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April 19, 2010

How soon can we expect mortgage rates to rise? Click here to read more.

April 08, 2010

Read More

Ray Turchansky, Edmonton Journal

April 06, 2010

CHBA-Edmonton Region Member Lends Helpful Hand to Cancer Patients

For complete details, see the article here at the Edmonton Journal.

April 03, 2010

New CHBA President, Victor Fiume, meets with Federal Housing Minister, Dianne Finley, to discuss the impact  Government Imposed Costs (GIC's) have on our nation's homebuyers.

Click here to read more.

March 12, 2010
COE News Distribution
March 12, 2010

The unlicensed contractors were called to do work at a house that is owned by the City. When they arrived to provide the service, Municipal Enforcement Officers were waiting. All the businesses targeted in the sting had been warned that they need a business licence to operate in Edmonton.

This is the City’s second business licence sting in the last six months, and more stings are planned.

“When a business has been told that they need to get a licence and they still don’t bother, it really raises questions about their legitimacy,” says John Lazaruk, Field Supervisor with the Community Standards Branch. “One of the best ways a small business owner can show customers they are responsible and law-abiding is to get a licence.”

Under the Business Licence Bylaw, anyone conducting business in Edmonton must have a valid business licence, even if they operate as a sub-contractor or are not based in the city. The fine for operating without a licence is $400 or twice the business licence fees, whichever is greater.

Business licensing ensures that the City knows who is operating businesses in Edmonton, and allows the City to check that business activities comply with local laws and some provincial laws. Licensing is also one way the City makes sure that businesses are based in the right zone, so commercial activities are not disruptive to residential neighbourhoods.

For more information on licensing or to apply for a business license, visit, or call 311


March 09, 2010
By Bill Mah,
March 9, 2010 8:19 AM

EDMONTON — Builders started three times the number of Edmonton-area homes in February as they did a year earlier -- showing just how far the housing market had fallen last year.

But now there are worries that possible higher interest rates and tighter lending restrictions could dampen the rebound's bounce.

Total housing starts in the Edmonton census metropolitan area reached 642 in February, compared with 213 in February 2009, Canada Mortgage and Housing Corp. said Monday.

Last month's building activity approached February 2008 levels, when housing starts totalled 692.

It was also was the eighth consecutive month of year-over-year increases in housing starts, said the federal agency.

In the single-detached sector, builders poured foundations for 484 starts in February, more than three times the 149 houses started in the Edmonton region the same month last year.

So far this year, housing starts have totaled 1,219, up from 626 in the first two months of 2009 when builders downed tools in a weak economy and what observers called an overbuilt housing market -- which was also competing with large inventories of existing homes.

Guy St. Germain, Edmonton-region president of the Canadian Homebuilders' Association, said his group's members are confident the current strong market has staying power.

"There is optimism that the market is showing stability for 2010," St. Germain said. "Single-family homes are selling well and multi-inventory continues to decline."

The resale market is near balanced and there is upward pressure on prices in both single and multi-family sectors, he said.

"Certainly, our builders are as optimistic as they have ever been since probably early 2007. Let us hope that a jump in interest rates and further constraints in CMHC and other mortgage insurers in eligibility criteria does not dampen demand."

Also released Monday was a national survey showing Albertans are the most likely, at 13 per cent, among Canadians to say they are very likely to buy a home within the next two years.

The RBC Home Ownership Survey also showed that among those looking to buy, Albertans were most likely to say they will buy within the next year, at 40 per cent.

The rebound in Alberta's home-building this year is especially evident in the single-home market, where builders started 881 units, compared with only 296 during January and February of last year.

"With inventories down considerably from a year prior, builders are strengthening production in preparation for the important spring selling season," said Richard Goatcher, CMHC's senior market analyst in Edmonton.

Multiple-dwelling starts also increased year-over-year in February to 158 units, compared with only 64 a year earlier. After two months, multifamily starts are up 2.4 per cent to 338 units, compared with 330 started in the comparable 2009 period.

Gains in semi-detached and row housing are offset by continued weakness in new apartment construction. Goatcher said high new apartment inventories in parts of Edmonton will curtail activity in the sector for much of the year.

The February recovery is also seen across Alberta. Housing starts in the seven largest centres totalled 1,562 homes in February, compared to 574 starts a year earlier -- despite lower activity in Wood Buffalo and Grande Prairie.

Todd Hirsch, a senior economist at ATB Financial, said the province's housing market is supported by low interest rates, better afford-ability compared with 2008 and an improving economy.

Hirsch predicted housing starts will remain near their February levels for the rest of the year -- better than last year, but still soft compared to the 10-year average.

"While 2010 will probably see improved labour market conditions, interest rates are almost certain to start rising in the second half of the year," Hirsch said.

"That will bump up the cost of mortgages, which could take some of the steam out of the market. As well, changes introduced by Ottawa to tighten lending conditions and speculative activity in real estate could also put a bit of a damper on things."

March 06, 2010

March 6, 2010

VICTORIA, B.C., March 6, 2010 – The Canadian Home Builders’ Association (CHBA) today called on the federal government to lead efforts that would “lay the groundwork for new, more effective approaches to the full range of tax and regulatory issues that challenge housing affordability and choice”.

Incoming CHBA President Victor Fiume said that “the strong performance of the housing sector through the recession has been tied primarily to two factors: abnormally low interest rates, and price discounting by builders on their projects and inventory”.  “Neither of these factors is sustainable”, noted Fiume.

“When we talk about housing affordability”, Fiume continued, “we must focus on fundamentals – on what a home actually costs – not on conditions that are artificial or temporary.”

However, Fiume noted that governments have yet to “get it” in terms of the costs they impose on new home buyers.

“Across Canada, government-imposed costs on a new home range as high 18%, and continue to rise, as municipalities increase their taxes, fees, charges and levies.  The introduction of HST in Ontario and B.C. will add to this, for homes priced above the rebate threshold.

“As a result, I expect that we will see an increasing number of communities where government-imposed costs are more than 20% of the total price of a new home”, Fiume noted.

As one step in addressing the impact of government-imposed costs on housing affordability, the CHBA has called on the federal government to take action to restore fairness in how GST is applied to new homes and home renovations.

Fiume restated the CHBA’s recommendation that the federal government, “adopt the single threshold/full rebate approach for the GST New Housing Rebate across Canada, and a commit to review and adjust the threshold level over time”, and that it “introduce a permanent 2.5% GST Home Renovation Tax Rebate available to all homeowners”.

Fiume also pointed out that the financial crisis and recession have left the residential construction industry, and Canada, with many challenges, including: sustaining economic recovery as governments wind down their stimulus programs, confronting the impact of more normal interest rates, and the growing need for governments to rein in budgetary deficits.

“These are elements of the ‘new normal’ that our industry, governments, and consumers must adjust to.  To understand fully what the ‘new normal’ means, we have to focus on the singular importance of housing affordability”, he said.

Fiume called on the Minister responsible for Canada Mortgage and Housing Corporation, the Honourable Diane Finley, to initiate a “high level intergovernmental body, or forum” that would, “address the big picture” in relation to housing, and “help to ensure that federal and provincial policy is better integrated and better informed”.

Fiume was clear that this intergovernmental forum would need to recognize that “the assumption that public costs can be underwritten by dramatically increasing real estate values in perpetuity has been put where it belongs – in the economic trash heap.”

Fiume noted that a permanent 2.5 per cent GST Home Renovation Tax Rebate would also address the massive problem in Canada of billions of dollars in tax revenues lost annually through the underground economy.

He said one of the significant lessons from the “stunning success” of the Home Renovation Tax Credit is that homeowners will respond to a modest tax break by getting written receipts for renovations. A permanent rebate “will boost government revenues at the expense of tax cheaters and illegal underground cash operators.”

He said the Department of Finance estimates as many as 4.6 million households took advantage of the tax credit. This is a “remarkable response” that proves homeowners will pay attention when government acts to reduce the cost of maintaining and improving their homes.

Turning to the environment, Mr. Fiume thanked the federal government for supporting the industry’s leadership in building homes that are substantially above government-mandated requirements, a system that supports innovation and allows for the incorporation of 0-5pnew technologies as they mature.

He said there is a need to reach out to other levels of government. “Without better research and information, particularly in terms of the integrated ‘big picture’, our progress on the environment front risks being unfocused, ineffective and undermined by governments working at cross-purposes. Unfortunately this is already happening.”

He proposed a second new intergovernmental body to focus on technical and analytical support, working with the industry, to help build greener communities and cities. He suggested creating such a capacity within the National Research Council (NRC), given its current mandate and expertise.


March 05, 2010

The GST  New Housing Rebate is available in full only to purchasers new homes priced up to $350,000. It is phased out progressively for new homes priced between $350,000 and $450,000. New homes priced at $450,000 or more are ineligible for any portion of the rebate. In 1991 the government made a commitment to revise the thresholds in line with market prices to protect housing affordability over time.  The Technical Paper on the GST says: “The government will review these thresholds at least every two years and adjust them as necessary to ensure that they adequately reflect changes in economic conditions and housing markets.” The rebates have never been adjusted.

Upon implementation of the Harmonized Sales Tax (HST) on July 1, 2010, British Columbia has set a threshold of $525,000 – purchasers of new homes up to that amount will be eligible for a 71.43 per cent rebate of the provincial portion of the HST paid on a new home to a maximum of $26,250. Homes above $525,000 will receive a flat rebate of $26,250.  

In Ontario, the rebate threshold is $400,000. Buyers of new homes will be able to claim a rebate of 75 per cent of the provincial portion of the HST paid on the purchase of a new home to a maximum of $24,000. Homes above $400,000 will receive a flat rebate of $24,000.

About Victor Fiume and the Canadian Home Builders’ Association

Victor Fiume is the General Manager of The Durham Group which specializes in the development of single-family homes and townhouses.  He is a former President of the Ontario Home Builders’ Association and the Durham Region Home Builders’ Association.

The Canadian Home Builders’ Association (CHBA) is the national voice of the residential construction industry, representing more than 8,000 member firms across the country. Membership comprises new home builders, renovators, developers, trade contractors, building material manufacturers and suppliers, lenders and other professionals in the housing sector.

March 04, 2010

March 4, 2010

VICTORIA, B.C., March 4 -- The Canadian Home Builders’ Association (CHBA) said today that Finance Minister Jim Flaherty’s stay-the-course budget is the right approach to complete Canada’s economic recovery.

CHBA President Gary Friend congratulated the Finance Minister for his determination to return to balanced budgets in five years without increasing taxes. The focus on employment opportunities and investment in growth is the right federal direction, he said.

Mr. Friend expressed regret that the budget missed the opportunity to implement longoverdue changes to the GST New Housing Rebate. “This is the single most important step the federal government can take to protect housing affordability and choice. What Canadians need now are permanent policies that end the erosion of housing affordability.”

When the GST was introduced in 1991, the full GST rebate applied to homes selling for $350,000 or less. Those homes cost $550,000 today but the rebate level has not changed, as the government committed to do in 1991.

The CHBA was also disappointed that the budget did not announce a permanent replacement for the hugely-popular Home Renovation Tax Credit introduced in last year’s budget. “A permanent 2.5% GST Home Renovation Tax Rebate would restore fairness to how home renovation is impacted by the GST, and also go a long way to combating the massive underground “cash” activity in home renovation”, Mr. Friend commented.

Mr. Friend welcomed the federal government’s renewed commitment to municipal infrastructure investments. He said the government’s support for core infrastructure and CMHC’s municipal infrastructure lending program for residential development show federal leadership for a priority that involves all levels of government. “Governments must recognize that infrastructure can no longer be financed through the mortgages of new home buyers”, he commented.

The Canadian Home Builders’ Association (CHBA) is the national voice of the residential construction industry, representing more than 8,000 member firms across the country. Membership comprises new home builders, renovators, developers, trade contractors, building material manufacturers and suppliers, lenders and other professionals in the housing sector.