $1,013.10/mo. You will pay an additional $426.70 per month for 35 years or $179,214.00! Waiting may not be the best option.

 If you want to take advantage of the opportunities created by the recent slump, click Here to obtain a complimentary estimate of your current home’s value. It will be emailed to your inbox and you will not have to speak to an agent.

 If you want to use your MOUSE to shop for a HOUSE, click Here. Homes matching your search criteria will be emailed to your inbox as soon as they hit the market.  

In December, 2010 we have a strong downturn within a Buyers’ Market towards a more Balanced Market. With an inventory December 31^st  of 7,189 units and sales of 1,289 it will take 5.58 months to sell the total inventory. This is if no more listings come onto the market.

The average value of farmland in Alberta increased by 2.9% during the first half of this year, down marginally from a 3.8% increase in the second half of 2009. Farmland prices tend to increase very steadily and gradually over time (see graph), and over the past ten years have averaged a semi-annual gain of 3.6%.

FCC noted in its report that a slowdown in urban sprawl and less speculative interest was partly behind the lower price gain in the first six months of 2010. In the southern areas of the province, land suitable for specialty crops remained in high demand while in central Alberta a decrease in land holdings by large farms and persistent

difficulties in livestock markets drove changes in land values. In northern Alberta demand for property near urban areas slowed, which mitigated land price gains in the north.

Alberta’s gain of 2.9% was right on par with the national average gain of 3.0%. Farmland values increased fastest in Ontario (+4.3%) and slowest in B.C (-0.9%). Saskatchewan (+2.9%) and Manitoba (+3.4%) saw gains near the national average.

With Alberta’s economy moving along at a fairly subdued pace relative to the mid-decade, price gains for farmland should remain moderate in the near future. However, strong global crop demand fundamentals coupled with limited supply growth opportunities means that farmland values across Canada are likely to continue seeing real price gains over the long-run.

Dan Sumner  Economist, ATB Financial   October 5, 2010

Cities in Alberta issued permits for $851 million (seasonally adjusted) worth of construction projects in September, a decline of 11.1% from August. The decline was due entirely to fewer residential permits, which plunged 20.6% to $481 million. September’s decline brought residential permits to their lowest since June 2009. Prior to the fall residential permits had hovered just above the $600 million mark for a year (see graph).

Whenever builders want to begin a project they must first take out a building permit. Hence these figures provide a forward looking indication of how many and what kind of construction projects will commence in the coming months.

Across cities, both Calgary (-27%) and Edmonton (-24%) saw significant monthly declines in residential construction intentions in September. Prior to September, residential permits had been very strong in Edmonton, rising to pre-recession highs over much of 2010. In Calgary the recovery from the recession had been much more subdued.

The resilience of construction intentions during the summer of 2010 was somewhat surprising given the slowing housing markets. September is only one month of data and hence does not constitute a trend yet, but it is possible that these figures mean builders will be starting fewer new homes and condominium projects over the next few months and into 2011.

Dan Sumner   Economist, ATB Financial  October 7, 2010

After three consecutive months of falling median house prices, the Calgary real estate market rebounded a bit it September with a small price increase. During the month, the median price for all properties sold through MLS® was $355,000. That’s an increase of $5,000 from August, and virtually the same level as September 2009.

But even as prices picked up, the number of sales remained quite low—more than 30% below year-ago levels—which suggests a sluggish market. The ratio of unsold homes on the market to sales during the month is still well within the ‘buyers’ market’ territory, but it did move slightly closer to a balanced market in September.

Even with the modest price increase in September, Calgary’s housing market has been showing distinct signs of moderation lately. This trend has been seen nationwide as potential homeowners were encouraged to buy early in the year, prompted by the specter of rising mortgage rates in the second half of the year.

Those rate hikes have yet to happen, however, which could be one reason for the small price increase in September. Given the slowing trends in the US and global economies in the final quarter of 2010, rate hikes could be slow to materialize moving forward.

Todd Hirsch   Senior Economist, ATB Financial   October 4, 2010

In September we have crested and are moving out of a Buyers’ Market towards a more Balanced Market. With an inventory September 30th of 11,349 units and sales of 1,673 it will take 6.8 months to sell the total inventory. This is if no more listings come onto the market.

It should probably be pointed out that this moment has been a long time coming. There have been numerous studies and reports conducted on the state of securities regulation in Canada: in 2003 there was the Wise Persons’ Committee report, in 2006 there was the Task Force to Modernize Securities Legislation, and in 2008 there was the Expert Panel on Securities Legislation. In short, it seems almost everyone agrees that change is needed. The issue of whether or not a national regulator is needed is an efficiency issue – whether the best way to modernize securities regulation is through a national regulator or simply greater coordination between provincial regulators.

What was the main issue raised during these commissions? Mostly, it’s concerned with international confidence in our ability to enforce securities regulation. It’s no coincidence that prior to each of the commissions there was a scandal implicating regulators. For instance, Enron, Bre-X and WorldCom had just imploded prior to the creation of the Wise Persons’ Committee and the collapse of the asset backed commercial paper market preceded the Expert Panel commission.

There’s a fear that if international investors don’t have confidence in Canada’s regulatory system, Canadian firms will have to pay a premium to raise capital from risk-averse international investors. In fact, the Expert Panel found that firms cross list with the SEC partly for access to the more stringent enforcement of securities laws available in the US.

So how does the protection of investors involve the establishment of a national regulator? The RCMP is obviously already a national institution and they have instituted a specialized team to investigate securities related crime (the success of which might be debatable given the recent high profile scandals). Those proposing a national regulator suggest that it avoids duplication and that economies of scale are obtainable in getting the expertise necessary to coordinate policy and enforcement actions. They claim that coordination is slow and cumbersome between the 13 regulators and that Canada needs to speak with one voice at the international forums.

Those who are against a national regulator prefer a passport system. Under the passport system a securities issuer has a primary regulator and is mutually recognized by the other 13 regulators across the country. The Canadian Regulators Association (CRA) is then charged with coordination and policy between jurisdictions. This has been the direction most provinces were headed in, with the exception of Ontario, meaning the viability of the system was always going to be in question. It is feared that under a national regulator, that regional specialization might be lost (such as energy related investments in Alberta).

Everyone agrees that securities regulation needs updating, and the Supreme Court will have to render a decision on whether or not a single regulator is even an option, but politicians will also be concerned about jobs and where they’re located. It’s highly likely that a national regulator would be located in Ontario, along with the highly paid jobs in finance, law and accounting. Regional offices would, no doubt, be located elsewhere, but it’s clear why Ontario is fighting for the national regulator option.

By Will Van’t Veld, AYB Financial

If Alberta’s economy was in slowdown mode last year, it appears to be picking up steam again in 2010.

Each quarter, Alberta Finance and Enterprise prepares an inventory of major projects in the province that estimates the value of investment activity. The inventory lists construction projects valued at $5.0 million or greater that are planned, underway, or have recently been completed.

The most up-to-date inventory, completed in March of this year, details some 923 projects with an estimated value of $230.2 billion.  A few notable projects are lifting the total values in categories such as electrical power generation, which is showing planned projects of nearly $20 billion. Other big projects in infrastructure, institutional (i.e, schools, hospitals, etc.), and commercial and retail are lifting these categories to between $10 and $17 billion each (see graph).

But without question, investment in major projects in Alberta is completely dominated by the oilsands. As of March 2010, there were 51 projects with a value of over $142 billion either planned, underway, or recently completed. That accounts for more than half of the total value of all projects in the province. Some 13 oilsands projects valued at $64 billion are listed as “on hold.”

By Todd Hirsch  Senior Economist  ATB Financial

Recently, global financial markets have been rocked by the rapidly deteriorating fiscal situation in Greece and this has led to wild swings in everything from oil prices to the Canada/US exchange rate.

 The Canadian loonie had been on a tear for most of 2010, rising from as low as ¢93 US to above par during April (see graph). But over the last couple weeks it has fallen back even though the Canadian economy has been adding jobs and performing better than economists projected – why is this the case?

 When global investors become worried, they often sell riskier assets and put their money in the safest place possible: US government bonds. With various European governments potentially in financial trouble, investors have been selling almost everything and buying US government bonds. This then pushes the US dollar higher and, hence, the loonie downward. The exact same thing occurred in late 2008 when the US investment banks went bankrupt.

Although the only country with serious immediate concerns is Greece, investors are worried that if problems are not resolved soon there could be a chain reaction leading to problems in other larger European countries. This could then lead to lower global economic growth, which would hurt demand for things like oil.

On Monday, May 10, 2010, various institutions agreed on a rescue package to give money to the ailing European countries. This soothed the market, making riskier assets like the loonie attractive again. If the rescue package works and the European economy continues to recover, the loonie could make another push towards parity. Dan Sumner. Economist, ATB Financial

Presented by Marvin & Deanna Nygaard, REALTORS® of Keller Williams Realty South

Housing Prices Jump in Calgary For March 2010

Watching the ups-and-down of monthly real estate prices in Calgary is the favorite pastime for thousands of home owners and potential buyers. Just like the Flames’ playoff hopes, prices suddenly have people’s attention again.

The median price of homes sold in Calgary last month jumped to $375,000 – up from $352,000 in February and $340,000 in March of last year. Median prices in the metro area are now at their highest point in nearly two years (see graph). Many buyers got into the market in March in anticipation of rising mortgage rates this year.

 Single-family homes sold for a median price of $423,000, an increase of 3% month-over-month. Condo prices – which have struggled amidst a lot of new projects that came on the market in the past year – also rose by 3% in March to $275,000.

 While prices did pick up, so did the inventory of unsold homes on the market. At the end of March, there were 10,003 homes for sale in the Calgary metro area, up from only 6,000 in December. Not only does the rising inventory of unsold homes give potential buyers more selection, it should help keep a lid on price increases over the coming months.

 But the larger factor that will moderate prices for the rest of 2010 are impending increases in interest rates. In March, some mortgage lenders started to raise the cost of borrowing in advance of the Bank of Canada raising its trend-setting overnight rate. The central bank has yet to make its move, but given the stronger-than-expected state of the Canadian economy, rate hikes are certain to come this summer.

Todd Hirsch Senior Economist, ATB Financial

Presented by Marvin & Deanna Nygaard, REALTORS® of Keller Williams Realty South Strong Ending To a Bad Year and Alberta is Moving Ahead in Strength

 Strong Ending To a Bad Year and Alberta is Moving Ahead in Strength 

The  Canadian Economy started out weak, however,  the important thing is to finish strong! And that’s exactly what the economy did as 2009 drew to a close.

Canadian gross domestic product (GDP) advanced at an annualized pace of 5.0% in the final quarter of 2009, the fastest quarterly growth rate since Q3 2000, when the North American tech boom was wrapping up. The reading was well ahead of the Bank of Canada’s projection (+3.3%) and also ahead of a consensus of economists (+4.2%).

Exports – which account for a significant portion of Canada’s GDP – grew by 3.7%, after posting a revised 2.9% expansion in the third quarter. This reflects a somewhat stronger global economy. Imports into Canada also grew, but by a weaker 2.2%.  Despite the stellar fourth quarter result, 2009 was the second worst year on record for the Canadian economy (comparable data back to 1961), with GDP falling by 2.6%. The only year that saw a larger annual contraction was 1981 (-2.9%).

The result is similar to fourth quarter growth in the US (+5.9%), which was due largely to rebuilding inventories and government stimulus programs like “Cash-for-Clunkers” and assistance for first time homebuyers. Canada, though, had no programs like those. While government stimulus measures did help boost demand in Canada, the 5% growth in Q4 is a solid indicator that the Canadian economy is truly rebounding.

Todd Hirsch

Economist, ATB Financial

Bank of Canada Rate Dilemma

Canada’s central bank intends to keep the trendsetting overnight interest rate at its record low level of 0.25% until at least June. However, the tone of the Bank’s rate announcement press was slightly more hawkish than previous ones, as the BoC seemed to be trying to gear the markets up for rate hikes in the future.  The Bank acknowledged that growth in the final quarter of the year was more positive than expected on the back of “vigorous domestic spending and further recovery in exports.” The Bank also stated that “core inflation has been slightly firmer than projected,” and that the future “macroeconomic risks to the inflation projection are roughly balanced.” Previously the Bank maintained the risks to inflation were tilted to the downside (i.e., towards deflation).

With stimulus money and global growth beginning to take hold, it is appearing more and more likely that the BoC’s first rate hike is going to happen in the third quarter of 2010. Analysts and economists however are still somewhat split as to the speed of rate hikes with predictions for the year end rate ranging from 0.75% – 1.75% among major Canadian banks.

Bankruptcies In Alberta Low During the Downturn in 2009

Business conditions in Alberta may have been challenging in 2009, but last year’s recession appears to have done little to increase the number of business bankruptcies.

According to statistics released from the Office of the Superintendent of Bankruptcy Canada, there were only 32 businesses in Alberta that declared bankruptcy in December. That is unchanged from November, and essentially at the same low level that has prevailed since the middle of 2007.  On the surface, the data suggest business conditions in the province are excellent. But caution must be exercised when looking at bankruptcy statistics as an economic indicator.

If companies are insolvent, they may or may not actually claim bankruptcy. The act of declaring bankruptcy costs money, and it might well be the recommended route for certain companies given their particular situation. But companies facing poor sales and low demand can still cease operations and exit the industry without going through the formal bankruptcy process. Options include selling the business to a competitor, or simply winding up operations and settling all outstanding payments and debt.

The fact that business bankruptcies in Alberta were at very low levels throughout 2009 does suggest businesses were adjusting to the recession with minimal financial ruin. But low bankruptcies alone do not necessarily mean business conditions have not deteriorated over the past year.

The Effect On Real Estate In Calgary

The story of the housing market is all about interest rates at the moment When the rates will rise is the wild card. Canada’s economic recovery showed marked improvement in the final quarter of last year. This will put pressure on the Bank of Canada to begin raising rates sooner than planned to curb inflation.

Presented by Marvin & Deanna Nygaard, REALTORS® of Keller Williams Realty South

 Great News! One Segment of Employment on the Rise In Alberta

Last year’s global downturn walloped the job market in Alberta pretty hard. And so far, the recovery currently underway has been a bit spotty in terms of job growth. But there is one segment of the workforce that not only held its own last year, it actually grew.

The number of people in Alberta who identify themselves as “self employed” rose to an all-time high in 2009 of just under 352,000. That is the fourth consecutive year of increases. It also happened at the same time as overall employment (i.e., workers employed by someone else) fell in Alberta by some 31,000 last year.

There are a few driving factors for increasing in self-employment in the province. One certainly has to be the weakening employment situation, particularly in 2008 and 2009. If workers find themselves laid off by their employers – as thousands did last year – one option may be to strike out on their own and set up a small business. This could be anything from consulting (often within the same sector from which they had been laid off) to setting up a small service company.

 Another factor is more positive, and that’s Alberta’s general strong spirit of enterprise. Entrepreneurs are almost limitless in their ability to find niche businesses that need filling. By keeping red tape and barriers to setting up businesses low, it’s possible to encourage small business and foster the entrepreneurial spirit.

Todd Hirsch  Economist, ATB Financial

Presented by Marvin & Deanna Nygaard, REALTORS® of Keller Williams Realty South

 Calgary housing values drop 13 per cent

 For a second year, the typical home in Calgary is worth less, dropping by 13 per cent, according to city assessors. That means the median assessed value of a single family home is $374,000 as of July 1st, 2009 — down from $427,000 the year before. For condos, the median assessed value dropped to $233,000 for 2010 from $278,000 the year before.

 Stuart Dalgleish, the city’s assessor, said because of Calgary’s revenue-neutral system — it collects the same amount of money each year, regardless of the assessments — about two-thirds of residential properties can expect a decrease between zero and -10 per cent when their tax bill arrives in May. The remaining 30 per cent will see an increase of between zero and 10 per cent. Only a handful of communities will see decreases greater than -10 per cent, while this year no neighbourhoods will experience a bump of more than 10 per cent.

 This comes on the heels of a couple of boom years, with property values soaring 43 per cent in 2007 over 2006 and 25 per cent in 2008 over 2007. A home assessed at $374,000 comes with a 2010 tax bill of about $2,114, including both municipal and provincial property taxes. That does not include the 4.79 per cent property tax increase approved by city council in November, which is added to individual tax bills.

 Revenue neutral means that homes whose values decreased by more than 13 per cent will see a drop in the tax they pay, while those who decreased by less than that or gained in value will pay more. Ninety-two per cent of Calgary homes will see a change in the amount they pay of between plus or minus 10 per cent, Dalgleish said.

 Individual tax bills are determined using the market value assessment of that home and improvements to that specific property. The city’s property assessment roll, which added 8,000 new accounts, is valued at $218 billion, down from $245 billion from 2009.

© Copyright (c) The Calgary Herald

Financial Trends Affecting The Real Estate Market

 The American Experience could still be

the Canadian Experience by 2011

 A record-high 14 per cent of U.S. homeowners with a mortgage were either behind on payments or in foreclosure at the end of September.

 Interest rates aren't going up any time soon, but when they do the rise will be rapid enough to potentially prove devastating for homeowners who aren't prepared, mortgage industry experts say. Ivan Wahl, chairman and CEO of Xceed Mortgage Corp  praised Canadian regulators for preventing the housing meltdown that decimated the American economy.   He called for an "early warning system" that would allow lenders to adjust quickly if an increased number of borrowers default on their mortgages as a result of higher interest rates.

The Canadian housing market fared much better than its American counterpart during the recession due to both better regulation and a more prudent culture. While the financial crisis in the U.S. was caused in large part by subprime mortgages, which led homeowners to default en masse when housing prices began to fall,  Strict regulations helped the Canadian economy avoid a similar meltdown. Even mortgage lenders weren't expecting the Canadian housing market to fare as well as it has. "The last half of '09 is better than anybody expected," said John Webster, president and CEO of Scotia Mortgage Corp.

"We were looking at a nuclear winter . . . (for new mortgages), a 30 to 35 per cent drop, and that hasn't happened," agreed Stephen Smith, chairman and president of First National Financial LP.

The health of the Canadian housing sector has been aided by low interest rates - 5.59 per cent for a five-year fixed-rate mortgage and 2.25 per cent for a five-year variable-rate mortgage at one bank. Depending on whether they are fixed or floating-rate, mortgages are tied to either the bond market or the Bank of Canada's key lending rate, which are closely related. The central bank's rate has been sitting at a record low of 0.25 per cent since the spring and it has said it will keep it steady until at least next June to help stimulate the ailing economy.

This  isn't to say higher interest rates won't hit Canadian consumers eventually for  inflation could be between three and five per cent by 2011. This will be enough to kill the bond market and to lead to higher interest rates down the road.  When  interest rates do rise, they'll rise quickly 200 to 300 basis points. This could hurt Canadian homeowner’s ability to carry their mortgage at a higher interest rate.

The  volumes of residential mortgage credit outstanding is forecast to grow by seven per cent between 2009 and 2011, and is predicted to pass $1 trillion in 2010. The average mortgage interest rate was 4.55 per cent as of October, down from 5.41 per cent a year ago. The American experience could still be the Canadian experience by 2011..

Edited from Byline: Kristine Owram

Publication: Golden EzRock