Canadian Economic Response to COVID-19

A period when a borrower is temporarily allowed to delay or reduce loan payments, often due to unforeseen circumstances.

A significant injection of funds or financial support into the economy, often implemented during economic downturns.

A temporary ban on eviction proceedings, allowing renters to remain in their homes even if they cannot pay rent.

A reduction in interest rates by central banks, intended to encourage borrowing and stimulate economic activity.

Direct financial assistance provided by the government to individuals or businesses, often used to mitigate the impact of economic hardship.

A significant portion of residents in Toronto's social housing face mental health challenges, highlighting the social impact of affordable housing.

Investments in social housing can improve living conditions for the most vulnerable, providing things like energy-saving appliances and lower utility bills.

The increasing number of students in Canada creates a significant demand for student housing, especially in urban areas with high rent costs.

Private sector investors and property managers can collaborate with universities to provide quality student housing, meeting the increasing expectations of students and their families.

Due to local variations in demand and supply, housing markets operate independently, resulting in unique price trends for each region.

The Canadian Real Estate Association (CREA) provides a national perspective on housing markets, but it's essential to consider local trends for accurate insights.

The CREA Home Price Index (HPI) adjusts for seasonal changes and differences in housing types and sizes, offering a more accurate picture of price trends.

The stress test, introduced in 2018, raised the mortgage qualification threshold, affecting housing markets by temporarily reducing demand and sales.

Housing markets are local in nature, meaning price changes in one city do not necessarily affect prices in another city.

Homebuyers and real estate agents often operate within specific neighborhoods, highlighting the importance of local housing market insights.

Both national and local house price indexes, such as those provided by CREA and MLS, provide valuable information for understanding housing market trends.

Local house price indexes offer valuable insights into specific areas, revealing differences in price appreciation rates within a city.

Despite national trends, different regions exhibit distinct housing market cycles, highlighting the importance of examining local trends rather than relying on national averages.

Vancouver's housing market experienced a slowdown in 2019, with a decline in sales and prices, influenced by government interventions and buyer hesitancy.

Toronto's housing market showed an urban-suburban divide in 2019, with sales and price trends differing between the city center and surrounding suburbs.

A legal clause that absolves parties from their contractual obligations due to unforeseen circumstances beyond their control, such as natural disasters.

The amount of money a buyer pays upfront when purchasing a property, typically a percentage of the purchase price.

The ratio of a mortgage loan amount to the value of the property being purchased.

The process of transferring ownership of a property from the seller to the buyer, marking the completion of a real estate transaction.

The amount of money a buyer must contribute beyond their existing funds to meet the lender's requirements for a mortgage loan.

A deposit held by a third party, typically the seller's lawyer, during a real estate transaction, to be released to the seller upon closing.

A situation where a potential buyer regrets making an offer on a property due to changing market conditions, such as a decline in prices.

Financial resources available to individuals or businesses for making investments or purchases, typically in the form of cash or liquid assets.

A government program launched in 2009 to help struggling homeowners by reducing their monthly payments to a percentage of their income. This program aimed to prevent foreclosures.

The financial costs associated with extending mortgage forbearance beyond a certain period, typically from the perspective of lenders or the government. The costs can stem from accumulating interest and potential risk of loan default.

Extending economic aid and financial assistance to businesses and individuals during a period of economic downturn, often triggered by a crisis or emergency.

The situation when a financial institution decides to allow a borrower to temporarily delay or reduce loan payments, specifically mortgage payments, rather than initiate a foreclosure process.

A crucial consideration in providing mortgage relief during a crisis, recognizing that the economic well-being of renters is equally vulnerable during periods of hardship.

Financial assistance extended by the government to help Canadians cope with the economic impact of the COVID-19 pandemic.

Recognizing the importance of extending mortgage or rent relief to small businesses, especially those heavily impacted by social distancing measures that force closures or limitations on operations.

The benefits a region gains from having a dense population and businesses concentrated together, like improved productivity and efficiency.

The trend of highly concentrated knowledge-based jobs in major city centers, resulting in a reliance on efficient public transportation.

The ability to work remotely from home, often using technology like email and video conferencing.

The idea that a large number of people commuting to a central location (like a downtown area) depends on efficient public transportation for its success.

The shift towards online learning and communication due to pandemic restrictions, influencing higher education.

The negative consequences when a single failed transaction can trigger a chain reaction of failures in related transactions.

The impact of social distancing on human settlements and behaviors, influencing activities in work, education, and leisure.

The increased reliance on technology and online communication to substitute for physical interactions, reducing pressure on traditional central places.

The ability to work remotely using technology, allowing employees to perform their duties from home or other locations.

The growing trend of businesses reviewing their operating costs, including office space and commuting expenses, in light of remote work possibilities.

The potential change in the shape and size of cities due to the increased prevalence of remote work, affecting traditional downtown areas.

The iconic New York Stock Exchange physically closing its doors, symbolizing the adoption of digital trading platforms.

The transition towards online trading and other digital platforms in the financial industry, driven by technology and evolving customer preferences.

Standard real estate contracts do not include force majeure provisions in Quebec, meaning they don't cover unexpected events like pandemics.

The Ontario Real Estate Association's Agreement of Purchase and Sale governs real estate transactions in Ontario, outlining the obligations for buyers and sellers.

Even though a deal may face challenges, it's better to work out solutions than to abandon the transaction and potentially face further financial burdens.

Standard buyer and seller agreements, which vary by province, require review in light of COVID-19 and potential weather disruptions.

Small businesses have limited financial reserves to handle economic shocks like pandemics, potentially leading to closures and job losses.

The International Monetary Fund (IMF) called the economic downturn caused by the pandemic the 'Great Lockdown,' predicting a severe economic recession.

Small businesses, despite employing a majority of Canada's workforce, are disproportionately affected by economic volatility due to limited resources and influence.

The Canadian government's emergency loan program, CEBA, is aimed at supporting small businesses during the pandemic.

Save Small Business (SSB) advocated for a commercial rent waiver program to provide immediate relief to small businesses struggling with pandemic-related closures.

In May 2020, the Canadian government expanded the CEBA program to include smaller businesses by lowering the minimum payroll requirement.

Commercial landlords are motivated to accept rent relief from small businesses due to potential difficulties in finding replacement tenants during widespread closures.

Sales and listings in major Canadian housing markets slowed significantly in March and April 2020 as social distancing measures were implemented.

Virtual home tours, already in existence, gained popularity during the pandemic as physical viewings were limited.

The home inspection process adapted to the pandemic with safety measures like health checks, hazmat suits for inspectors, and digital communication.

Digital signatures, e-transfers, and virtual closings became standard in real estate transactions during the pandemic, accelerating digital adoption.