Canadian Funding Corp. Reviews CMHC Statistics

Posted by Moishe Alexander

The Government of Canada announced today that the Rural Municipality of Hanover, has been approved for an infrastructure loan as part of Canada’s Economic Action Plan.

The announcement was made by the Honourable Vic Toews, President of the Treasury Board, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), and Reeve Stan Toews, elected head of the Rural Municipality of Hanover.

The Rural Municipality of Hanover has been approved for a $3,000,000 low-cost loan from CMHC’s Municipal Infrastructure Lending Program (MILP), for the construction of a new wastewater treatment facility for the community of Mitchell. The new facility has been designed to allow the community’s population to grow to 4,000 persons.

“Our Government understands the importance of infrastructure in maintaining strong and prosperous communities,” said Minister Toews. “This program is opening the door for municipalities of all sizes to meet their housing-related infrastructure needs and create jobs. It’s good news not only for Hanover, but also for Manitoba.”

Canada’s Economic Action Plan provides up to $2 billion in direct low-cost loans to municipalities, over two years, for housing-related infrastructure projects through the MILP. These low cost loans can also be used by municipalities to fund their contribution for cost-shared federal infrastructure programming.

“The Rural Municipality of Hanover is pleased to secure low interest long-term funding from the Federal Government through Canada Mortgage and Housing Corporation to assist the community of Mitchell in the construction of their new lagoon”, Reeve Stan Toews said. “This facility will allow the community to see substantial growth over the next two decades and provides an interest rate that will result in the community saving approximately $500,000 over the next 15 years in interest costs.”

Eligible projects include infrastructure related to housing services such as water, power generation and waste services, as well as local transportation infrastructure within and into residential areas, such as roads, sidewalks, lighting and green space.

As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country.

According to the Canadian Funding Corporation, housing starts (new home construction) is up in March 2009, versus the same period last year. Ontario and Quebec accounted for the majority of the increase.

The Canadian Funding Corporation Reports:

OTTAWA, April 8, 2009 — The seasonally adjusted annual rate of housing starts increased to 154,700 units in March from 136,100 units in February, according to Canada Mortgage and Housing Corporation (CMHC).

“Higher multiple starts in Ontario and Quebec were the main contributors to the rise in new construction activity in March,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “While the multiples segment experienced the largest increase, the overall boost in starts was broad based, encompassing the singles segment as well.”

Moishe Alexander, of the Canadian Funding Corp noted that the seasonally adjusted annual rate of urban starts increased 17 per cent to 127,900 units in March. Urban multiple starts increased 28.3 per cent to 81,500 units, while urban single starts moved up by 1.3 per cent to 46,400 units in March.

March’s seasonally adjusted annual rate of urban starts increased by 35 per cent in Ontario and by 23.3 per cent in Quebec. Urban starts declined by 17.3 per cent in British Columbia, by 7.9 per cent in Atlantic Canada, and by 7.5 per cent in the Prairies.

Rural starts were estimated at a seasonally adjusted annual rate of 26,800 units in March.

New home construction is now at a more sustainable level after having been exceptionally strong over the past 7 years, exceeding 200,000 units per year.

As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country.

For more information, please see:

http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2009/2009-04-08-0815.cfm

Buyers between 25 and 44 years of age make up the lion’s share (59 per cent) of households that intend to buy a home in 2008. More than one in five households that intend to buy are between 45 and 54 years of age, while the same proportion are over 54 and below 25 years of age.

Likewise, the majority of renter households that intend to buy are between 25 and 44 years of age (46 per cent).

A large share of intenders will be repeat buyers

More than half (57 per cent) of purchase intenders will be repeat buyers. Indeed, buying intenders’ main motivation for purchasing a residence was the need for a larger/better residence (33 per cent). The second most popular response was to change from renting/build equity or to have a residence of their own (26 per cent).

The majority of purchase intenders that are first time buyers are between the ages of 25 and 34, with a household income between $40,000 to just under $60,000. As for repeat buyers who intend to purchase a home in 2008, the majority are between the ages of 35 and 44, with a household income over $100,000.

Close to half of intenders will plan to make a down payment of more than 20 per cent Close to half of households that intend to buy a home are planning to make a down payment of more than 20 per cent of the expected value of their purchase. The main source of down payment funds are household savings for 40 per cent of potential home buyers, while equity from the present/previous residence is also a popular option with 30 per cent.