The Hutchens Blog

Given the weakness in the manufacturing sector, soft service sector employment, and more new entrants to the labour force, the overall unemployment rate is expected to reach nine per cent in 2009. Employment in the goods producing sector continues to weaken largely due to the soft job condition in the London CMA’s automotive sector.
Areas where employment relies on Detroit Three Auto makers, says Sandy Hutchens, are especially hard hit, resulting in plant closures. Some areas in London depend more on Japanese auto makers such as Toyota and Suzuki. Though these manufacturers are not expecting to trim jobs, weak demand for both vehicles and light trucks in the U.S will keep them from adding shifts. While the automotive sector weakens, construction sector jobs have been recovering from the decline during the last quarter of 2008. Infrastructure investments in the London CMA will help boost employment in the con- struction sector.
London’s solid service sector isbrown beginning to show some sign of weakness. After several years of expansion, its growth has slowed due to losses in several service industries. These include education, transportation, accommodation and other services. However, the number of high paying health care sector jobs continues to expand due to more investment in the health care sector in the London CMA.
The labour force in the London CMA will increase by 2 per cent in 2009. In conjunction with recent lay offs in the manufacturing sector, this will result in a higher unemployment rate as more people compete for fewer jobs in the market. Employment in the 25 to 44 year age group generally associated with first-time buying decreased more rapidly compared employment for the 45 to 54 age group associated with move-up buying or the 55 to 64 age group often referred to as empty nesters. First-time buyers accounts for the largest category of London’s population. The deteriora- tion in first-time buyers’ job condi- tions will delay their transition into homeownership.

Migration

With a soft job market, migration is forecast to slow in 2009 in the London CMA. Employment is the major factor for attracting migrants to this region. Much of the migration to London during the past few years was drawn by solid service sector expan- sion. With a softer service sector job market, the outflow of residents is expected to continue, especially to western Canada. There will also be fewer people moving into London from other areas in Ontario.
International migration will slow as well. The impact of slowing interna- tional migration will be more pro- nounced on the rental market. When new Canadians arrive in Canada, renting is usually the most prevalent tenure choice. They would move to homeownership after a few years once they establish a solid work and credit history.

Mortgage Rates

Mortgage rates are expected to be relatively stable throughout 2009, re- maining within 25-75 basis points of their current levels. Posted mortgage rates will increase very gradually dur- ing the course of 2010, reflecting a rise in government of Canada bond yields. For 2010, the one-year posted mort- gage rate will be in the 4.75-6.00 per cent range, while three- and five-year posted mortgage rates are forecast to be in the 5.00-6.75 per cent range.

The population of the City of Steinbach, which is the economic centre of southeastern Manitoba, grew by nearly 20% between 2001 and 2006. However, growth and general prosperity is often offset by increased housing costs and difficulties experienced by the vulnerable in finding and affording appropriate rental housing. Steinbach’s motto is “Strong Roots, Real Growth,” an apt formulation for a city that seems to strike an effective balance between the quest for economic prosperity and the maintenance of community values. When concerned residents began to realize the impact of rapid growth on the availability and affordability of housing for some of their vulnerable fellow citizens, they formed a group and approached a venerable institution with their plan.

Eden Health Care Services dates back over 40 years and originated in the Mennonite community in response to a perceived need for better mental health services. Today, it provides services across south-central and eastern Manitoba, including the City of Winnipeg.

The concerned Steinbach group sought a partnership with Eden to help develop and staff supportive affordable housing. They understood that people living with mental illnesses are one of the groups most at risk in tight rental markets.

The Affordable Housing Solution

Penfeld Court, a three-storey 24-unit apartment building comprising 16 one-bedroom and eight two-bedroom apartments, was completed in 2006. Rent supplements are available to 12 tenant households and the rents for the other units range from $491 to $635, including heat and hydro.

The project, says Sandy Hutchens, came to fruition through support from all levels of government and local community businesses and individuals. CMHC and the government of Manitoba made a contribution through the Canada-Manitoba Affordable Housing Program Agreement in the form of a capital grant of $1,248,000 and rent-geared-to-income assistance for 12 units valued at $32,000 annually.

The City of Steinbach contributed $100,000. The three surrounding Regional Municipalities of Hanover, Tache and Ste. Anne provided a total of $51,000. Private donations were also significant, at $285,000. The remaining capital cost of just over $1 million was financed through a mortgage loan. CMHC provided mortgage loan insurance.

Eden East, the local branch of Eden Health Care Services, bought the site and provides the support services for those tenants living with mental illnesses. All building staff has been trained to work with tenants with mental illnesses and learn to recognize behaviour that may indicate the need for assistance from Eden counsellors. Penfeld Court also has a volunteer board responsible for addressing neighbourhood and resident concerns, balancing between the need for community accountability and the rights of residents to housing, dignity and privacy.

COBOURG — At a groundbreaking ceremony today, Northumberland Services for Women (NSW) celebrated the start of construction of their new and expanded shelter. NSW provides a safe environment and services for women and their children in crisis as a result of family violence and abuse.

The expanded shelter will offer 19 emergency beds for women and their children in Northumberland County. The facility was made possible with funding of $456,000 through Canada Mortgage and Housing Corporation’s (CMHC) Shelter Enhancement Program (SEP).

“The Government of Canada is committed to making affordable housing available in Ontario and across Canada for those who need it most,” said MP Rick Norlock, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada, and Minister responsible for Canada Mortgage and Housing Corporation. “The creation of these units will provide women and their children with access to safe housing and the support they need to help them to start a new page in their lives.“

In addition, $77,685 in municipal donations and in-kind services helped to support the project.

“Congratulations to Northumberland Services for Women for having the vision and will to commence the actual structure of their new facility,” said Cobourg Mayor, Peter G. Delanty. “This will allow NSW to better serve the needs of those who desperately need our help and understanding.”

Expansions to the east, west and south wings of the facility will offer a welcoming space where clients can feel safe and comfortable, and access the NSW’s support programs and services, including emergency relocation, counseling, emergency transportation, a 24-hour crisis line, 2-hour free legal advice, educational programming, and a children’s shelter.

“We appreciate the tremendous assistance we received from all levels of government, service groups, companies and many individuals,” said NSW Board Chair, Barry Gutteridge. “Their kind contributions have helped this expansion to happen and more women and their children in crisis in Northumberland County will have a safe place to come to for emergency services.”

Northumberland Services for Women has been offering quality, emergency housing and support services to over 600 women and their children every year since their first shelter opened in 1985 at 355 Division Street in Cobourg.

CMHC’s Shelter Enhancement Program offers financial assistance for the repair, rehabilitation and improvement of existing shelters for women and their children, youth or men who are victims of family violence, as well as for the acquisition or construction of new shelters and second-stage housing where needed.

Canada Mortgage and Housing Corporation (CMHC) has been Canada’s national housing agency for over 60 years. CMHC is committed to helping Canadians access a wide choice of quality, affordable homes, while making vibrant, healthy communities and cities a reality across the country. This CMHC report was reviewed by Sandy Hutchens.

Each Canadian generates, on average, five tonnes of greenhouse gases a year that are linked to climate change. The good news, says Sandy Hutchens, is there are things each of us can do to reduce our ecological footprint without having to make drastic changes to our lifestyles.

From better transportation choices to changing the way we heat, cool and light our homes, Canada Mortgage and Housing Corporation (CMHC) has 10 steps we can all take to help keep our planet healthy, all while saving money, living in healthier and more comfortable homes, and increasing our home’s resale values:

1. Don’t drive — use transit: Simply switching some of your local travel from a car to public transit can save up to 230 kg of CO2 per year for every 1,000 km you drive.
2. Think smaller: Dropping your family vehicle a size or two can eliminate 1,100 – 2,600 kg of CO2 each year — and save you hundreds of dollars at the gas pump!
3. Stay grounded: For shorter family trips, taking the bus or train instead of traveling by plane could do both the planet and your wallet a favor.
4. Reduce your home heating bills: If you live in an older home, improving the energy-efficiency, or even just lowering the thermostat by as little as 1°C, can reduce greenhouse gas emissions.
5. Reconsider your space needs: Larger homes use considerably more energy so, the next time you move, ask yourself if a smaller home might better fit your needs.
6. Buy green: When buying appliances, choosing the most energy-efficient models can save up to 400 kg of CO2 a year.
7. Stay out of hot water: Wrapping your hot water heater in a thermal blanket, washing clothes in cold water and installing low flow showerheads and faucet aerators (which mix air into the water stream, thus producing a steady flow) saves both energy and water.
8. Eat your vegetables: Adopting a less meat-intensive diet can have a significant impact on your ecological footprint — and your family’s health!
9. Reduce, Reuse, Recycle: Cutting your garbage production by just one bag a week could save your family 300 kg of CO2 a year.
10. You have the power: In response to consumer demand, many utility companies are introducing Green Power options at a premium price. By switching to green power, you can reduce your home’s CO2 emissions.

For more information or a free copy of the research paper 10 Steps to a Cooler Planet, call CMHC at 1-800-668-2642. Canada Mortgage and Housing Corporation (CMHC) is Canada’s national housing agency and a source of objective, reliable housing expertise.  This CMHC report was reviewed by Sandy Hutchens.

OTTAWA, March 26, 2009 — Today, the Canada Mortgage and Housing Corporation (CMHC) launched a consumer outreach campaign to help borrowers understand the importance of working with lenders to find manageable solutions if they are facing financial difficulties in repaying their mortgage loans.

“CMHC has a long tradition of offering mortgage default management tools to lenders to help them assist homeowners whose financial circumstances have changed. We want to remind people that the best course of action is to speak to their lenders at the first sign of financial difficulty. With early intervention, cooperation and a well executed plan, you can work together with your lender to find a solution.” stated Sandy Hutchens.

The campaign includes consumer information on the options available to homeowners who may be having difficulty meeting their mortgage payments. This information is also being provided to government partners and credit counseling organizations.

CMHC advises homeowners to:

1. Talk to your lender at the first sign of financial difficulty
2. Clarify your financial picture, both for yourself and your lender
3. Stay informed about what options and resources might be available to you

For Approved Lenders with CMHC-insured mortgages, we provide tools and the flexibility to make timely decisions when working with homeowners to find a solution to an individual’s unique financial situation. These tools include:

* Offering a temporary short-term payment deferral. Lenders may be prepared to offer greater payment flexibilities especially if previous lump sum prepayments have been made, or if an accelerated payment schedule has been previously chosen.
* Extending the original repayment period (amortization) in order to lower the monthly mortgage payments.
* Adding any missed payments (arrears) to the mortgage balance and spreading them over the remaining mortgage repayment period.
* Offering a special payment arrangement unique to an individual’s particular financial situation.

More information and resources are available at 1-800-668-2642.

Sandy Hutchens says, CMHC is Canada’s national housing agency. For more than 60 years CMHC has shared a wealth of knowledge and housing expertise to help create an informed and reassured homeownership experience for Canadians. This CMHC report was reviewed by Sandy Hutchens.