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5 ROADBLOCKS TO AFFORDABLE HOMEOWNERSHIP (AND WAYS TO MOVE PAST THEM) [April 2025]
Dreaming of a new home but feeling priced out? You’re not alone! A 2024 survey by a Canadian Brokerage found that 46% of Gen-Z and millennial Canadians who don't already own a home have doubts as to whether they’ll ever be able to afford one.1
According to data from Canada Mortgage and Housing Corporation (CMHC) and Equifax, average monthly payments for new mortgage loans have risen 47% since the second quarter of 2020.2
Nevertheless, homeownership remains a significant value for Canadians, with 84% of 18 to 34-year-olds agreeing that buying a home is a worthwhile investment.1 And if you’re among that number, there are plenty of ways to make your homeownership dreams a reality.
In this guide, we’ll explore five common roadblocks to affordable homeownership and actionable solutions to help you overcome them. Let’s break down those barriers so you can finally get the home of your dreams!
ROADBLOCK #1: I Don't Have Enough Saved For A Down Payment
Many prospective buyers believe they need a 20% down payment to buy a home. But in reality, there are ways to purchase a home in Canada with as little as 5% down.3 For buyers who qualify, there are a number of programs that can help make a home purchase more accessible.
Government-Backed Mortgage Insurance
CMHC mortgage insurance is a great option for buyers who are short on cash. This insurance allows for down payments as low as 5% for homes that cost $500,000 or less. If the home costs between $500,000 and $1.5 million, you’ll need a minimum of 5% down on the first $500,000 and 10% on the remainder.3 This can make homeownership more affordable for those who haven't saved up enough for a large down payment.
Utilize a Tax-Free First Home Savings Account (FHSA)
If you open an FHSA, you can reduce your taxable income while you save for a down payment. This type of account, which is only available to first-time homebuyers, allows you to save up to $8,000 tax-free the first year, with contribution limits in subsequent years depending on your individual situation. You can save up to $40,000 in an FHSA in total.4
Maximize the Home Buyers' Plan (HBP)
The HBP is a government program that allows first-time homebuyers to withdraw up to $60,000 from their registered retirement savings plans (RRSPs) to buy or build a qualifying home.5 This can be a significant boost to your down payment savings. Be sure you understand the repayment rules and deadlines to avoid any tax penalties.
Explore Provincial Programs
In addition to the HBP, some areas offer programs to assist with down payments, ranging from cash assistance to interest-free loans.6 We can help you research the programs available to see if you qualify.
Family Gifts
Parental support has become increasingly common in Canada. A recent study found that 31% of first-time buyers receive financial help from a family member.7 If you're fortunate to have family support, be sure to follow the proper procedures to document the gift and ensure it complies with Canada Revenue Agency guidelines.
Existing Home Equity
If you already own a home, you may have more equity than you realize. This equity (or difference between your home’s current value and what you owe on your mortgage) could go toward a down payment on a new property. Wondering how much equity you have in your current home? Reach out for a free home value assessment.
ROADBLOCK #2: I Can't Afford the Monthly Payment
Worried about those monthly mortgage payments? High interest rates and rising costs can make mortgage payments feel daunting. But there are strategies to reduce your monthly burden.
Choose an Extended Amortization Period
The traditional 25-year amortization period for a mortgage isn’t your only option. First-time homebuyers and buyers of new builds qualify for 30-year mortgage amortization, which can help lower your monthly payments, though it also means you’ll be paying off your home longer and will pay more in interest.8
Co-Buy with Family or Friends
A growing number of homebuyers are returning to multigenerational living or are even buying a home with friends.9 This arrangement enables you to cut costs significantly while sharing both the time and financial responsibilities of homeownership. We can help you search for homes that are well suited for your group.
Purchase a Home with Income Potential
You can generate extra income to offset your mortgage payments by purchasing a duplex, renting out a room or an accessory dwelling unit (like a garage apartment), or even listing your property on Airbnb. We work with investors and can help you find a property to meet your goals.
ROADBLOCK #3: I Can't Qualify for a Mortgage
Qualifying for a mortgage can be a stressful process, especially if you have previously faced financial challenges. But you might be pleasantly surprised—there’s a lot you can do to improve your chances of success.
Boost Your Credit Score
Your credit score is foundational when it comes to getting a mortgage. A higher score typically means a lower interest rate and more options. Take steps to improve your credit by paying bills on time, reducing debt, and checking your credit report for errors.10 Even a small improvement in your score can make a big difference. Pro tip: Avoid opening or closing credit cards or taking out other loans (like car or personal loans) if you plan to start home shopping in the near future.
Lower Your Debt Service Ratios
Lenders want to be sure that you can afford your monthly mortgage payment alongside any other debts. That’s why they calculate both your gross debt service ratio, or GDS (the percentage of your income that will go towards the cost of a particular property), as well as your total debt service ratio, or TDS (the percentage of your income that goes to all loan payments, including mortgage, car loans, credit cards, etc.)11 Paying down other types of debt, like your car loan, will leave more space in your budget for a monthly mortgage payment.
Consider Getting a Co-Signer
Having a co-signer with a stronger credit history or more income can strengthen your application, but make sure you (and they) understand the risks and responsibilities involved.12
ROADBLOCK #4: I Can't Find a Home in My Price Range
Feeling frustrated by the lack of affordable homes on the market? Unfortunately, this is a common problem. But with a little flexibility and guidance, it’s possible to find a great property to fit most budgets.
Expand Your Home Search
You may need to search outside your target area. In many markets, home prices vary drastically within the span of miles. Being open to exploring alternative neighbourhoods or those farther from the city centre can open up surprising possibilities. As local market experts, we can help you discover hidden gems and up-and-coming neighbourhoods. Reach out for a complimentary consultation.
Revisit Your Must-Haves
Take a close look at your “must-have” list. Are there any features you can compromise on to expand your options and find a more affordable property? For example, do you really need two bathrooms, or could you settle for a single bathroom with space to add a second one in the future? These types of compromises can sometimes shave tens of thousands off your purchase price. We’re happy to offer our thoughts on the features that you’re likely to find within your budget.
Consider Fixer-Uppers
Looking to cut purchase costs? Don't shy away from homes that need a little TLC. Fixer-uppers usually come with a lower price tag, and you can personalize the renovations to your taste.13 Just be sure to factor in the cost of repairs and renovations when determining your budget—and to be realistic about your own home repair skills! If you’re interested in exploring fixer-upper opportunities, we can help you identify properties with potential and connect you with reliable contractors.
ROADBLOCK #5: I'm Overwhelmed by the Process
Buying a home can feel like navigating a maze. Between searching for properties, securing financing, negotiating contracts, and handling paperwork, the process can quickly become overwhelming. But you don’t have to do it alone! We can simplify every step, helping you stay organized, informed, and confident in your decisions.
Find the Right Home Faster
The sheer number of listings on the market can be daunting, and homes that meet your criteria may not always be easy to find. Our team can:
- Save you time by narrowing down homes that fit your budget, needs, and lifestyle.
- Get you access to off-market and pre-listing properties that aren’t widely advertised.
- Provide insights on local market trends to help you make a competitive offer.
Real estate transactions involve complex contracts, legal documents, and lender requirements. One misstep could delay your purchase—or even cost you your dream home. We will:
- Help you find down payment assistance that you may not be aware of.
- Explain mortgage options and connect you with reputable lenders.
- Ensure all purchase documents are accurate and deadlines are met.
Many buyers worry about overpaying for a home or getting stuck with costly repairs, but we know how to:
- Use expert negotiation tactics to secure the best possible price.
- Identify hidden costs so you aren’t caught off guard at closing.
- Negotiate repairs or seller concessions to save you money.
The home inspection and closing process can bring last-minute surprises. We avoid these by:
- Helping you interpret inspection reports and advising on necessary repairs.
- Coordinating with your lender and other parties to keep everything on track.
- Preparing you for closing day so you know exactly what to expect.
Our relationship doesn’t end once you get the keys. We always go the extra mile to:
- Recommend trusted contractors for renovations and repairs.
- Help you make strategic upgrades through complimentary real estate consultations.
- Provide market updates in case you want to refinance or sell later.
LET’S TURN ROADBLOCKS INTO STEPPING STONES TOWARD YOUR DREAM HOME
Buying a home may come with challenges, but none of them are impossible to overcome. With the right strategies, resources, and expert guidance, you can navigate these obstacles with ease.
Whether you're worried about saving for a down payment, qualifying for a mortgage, or finding the right home in your price range, there are solutions available to help you move forward. The key is to stay informed, explore all your options, and work with professionals who can guide you every step of the way.
Our team is here to help you find the right home, secure the best financing, and negotiate the best deal—without the stress and uncertainty of doing it all yourself. Let’s turn your homeownership dreams into reality. Contact us today to get started!
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
SOURCES:
1. Royal LePage
2. CMHC
3. Canada Mortgage Housing Corporation
4. Government of Canada
5. Government of Canada
6. Loans Canada
7. Fidelity
8. Government of Canada
9. CBC
10. Equifax
11. Ratehub
12. Rocket Mortgage
13. Zoocasa
Home-Related Tax Deductions [March 2025]
Owning a home is a significant milestone — and one bonus is that it can come with significant tax savings! However, making the most of offerings like the Principal Residence Exemption can be tricky, and you may not be aware of all available tax-saving strategies. This guide rounds up the information you need about common Canadian home-related tax savings options and requirements for eligibility.
Buying a Home: Tax Benefits and Programs
The Canadian government offers several programs to make a home purchase more affordable. These include:
Home Buyers' Amount (HBA)
The HBA is a non-refundable tax credit for first-time home buyers and individuals with disabilities purchasing a home. You can claim up to $10,000 in expenses to get a federal tax credit of up to $1,500 (15% of $10,000). This credit can help offset some costs associated with buying a home, such as legal fees and land transfer taxes. To be eligible, you must be considered a first-time home buyer (generally, someone who hasn't owned a home in the past four years) or meet specific criteria related to disabilities. The home must be your primary residence. If you purchase a home with a spouse or partner, only one of you may claim the credit.
GST/HST New Housing Rebate
If you purchase a newly built home or substantially renovate your existing home, you might be eligible for a GST/HST new housing rebate. The maximum federal rebate is $6,300, and the amount you qualify for varies depending on the home’s purchase price or fair market value (for substantial renovations) and other factors. Eligibility criteria and rebate amounts vary by province/territory, and some provinces offer substantial additional rebates. For example, Ontario offers rebates of up to $24,000, and does not require the home’s value to be under $425,000 (as is the case for federal rebates).
Home Buyers' Plan (HBP)
The HBP isn't a tax deduction or credit, but it allows you to withdraw up to $60,000 (increased significantly in recent years) from your Registered Retirement Savings Plans (RRSPs) to buy or build a qualifying home without immediate tax penalties. If you are buying a home as a couple, you can each withdraw up to $60,000 for a total of $120,000. However, you must repay the withdrawn amount to your RRSP over a 15-year period.
Note that this program is only available to first-time homebuyers or homebuyers with disabilities, and you must already have a written agreement to buy or build a qualifying home at the time of withdrawal.
Homeownership and Taxes
Once you own your home, you may be eligible for specific deductions and credits based on your personal situation. These include:
Home Accessibility Expenses
If you make renovations to your home to improve accessibility for a resident family member who is eligible for the Disability Tax Credit or is over the age of 65, you may be able to claim the Home Accessibility Tax Credit. This is a non-refundable tax credit on eligible expenses up to $20,000. The maximum credit you can claim is 15% of eligible expenses, up to a maximum of $20,000. Qualifying expenses can include wheelchair ramps, stair lifts, grab bars, and other modifications that improve mobility or reduce the risk of injury.
Rental-Related Expenses
If you rent out a portion of your home, you must report the rental income on your tax return. However, you can also deduct eligible expenses related to the rental property. While you can’t generally deduct mortgage interest payments from your taxes in Canada for your primary residence, if you rent out part of your home, you can deduct a proportional part of your mortgage interest related to the rental portion. You can also deduct a proportionate amount of other eligible expenses, such as repairs, utilities, property taxes, and home insurance, again, only related to the rental portion. It's critical to keep accurate records of rental income and expenses.
Deductible expenses can include:
- Mortgage Interest: Proportionate mortgage interest for the rented area
- Property Taxes: Proportionate property taxes for the rented area
- Home Insurance: Proportionate home insurance premiums for the rented area
- Utilities: Proportionate costs for electricity, heating fuel, and water used by the tenant
- Repairs: Cost of repairs to the rented area (e.g., fixing a leaky faucet, repairing a broken window)
- Maintenance: Regular maintenance costs for the rented area (e.g., cleaning, snow removal)
Non-deductible expenses can include:
- Mortgage Principal: Mortgage principal payments are not deductible
- Personal Expenses: Expenses not directly related to the rental activity (e.g., personal use of utilities)
- Capital Improvements: Expenses that improve or add value to the property (e.g., adding a new deck, renovating the kitchen)
- Land Transfer Tax: Land transfer tax paid when you purchased the property
- Depreciation (CCA):While you can claim Capital Cost Allowance (CCA) to deduct a portion of the cost of the building over time, it is not a direct deduction from rental income and and requires complex calculations
Home Office Expenses
If you work from home, you may deduct the proportion of eligible expenses that relate to your workspace, such as electricity, heating, maintenance, and repairs. Note that you can deduct repairs to your home office (and a portion of other eligible home expenses), but you cannot deduct improvements to your home office that increase the value of your property (those would be capital expenses and impact your cost base).
You must meet specific criteria for your workspace to be considered a home office, such as being required to work from home by your employer (which can include voluntarily entering into a formal telework arrangement with your employer), working more than 50% of the time from the work space for at least 4 consecutive weeks, among other requirements. https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/work-space-home-expenses/who-claim/detailed-method.html
Selling Your Home and the Principal Residence Exemption (PRE)
In Canada, capital gains from the sale of your principal residence are generally protected thanks to the principal residence exemption (PRE). If you buy a home for $300,000 and sell it for $500,000, the $200,000 gain is generally tax-free. However, the gains are only fully tax-free if the home was your primary residence for every year that you owned it. If you rented it out for some years, or if you have designated a different property as your principal residence for certain years, you will likely owe some capital gains tax on the portion of time it was not your principal residence. Designating a property as your principal residence can have complex implications, especially if you have owned multiple properties. It's crucial to understand the rules and seek professional advice if needed.
Provincial/Territorial Tax Credits and Grants
Many provinces and territories offer their own tax credits and grants for homeowners. These can include incentives for energy-efficient renovations, property tax rebates, or assistance for first-time home buyers. Check your province or territory's government website for specific programs.
Record-Keeping Tips for Homeowners
Organized records are essential. Keep documents like mortgage statements, property tax bills, and receipts for home improvements readily accessible. Keep both physical and digital copies (scan and save!). Keep all home-related records for as long as you own the home — and it’s always safest to keep digital copies indefinitely. This is especially important for capital improvements as these records are essential for calculating your adjusted cost base when you sell.
Conclusion
Understanding the tax aspects of homeownership is crucial. This guide provides a starting point, but consulting with a tax professional is strongly recommended for personalized advice to ensure you are maximizing your benefits and complying with all tax requirements.
Have questions about real estate or need a referral to a trusted tax advisor? Contact us today!
Note: This information is intended for general guidance only. Tax regulations are subject to change.
4 Home Remodeling Projects with the Highest ROI [Feb 2025]
Ask any homeowner about what they would like to change about their home, and most will say, “How much time do you have?
Home improvements (cue Tim Allen) or home remodeling projects can stem from a variety of motivations, like preparing your home to put on the market, adding space for a growing family, addressing
outdated features or aesthetics, or fixing structural/functional issues with the home.
However, when it comes to home remodeling projects, too many people assume their project will proportionally increase the value of their home. Few actually consider the complete scope of return on investment (ROI), taking into account not only potential impact on resale value but also the total costs of time, labour, and materials. Some renovations may provide more “quality of life” ROI by improving comfort and aesthetics without significantly impacting resale value, while others can deliver notable financial returns.
Whether you’re looking to upgrade your living space, increase the equity of your home, or trying to make some quick changes to improve your resale price, here are four remodeling projects with the highest ROI and some tips on how to get them done.
Top 4 Home Remodeling Projects with the Highest ROI
Before diving into specific projects, it’s important to understand how the data supporting these ROI estimates was gathered. This article references findings from the 2024 Cost vs. Value Report conducted by Zonda Media, a reputable research firm in the real estate and construction industries. The report’s ROI figures are based on national averages for both the cost of materials and labour, which means that regional differences may lead to variations in actual returns.
1. Garage Door Replacement
- Job Cost: $4,513
- Resale Value: $8,751
- ROI: 193.9%
Garage doors with the highest ROI include insulated steel doors with modern paneling, custom carriage-style doors, and those featuring windows or decorative hardware. These options not only enhance the home’s exterior aesthetics but also improve functionality and energy efficiency.
2. Steel Entry Door Replacement
- Job Cost: $2,355
- Resale Value: $4,430
- ROI: 188.1%
Upgrading to a steel entry door is a simple yet impactful change that can drastically improve both the look and energy efficiency of your home. Steel doors cost less than wood ones, giving you a cost effective way to make a big impact on the curb appeal of a home, without sacrificing performance, life span, or durability.
Why It Works:
- Cost-Effective Curb Appeal: Steel doors are less expensive than wood but provide a similar aesthetic boost. This makes them a budget-friendly way to enhance a home’s exterior.
- Energy Efficiency: Many steel doors come with insulating cores, which can help keep your home comfortable year-round and lower energy bills.
- Increased Security: Steel doors are harder to break into, providing an added layer of safety that appeals to security-conscious buyers.
- Job Cost: $11,287
- Resale Value: $17,291
- ROI: 153.2%
Why It Works:
- Strong Visual Impact: Stone veneers add depth and elegance, creating an upscale appearance that can significantly boost curb appeal.
- Durability and Low Maintenance: Unlike natural stone, MSV is lightweight, easier to install, and resistant to wear and tear.
- Perceived Value: Even though it’s a faux material, MSV adds an air of luxury and craftsmanship that can make your home more appealing to buyers.
4. Minor Kitchen Remodel (Midrange)
- Job Cost: $27,492
- Resale Value: $26,406
- ROI: 96.1%
The trick to ROI with a kitchen remodel is the budget, and how you decide to balance what to upgrade, the quality of materials, and how much to work within the existing layout. For example, you can make a big impact with less expense if you keep your current cabinet boxes but upgrade the doors and hardware. However, if you strike that balance, you can recoup much of your investment. If you’re looking to sell, an updated kitchen will appeal to buyers, which can also help your home stand out and sell faster.
Why It Works:
- High Buyer Interest: Kitchens are a focal point for most buyers, so even modest improvements can make a significant impact.
- Affordable Upgrades: By focusing on midrange materials—such as quartz countertops, midrange appliances, and refaced cabinets—you can keep costs manageable while still delivering a fresh look.
- By keeping the existing layout and avoiding costly structural changes, you can modernize your kitchen while keeping costs down.
Key Takeaways for Homeowners
7 out of the 10 best ROI projects all have to do with improvements to the exterior of your home, which makes one thing very clear: Boosting the curb appeal of your home in a cost-effective manner will give you the best ROI if you’re thinking about selling this year.
If you look at the current housing market, you can start to see why that is. In the post-pandemic frenzy, buyers had to accept whatever they could find. However, housing stock has increased over the last couple of years, giving buyers more options. Additionally, due to high-interest rates and affordability issues, the current market favors older, move-up home buyers who are sitting on equity, and these buyers can afford to be pickier about the home they buy.
You can see these trends play out in the “Top Agent Insights End of Year 2024 Report” conducted by HomeLight:
Given these trends, it’s no wonder that the remodeling projects with the best ROI are those that make the home stand out from other homes in the area and leave a strong impression with potential buyers.
Conversely, the projects with the lowest ROI involve major remodels or upscale materials. Anytime you alter the footprint of a home—such as by moving walls or adding square footage—you’ll incur higher costs and lower returns. Unless you’re a general contractor or a skilled DIYer, these high-end renovations typically aren’t worth it from a purely financial perspective. The one caveat is if you’re in a market where high-end appliances and materials are the rule not the exception.
How to Get Started on a Remodeling Project
Starting a remodeling project can feel overwhelming. Here’s how to set yourself up for success:
1. Outline Your Project Goals
Before you dive into the nitty-gritty of remodeling, take a step back and clarify what you hope to achieve.
Are you remodeling to improve aesthetics? To improve functionality or comfort for your family? To prepare your home for the market or boost your resale value? Is it an essential repair? After you decide on why you’re doing it, you can take a step back and decide what is worth the cost to you.
2. Get inspired: Take time to gather ideas and give shape to your vision. Whether you're updating a single room or tackling a whole-house remodel, these resources can inspire you:
- Houzz – A go-to platform for home remodeling ideas, complete with photos, product links, and even local contractor recommendations.
- Pinterest – Create mood boards for different rooms by pinning your favorite designs and layouts. You can also add '-pinterest' to Google searches to find more targeted boards and collections of remodeling ideas on Pinterest.
- This Old House – Packed with articles, videos, and guides on home renovation projects, from DIY fixes to large-scale remodels.
- YouTube Channels: Follow popular home renovation YouTubers who share real-life projects, product reviews, and practical tips.
- Visit Local Showrooms: You can visit the showrooms or warehouses from local manufactures for ideas on fixtures, cabinetry, and counter tops.
- Open Houses - Stop by open houses in your area to get a feel for what’s popular and what other homeowners have done.
- Local Remodeling / Contractor Websites: Many will post galleries and before/after images of their renovations, and these galleries can be a goldmine for practical remodeling ideas!
- Must-Haves: These are the non-negotiable items—structural fixes, code-compliance upgrades, or critical repairs.
- Nice-to-Haves: These are aesthetic choices or features that you’d like to include if your budget allows. A prioritized list will help you make tough decisions if costs start to climb or timelines get tight.
- What’s Included: Are you only updating finishes and fixtures, or are you changing the layout and moving walls?
- Project Phases: If you’re remodeling multiple areas, consider breaking the project into phases to manage timelines more effectively.
- Expected Timelines: Be realistic about how long the project will take, especially if you’re working around major life events or seasonal weather.
5. Set a realistic budget: Start by researching the typical costs for your specific type of remodeling project in your area. Resources like Remodeling Magazine’s Cost vs. Value Report, HomeAdvisor, and NAHB provide national and regional averages for popular renovations like kitchens, bathrooms, and additions.
6. Include a Contingency Fund: Even with thorough planning, unexpected costs seem to always arise. Many experts recommend setting aside 15% - 30% of your total budget for contingencies.
7. Research contractors & Get Multiple Quotes: If you're hiring contractors, request at least three detailed quotes to compare prices and scope of work. Make sure to clarify what’s included in each quote to avoid misunderstandings. And use your checklist below for some tips on hiring a contractor!
Checklist for Hiring a Contractor
Finding the right contractor is crucial for a successful remodeling project. Here’s a quick checklist to help you hire the right professional:
- Get recommendations from friends, family, neighbours, and your real estate agent. Word of mouth is one of the most reliable ways to find a trusted contractor. Ask people you trust about their experiences and if they would hire the contractor again. After you have a recommendation, you can also search for reviews online.
- Check credentials, licensing, and insurance. Verify that the contractor is licensed to work in your state. Most states have an online database for checking contractor licenses. You can also look for contractors certified by reputable organizations, such as the National Association of the Remodeling Industry (NARI).
- Review past projects and ask for client references. Ask to see a portfolio of previous projects similar to yours. Pay attention to the quality of work and whether their style aligns with your vision.
- Request detailed bids from multiple contractors. Ask for written estimates that break down costs into categories such as labour, materials, permits, and any additional fees. Compare bids carefully to ensure all contractors are quoting on the same scope of work.
- Ensure the contract includes a clear scope of work, timeline, and payment terms.
- Check references - A reputable contractor should have no issue providing references. Contact past clients and ask about their experience.
- Avoid red flags
Unusually Low Bids: If a bid is significantly lower than others, it could indicate corner-cutting or hidden costs.
Pressure to Pay Upfront: A small deposit is normal, but never pay the full amount before work begins.
Lack of Written Contract: Never agree to verbal agreements only.
Poor Communication: If a contractor is difficult to reach or dismissive during the bidding process, this may continue during the project.
Conclusion
Whether you’re updating your home to sell or simply want to enjoy a more modern space, focusing on high-ROI projects is a smart strategy. From replacing your garage door to enhancing your home’s exterior with stone veneer, these upgrades can boost both your home’s value and appeal.
Curious about what features are popular in your neighbourhood? Thinking of moving and wondering what remodeling projects, if any, you should do before listing? Want recommendations on contractors? I’m happy to help!
National Real Estate Market Update for 2025 (January 2025)
The chill in Canada's housing market could be thawing sooner than expected.
Interest rates are dropping.1 Pent-up demand is building.2 Sales are starting to heat up.3 And a potentially electrifying set of mortgage rules just went into effect, making it easier than it 's been in years for first-time buyers with smaller down payments to qualify for a higher priced home.4
As a result, some experts now project that competition for new homes could start tightening sooner than anticipated.5 "It's game on for home buyers," wrote NerdWallet's mortgage and real estate expert Clay Jarvis after the Bank of Canada announced its latest jumbo rate cut in December. "The combined impact of lower rates and less-stringent lending guidelines could be a game-changer –– for some buyers, anyway." 4
Even the Bank of Canada acknowledged last month that a confluence of factors that are now widely expected to come together in 2025 could help to rekindle Canada's long frozen housing market. "There are some mortgage rule changes to come," noted Bank of Canada senior deputy governor Carolyn Rogers at a December press conference. Plus, "another 50-basis-point cut. We know housing is very sensitive to interest rates, so we do expect more pickup." 6
What does this mean for you? Read on for our take on what to expect for 2025.
MORTGAGE RATES WILL BOTTOM OUT
With the Bank of Canada's policy rate now at its lowest point since 2022, both fixed and variable rate mortgages are more affordable than they have been in years.7
Mortgage rates could slide further still. The Bank of Canada is still widely expected to cut its key rate by another percentage point or more this year, which will push the prime rate below 5%.8
But don't expect fixed mortgage rates to fall too much more in the coming months, if they drop at all. In fact, BMO Senior Economist Robert Kavcic thinks fixed rates may have already hit bottom. That's because today's rates not only reflect previous rate cuts. They're also influenced by anticipated rate changes, with the Bank of Canada's upcoming rate cuts already baked in.9
Fixed mortgage rates are also based on changes to Canadian bond yields, which have been extra volatile lately as market watchers nervously eye a potential trade war with the U.S. and sticky core inflation. As a result, fixed rates could move higher if bond yields increase.10
Variable mortgage rates, on the other hand, are more likely to keep dropping in tandem with the prime rate.10 However, they might not fall as quickly as some borrowers might hope: after two back-to-back jumbo rate cuts last fall, the Bank of Canada has now signaled that rate cuts going forward are likely to be more gradual. In other words: no more half-point rate cuts.11
What it means for you:
If you're a buyer, now's a good time to get pre-approved for a mortgage so that you can lock in a competitive interest rate and shop around with confidence. Ask us for a referral to a trusted mortgage professional who can help you understand your budget and buy a home when ready.
If you're a seller, good news: your pool of eligible buyers is likely to expand. But keep in mind that affordability concerns will still be top of mind for many home buyers.
DEMAND COULD RAMP UP QUICKLY
If there's one thing about Canada's housing market that most experts seem to agree on this year, it's this: the stage is set for a real estate revival in 2025, particularly this spring.12 But with home ownership already becoming more accessible than it's been in years, some experts now think that we will see the housing market thaw further well before the weather gets warmer.13
According to Shaun Cathart, chief economist at the Canadian Real Estate Association (CREA), for example, mortgage rates have already fallen low enough this winter to spark renewed interest from home buyers. In fact, an off-season pop in home sales last quarter suggests that some budget-minded buyers are already eyeing what's available and bidding while they can.14
"Normally we might expect this market rebound to take a pause before resuming in the spring," noted Cathart in a news release announcing CREA's most recent home sales data. "However, the Bank of Canada's latest 50-basis-point cut together with a loosening of mortgage rules could mean a more active winter market than normal." 14
According to Rates.ca's mortgage expert Victor Tran, the Bank of Canada's latest rate cuts could also have a psychological effect on homebuyers. "We could see a turning point in buyer psychology that could drive a busy winter season," said Tran in an interview with Bloomberg.15
That's what happened last fall when mortgage rates declined and sales picked up significantly, surprising analysts who predicted fewer transactions. As analysts at RBC noted at the time: "Interest rate cuts are finally boosting housing market activity in a visible way across Canada." 16
Experts say that Canada's latest batch of mortgage rules, which make it easier for borrowers with smaller down payments to buy a home, could also juice demand this year.17
What it means for you:
If you're a buyer, plan ahead for extra competition. As of December 15, first-time home buyers can now stretch their mortgage amortization to 30 years, even if their down payment is less than 20%. Previously, amortization periods for insured mortgages were capped at 25 years.4
The government of Canada also relaxed requirements for buying a home in the million dollar range. Borrowers who put down less than 20% can now buy a home priced up to $1.5 million.4
If you're a seller, you may see more offers and activity later this year. But with more buyers trickling into the market this winter, listing your home now could give you an advantage.
HOME PRICES WILL INCREASE
As real estate competition increases, experts widely predict that home prices will also edge up.18
Average home prices still have a long way to go before they reach their pandemic-era peak.
Inventory built up significantly last year as more homeowners tested the market and budget-constrained home buyers chose not to jump. That, in turn, helped dampen prices.19
But prices could pick up quickly as buyers reenter the market and start to compete for what's available. As Bank of Canada Governor Tim Macklem noted last fall: “It wouldn’t be surprising that, as interest rates come down … you see some pickup in housing prices." 20
Experts are divided, though, on just how high home prices will go. For example, analysts at Desjardins expect price growth to be relatively subdued. "Our forecast is for the advance in existing home sales and prices to remain modest despite falling interest rates." 19
But other analysts are more bullish, pointing to additional factors impacting home prices, such as pent-up demand, still-limited inventory, and relaxed mortgage rules for some home buyers.21
In fact, analysts at TD Bank think that Canada's new mortgage rules could have a particularly potent effect on home prices. "These measures will add a secondary tailwind to a market that's already sprung back to life from lower interest rates and household income resilience," wrote TD analysts. As a result, "Canadian home prices are likely to see an upgrade in our upcoming forecast for 2025 –– an 9% annual average gain versus 6% in our September projection." 17
What it means for you:
If you're a buyer still sitting on the sidelines, you might not want to wait too much longer to jump into the market –– especially if you're on a budget. Although some buyers may already be testing the market, winter is traditionally a slow period for real estate. So it is often a great time to snag some early deals.
If you're a seller, you may see stronger offers this year than you would have received in 2024. But squeezed affordability is still a major issue for many buyers. So you'll want to be careful not to overprice. Reach out for a free consultation so we can help you set an ideal home price.
INVENTORY MAY EASE
Canada's historic housing crunch is far from solved. But home buyers have been enjoying more choices lately as a larger number of homes, including freeholds and condos, go up for sale.22
Inventory is expected to keep easing through 2025, particularly in the spring when more sellers list their homes.23 According to National Bank Financial Markets economist Daren King, many sellers have been holding back their listings –– but only temporarily. As King noted in an interview with Real Estate magazine: "I think they want to sell in a market that has some momentum." So once the market thaws, sellers may take their chance and list their homes.24
Even with rising inventory, though, Canada's notoriously limited supply of available homes is still likely to pose challenges –– especially since there continue to be far more people who need homes in Canada than there are available residences.25
New home construction may also weaken this year as builders face ongoing challenges with persistently high building costs and other issues. As a result, "homebuilding activity is expected to be soft in 2025," say Desjardins analysts, which could worsen the housing crunch over time.26
What it means for you:
If you're a buyer, more homes for sale in certain markets could give you an edge, especially if you start looking for a home before competition heats up in the spring. But listings overall will still be relatively tight: so you'll need to be realistic about what you can get.
If you're a seller, you may want to consider listing your home when competition with other sellers is more muted. Home prices tend to rise when there are fewer available homes for sale and decrease when inventory significantly goes up. We can help you determine the best strategy for selling your home while keeping nearby competition in mind.
WE'RE HERE TO GUIDE YOU
This year is likely to be a memorable one for real estate. But with a fair amount of economic uncertainty still on the horizon, the housing market could also shift extremely quickly. That's why it's important to have an experienced professional you can trust to help you navigate the twists and turns. Contact us for a free consultation so we can help you map out an ideal strategy.
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
1. NerdWallet
2. MPA Magazine
3. Canadian Real Estate Association
4. Global News
5. Wealth Professional
6. The Globe and Mail
7. MPA Magazine
8. Financial Post
9. Global News
10. TD Stories
11. CBC News
12. Financial Post
13. Wealth Professional
14. Canadian Real Estate Association (CREA)
15. BNN Bloomberg
16. RBC
17. TD
18. BNN Bloomberg -
19. Desjardins
20. Financial Post
21. CIBC
22. Canadian Real Estate Association (CREA)
23. Canadian Mortgage Trends
24. Real Estate Magazine
25. MPA Magazine
26. Desjardins
Tech the Halls: Smart Home Gadgets for a Stress-Free Holiday Season [December 2024]
The holidays are a time for joy, family, and celebration, but they also bring added responsibilities. Between decorating, hosting, and just keeping up with your daily routines, your home can quickly start to feel more like a never-ending to-do list rather than your haven.
That’s where smart home technology comes in. It can help you streamline holiday tasks to focus on what matters most—spending time with loved ones and enjoying the season's magic.
And there are more upsides to upgrading your home tech: doing so can also enhance the overall value and appeal of your property. Current research suggests that buyers are more likely to make an offer — and a higher one at that —- on a home that already has smart home features installed.1
So whether you're thinking about selling in the near future or just want to enjoy your home to the fullest this season, adding smart gadgets is an investment that pays off. Read on for some of the best smart home solutions to simplify your holidays (and just maybe make your home more marketable down the road, too).
ENTERTAINING MADE EASY
Spending time with friends and family is the highlight of the holiday season — but entertaining can be a lot of work. These tools can help turn any gathering into a celebration to remember without all of the fuss.
1.Make cooking easier with digital recipe access
Holiday cooking often means late nights and multiple trips to the store. Instead of juggling old recipe cards, let smart-home displays keep you organized with easy menu planning and grocery lists.
High-end: Google Nest Hub Max
Among its many capabilities, this smart display offers an easy-to-use recipe mode with step-by-step guidance from the Google Assistant. Imagine having a sous chef right on your countertop!
Mid-range: LG - 27" Smart Monitor
Looking for a nice big screen to watch cooking shows or YouTube videos or to pull up your favorite recipe? This smart TV can be perched on your kitchen counter or mounted on the wall — and in addition to using its apps, you can cast content from your iPhone or Android directly to the screen.
Budget pick: Amazon Echo Show 8
With a Food Network integration and recipe assistance, this countertop model offers plenty of features in a less-expensive package perfect for the budget-conscious cook who still wants a little help in the kitchen.
2. Set the mood with smart lighting
The right ambiance can elevate any gathering. Control colors, brightness, and temperatures remotely with these smart lighting options.
High-end: Philips Hue Play HDMI Sync Box
Watching a holiday movie? Sync your smart lightbulbs to adapt their colors to what’s on the screen for the ultimate festive movie experience.
Mid-range: Lutron Caseta Wireless Bridge
Use this small internet-controlled device to set up automations for your smart bulbs, so you can dim all your lights at once with a swipe on your smartphone. No more running around to get the lighting just right!
Budget-friendly: Govee Lightbulbs
Just getting started with smart bulbs? This affordable option allows you to control color and brightness using your Alexa or Google Home device, offering a simple and cost-effective way to add some holiday cheer to your lighting.
3. Amplify your holiday spirit with smart speakers
From carols to party playlists, music sets the tone for the holidays. These smart speakers will get everyone in the mood to sing along.
High-end: Bose Smart Speaker 500
This powerful speaker delivers room-filling sound — and Google Assistant and Alexa are both built-in. It’s perfect for audiophiles who want the best possible sound quality for their holiday music.
Mid-range: Amazon Echo Studio
The best device for Amazon loyalists who care about sound, music comes through loud and clear on this speaker. Enjoy your favorite holiday playlists with impressive clarity and depth.
Budget-friendly: Google Nest Mini
This diminutive speaker gives you voice-controlled playback at an entry-level price. A great option for adding voice control and holiday music to any room without breaking the bank.
TRADITIONS WITH A TWIST
Decorating your home and popping on a holiday film gets everyone in the holiday spirit — but the setup can get overwhelming. These tech solutions make things easier and give you more time to enjoy the fun.
1. Watch holiday favorites in style
Level up your holiday movie traditions with smart projectors that turn any room in your home—or even your backyard—into a movie theater.
High-end: Epson Home Cinema LS1100
This 4K projector is a serious investment, but it delivers cinema-quality performance and a laser light source that won't require replacement bulbs. It's also easy to set up and adjust. Perfect for serious cinephiles who want the ultimate home theater experience.
Mid-range: Samsung Freestyle 2nd Gen Smart Portable Projector
Use this feature-packed battery-powered projector nearly anywhere — it's designed to automatically level and focus your video and to scale to the size of your space. It's equipped with all the streaming apps you need and is compatible with voice assistants. A great option for flexibility and portability.
Budget-friendly: Vankyo Performance V700W
This 1080p projector offers a nice, bright picture, high-quality audio, and the portability to move it from room to room (plus outside). In addition to plugging in a computer or USB, you can cast directly from an iPhone or Android device.
2. Shine bright with smart plugs
Tired of clambering behind furniture to get to a hard-to-reach plug for your decorations? Invest in smart plugs, and you can control all of your electrified holiday decor (plus anything else you might plug in!) easily from your phone.
High-end: Meross Smart Power Strip
With 4 AC outlets plus two USB C and one USB A port, this smart power strip will allow you to keep the lights on while charging all of your guests’ phones! Each outlet can be operated individually, and the power strip is compatible with Apple HomeKit, Amazon Alexa, and Google Home.
Mid-range: Enbrighten Wifi Smart 2-Outlet Plug
This smart plug turns one wall outlet into two smart outlets, so you can plug your standard lamp and a string of holiday lights in together. Control the plug using an app or with Google or Alexa voice assistants.
Budget-friendly: Kasa Smart Plug Ultra Mini
These inexpensive plugs are designed to take up minimal wall space yet offer plenty of features. Plus, they’re compatible with Google and Amazon home ecosystems.
3. Create a winter wonderland with smart outdoor lighting
Whether you want to wow the neighborhood with an eye-catching display or simply add a touch of outdoor holiday charm, setting up lights doesn’t have to be a daunting task. Smart outdoor lighting makes it simple to illuminate your home’s exterior with minimal effort or planning.
High-end: Govee Permanent Outdoor Lights
Tired of climbing around on the roof every year? Install these permanent outdoor lights on your home and celebrate year-round with app-controlled color and effects options for every holiday you can think of.
Mid-range: Twinkly Icicle Lights
Drape your home in any color you can think of with these easy-to-use, app-controlled icicle-style lights. True to the name, there are plenty of twinkling options to choose from!
Budget-friendly: Brizled Smart Christmas Lights
String up these nearly 200-foot-long indoor-outdoor lights wherever you’d like to enjoy customizable colors and effects, or sync the bulbs with music for a truly eye-catching outdoor display.
SIMPLIFIED HOME MANAGEMENT
There’s plenty to manage at the holidays as it is—make things easier for yourself by automating some basic home tasks and functions. Less time spent on tedious chores means more time making memories with your family.
1. Keep your home spotless with robot vacuums
The holidays can create a lot of mess — stay on top of it with smart vacuums that clean up all of those cookie crumbs and bits of wrapping paper for you.
High-end: Roomba Combo J9 Plus
Say goodbye to vacuuming and mopping with this high-tech robot, which comes complete with AI obstacle avoidance to keep it from banging into your furniture.
Mid-range: Roborock Q5 Max+
This powerful robot vacuum is highly customizable — use the app to set up cleaning preferences like a second pass through high-traffic rooms or to block off areas you’d like left alone. Plus, it empties its own bin!
Budget-friendly: Shark Ion
This robot vacuum may not come with all the bells and whistles, but it does a great job keeping dirt and pet hair off the floor. You can control it with Amazon Alexa or the Google Assistant in addition to a dedicated app.
2. Manage deliveries and greet guests with smart doorbells
The holidays tend to bring a lot more people than usual to your door. Keep track of who’s coming and going, and keep your home safe with smart video doorbells.
High-end: Eufy Dual+ Security Video Doorbell
This large video doorbell offers a much wider field of view than most competitors, plus high resolution and night vision. It’s compatible with both Amazon Alexa and Google Home devices and can be set up wired or wireless.
Mid-range: Google Nest Doorbell Camera
This sleek doorbell camera is easy to set up and control from a distance and offers fast notifications and the ability to respond by voice or with preset messages. Advanced features include package detection and facial recognition.
Budget-friendly: Arlo Video Doorbell
This doorbell offers a wide field of view, high-resolution images, and the ability to zoom in, and is compatible with multiple smart-device ecosystems. However, some of its features, like recordings, require a monthly subscription.
3. Protect your home while you travel
Unfortunately, the holidays tend to bring higher rates of home break-ins. Whether you’re traveling or staying local, these tech solutions can help keep your home and family safe.
High-end: Ring Alarm Pro
Ring is well-known for video doorbells, but they also offer full home security systems, complete with professional monitoring (for a monthly fee). With high-performing devices and a built-in router to ensure working wifi, this system lets you keep an eye on things no matter where you are.
Mid-range: eufy Security 5-Piece Home Alarm Kit
This easy-to-install kit doesn’t require a monthly subscription, keeping costs low. It includes a hub device, digital keypad, motion sensor, and two entry sensors, all of which you can keep an eye on using the system’s app.
Budget-friendly: August Smart Lock
Lots of visitors coming and going this holiday season? This smart lock upgrades your existing deadbolt, allowing you to give access to trusted family and friends. Best of all, it attaches to the lock on the inside of your door, so it won’t impact your curb appeal or draw unwanted attention.
ENJOY A MORE RELAXING AND FESTIVE HOLIDAY SEASON WITH SMART HOME TECH
Incorporating smart home technology can help make this holiday season more relaxing—and it can also be a great investment that adds value to your property in the long run. From energy-efficient lighting to reassuring security systems, these gadgets do more than just make life easier; they enhance your home’s appeal to future buyers.
If you're curious about how upgrading your home’s tech might impact its value, we’d love to help. Reach out for a free consultation to learn more about the latest trends in smart home technology and how it can align with your real estate goals. Whether you’re looking to sell soon or simply upgrade your lifestyle, we're here to guide you every step of the way.
Sources
1. Zolo
Multigenerational Home Buying: How to Find a Home That Fits Your Whole Family (November 2024)
For many homebuyers, multigenerational living used to be considered an option of last resort: it was a route families took only when they needed to ride out a financial storm or care for ailing family members. But that mindset is on the decline: A growing number of families now say that they are embracing multigenerational living and moving in together by choice.
In fact, the share of homes occupied by three or more generations or by cohabiting households has jumped 45% in the last 20 years, according to Statistics Canada. By the time the 2021 census was recorded, over half a million kids lived with both parents and grandparents.1
Living with extended family has become especially popular in recent years as younger generations face higher home costs and seniors embrace aging in place. With average home prices continuing to outpace median incomes in Canada, first-time home buyers have become more open-minded about co-buying a home with friends or family.2
Indigenous and immigrant families are especially likely to embrace multigenerational living—often for cultural reasons.3 With multigenerational homes more common in other parts of the world, newcomers from those regions often prefer living with extended family, says Dr. Shimi Kang, a psychiatrist and parenting expert. "As Canada, in particular, is getting more multicultural, we see [multigenerational homes] are becoming a norm, not just for financial reasons."4
For many families, the benefits are substantial, said Kang to HuffPost Canada. "Pooling finances, pooling childcare, pooling household responsibilities, having a support system built-in."4 Plus, research shows that people who live in multigenerational homes are healthier and tend to live longer. They also enjoy more financial security.5
That's not to say that multigenerational living is easy: It can also be stressful—especially if you choose a home that isn't suited for a larger family. The key to making it work is to pick a home that can accommodate young and old alike without requiring you to sacrifice comfort or privacy.2, 6
Here's a closer look at multigenerational living, along with tips for finding a home that's suitable for a diverse group.
WHAT TO CONSIDER BEFORE SHOPPING FOR A MULTIGENERATIONAL HOME
Before starting your house hunt, take the time to discuss your house plans as a family so that you're all on the same page. Have you hashed out what you're looking for in a new home? Can you agree on potential compromises? Are there any unaddressed concerns about the move?
You may also find it helpful to articulate your "why" for buying a multigenerational home and how each of you might benefit. For some families, multigenerational living is all about caring for relatives and sharing responsibilities. But for others, the goal is to pool resources so that you can purchase a more desirable property or cut down on expenses, like childcare or senior living.
For homeowner Jennifer Durocher, co-owning a home with her husband's parents allowed them to live in a family-friendly neighbourhood that would have otherwise been out of reach. She and her husband had originally planned to buy their own home separately. "But it was difficult to come up with a substantial down payment," said Durocher to Today's Parent. Meanwhile, Dorucher's in-laws were ready to downsize. By joining forces, both households saved money.6
Homeowner Surjit Singh says he immigrated to Canada in 2018 and bought a home with his extended family in 2021, just before inflation caused prices to surge. Owning one home helped the family cope, said Singh to the CBC. "Living together, you can share everything."7
In addition to talking over your short-term wants and needs, you'll also want to weigh long-term issues that could crop up in the future, like accessibility or money concerns. For example, if some family members are nearing retirement, accessibility issues (such as extra-steep stairs or a narrow hallway) could become a problem over time. Similarly, a more luxurious home with extra amenities like a pool may appeal to buyers who have gathered a lot of cash upfront, but it may also require a bigger long-term budget for maintenance and supplies.
If you haven't had these discussions yet, set a date in your calendar so that you can talk it over as a group. We can help by interviewing family members individually and advising you on what you can realistically find in today's housing market.
WHAT TO LOOK FOR IN A MULTIGENERATIONAL HOME
Once you've settled on what you want and need from a new home, your next step should be to jointly draft a budget so that you'll know what you can afford. To ensure that no one in your family gets accidentally overextended, think holistically when planning your new housing budget and determine what you would need to buy the home––and maintain it.
In addition to budget, you'll also want to consider a home's size and what kind of layout you might need. In general, homes that offer ample space for solitude and privacy are thought to be more practical for multigenerational living––especially if there will also be young children.6
However, the ideal layout for your family and the amount of square footage you'll need to be happy long-term will also depend, in part, on family members' personalities. Some people don't mind sharing a bathroom or having bedrooms situated close to one another. But others may find that they need something more separate to relax. Different housing options to consider include:
- A large home with plenty of rooms and at least one or more ensuite bathrooms.
- A home with an accessory dwelling unit (ADU), such as a basement apartment.
- A multifamily unit, such as a duplex.
For buyers looking to age in place, a home that offers a separate ground-floor unit, such as a garden home, could be the most comfortable (and the most practical) option. But if that's not possible, then you may at least want to prioritize a first-floor bedroom and bathroom. Some families may also want to consider the needs of future caregivers, said Holden-Pope.6
Another possibility to consider would be a home you could add onto or retrofit into multiple units. Building a brand-new unit or renovating an existing space can be pricey. However, you may qualify for a Multigenerational Home Renovation Tax Credit to help offset your expenses.8
When visiting a property, we'll help you weigh potential costs and estimate whether it's a good investment. We can also connect you with a trusted contractor who specializes in renovations.
HOW TO BUY A MULTIGENERATIONAL HOME
Buying a home with family can be complicated––especially if you plan to jointly apply for a mortgage. However, depending on your financial resources, you may be surprised to find that it's sometimes easier to qualify for certain mortgages as a group than if you tried to go it alone.9
You don't necessarily have to split the mortgage evenly, either. A tenants-in-common mortgage allows you to customize the amount of property each family member owns. For example, one household member could assume responsibility for two-thirds of the mortgage, while another could pay for just one-third of the home.9
With a joint tenancy mortgage, by contrast, the mortgage is divided equally between co-borrowers and each borrower will be liable for the same amount.9
Talk it over with a mortgage lender or broker and ask for advice on what's best for your situation. We'd be happy to connect you with a professional who understands the nuances of co-buying.
Your credit will also be an important factor in determining your mortgage qualifications and what you can buy, so have everyone check it as soon as possible. Pulling your credit report and score will not only tell you where you stand. It will also alert you to correctable issues with your credit, such as mistakes on your credit reports or too much debt on your cards.10
As you discuss your homebuying budget and strategy, jointly consider the following:
- Who will be on the mortgage?
- What about the title?
- Would including everyone on the mortgage be beneficial for your mortgage rate?
- For those who don't qualify for the mortgage or have a lower credit score, can you make other arrangements so that they can still financially contribute?
To ensure you make an informed decision, it's best to speak with a credentialed professional. Ask us for a referral to a legal professional or an accountant who can advise you.
BOTTOMLINE
Multigenerational home buying has grown more popular for a reason: it's a great way to combine resources and buy a supportive home for more than just your immediate family. It can also be a smart lifestyle choice, helping reduce loneliness and promote health and well-being.5
If you're wondering whether multigenerational living is right for you, call us for a consultation. We'd be happy to walk you through potential options and help you envision your own full house.
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
1. Statistics Canada
2. The Walrus
3. Vanier Institute of the Family
4. HuffPost Canada
5. SSM - Population Health
6. Today's Parent
7. CBC
8. Realtor.ca
9. The Globe and Mail
10. Financial Consumer Agency of Canada
Stage to Sell: 7 Proven Steps to Attract Buyers and Boost Offers (October 2024)
Selling your home quickly and at the right price takes more than just listing it online. To draw in potential buyers and secure top offers, your home needs to stand out. That’s where home staging comes in. By strategically preparing your home—through redecorating, repairing, and making it look its best—you can make a lasting impression and significantly increase its appeal.
The numbers speak for themselves: according to the U.S.-based National Association of Realtors, 81% of buyers’ agents report that staging makes it easier for potential buyers to envision themselves living in a home. Moreover, 44% of buyers’ and sellers’ agents say that staging can increase a home’s sales price, and 48% of sellers' agents agree it shortens the time a house spends on the market.1
You can choose to stage your home yourself with advice from your real estate agent or work with a professional stager. Whichever route you take, here are seven essential strategies to transform your home into a buyer’s dream.
Step #1: Declutter and Depersonalize
The first step in staging is to declutter and depersonalize your home. A recent survey of real estate agents found that this simple step can increase your home’s sale price by 3-5%.2
This creates a clean, neutral canvas where potential buyers can imagine their own lives. Remember that staging isn’t interior design—the goal isn’t to add personal, homey touches but to take them away.3 While you may love having plenty of comfy furniture, family photos, and unique knick-knacks, these items can distract potential sellers and make your home feel smaller.4 Be especially mindful to remove children’s toys and pet items.
The task can feel overwhelming, but consider it a head start on packing for your move — and an opportunity to clear out things you no longer need. If you have a lot of belongings, renting a storage unit might be a smart way to keep things tidy while your home is on the market.
Step # 2: Deep Clean and Repair
A sparkling clean home leaves a fantastic first impression. Deep clean every room, paying special attention to areas that are often overlooked, like baseboards, windows, and appliances. Even minor smudges, scrapes, or signs of pet hair can put off some buyers. Your goal? Make it look like no one has ever lived there!5
Minor repairs are equally important. Fix slight imperfections like chipped paint, regrouting tiles, and replacing worn hardware. These easy cosmetic updates make a big difference in how buyers perceive your home’s value. For example, replacing your floors can offer a return on investment of 100-150%.6
Need help getting your home spic-and-span? Let us recommend a professional who can help.
Step #3: Pick Up a Paintbrush
While buyers may repaint after they move in, the colour and condition of your walls still have a big impact on their impression of the home as a whole. Neutral tones like beiges and off-whites appeal to the widest range of buyers—and to the friends and relatives who are also weighing on purchasing decisions.7
If your home features bold colours or striking wallpaper, consider a repaint before you list. When choosing paint colours, make sure to think about how they’ll appear in listing photos and videos. Light, neutral shades can make rooms look brighter and more spacious.
Repainting is especially important in high-traffic areas like the kitchen. Painting outdated cabinets in white or a soft gray can also modernize your space.8
Step #4: Enhance Curb Appeal
First impressions matter, and your home's exterior is the first thing buyers will see. That’s why most real estate agents urge sellers to clean up their home’s exterior — and why curb appeal can drive up to 7% of a home’s sale price.9
Boost your home’s curb appeal by power-washing the exterior and touching up your deck’s varnish.5 If your exterior paint is faded or chipped, consider hiring painters — or for a smaller project, repaint your front door and freshen up first impressions with new hardware and hanging plants.10
And don’t forget landscaping! Keep your lawn tidy, remove dead or dying plants, and consider adding seasonal flowers. Even standard lawn service can lead to a 217% return on investment.11 If you need assistance, we’re happy to offer a referral to landscapers in our area.
Step #5: Stage Key Rooms
When staging, concentrate on the rooms that matter most to buyers: the living room, primary bedroom, and kitchen. These spaces have the greatest influence on a buyer’s decision.1
If you’re working with a professional stager, they may bring in furniture and decor.3 If not, make the most of what you have, and don’t worry about how you’d arrange furniture in real life. This is just about showing off the space.
Arrange furniture to create an open, inviting flow.5 Use large rugs to make rooms appear bigger and ensure artwork complements rather than overwhelms the space.9 Add pops of colour with fresh flowers or simple decor like pillows to bring warmth without personalizing the space too much.
Step #6: Put Your Home in Its Best Light
Lighting is key to creating a welcoming atmosphere in your home. Natural light in particular makes any room feel more airy and spacious, so it’s essential to make the most of it.
First, remove heavy curtains or blinds — if a room feels bare without a window treatment, hang sheer curtains or light-filtering shades to invite the outdoors in. Next, take a look at the landscaping surrounding your home. If overgrown hedges or trees block windows, especially on the ground floor, consider cutting them back or removing them entirely to let in the sunshine.
Of course, homes need more than just natural light — and it’s important to use a combination of types of lighting to suit different uses and moods. Experts recommend that each room have three light sources: ambient lighting (think ceiling lights or chandeliers), task lighting (like lamps or under-cabinet lights), and accent lights (like track lighting and picture lights).13 If needed, replace outdated fixtures with more modern options.14 Even swapping out lightbulbs can make a difference—opt for warm, 2700k bulbs to create an inviting glow.7
Have hard-to-reach windows or need help installing new lighting fixtures? We’re happy to refer a professional who can help.
Step #7: Show Off Your Work with Photography
These days, most buyers will first see your home online, making high-quality photos essential. According to the U.S.-based National Association of Realtors, 89% of agents agree that professional photos are critical to marketing a listing.1
Depending on your home and market, you may also benefit from marketing your property with videos, virtual tours, and even virtual staging, where photo editors swap out furniture and colours to show how your home would look with different decor.
Talk to your agent about what makes sense for your situation, and work with them to hire professionals who can capture your staged home in its best light. When it comes time, treat the photo shoot like an open house—everything should be spotless, well-lit, and arranged to show off your home’s best features.
BOTTOMLINE
Whether or not staging is worth the investment depends on your home’s condition, your desired sale timeline, and your local market. Before committing to professional help or cosmetic upgrades, reach out for a free consultation. We can help you assess the best path forward and connect you with the best professionals to make it happen.
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
References:
1. National Association of Realtors
2. Homelight
3. National Association of Realtors
4. Coldwell Banker
5. Zillow
6. HGTV
7. House Beautiful
8. HGTV
9. Spruce Magazine
10. HGTV
11. National Association of Realtors -
12. RE/MAX
13. Martha Stewart
14. Martha Stewart
7 Mistakes to Avoid When Hiring a Contractor (September 2024)
A recent survey found that 25% of Canadian homeowners have a renovation project planned in the coming year.1 If you’re among them, you know that embarking on home improvements can be both exciting and daunting. According to home services platform HomeStars, the national median renovation budget is around $12,000, so you're probably investing a significant amount—and you'll want to ensure your project’s success.2
One of the most critical decisions you'll make is choosing the right contractor to bring your vision to life. However, many homeowners fall into common pitfalls during this process, leading to stress, financial strain, and subpar results.
In this guide, we'll explore seven mistakes to avoid when hiring a contractor to ensure your project runs smoothly from start to finish.
1. SKIPPING THE RESEARCH PHASE
A common mistake homeowners make is rushing into hiring a contractor without proper research. But to ensure the success of your renovation, it’s crucial to take time to meet with multiple candidates and educate yourself on best practices surrounding your project.
If you bypass the interview process, you miss the opportunity to evaluate different approaches, pricing, and expertise. This can result in overpaying or hiring someone whose skills and vision do not align with your needs.
Neglecting to research the processes and steps involved can also leave you vulnerable. Not only does it make it more difficult to ask the right questions, but you also risk hiring unqualified professionals or settling for subpar work.
What To Do Instead:
- Educate Yourself — Read up or watch YouTube videos to gain a better understanding of best practices surrounding your project.
- Interview Multiple Contractors — Search for and interview at least three contractors who specialize in the type of work you need.
- Ask Specific Questions — Inquire about the processes and materials each candidate will utilize.
- Seek Recommendations — Get referrals from trusted sources like friends, neighbours, and real estate professionals. We’d be happy to share a list of referrals!
2. CHOOSING BASED SOLELY ON PRICE
Once you’ve interviewed candidates and reviewed their proposals, it’s time to choose your favourite. But don’t make the mistake of rushing to the lowest bid.
While it's natural to want to save money, selecting a contractor based entirely on price can be a costly mistake. Extremely low bids may indicate cut corners, subpar materials, or hidden costs that will surface later.
When evaluating bids, make sure you’re comparing “apples” to “apples” and considering factors like quality, timeline, and scope. Are they fully licensed and insured? How long have they been in business? Do they warranty their work?3
What To Do Instead:
- Consider Overall Value — In addition to price, look at experience, reputation, and quality of work.
- Ask for Detailed Breakdowns — Understand what's included and what's not in each bid.
- Be Wary of Low Bids – Bids that are significantly lower than others may be too good to be true.
- Invest in Quality — Remember that quality work comes at a fair price, and investing in a reputable contractor can save you money in the long run by avoiding costly mistakes or repairs.
3. NEGLECTING TO CONFIRM CREDENTIALS & INSURANCE
When you’ve established a good rapport with a contractor, it’s natural to want to believe the best in them. But neglecting to check references and verify licensing and insurance could come back to haunt you.4
Hiring an untrained or unlicensed contractor puts you at risk for safety and code violations, not to mention shoddy workmanship. Without proper insurance, you could be left footing the bill for costly repairs, legal issues, or even medical bills if someone gets hurt on the job.4
Skipping out on a reference check can be equally problematic. It’s your best opportunity to ensure that their promises and your expectations line up with reality.
What To Do Instead:
- Verify Licensing and Insurance — Confirm that the contractor is licensed according to local requirements and verify insurance, including general liability and workers' compensation coverage.
- Check Reviews — Read online reviews and confirm that the business is in good standing with the Better Business Bureau and other relevant trade groups.
- Call References — When contacting references, ask questions and request to see photos of the contractor's completed projects.
- Visit Job Sites — If possible, visit a current job site to observe the contractor's work in progress and interaction with clients.
4. PROCEEDING WITHOUT A WRITTEN AGREEMENT
A handshake deal might seem friendly and straightforward, but it's a recipe for misunderstandings and potential legal issues. Verbal agreements are difficult to enforce and leave room for miscommunication about project scope, timelines, and costs.5
Instead, you should have a signed contract in place before any work begins.6 Paperwork can be tedious, but don’t skip the important step of carefully reading over your contract, asking questions, and pushing back on any terms that make you uncomfortable.
Don’t forget to ask for payment receipts and document any change orders or issues that arise throughout the project, as well.
What To Do instead:
- Insist on a Written Contract — Outline all aspects, including scope, materials, timeline, payment schedule, warranty information, and a process for handling change orders.
- Understand and Agree — Don't sign anything until you fully understand and agree to all terms.
- Keep Documentation — Once you’ve made your final payment, request a receipt marked “Paid in Full” to keep on file for legal and tax purposes.
5. PAYING TOO MUCH UPFRONT
Another common misstep is paying a large sum upfront or the full cost of the project before the work is completed. This can leave you vulnerable if the contractor fails to complete the work or disappears with your money.
Upfront deposits shouldn’t exceed 10% to 15% of the total project cost.7 The remaining payments should be tied to progress milestones outlined in your contract.
Legal experts caution against paying a greater share of the project cost than the percentage of the work that’s been completed.8 If you end up dissatisfied with the outcome, you’ll have much less leverage if you’ve already paid.
What To Do Instead:
- Be Cautious — Avoid contractors who demand large upfront payments or cash-only deals.
- Establish a Payment Schedule — Tie payments to project milestones and stick to them.
- Pay Only Upon Completion — Never pay in full until the project is completed to your satisfaction and all required inspections have been passed.
6. FAILING TO GET NECESSARY PERMITS
Skipping the permit process might seem like a way to save time and money, but it can lead to serious consequences. Without the proper permits, you risk running afoul of local building codes and regulations, which could result in fines, forced removal of work, or even legal action.9
Additionally, unpermitted work might compromise the safety and structural integrity of your home, potentially leading to hazardous conditions or diminished resale potential. Homeowners may also find themselves without recourse if issues arise later, as insurance companies often exclude coverage for unpermitted renovations.9
If you’re under the jurisdiction of a condominium or homeowners’ association, don’t forget to check its bylaws, as well. You may need prior approval to make modifications to your home or yard. Ignoring these restrictions can lead to fines or delays—so don’t skip this important step.10
What To Do Instead:
- Discuss Permits — Talk about permits and association requirements with your contractor before work begins.
- Include Permits in the Contract — Ensure that obtaining necessary permits and approvals is part of your contract.
- Verify Inspections — Make sure all required inspections are completed during the project.
- Keep Records — Keep copies of all permits and inspection reports for your records.
7. IGNORING RED FLAGS AFTER THE PROJECT HAS STARTED
Sometimes a contractor can check all the right boxes—until the work begins. Unfortunately, red flags that are spotted mid-project can be especially challenging to address.
If you’ve already paid a substantial amount or had a portion of your home demolished, you may feel trapped in a bad situation. However, if there are major problems that the contractor is unwilling to address, ignoring them can make things exponentially worse.
Don’t be afraid to seek legal or professional advice if issues persist. Taking immediate, informed, and decisive action is crucial to safeguarding your investment and ensuring the project's ultimate success.11
What To Do Instead:
- Review Your Contract — Make sure you thoroughly understand your rights and the agreed-upon terms.
- Document Issues — Keep detailed records, including dates, descriptions of problems, photographs of subpar work or materials, and any communications with the contractor.
- Communicate Professionally — Arrange a meeting to discuss your concerns, ensuring you remain calm and professional while clearly expressing your expectations.
- Request a Resolution Plan — Ask for a plan to address the issues, set a timeline for resolution, and put everything in writing to ensure you’re both on the same page.
- Seek Advice — If the contractor is uncooperative or dismissive, consider seeking advice from a legal professional.
BOTTOMLINE
Hiring the right contractor is crucial to the success of your home improvement project. By avoiding these common mistakes, you can significantly increase your chances of a smooth and successful renovation experience.
Remember, taking the time to thoroughly vet contractors, communicate clearly, and plan carefully will pay off in the long run. Your home is likely your most significant investment, and it deserves the care and attention that comes with making informed, thoughtful decisions about who works on it.
If you’d like help finding a contractor or want to know how planned improvements could impact your home’s resale potential, reach out for a free consultation!
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
1. FinanceIt
2. HomeStars
3. Canadian Home Builders’ Association
4. The Globe and Mail
5. Forum Law
6. Canadian Home Builders’ Association
7. HGTV Canada
8. The Washington Post
9. HUB SmartCoverage
10. Condo Strategies
11. Angi
Top 4 Factors to Consider When Choosing Your Mortgage (August 2024)
With home prices and rates still relatively high, securing a mortgage can feel daunting––even to the most experienced borrowers. But don't let that deter you: If other homebuyers’ experiences are any indication, odds are you'll eventually find a home loan that works well for you.
In fact, research from the Real Estate and Mortgage Institute of Canada (REMIC) found that even after the Bank of Canada pushed rates to a 22-year high, most homeowners still felt satisfied with their mortgages. According to an online survey, only a small fraction regretted the mortgage that they'd chosen because they felt “locked in at ‘a bad rate.’” Fewer than a third said they would have picked another property if they'd known their mortgage rates would climb.1
Now that the Bank of Canada's policy rate has finally moved lower, this is an ideal time to compare mortgages and get pre-qualified so you can confidently scout for deals. That way, you'll be ready to jump fast if you spot an opportunity.
To help you get started, we've rounded up four of the most important factors to consider when narrowing your list of potential mortgage options.
Your Credit Score
That three-digit number that credit scoring companies like FICO assign not only influences your interest rate, but it also helps determine the type of mortgage you can get.2
The best-priced mortgages typically go to borrowers with scores of at least 720 or more. But if your credit score is lower, you still have options.3
To qualify for an insured mortgage with less than 20% down, you or a co-borrower will likely need at least a 600 credit score, unless you're a Canadian newcomer. Canada Mortgage and Housing Corporation (CMHC) reduced the minimum required score for a typical CMHC-insured mortgage from 680 to 600, but the private insurers Sagen and Canada Guaranty Mortgage set their own thresholds and may require a higher score.4,5,6
New Canadians, on the other hand, may qualify for an insured mortgage even if they have little to no Canadian credit history. Many conventional lenders offer special loans called “newcomer mortgages” to immigrants who have landed within the past five years.7
However, if your score is low because you have a history of missed payments or a high credit utilization ratio (which is the amount of debt you have relative to your credit limit), then you may not qualify for a conventional mortgage and may need to look to alternative lenders.8
Nonbank lenders known as “B lenders” specialize in serving nontraditional borrowers, such as self-employed homebuyers, so their standards are usually more relaxed. You'll probably still need a minimum score of around 600, though, as well as a down payment of 20% or higher.9
If your score is well below 600, then your options are more limited. Some home sellers offer owner-financed mortgages. Alternatively, private investors who specialize in subprime loans (known as “C lenders”) may work with you.10 But if you can afford to wait for a higher score, you may be better off paying down your existing debt instead. The interest you save with a more competitively priced loan could enable you to buy a more desirable home.11
Your Income and Expenses
The amount of money you make, as well as how much you owe, will also influence your mortgage options.
Lenders like to see that you still have plenty of income left over after paying your expenses. So when evaluating your creditworthiness and ability to pass a stress test, a mortgage lender will look at your current pay and outstanding debts, like student loans and credit card balances.12
They will also compare your expected income to the total amount of debt you'll carry once you've bought the home. This is called your total debt service (TDS) ratio and lenders consider it a key indicator of whether you can afford a particular mortgage.12
The Financial Consumer Agency of Canada caps the recommended TDS ratio for a mortgage from a federally regulated entity, such as a bank or federal credit union, at 44% of a borrower's income. However, some nonbank lenders may still work with you if your TDS ratio is higher.13
In addition to outstanding debts, lenders take into account other expenses unique to a home, such as property taxes, heating costs, and 50% of condo fees, if applicable. To pass Canada's mortgage stress test (which is necessary for any federally regulated lender), your total housing costs should eat up no more than 39% of your qualifying income. This is called your gross debt service (GDS) ratio, and it's a key figure to keep in mind when comparing potential homes.12
In general, the lower your TDS and GDS ratios are, the better your odds will be of securing a competitive mortgage. That's especially true now that Canada's top bank regulator, the Office of the Superintendent of Financial Institutions (OFSI), has announced more stringent rules for federally regulated lenders that work with “highly indebted” mortgage borrowers.14
Unregulated lenders have more flexibility and so may be more forgiving. However, they could still require you to pass a mortgage stress test.15
Your Expected Down Payment
The size of your down payment will also impact the type of mortgage you can get.
You don't have to put down 20% to qualify for a competitively-priced mortgage from a conventional lender. (In fact, interest rates are often lower for insured mortgages than they are for uninsured ones.16) But you will need a significant amount.17
The lowest down payment amount you can get away with is usually 5%. However, depending on your income and credit history, a lender may require more to fund the home you want.17
Since conventional mortgages with down payments below 20% automatically require mortgage default insurance, you'll also want to take into account the added expense. Depending on the size of your down payment, it could cost you as much as 0.6% to 4% of your loan amount.18
In most cases, mortgage amortization will also be capped at a maximum of 25 years if you opt for an insured mortgage. A shorter amortization schedule, such as a 10 or 15-year mortgage, will save you money on interest. However, your monthly mortgage payment will also be higher.19
With an uninsured mortgage, by contrast, you could extend your mortgage amortization to 30 years, or possibly even longer with some mortgage lenders. That could help make your monthly payments more affordable. But to be approved, you'll typically need substantial home equity.20
If you're a first-time homebuyer, you'll have even more options. For example, you may be able to get a 30-year uninsured loan if you buy a brand-new property.21
Keep in mind, though, that mortgages with smaller down payments not only cost more over time. They may also be harder to get––especially if there's a major gap between your qualifying income and typical home prices. In that case, you'll likely need a healthy down payment to help make up the difference. An extra big down payment above 25% to 35% could also help you qualify for mortgages you wouldn't get otherwise.17
Your Lifestyle and Risk Tolerance
In addition to your budget, one of the most important factors to consider when comparing mortgage options is your temperament. The key to finding the right mortgage for you is to look for a loan that will fit comfortably into your daily life. For example, we recommend asking yourself questions such as: Are you a natural risk taker, or do you prefer firm plans and predictability? Can you afford a bigger mortgage payment if interest rates increase, or are your anticipated home expenses already stretching your monthly budget?
Similarly, consider your ideal payment schedule. If you like the idea of making lots of extra payments and paying off your mortgage early, then you may prefer an open mortgage. However, a closed mortgage will typically offer a lower rate.22
Term lengths and mortgage rates are also important factors to consider. But given the economy's uncertainty, it can be tricky to predict the most optimal mortgage type.
For example, choosing a shorter-term mortgage, such as a three-year fixed rate mortgage, or opting for a more flexible variable rate one can give you some valuable wiggle room in case interest rates decrease. But if rates unexpectedly pick up, you could be caught off guard by a higher monthly payment. Term lengths can also impact the mortgage rates you're offered.23
Five-year fixed rate mortgages, on the other hand, may feel more comfortable to risk-averse borrowers. They are also the most common type of mortgage in Canada and are often a great choice for those who prefer to set-it-and-forget-it. But locking yourself into such a long mortgage could also be risky. With a longer term mortgage, you not only risk overpaying rates go down, you also risk getting stuck with a loan that requires a big multi-year commitment.23, 24
BOTTOMLINE
Regardless of the loan you choose, it pays to shop around and carefully compare terms. According to a recent survey by Mortgage Professionals Canada, most homebuyers risk leaving money on the table by failing to negotiate and sticking with the first interest rate offer they receive.25
Fortunately, we have a vetted list of mortgage professionals who can explain your options, answer your questions, and help you find the best loan to meet your needs. We can also develop a custom plan for securing a great home that fits your budget. Reach out when you're ready to get started.
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
1. Real Estate and Mortgage Institute of Canada (REMIC)
2. Globe and Mail
3. Rates.ca
4. CMHC
5. Sagen
6. Canada Guarantee
7. Wowa
8. MPA Magazine
9. Nerdwallet
10. Ratehub
11. Ratehub
12. Financial Consumer Agency of Canada
13. Nerdwallet
14. Office of the Superintendent of Financial Institutions
15. Lowest Rates
16. Globe and Mail
17. MPA Magazine
18. Ratehub
19. Financial Consumer Agency of Canada
20. Global News
21. MPA Magazine
22. Financial Consumer Agency of Canada
23. MoneySense
24. MPA Magazine
25. Canadian Mortgage Trends
7 Weekend Projects to Boost Your Property Value (July 2024)
Whether you’re putting your home on the market in a few weeks or a few years, strategic upgrades can make all the difference. But you don't have to embark on a major remodel to make a significant improvement.
Even minor updates can have a big impact on your home’s aesthetic, and certain renovations can even boost its future sale price.From curb appeal to interior updates, here are seven weekend projects that will enhance your home’s current charm and long-term value.
1. Freshen Your Front Door
Is your front door looking a little tired? A new coat of paint can make your home more inviting to today’s guests and tomorrow’s buyers.
But before you grab that paintbrush, think carefully about your choice of hue. According to a recent study, the colour of your front door can boost—or lower—your home's sale price by thousands of dollars.1
Cement gray, for instance, was found to decrease purchase offers by an average of $3,365. Going too bold can also deter home shoppers. The safest bets? Classic black or a mid-tone brown are proven winners.1
Need help choosing the perfect paint or stain for your front door? We'd be happy to offer advice or refer you to a design professional for assistance.
2. Upgrade Your Hardware and Lighting
It's easy to overlook dated cabinet pulls or dingy light switches in your own home. But those seemingly minor details can leave a bad impression on visitors.
Swapping out old hardware for modern alternatives can easily and affordably elevate your space. New cabinet handles, for example, are relatively inexpensive and require just a few minutes and a screwdriver to install. To maximize the longevity of your update, consider classic shapes and finishes like brass knobs or nickel cup pulls.2
Take a look at your light fixtures, too. Try replacing an out-of-style chandelier with a more contemporary option. Even just updating your lampshades and lightbulbs can create a brighter, more welcoming space. Additionally, many experts agree that high-quality lighting can show off your property’s best features when it comes time to sell.3
Uncomfortable changing a light fixture yourself? Contact us for a referral to a licensed electrician for help.
3. Update Your Bathroom Fixtures
Bathrooms can show their age quickly, but a few inexpensive updates can take years off in just a few hours. And since many buyers will be more drawn to a home that feels clean and modern, even small changes can make a big difference.
According to one U.S.-based study, for every dollar you spend on minor cosmetic upgrades—like swapping out the bathroom mirror, upgrading hardware, or refinishing cabinets—you’ll see a $1.71 increase in your home’s value.4
Bathroom hardware is a great place to start. Consider updating your faucets and showerheads (we recommend lower-flow options to save money and the environment), and don't forget about towel racks, toilet paper holders, and any other fixtures that look worn or discoloured.5
According to hardware manufacturer Delta, black finishes are currently trending. Spa-like upgrades, like steam showers and luxury hand showers, are also in high demand.6
If your existing vanity is in poor condition, installing a new one is a slightly bigger project, but it has a huge impact on the look and feel of the room. Reach out for a list of retailers who carry high-quality but affordable prefabricated options.
4. Give Your Kitchen Cabinets a Makeover
A recent study found that a kitchen renovation can boost a home’s sale price by up to 20%, making it one of the most valuable home improvement projects.7 So, it's no surprise that an updated kitchen is a top priority for Canadian homeowners and potential buyers alike.8
If your kitchen cabinets are from another era, that’s probably the first place you’ll want to start. Fortunately, you don’t need to commit to the hassle and expense of installing new cabinets if your current ones are in good shape. Instead, consider painting them.
Not only is it more affordable and eco-friendly than replacement, but Better Homes and Gardens reports that this option typically offers a greater return on investment.9 When it comes to choosing the right colour, warm neutrals and shades of green and blue are especially on-trend.10
Thinking about painting your cabinets yourself? Be sure to plan in advance and block out at least a couple of days for the project. You’ll need to take off all your cabinet doors and hardware and thoroughly cover your kitchen appliances and counters. You’ll also need to wait for the doors to dry before reassembling your kitchen.11
If you’re not confident in your painting skills, hiring a professional will still be far less expensive than installing new cabinets. We’re happy to refer you to capable painters in our network.
5. Look at Your Landscaping
First impressions matter, and putting some work into your home’s exterior can make a big difference in how your guests and neighbours view it. Curb appeal can also make or break a potential buyer’s perception of your home—and significantly impact their offer.
According to a study by the Journal of Real Estate Finance, curb appeal can account for 7% of a home’s sale price.12 And in some areas of Canada, it’s among the top three renovations offering the highest return on investment.13
One of the best ways to improve curb appeal is through landscaping—and it doesn’t have to be elaborate. First and foremost, focus on keeping things neat, tidy, and welcoming. Mow your lawn, refresh any mulch, prune overgrown shrubs, and add pops of colour with flowers. To take things up a notch, add outdoor lighting and plant perennial flowers along the sides of your walkway.
When you’re ready to get started, reach out for a list of our favourite local garden centres where you can find all the necessary supplies.
6. Refinish Your Wood Floors
For many buyers, wood floors are a huge selling point. Unfortunately, they also tend to get scuffed and worn over time, especially if you have kids or pets.
The good news? If your wood floors could use a touch-up, it’s well worth the time and cost. According to one U.S.-based study, it’s the project that pays off the most in terms of resale value, with an average 147% return on investment.14
If you have a few days to devote to your floors, you can rent the necessary equipment from a local hardware store. While you’re there, pick up some basic supplies, like a putty knife, paintbrushes, sandpaper, and stain.15 And if you want to modernize your space, opt for a lighter wood tone, which is the current trend.16
Of course, we’re also happy to provide the names of trusted professionals who can tackle the work for you.
7. Clean or Replace Your Grout
Let’s face it: Whether it’s on a kitchen floor or a bathroom wall, grout gets grimy over time, even with regular cleaning. Fortunately, refreshing your grout is a relatively simple and affordable project that can yield impressive results.
According to Apartment Therapy, grout that’s in poor condition is often one of the first things a potential buyer notices when they tour a bathroom.17 Fresh, clean grout, on the other hand, makes your bathroom sparkle—and that can pay off in a big way in terms of buyer’s perceptions.
If your grout is simply stained, a focused cleaning session can make a big difference. Try a specialized product or a simple mix of baking soda, water, and hydrogen peroxide.17 If the grout is cracked, crumbling, or stained beyond repair, it’s time to replace it. Luckily, the right tools make that a very doable DIY project, even if it can get messy—and it’s a lot easier and less expensive than retiling.18
No time to tackle it yourself? Reach out for a recommendation of a pro who can help.
CHOOSING THE PROJECT THAT’S RIGHT FOR YOU
Embarking on home improvements can be exciting, but it's essential to choose projects that align with your goals, budget, and skill level. Whether you're preparing to sell your home or simply want to enhance its value, there are projects to suit every homeowner.
If you're unsure where to start, don't hesitate to reach out for personalized advice and recommendations. With the right approach, you can unlock your home's full potential and enjoy the rewards for years to come.
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
1. Zillow
2. Martha Stewart
3. Realtor.ca
4. Zillow
5. Forbes
6. Delta Canada
7. Royal LePage
8. Zolo
9. Better Homes and Gardens
10. House Beautiful
11. HGTV
12. Spruce Magazine
13. HGTV Canada
14. National Association of Realtors
15. Architectural Digest
16. Houzz
17. Apartment Therapy
18. Better Homes and Gardens
Mid-Year Market Update for 2024: What Buyers and Sellers Need to Know (June 2024)
Once again, the number one story in real estate this summer is mortgage rates. But unlike last year, when a surprise series of rate hikes from the Bank of Canada sent skittish buyers back to the sidelines, all signs now point to the opposite scenario. Instead of market-chilling rate hikes, economists now expect market-quickening rate cuts—possibly starting as soon as this month.1
That means the housing market is likely to get interesting over the next few months. If fixed mortgage rates continue to drop in anticipation of a lower policy rate, more buyers are expected to show up looking for a deal before home prices take off in 2025 and 2026.2
Listings are also on the upswing and homeowners are feeling increasingly optimistic that their home values will rise over the next year, per a new Canada Mortgage and Housing Corporation (CMHC) study. So we could see more sellers-in-waiting regain the confidence to list their homes at strong but realistic prices.3,4
With pent-up demand continuing to build, housing market activity could pick up significantly. As TD Bank Economist Rishi Sondhi noted in an interview with The Canadian Press, Canada's housing market is “akin to a bit of a coiled spring.” Often when there's a market-moving event like a rate cut, home sales and prices jump quickly.5
What does that mean for you? Read on for our take on this year's most important real estate news and get a sneak peek into what analysts predict is around the corner for 2024.
MORTGAGE BORROWERS ARE FINALLY GET SOME RATE RELIEF
After more than a year of shifting forecasts and delays, it's finally happening: the Bank of Canada's first rate cut since 2020 is nearly here. The central bank is gearing up for two back-to-back meetings this summer to discuss monetary policy, plus three more meetings before year-end. We saw the first rate cut on June 5.6
Sticky inflation down south is already putting pressure on bond yields, which help determine the fixed rates lenders charge.7 If the U.S. economy stays hotter than expected, the Bank of Canada may be forced to delay additional rate cuts, which could further impact mortgage rates. 9
As Bank of Canada Governor Tiff Macklem cautioned, Canada's central bank is ready and willing to cut rates before the U.S. Federal Reserve. But there's “a limit” to how much faster they can go. If too much daylight exists between the countries’ key interest rates, that could weaken the Canadian dollar and further boost inflation.9
What does it mean for you? If Canadian homebuyers' past behaviour is any indication, any drop in the Bank of Canada’s policy rate—even a delayed one—is likely to fuel enthusiasm and spark competition. But with lenders already pricing in the first rate cut expected this summer, it could be a while before fixed mortgage rates drop further. If you're a buyer, ask us to refer you to a mortgage broker so you can lock in a competitive rate. It's been a tough year for mortgage originations, so lenders are hungry for new business and may be more willing to cut you a deal.
PENT-UP DEMAND COULD SOON BURST INTO VIEW
With at least one quarter-point rate cut in the cards and potentially a few more on the way, the last six months of 2024 are unlikely to mirror the first half of the year.
As the Canadian Real Estate Association (CREA) noted in a recent market forecast, housing markets throughout the country have been unusually “quiet” this year thanks to still-high rates and lingering uncertainty. But that doesn't mean home sales will stay soft going forward.10
On the contrary, market activity is expected to pick up once rates recede.2,7 According to new research from BMO, aspiring homebuyers' financial readiness is looking up. But 72% say they're waiting for lower rates before they get serious about buying a home.11
New federal measures could also juice the housing market by boosting demand from first-time buyers. New homebuyers, for example, can now borrow up to $60,000 from their RRSP to fund a down payment—$25,000 more than the Home Buyers' Plan previously allowed. Beginning August 1, first-time buyers with insured mortgages will also be allowed a 30-year mortgage term if they purchase new construction.12
Affordability constraints will still be a major sticking point, though, for many Canadian homebuyers, which could dampen sales if buyers and sellers continue to butt heads over prices.13
What does it mean for you? Get ready to move quickly. Increased competition almost always means faster home sales—and a need for quick decision-making. If you're a buyer, make sure your papers are in order and you have cash ready for a deposit. And if you're a seller, consider listing now before pent-up supply leads to an uptick in inventory. After all, budget-conscious homebuyers aren't the only ones who have been sitting on the sidelines for the past two years.
PROPERTY VALUES WILL CONTINUE TO INCREASE
The good news for homebuyers: Today's home prices are down significantly from where they were toward the tail end of the pandemic. The bad news: That's probably not going to last. Experts say that home prices have almost certainly bottomed out.14, 15
In fact, the CMHC thinks home values could return to peak levels as early as next year before hitting an all-time record high in 2026. As the CMHC notes, home prices and sales declined significantly after rates began to jump in 2022. But in the years since, Canada's population boomed at a record pace, while many people saw their incomes and savings increase. As a result, there's now a bigger pool of potential homebuyers.16
That doesn't mean, though, that home sales will be so strong that sellers can expect the same level of price gains they saw before. As researchers at TD Bank note, rate cuts will help boost prices for now. But “affordability pressures will likely keep the gains from being even stronger.”15
The CMHC projects that lower-priced homes will enjoy the fiercest competition. But overall sales activity will be more modest than in 2020 and 2021 when rock-bottom rates made mortgage payments more affordable.16
What does it mean for you? Even with rate cuts, a typical mortgage payment will be difficult for the average household to absorb, so expect affordability issues to limit overall price growth. Sellers will need to be realistic with their asking price and negotiation tactics—especially if they're looking to close quickly. Buyers, on the other hand, might not want to wait long if they can afford to make a deal. Increased competition could lead to a bigger-than-expected price surge.
EVEN WITH MORE HOMES FOR SALE, INVENTORY WILL BE TIGHT
According to a winter survey by Dye and Durham Ltd., more than a quarter of Canadians have been holding out for a rate cut before buying or selling a home. So we could see a lot more homes go up for sale this year once rates decline.17
Already, inventory is picking up as more sellers come to market, giving new buyers more choices when comparing homes. The spring market, in particular, saw a notable jump in listings.3,15
But even if more homes come to market this summer and fall, the total number of Canadians who want to buy a home will still surpass the number of homes available. So both the resale market and new home market are likely to remain squeezed for some time.18
In fact, TD Economics estimates that Canada will be short of more than 300,000 homes between 2023 and 2025. Adding to the problem: Housing construction continues to lag population growth and, despite some recent improvements, it is still far from catching up.18
Persistently high rates are also discouraging builders from starting new projects. So the inventory of available homes is likely to get tighter. The CMHC expects housing starts to decline in 2024 and drop even more significantly in 2025.16
What does it mean for you? With inventory increasing and many prospective homebuyers still priced out of the market, buyers who can afford it may be able to retain some bargaining power—especially for premium homes. However, total inventory is expected to remain tight, so sellers are still more likely to have the upper hand. Competition for more affordable homes will be especially steep.
WE’RE HERE TO GUIDE YOU
With nationwide news like rate cuts still playing a big role in today's housing market, it can be useful to get a high-level overview of what's happening across Canada. But the most important factors behind most real estate transactions are local. So on-the-ground expertise is essential.
As local market experts, we can help you navigate your neighbourhood's housing market with ease and understand what's driving home values and sales. If you’re considering buying or selling a home, contact us for a free consultation so we can help you build a successful plan.
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
1. Nesto.ca
2. MPA Magazine
3. RBC
4. CMHC
5. Yahoo! Finance
6. Global News
7. RBC
8. Reuters
9. Global News
10. CREA
11. BMO
12. Forbes Advisor Canada
13. RBC
14. CREA -
15. TD Stories -
16. CMHC
17. Dye and Durham
18. TD Stories
The Ultimate Relocation Guide: From Finding a House to Feeling at Home (May 2024)
May is “Moving Month,” as designated by the Better Business Bureau and Canadian Association of Movers.1 It also happens to kick off the peak moving season, which generally runs from May through September.2
According to a survey by Statistics Canada, respondents listed their top motivations for moving as “bigger or better housing” (28.0%) or “a more desirable neighbourhood” (16.8%).3 But no matter the reason, a relocation can feel stressful and overwhelming.
If you’re one of the many Canadians planning to relocate in the coming months, this guide is for you. We’ve outlined six steps to make your move easier. Our hope is to alleviate some of the hassle of relocating—so you can focus on the adventure ahead!
1. CHOOSE A COMMUNITY
When planning a relocation, one of the first things you’ll need to decide is where you want to live. This could be as broad as an area of town, or you might narrow it down to a specific neighbourhood.
Depending on your priorities, you may want to start with communities that are close to work, friends, family and/or your preferred schools. If you commute, map out the route and check on the availability of public transportation, if you plan to use it. Then, if possible, try out the commute during rush hour to see what it’s like.
Next, it’s crucial to consider housing prices and cost of living so you don’t set your sights on an area that you can’t realistically afford. Don’t forget to look up local crime statistics to ensure the community is safe. Finally, visit any neighborhoods you’re considering to gauge the vibe and observe characteristics, like pedestrian accessibility, retail offerings, and population density.
Researching the ins and outs of various communities can be a time-consuming and sometimes difficult process, but we’re here to help! Give us a call to discuss your needs and aspirations, and we’d be happy to provide our recommendations of neighbourhoods that may be a good fit for you.
Next, it’s crucial to consider housing prices and cost of living so you don’t set your sights on an area that you can’t realistically afford. Don’t forget to look up local crime statistics to ensure the community is safe. Finally, visit any neighborhoods you’re considering to gauge the vibe and observe characteristics, like pedestrian accessibility, retail offerings, and population density.
Researching the ins and outs of various communities can be a time-consuming and sometimes difficult process, but we’re here to help! Give us a call to discuss your needs and aspirations, and we’d be happy to provide our recommendations of neighbourhoods that may be a good fit for you.
2. FIND YOUR NEW HOME
Once you’ve chosen an area to settle, the next decision you’ll need to make is whether you want to rent or buy a home. Renting can be a good option if you’re new to town, especially if you’re still saving up for a downpayment or you’re not ready to commit to a permanent location. Benefits include flexibility, less maintenance, and lower upfront costs.
But, if you want to avoid multiple moves—and you’re financially able—there’s no reason to delay the benefits of buying a home. Not only has homeownership been shown to increase your quality of life, but it’s also one of the best ways to protect and grow your wealth.4
The value of real estate will typically appreciate over time, and owners can build equity as they pay down their mortgage. Homeowners and buyers may also be able to benefit from certain tax incentives.5
But, perhaps most importantly, homeownership offers stability, as property owners aren’t subject to the mercy of their landlords each year. According to Rentals.ca, average asking rent prices in Canada rose nearly 30% between February 2021 and February 2024.6 In contrast, many homeowners enjoyed a fixed mortgage payment during that same period.
If you decide to purchase a home and you choose us to represent you, you can rest easy knowing that we will be there for you throughout the entire journey, working hard to make the experience as easy as possible. Or, if you’re moving to a new area, we can refer you to a local agent in our network who shares our commitment to client service.
For more information about buying a home and a timeline of the home buying process, reach out to request a free copy of our Home Buyer’s Guide.
3. SELL OR RENT OUT YOUR CURRENT HOME
If you already own a home, you’ll also need to start the process of either selling it or renting it out. We can help you evaluate your options based on current market conditions.
In many cases, our clients choose to sell so that they can use the equity in their current home to make a downpayment on their next one. But selling your home while simultaneously buying a new one can feel daunting to even the most seasoned homeowner.
Here are some of the most frequent concerns we hear from clients and our tips for addressing them:
What will I do if I sell my house before I can buy a new one?
Check out furnished apartments, vacation rentals, and month-to-month leases. You may even find that a short-term rental arrangement can offer you an opportunity to get to know your new neighbourhood better.
What if I get stuck with two mortgages at the same time?
Ask us about conditions that can be included in your contracts. For example, it’s possible to add a condition to your purchase offer that lets you cancel the contract if you haven't sold your previous home. We can discuss the pros and cons of these types of tactics and what’s realistic given the current market dynamics.
What if I mess up my timing or burn out from all the stress?
Enlist support as early as possible. It's our job to guide you and advocate on your behalf, so don't be afraid to lean on us throughout the process. We’re here to ease your burden and make your move as seamless and stress-free as possible.
In addition to answering your questions, we’ll give you an idea of how much equity you have in your current home so you know how much you can afford to spend on your new one. Part of that process will include a plan to maximize your current home’s sale price. We utilize a proven strategy that’s designed to achieve an efficient sale while boosting your profits.
For a thorough breakdown of the technologies and marketing activities we use to get you the most money for your home sale, ask us for a copy of our Property Marketing Plan.
4. PLAN YOUR DEPARTURE
Preparing for a move can be both exhilarating and exhausting. Fortunately, you don’t have to do everything in a day. You don’t have to do it all alone, either. When you work with us, we’ll be there every step of the way to help you navigate this process with ease. To that end, here are some of our top tips to help you plan for your departure.
If you have children, we typically advise that you start by sharing news about the move in an age-appropriate way. If possible, take them on a tour of your new home and neighbourhood. This can alleviate some of the mystery and apprehension around the move. Don’t forget to contact their current and future schools, as well, to arrange for transfer and enrollment.
Next, you’ll want to start packing. To maintain order and make unpacking easier, we recommend packing one room at a time. Clearly label each box with its contents and the room it belongs to. And remember, there’s no use taking extraneous items with you. Use this opportunity to purge or donate possessions that you no longer need.
If you will be using a moving company, start researching and pricing your options. Make sure you’re working with a reputable service, and try to avoid paying a large deposit before your belongings are delivered. Once you have a moving date scheduled, you should arrange to have your utilities turned off or, if possible, transferred into the new homeowner’s name.
Finally, if you will be leaving friends or family behind, schedule get-togethers before your departure. The last days before moving can be incredibly hectic, so make sure you block off some time in advance for proper goodbyes.
Parting with a home and community you love can be hard, so try to stay focused on the exciting opportunities ahead. Feel free to reach out for referrals to moving companies, packing services, housekeepers, or any other resources that will make your move easier. We’d love to help.
5. PREPARE FOR YOUR ARRIVAL
While it’s tempting to get wrapped up in the departure details, don’t forget to plan ahead for your arrival at your new home. To make your transition go smoothly, you should start preparing well before moving day. Here are a few pro tips to help you get started.
First, think about the utilities that will need to be turned on, especially essentials like water, electricity, and gas. Be sure to notify any relevant parties—banks, credit cards, subscriptions, etc.—about your change of address so you don’t miss any important bills, notices, or deliveries. You’ll also want to notify the postal service and submit a mail forwarding request.
If you plan to remodel, paint, or install new flooring, it’s often easier to have it done before you bring in all of your belongings. You may also want to have the house professionally cleaned before moving in.
Don’t forget about the items you’ll need (think toothbrush, towels, bedsheets) to make it through the first night in your new home. Designate some boxes with “Open Me First!” labels. (Pro tip: Keep a tool kit front and center for all that reassembling.)
Finally, create a list of all the restaurants you want to try and places you want to visit around your newly purchased home. Having a to-explore list keeps everyone’s spirits high and gives you starting points to settle into the neighbourhood.
If you’re relocating to our area, we can help! We offer “VIP Relocation Assistance” to all of our clients. Contact us for a list of our favourite restaurants, retailers, cleaning services, contractors, and more!
6. GET SETTLED IN YOUR NEW SPACE
Studies show that moving can lead to feelings of loneliness and depression.7 However, there are ways to combat these negative effects. Here are a few strategies to help you and your family get settled in the new space.
If you have children, start by unpacking their rooms first. Seeing familiar items will help ease their transition and establish a “safe zone” where they can hang out away from the chaos of moving day. If possible, let them have a say in how their room is decorated.
Pets can also get overwhelmed by a new, unfamiliar space. Let them adjust to a single room first, which should include their favourite toys, treats, food and water bowl, and a litter box for cats. Once they seem comfortable, you can gradually introduce them to other rooms in the home.
Don’t forget to take care of yourself, too. Try to schedule breaks to get out of the house and investigate your new area. If you travel by foot or bicycle, you’ll gain the mood-boosting advantages of fresh air and exercise.
You can combat feelings of isolation by making an effort to meet people in your new community. Find a local interest group, take a class, join a place of worship, or volunteer for a cause. Don’t wait for friends to come knocking on your door. Instead, go out and find them.
To that end, make an effort to introduce yourself to your new neighbours, invite them over for coffee or dinner, and offer assistance when they need it. Once you’ve developed friendships and a support system within your new neighbourhood, it will truly start to feel like home.
LET’S GET MOVING
While moving is never easy, these steps offer an action plan to get you started on your new adventure. With a little preparation—and the right team of professionals to assist you—it is possible to have a positive relocation experience.
We specialize in assisting home buyers and sellers with a seamless and “less-stress” relocation. Along with our referral network of moving companies, contractors, cleaning services, interior designers, and other home service providers, we can help take the hassle and headache out of your upcoming move. Give us a call or message us to schedule a free, no-obligation consultation!
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
1. Canadian Association of Movers
2. United International Removals
3. Statistics Canada
4. Canadian Association of Realtors
5. Turbo Tax
6. Rentals.ca
7. Psychology Today
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