HST rebate revives detached sales, condos stay stuck
Bond yields nudged higher again, keeping pressure on fixed mortgage pricing ahead of the Bank of Canada's next call. Toronto's detached market surged as the federal HST rebate pulled buyers back, though condos stayed stuck under stricter eligibility rules. A Burnaby developer's presale contracts were ruled unenforceable after a judge found undisclosed permit and financial trouble, and mortgage stress is building in Ontario and B.C. even as delinquencies stay low elsewhere. It's a market moving in pieces, not as a whole.
The Numbers
3.66% (1 minute read)
The 10-year benchmark bond yield climbed for a second straight day, moving from 3.62% to 3.66%. Fixed mortgage pricing tracks this end of the curve, so lenders have room to nudge posted rates up before the next Bank of Canada meeting.
Rates & Money
Mortgage stress concentrates in Ontario and B.C. (2 minute read)
Delinquencies remain low across the country, but borrowers in Canada's priciest markets are showing more strain as origination growth slows. Agents working in the GTA and Lower Mainland should expect more price-sensitive, stretched buyers at the table.
CIBC caps off a strong Big Six earnings season (3 minute read)
CIBC beat estimates on capital markets and retail banking strength, extending a run of solid results across Canada's large lenders. A healthy bank sector usually means steady mortgage lending capacity heading into the fall market.
The Market
B.C. judge voids Burnaby presale contracts (2 minute read)
A judge ruled a batch of Burnaby condo pre-sale agreements unenforceable after finding the developer failed to disclose permit suspensions and financial distress to buyers. The deposits involved remain in limbo, a reminder to walk pre-construction clients through developer disclosure before they sign.
HST rebate reignites GTA detached sales (6 minute read)
Single-family home sales in the GTA jumped sharply in July, running well above the seasonal norm, as BILD credits the federal HST rebate with pulling buyers back into the market. But condos haven't caught the same lift, still weighed down by eligibility rules attached to the rebate program.
Industry
Vancouver agent fined for fabricating ownership record (2 minute read)
A Vancouver real estate agent was disciplined after regulators found he'd fabricated a client's home ownership history. It's a reminder that verification cuts both ways: agents get burned when they take a seller's story at face value.
National Bank leans harder on brokers as mortgages grow (3 minute read)
National Bank's mortgage book is growing at its fastest pace in years, with the bank gaining share in Quebec and pushing further into other provinces through the broker channel. That growth has come with tighter margins, a trade-off worth watching if National Bank keeps courting broker-originated business in your market.
The Playbook
Affordability improved in most cities you're selling in (2 minute read)
Home affordability got better across most of the major Canadian markets tracked in July, per new data. If a buyer says they're waiting for prices to make sense, this is your opening: pull the local trend and show them it already favours moving now, not later.
The High End
Bidding war pushes Forest Hill home to a record price (2 minute read)
Three buyers competed for a newly built Forest Hill house, ending in one of Toronto's biggest residential sales in years. In a market where luxury listings often sit (some for months), an outcome like this says buyers are still there for the right property, they're just pickier about which one.
The Argument
Better Dwelling: ownership now needs a top income (3 minute read)
Better Dwelling points to Statistics Canada's Canadian Housing Statistics Program data showing first-time buyers now carry incomes well above the typical household, arguing the bar for entry has moved out of reach for a comfortable, middle earner. It's worth having ready for a client who assumes their income puts them in a normal buying position.
Quick Hits
New purpose-built rental tower rises in downtown east Toronto (1 minute read)
A redesigned rental tower is heading to Toronto's downtown east, delivering a large batch of purpose-built units aimed at current market conditions.
Federal housing advocate flags First Nations climate gap (4 minute read)
A new report from the federal housing advocate says First Nations communities need to be full partners in emergency planning, arguing current systems leave them in a cycle that undermines their ability to protect their own housing.