Why It’s Hard to Get a Mortgage in Canada

Here’s How Tightening Regulations Have Made It More Difficult for Canadians to Borrow Money When Buying Real Estate.

Back in the good ol’ days before the world financial crisis of 2008, it was relatively easy for Canadians to get mortgages. Since then, successive governments have imposed increasingly strict rules on borrowing money to buy real estate. With a newly elected Liberal minority government promising to make housing more affordable, we might hope some of those rules will be relaxed—or at least that buyers will benefit from new incentives. For the moment, however, Canadian mortgage regulations remain quite strict. This blog post looks back at the recent history of mortgages in Canada, as well as the current borrowing climate. Continue reading

Subdividing Property to Increase Density Can Raise Issues with Mortgages on Titles

Skinny House

Podcast Episode 121: “Subdivision Nightmare.”

Across Canada, there is an ongoing discussion about the lack of affordable housing. In some areas, developers won’t build rentals because building condos is more lucrative, because there are rent controls, or perhaps a combination of both situations. Some Canadians are completely priced out of the housing market—especially in the Great Toronto Area and the Lower Mainland of British Columbia. Even in Alberta, where I live and work as a real estate lawyer, affordable housing is an issue. One solution is increased urban density. This podcast/blog post is about the legal challenges of subdividing a single lot into two or more skinnier properties. If there is a mortgage on title, watch out!
 

Download the audio file HERE. Download the handout HERE. (control click or right click + save as)
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