The Future of the Canadian Housing Market

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The Future of the Canadian Housing Market by Mind Map: The Future of the Canadian Housing Market

1. 1. CMHC will drastically draw down on mortgage insurance

1.1. Insures nearly 50 per cent of the $1.1 trillion in residential mortgage credit currently outstanding in Canada. Growth of the credit has been shocking.

2. Housing Bubble

2.1. Deflate

2.1.1. New node

2.2. Pop

3. Different than the last decade

3.1. Mismatch in price

3.1.1. Where prices are vs Where prices should be Economic Performance

3.2. Aging population

3.3. Rising Interest Rates

4. Canada Mortgages and Housing Corp.

4.1. CMHC

4.1.1. Promotes home ownership

5. CMHC, Office of the Superintendent of Financial Institutions Canada and Chief Financial Officer of Canada

5.1. Creating Changes

6. What can cause the bubble to pop

6.1. Fast economic growth leading to higher interest rate to prevent inflation

6.1.1. Stimulus packages and easing programs

6.2. Other SAFE investment opportunities

6.2.1. Stocks and bonds become optional leading to real estate's investment bandwagon depleting

6.3. Foreign investment opportunities

6.3.1. Decreases domestic investment in the real estate department because of available foreign investments

7. 2. OSFI intends to implent some major changes to mortgages

7.1. 1. Capping loans at 65% value of the home (20% at least today) 2. Amortizing loans (paying your principal in 'x' days) You can just keep paying on interest right now.

7.1.1. Affects consumer spending Less money circulating in the economy Pop

8. Many new construction projects

8.1. Higher priced homes

8.2. Ex. GTA condos

9. Supply and Demand

9.1. Excess supply of houses

9.2. Not as much demand

9.3. Soon house prices will reflect its true cost

10. Factors affecting the Housing Market

10.1. 1. Mortgage Rates

10.2. 2. Employement

10.3. 3. Income

10.4. 4. Net Migration

10.5. 5. Natural population

10.6. 6. Resale market

10.7. 7. Vacancy Rates

11. Bubble is stable/cool and not about to pop

11.1. Low mortgage rates

11.2. Slow economy

11.3. Low interest rates

11.4. Recent slow years in the economy has still gotten the Canadian housing market rolling but slower but not collapsing