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Archive for July, 2017

Ontario Implementing New Protections for Condo Residents this Fall

New Laws to Build Healthy and Sustainable Condo Communities

July 25, 2017 8:37 A.M.

 

Trillium

 

Ontario is moving forward to better protect condo owners and residents by increasing consumer protections in Ontario’s condo communities.

Today the Minister of Government and Consumer Services, Tracy MacCharles, announced new protections for condo communities taking effect this fall. Changes will include:

  • Regular mandatory updates about the condo corporation to help improve communication between boards and owners
  • Improving condo corporation governance and addressing conflicts of interest by introducing new disclosure requirements for directors, including whether they are not owners or occupiers of units in the condo or if they have interests in contracts involving the corporation
  • Mandatory training for condo directors to improve how condos are managed and operated
  • Clearer rules to make it easier for condo owners to access records of their condo corporation
  • New notices, quorum and voting rules to make it easier for owners to participate in owners’ meetings
  • Mandatory education requirements for condo managers applying for a general licence.

The government will also designate two new administrative authorities:

  • The Condominium Authority of Ontario (CAO), when designated on September 1, 2017 will provide education and promote awareness of condo owner rights and responsibilities, as well as provide important information for condo corporations. On November 1, 2017 it will also be responsible for managing the Condominium Authority Tribunal which will resolve disputes about access to condo records. Going forward, Ontario will consult with the public to identify other disputes the Tribunal could resolve.
  • The Condominium Management Regulatory Authority of Ontario (CMRAO), when designated on November 1, 2017 will regulate and license condo managers and providers.

Protecting condo residents in Ontario is part of our plan to create jobs, grow our economy and help people in their everyday lives.

 

QUOTES

” Addressing the growing needs of condo communities across the province and supporting long-term sustainability of condo living is key to our government’s mandate. Creating new consumer protections will help to build more sustainable condo communities so residents moving into condos today and in the future will be able to look forward to healthy condo communities and peace of mind in the place they call home.”
– Tracy MacCharles
Minister of Government and Consumer Services

 

QUICK FACTS

  • There are currently 1.6 million people living in condos in Ontario and more than 50 per cent of new homes being built in the province are condominiums.
  • There are more than 750,000 condo units in Ontario, up from 270,000 units in 2001.
  • The CAO and CMRAO were created as part of the implementation of the Protecting Condominium Owners Act that was passed in 2015
  • The government received about 200 recommendations for condominium law reforms through its public consultation process.

 

LEARN MORE


Buyers work around mortgage stress test

A new report reveals Canadian sentiment about homebuying in Canada – including just how impactful the stress test might be.

In its latest report, entitled Consumers’ Perspectives on Homebuying in Canada, Mortgage Professionals Canada aimed to simulate what percentage of prospective homebuyers would be impacted by the stress test policy that requires high ratio buyers to qualify at the posted rate of 4.64%.

According to the simulation – which included buyers with less than 20% down payment who could afford a market interest rate of 2.6% — 20% would fail the stress test and therefore would not qualify for mortgage financing.

Of those who would fail, 45% said they would increase their down payment amount; 45% said they would buy a less expensive home; 20% would look outside their original targeted region; 39% would delay their purchase; 5% would do something else; and 7% did not know what to do.

“The stress test would mean that a considerable number of potential homebuyers would become unable to borrow as much as they need to complete their desired purchase (even though they can afford the actual costs associated with that purchase),” MPC said in the report. “There is uncertainty about how many of these affected people would be able to make changes in order to make a purchase (buying a less costly property, increasing their down payment, or finding a borrowing alternative that does not require mortgage insurance) and how many would have to delay buying (and for how long).”

Paul Taylor, president and CEO of MPC, said the number of Canadians impacted by the stress test was unsurprising.

MPC did find the stress test is forcing some homebuyers to use pricier uninsured lending options rather than decrease their debt load.

“We agree with a mortgage stress test but it should be reflective of more realistic future interest rates so Canadians can continue to have access to affordable homeownership,” Taylor said. “Modifying the criterial has a more realistic chance of improving homeownership for consumers.”

This article is reproduced with kind permission from REP magazine which I highly recommend.

REP

 

http://www.repmag.ca