Thinking about making a move? We can help you determine what the best strategy is for you and your family. Reach out to us today.

Source: Re/Max Canada

Canadians put in significant effort to afford a home, but high mortgage payments pose a challenge, particularly for Millennials and Gen Z. To assist younger generations in purchasing their first homes, new mortgage regulations took effect on August 1, 2024. These rules allow for 30-year insured mortgage amortizations specifically for first-time buyers of new constructions.

Chrystia Freeland, Deputy Prime Minister and Minister of Finance unveiled a range of reforms aimed at making mortgages more affordable and promoting homeownership among Canadians:

1. Increasing the Insured Mortgage Cap: The cap for insured mortgages will rise from $1 million to $1.5 million, effective December 15, 2024. This adjustment reflects current market conditions and aims to help more Canadians qualify for a mortgage with a down payment below 20 percent. The cap has remained unchanged since 2012.
2. Expanding Eligibility for 30-Year Amortizations: Starting December 15, 2024, all first-time homebuyers and buyers of new builds will be eligible for 30-year mortgage amortizations. This will lower monthly mortgage payments and encourage the purchase of new constructions, including condos. This initiative builds on the commitment from Budget 2024, which also introduced 30-year amortizations for first-time buyers of new builds.

These initiatives are part of the enhanced Canadian Mortgage Charter, introduced in Budget 2024, which allows insured mortgage holders to switch lenders at renewal without undergoing another stress test. This change promotes competition among lenders and allows more Canadians with insured mortgages to secure better deals.

These reforms represent the most significant changes to mortgage regulations in decades and align with the federal government’s ambitious plan to create nearly 4 million new homes—Canada’s most extensive housing initiative ever—to support homeownership.

In tandem with efforts to improve mortgage affordability, the government is also taking strong measures to safeguard the rights of homebuyers and renters. As part of Budget 2024, the government has presented plans for a Renters’ Bill of Rights and a Home Buyers’ Bill of Rights. These proposals aim to protect renters from unfair practices, simplify lease agreements, enhance price transparency, and make the home-buying process more equitable. The government is collaborating with provinces and territories to implement these plans, utilizing $5 billion from the new Canada Housing Infrastructure Fund. This initiative includes calls for measures to prevent renovictions, ban blind bidding, standardize lease agreements, and ensure sales price history is accessible through title searches, all aimed at creating a fairer housing market across Canada.

Thinking about making a move? We can help you determine what the best strategy is for you and your family. Reach out to us today.

This salmon recipe is not only a simple, quick dinner (ready in 20 minutes!), but it’s a texture lover’s paradise. The salmon is roasted at a slightly lower temperature, resulting in tender, buttery fish. Quinoa is the base for our bowl, setting the stage for fresh arugula, thin slices of cucumber, and a homemade creamy dill and yogurt dressing. While a homemade dressing may seem like extra effort, trust us—it couldn’t be easier. It’s made in literal seconds in a food processor (if you have a mini food processor, even better!).

As long as you’re cooking some quinoa for this recipe, make a double (or triple!) batch, and you’ll find it’s super-handy to have on hand for easy, healthy lunches throughout the week. Tip: Our watermelon quinoa salad is unbeatable.

First, what is a balanced market anyway? This is when the supply of residential properties matches the level of demand from buyers. The two other types of housing markets are buyers and sellers: the former is when an enormous volume of units exceeds prospective homeowners, while the latter is when supply is far outpaced by demand.

Indeed, homeowners easily sold their homes above the asking price for the last couple of years. However, the Canadian real estate market has changed, so selling these homes has become more challenging.

Here are five tips for selling your home in a balanced market:

#1 Set a Competitive Price

Because active or new residential listings are now keeping up with the number of buyers, it is crucial to establish a price that lines up with current conditions. In addition, real estate experts contend that buyers may be a bit more fastidious when the broader housing sector is calm. As a result, it is essential to price your home correctly based on what the neighbourhood is doing and what agents recommend.

#2 Home Inspector

Before listing your home on the market, it is critical to hire a contractor or a home inspector and determine if there is anything wrong with the property, be it something that needs to be repaired or replaced.

During the pandemic-era boom, many buyers had ditched the idea of hiring a home inspector since it might have lost them the single-family house, attached property, or townhome. Today, it is a bit different, and even minor repairs might deter buyers from submitting an offer.

#3 Clear Your Things

When interested parties arrive at your home, they want to envision what their stuff will look like in the living room, bedroom, or kitchen. They do not want clutter to distract them from where they would potentially install their things. Therefore, as a rule of thumb, sellers need to clear at least 50 per cent of their furnishings, decorations, or items from each room. The more space, the better an idea visitors will have of how they will look in the new home.

#4 Add Incentives

While you do not need to go overboard in trying to strike a deal, you may need to add modest incentives to attract buyers. This could consist of new appliances, or a new television. The little things can ensure the home is sold faster and without complications or headaches. This might not be necessary for some regions of the national housing market, but it may be imperative in a part of the country with little sales volumes.

#5 Wait and See

In the previous boom, it was almost guaranteed that the listing would sell over the asking prices. Today, everything has been turned upside down, so you will know how much of the actual selling price you will receive once an agreement has been made. This can be difficult if you are in the market for a new home since you do not know how much equity you will possess. Because of this, you may need to wait a while until you can determine what you can afford.

Or course, working with the Barnett Real Estate team we are able to help guide you through the process, regardless of the market conditions.

Have you thought about buying a new home but are feeling discouraged by the fierce competition and out-of-control prices? If so, you’re not alone. Property values have soared all over the country, and the average cost is higher than ever. 

The Bank of Canada introduced a record low interest rate at the beginning of the pandemic to try to stimulate the economy. This added fuel to an already hot seller’s market. 

However, over the last month, there have been some changes. 

The great news is that it is a better time to buy now than it has been for at least two years. Are you thinking of taking the plunge? If so, these resources can help:

• The Best Burlington Condos for First Time Buyers
• First Time Home Buyer Grants in Ontario
• What You Need to Know Before You Buy Real Estate

The low interest rates were only a temporary solution. In 2022, we have already seen two increases. What will happen to the real estate market as the interest rates rise? No one knows for certain, but here’s what we have noticed so far:

More Listings Are Available

If you tried to buy a house three months ago, you would have faced fierce competition. There are far more people out there looking to buy than homeowners who are willing to sell. Even those who wanted to sell hesitated to put their house on the market for fear of not being able to find a new place. 

This competition resulted in many multiple offer scenarios and even triggered bidding wars. Buyers tried everything to find a suitable home, from dropping off letters around the neighbourhood to submitting bully offers on the few listings they could find.

Now, we’ve just entered the Spring market, and for the first time in years, more listings are available. The scales haven’t tipped completely. The market still favours sellers, but it is slightly less competitive. Not every house receives multiple offers, and the percentage of “sold over asking” has decreased. In rare cases, some homes don’t sell at all and are pulled off the market.

Will this trend continue? It’s impossible to say, but the market may become more balanced if there is another interest rate hike this June.

Why Do Interest Rates Affect the Market?

When interest rates are low, the cost of borrowing decreases. Low rates make it easier for some people to purchase houses that would otherwise be out of their budget. When you’re talking about a mortgage loan of hundreds of thousands of dollars, any change to the rate can affect your payments. 

As rates go up, the higher cost of borrowing will make it more difficult for some buyers to qualify for financing. Others might drop out of the market to ensure they don’t get in over their head financially. The current inflation rate and high cost of living may also make some potential buyers more reluctant.

Good And Bad News For Buyers

The good news is that with fewer people searching for properties, there is less competition for those still intending to buy. The bad news, at least for now, is that there doesn’t seem to be any sign of significant price drops. Many analysts predict that the out-of-control price increases will slow down, and buyers won’t have to bid as far above asking. 

However, the market will continue to favour sellers for the foreseeable future. You have a better chance of finding your ideal home now than you did even a few months ago, but you are likely to pay a premium price for it. 

Financing Options to Protect You From Rising Interest Rates

The Bank of Canada is expected to make another announcement about interest rates in early June, which is causing a bit of alarm in the market. However, there really is no cause for concern. The rates are still much lower today than they have been in decades. 

If you bought a house in the lower or middle of your budget, you have very little to worry about. You may need to readjust your budget to allow for a slight increase in your monthly payments. 

What if, like many people, you had to buy a home at the high end of your budget? You should talk to your financial advisor or accountant, but options are still available to keep your payments affordable. 

1. You may be able to keep your monthly payments the same. The bank will adjust the ratio of interest to the principal. It will take longer to pay off your loan, but you don’t have to worry about fluctuating monthly payments.
2. Leave room in your budget to allow for rising interest rates but pay off your mortgage faster.
3. If you are up for refinancing, choose a fixed rate to protect you from any future changes.

In addition to flexible payment options, the stress test is designed to ensure that you will not encounter financial difficulty even as interest rates rise. 

Find out more about the new rules for the stress test here. 

Homeownership is becoming more attainable thanks to more stringent regulations and the abundance of financing options, and the default rate for mortgages in Canada is extremely low. 

Are you a first-time buyer hoping to purchase a new home soon? Our “First-Time Home Buyer” webinar will guide you and answer your questions. Sign up for free here.

Selling a house on behalf of your parents can be challenging, both legally and emotionally. Involving them as much as possible will help them feel engaged and respected throughout the process. With or without legal authority, there are countless small ways that you can help your parents enjoy a smooth transition into the next phase of all of your lives. 

Organize All Documentation

Selling a house involves a lot of paperwork. First and foremost, you’ll have to prove that your parents own the home before you can list it on the market. Documents you will need include:

• Government-issued identification
• Mortgage information, if applicable
• Property Tax Receipts
• Land Surveys
• Transferable Warranty Documents

Once you have gathered all of the necessary documents, you’re ready to help your parents with the next steps. 

Before you sell a home, it’s essential to find out what it is worth in the current market. You can schedule a free home evaluation here.

Consult With a Lawyer

If your parents don’t want to or are unable to handle the legal aspects of the sale, it’s time to consult with a lawyer. You cannot sell a house on your parents’ behalf until they assign you Power of Attorney status (POA). What does this mean? Power of attorney is a legal document giving someone else authority to manage your personal affairs. 

Selling a house for someone with diminished capacity can get complicated if they did not assign a POA ahead of time. A person must be mentally capable at the time of signing. It can be a difficult conversation, but it’s vital to have a plan in place if your parents can no longer act in their own interests. The time to take care of this matter is while they are still young and healthy enough to make these decisions. 

There are Different Types of Power of Attorney

• Power of attorney in matters of health gives you the authority to make decisions on medical and personal care. This clause comes into effect if your parents ever lose the cognitive ability to care for themselves.
• Power of attorney for financial matters and property grants authority to manage money and property on behalf of another person. If your parents ever become unable to handle their affairs, you will need continuing power of attorney status that does not expire. 

One of the hardest things about moving is missing all of the fun things you used to enjoy. Want to know more about activities in the Milton and Burlington areas? You’ll find a few ideas here: 

• 5 Fun Fall Activities in Milton and Burlington
• The Best Places to See Magical Christmas Lights in Halton
• 5 Milton Parks to Visit This Spring

Helping With The Practical Details

If your parents still have the cognitive ability to understand the legalities of selling a home, helping them will be much easier. Only the legal owner can authorize the sale of the property, so ultimately, every decision will rest with your parents. However, you can support them emotionally and assist with all of the practical matters. 

Cleaning and decluttering 

Getting a house ready to sell can take a long time, especially if they have lived there for several years. You can help them sort through their belongings and decide what they no longer need. 

Performing minor repairs

A few small updates and repairs can go a long way to adding value to the sale of the house. If you’re handy, you can help by making these upgrades yourself or interviewing and vetting potential contractors.

Handling online research

Some older people are as tech-savvy as their grandchildren and can easily handle any online research or forms. Others are intimidated by computers, tablets and smartphones and will appreciate any help you can provide. You can guide your parents through virtual tours and by researching the steps involved in listing their house for sale.

Deciding on a real estate agent

A professional real estate agent is your ultimate resource when selling real estate. They will guide you step by step throughout the process and ensure your parents get the maximum value for their home. Helping your parents decide on a real estate agent is one of the best ways you can ease the workload of selling the house.

Finding their new home

Once your parents sell their house, you can sit down with them and review the pros and cons of buying a smaller house or renting an apartment.

Packing their belongings 

Packing for a move is time-consuming. Breakable dishes have to be wrapped one by one. Everything needs to fit into moving containers without making them too heavy to lift. Most importantly, it can be emotional for your parents to see their precious memories shoved into boxes. You can be there to support them and keep them excited about their new home.

Moving day. 

Moving into a new house is exciting, but it involves a lot of work and heavy lifting. The best thing you can do to help elderly parents is to find a professional moving service they can trust. 

Getting to know the neighbourhood

The first few days in a new place can bring mixed emotions. Overall, your parents may feel happy about the move but will still miss their old home. You can help them adjust by taking them to brunch in a nearby restaurant or on a sightseeing tour of their new neighbourhood.

Selling your parents’ house on their behalf can be one of the most challenging tasks you’ll ever undertake. One of the best things you can do is help them celebrate and make new memories in their new home.

Are you ready to sell? We have a Comprehensive Seller’s Guide you can download for free here.