According to Ameera Ameerullah, CEO of Canada Mortgage & Financial Group, construction in the capital of the country was on fire
. "At the moment we are currently facilitating approximately $ 47 million in land development and construction finance in Ottawa," she said. "It varies from land assembly and construction for single-family homes, detached bungalows to a low-rise apartment with 76 units in three phases, and land assembly for a nursing home and a golf course."
Given that Ottawa is historically stable market, and one that is growing, the presence of the Canadian mortgage and financial group there is not surprising.
"It is a growing community in Canada, particularly in Orleans, which thanks to the federal government is on the feet with a stable job market," said Ameerullah. "Orleans has one of the strongest household income levels in Canada and rental vacancy rates have been almost 2% in the past 10 years."
Indeed, Ottawa & # 39; s real estate market is on fire according to all sources. According to Chris Allard, a real estate agent at DLC Smart Debt, the growth in new construction usually ends in the east, south and west of the city.
However, it creates madness for borrowers, brokers and lenders
"We have some customers on waiting lists to even submit an offer to a contractor," Allard said. "A builder only releases X-number of properties for a certain model and there is already a waiting list that will not be multiple, but you hope to be the next man to actually submit an offer. a sales center have slept just to put their names on a list.
"A lot of people also need approving letters for builders. "
The Ottawa resale market is full of multiple bidding situations and inevitably broken hearts.As compared to what happened a few years ago in the Greater Toronto Area, Allard says it is ideal for sellers, but for buyers.
" It means that the parties involved are all a bit more stressed, "he said." The borrowers are stressed because they may not have set financing terms on their offer; the mortgage professional is emphasized, because if the borrower has set a financing condition, the financing condition is in many cases very short, which means that we must get approval quickly. This means that we put pressure on the lenders to do everything quickly, but when there is a hot market, lenders are also busy, so the pressure drops from the borrower to the mortgage broker to the lender. "