So You Want to Retire in Nova Scotia?

There are plenty of attractive places in Nova Scotia for your post-retirement life. Real estate agents offer cottages, second homes, and other properties in Atlantic Canada, featuring splendid sites and landscapes.

Places to Retire

Retirees are offered real estate in towns and cities with a nice mix of neighborhoods, well-developed public transit, and good quality of life. When choosing from different locations, consider factors such as seasonal weather, traffic, housing and land availability, and affordability.

Halifax is a popular place to shop for real estate if you are close to retirement. The city is an excellent choice in terms of quality of life, climate and weather conditions, landscape, and transportation, and housing. Real estate prices, for example, are close to the average for Canada. The intercity and intracity transit network consists of rail, bus, air, and ferry service. Halifax also offers community and retail services, including health care facilities, senior centers, restaurants, and shops. Wolfville is also a great place to retire in Nova Scotia, and its population is actually growing. It is a thriving community and cultural center with a diverse population. There are other great places to settle in Nova Scotia, especially if you are budget-minded. The province is a great place for retirees looking for family-oriented atmosphere and affordable housing. Sales of vacation and sretireecond homes and cottages are booming, and more and more Canadian retirees choose to settle in Nova Scotia to seek respite.

Market Trends and Predictions

Oil prices are at historic lows to ease some pressure on Canadian consumers looking for real estate. Gas savings mean more disposable income to pay for goods and services and save toward the purchase of real estate. More and more Canadians are willing to invest in energy efficiency upgrades, home renovations, and the purchase of second homes in other provinces. Nova Scotia offers excellent opportunities for retirees who are up for uncrowded coastal lines and residential areas. Perhaps this is a good time to shop around for real estate in Nova Scotia in light of the fact that there are projections for housing market growth in Halifax and other places. A report by Statistics Canada indicates that the value of permits has skyrocketed. According to another report, 36 permits were granted for single dwelling units, 328 for multiple dwelling units, and a total of 364 permits for dwellings. If moving to Nova Scotia, expect to pay about $423,000 for a new home. And if you already have a car loan or consumer loan, banks will factor in your debt to income ratio when offering a mortgage to buy a second home. Major Canadian banks offer vacation home mortgages to customers who are looking for funds to buy their next property. There are several options to look into, including bridge financing, assumable mortgages, and portable mortgages that allow borrowers to transfer the maturity date, outstanding balance, and interest rate.




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Does Canada Have Real Estate Bubble

Some investors and finance experts warn that Canada might face a real estate bubble because home prices are skyrocketing ahead of incomes. Buyers borrow huge amounts of money to purchase average homes and often resort to subprime lenders that charge higher rates. Canadians are already heavily indebted and rising home prices are something to worry.

Is the Bubble Going to Burst?

The issue has seen a lot of media attention recently, and bubble warnings surface almost on a daily basis. Lower rates are walletassociated with overbuilding, rising household debt, bloated real estate values, and overvaluation. The bubble might burst in case of recession because household incomes would drop. Many homeowners will get into the position where they are unable to keep up with large monthly payments and will default. Rising interest rates might have the same effect on the real estate market. Borrowers holding variable rate loans will pay more in interest charges to the point where they can’t afford to own a home. At the same time, many worry that rock-bottom interest rates tempt more and more Canadians into taking more credit at a time when real estate prices are already sky-high. If the bubble bursts, many homeowners will be left with negative equity. This means that consumers will be in no position to use credit, whether installment or revolving, to protect the estate market from further collapse. Economists warn that if the bubble bursts, the Canadian economy will face a long and serious recession.

Subprime Lenders

Bad credit lenders have a role to play when home prices are record high: Estimates show that about 5 percent of mortgages in Canada are subprime loans. These are high-rate loans offered to risky borrowers. Given that home prices in Vancouver and Toronto are red-hot, many home buyers are unable to make a down payment of 20 percent and resort to bad credit lenders. They offer mortgages with a lower down payment in exchange for higher rates. Thus borrowers pay more money toward interest charges.

The share of loans offered by subprime lenders has doubled over the last 2 years: This is a source of concern given that banks are subject to tighter regulations since the financial crisis. According to CIBC, this may cause risk to shift from regulated financial institutions to unregulated lenders that serve high-risk borrowers. Risky customers are borrowers with fair and poor credit and those with a history of seriously delinquent accounts, foreclosure, maxed out cards, multiple and excessive debts, and other credit issues. These customers are risky in that they have poor credit management skills and are more likely to default compared to borrowers with stellar credit and a solid payment history. They are usually turned down by major banks and unions and look for alternative sources of financing. Subprime lenders are one option for borrowers with less than perfect credit who want to finance the purchase of a home: As a rule, however, risky consumers who default don’t have valuable assets for lenders to seize, except for their homes. What is more, Canadians have about 55 percent equity in their homes, which is a figure comparable to the U.S. average 10 years ago. Some borrowers also use their credit cards to make a down payment, adding more debt toward high-cost mortgage balances.


The good news is that the share of subprime mortgages in Canada is lower than the share in the U.S. (24 percent) when the bubble burst. What is more, buyers who put less than 20 percent down are required to purchase home-loan or mortgage insurance. Borrowers who apply for high loan-to-value mortgages buy insurance which can be purchased from private companies or CMHC: Fannie Mae and Freddie Mac in the U.S. were privately owned while CMHC is government owned. Moreover, the regulatory system in the U.S. is rather complex, and different bodies have overlapping functions and responsibilities. The Office of Superintendent of Financial Institutions in Canada is the main regulatory body that oversees mortgage insurers and federally regulated entities such as pension funds, loan companies and trusts, insurance companies, and banks.


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