A recent report in the Chronicle Herald newspaper in Halifax warned that Atlantic Canada will not be able to absorb the next few interest rate hikes, but, according to a senior mortgage advisor, the opposite is true.
Clinton Wilkins of the Centum-affiliated Clinton Wilkins Mortgage Team says that while the consumer debt is high, perhaps even alarming, Atlantic Canadians have less mortgage debt than the rest of the country. He added that the January rate hike, even in combination with B-20, had a negligible effect on Halifax’s housing market.
“People still buy houses every day, people can be driven to homes that they would not normally have liked, but they also have some hints of grandeur, for us we still do deals every day.”
In fact Wilkins believes that Halifax is booming because the incomes are high and the cost of housing is low. The trend started a few years ago and has not diminished – not even this year, as housing markets around the country are cooling down.
“We have never had a boom here and there are other areas in the country where the real market estate is so inflated or priceless, but people can come here to get a well-paying job in Halifax, but also the homeownership is a reality, “he said. “People can own a detached house for $ 325,000, which is very realistic, but guess what, you can even get out of town a bit and buy a semi-detached for $ 150,000, even $ 130,000, which is realistic. buy one bedroom apartment in downtown Toronto for $ 325,000 – it’s just unavailable. ”
Wilkins also believes more immigrants will choose to settle in Halifax, the hub of Atlantic Canada, and that even Canadians will start migrating there too.
“I think we will certainly see newcomers in Canada, but also positive moves from places like Ontario, choose Halifax, especially if the labor market strengthens,” he said. “It’s a different lifestyle on the east coast, it’s a great place to live and a great place to do business, and I’m in competition with the big boys, I do 200 to 300 units myself. Canada does not do these types of units. ”
However, Wilkins admitted that Nova Scotia is heavily indebted and has no access to alternative sources of financing
]” Outside of Halifax in rural Nova ] Scotia is definitely higher debt-to-income, we see more clients with credit problems and it is harder to get approved Outside Halifax there are not many options for conventional loans, only the bank borrowers are there. lends not even in the countryside unless they have a branch in a certain radius.We see more and more private loans in rural Nova Scotia because if there are credit problems, there is no access to alternative lenders or monoline signers. ”