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The Essential Guide to Investment Property Maintenance

Wed, 06 May 2026 15:50:58 GMT

What Maintenance Does an Investment Property Actually Need?

Owning a rental property doesn’t have to mean constant headaches, but it does require consistency.

The difference between a smooth, profitable investment and a stressful one usually comes down to maintenance. Not big renovations or emergency repairs, but the small, routine things that keep problems from showing up in the first place.

The best landlords aren’t just reacting to issues. They’re preventing them.

Monthly Maintenance: Small Checks, Big Impact

On a monthly basis, maintenance should be simple and quick. This is about catching early signs before they turn into expensive repairs.
Start with the basics. Check or replace furnace filters regularly, especially in higher-use properties like student rentals. Take a quick look under sinks and around toilets for any signs of leaks. Test smoke and carbon monoxide detectors on an annual basis, and ensure your tenants are NOT interfering with their operation.
It’s also worth keeping an eye out for subtle red flags—things like condensation, musty smells, or early signs of mould. If the property has common areas, make sure lighting is working, garbage is managed, and the space stays clean.
Most of this takes very little time, but it can prevent much bigger issues down the line.

Quarterly Maintenance: Where You Protect Your Investment

Every few months, it’s worth taking a more thorough look at the property.
Replace furnace filters at minimum, and test the sump pump to make sure it’s actually working—don’t assume it is. Check gutters and downspouts to ensure proper drainage, and inspect caulking around tubs, showers, and windows to prevent water damage.
Walk the exterior of the property and look for anything unusual—cracks in the foundation, grading issues, or signs of wear on siding and roofing. It’s also a good time to check dryer vents for lint buildup, which is both a fire risk and a performance issue.
These quarterly check-ins are often what separate well-performing properties from ones that slowly become expensive.

Seasonal Maintenance: Timing Matters in Ontario

In a market like Ontario, the seasons play a major role in how a property holds up.
In the spring, focus on cleaning up the yard, checking drainage after snow melt, and identifying any winter damage. Checking in on the eaves troughs to ensure lingering leaves from last season don't cause issues this year can save you from having to do it in the pouring rain as your eaves fail.
Summer is ideal for servicing air conditioning systems and taking care of exterior maintenance like decks, fencing, and paint.
Fall is one of the most important seasons for maintenance. This is the time to service the furnace, clean gutters thoroughly, and shut off exterior water lines to prevent freezing. And again, monitoring downspouts and grading is important to get you through some of those weird winter snow/rain/snow events.
In the winter, attention shifts to snow and ice management, as well as monitoring for issues like ice dams or poor ventilation.
Staying ahead of these seasonal changes goes a long way in avoiding costly repairs.

The Overlooked Side of Maintenance
Physical maintenance is only part of the equation. The operational side matters just as much.

Clear communication with tenants is key. When tenants feel comfortable reporting small issues early, those issues are much easier—and cheaper—to fix. Keeping simple records of maintenance, including photos and notes, can also help track patterns and protect you if problems arise later.

It’s also important to budget properly. A good rule of thumb is setting aside 5–10% of monthly rent for maintenance and repairs. And having reliable trades lined up before you need them can save time, money, and stress when something does come up. The longer you avoid spending money on repairs, the larger those expenses tend to be. Consider this reinvesting in your assets. Over time the returns are worth it.

The Bank of Canada maintains its interest rate policy to close out April

Thu, 30 Apr 2026 18:24:25 GMT

The Bank of Canada Maintains Its Interest Rate Policy to Close Out April

April 29, 2026

Despite rising oil prices and global trade friction, the Bank of Canada has once again chosen to keep its overnight policy interest rate at 2.25%. This decision is good news for those who feared the Bank would raise rates to combat recent oil-price-driven inflation, but it does lead to speculation about what comes next — and when.

To understand the Bank's thinking, here is a summary of its April 29, 2026 observations and outlook.

Canadian Economic Performance and Outlook

After contracting in the fourth quarter of 2025, growth is forecast to have resumed in early 2026.
Consumer and government spending are supporting economic activity, while tariffs and trade uncertainty are weighing on exports and business investment.
The Bank's April forecast projects GDP growth of 1.2% in 2026, rising to 1.6% in 2027 and 1.7% in 2028, as growth in exports and business investment resumes along "a lower trajectory."
The outlook for economic growth in Canada is little changed from the Bank's January Monetary Policy Report (MPR) projection.

Inflation

Global inflation, measured by the Consumer Price Index (CPI), climbed to 2.4% in March due to sharply higher gasoline prices.
The March increase follows several months of slowing inflation data.
Core inflation has been easing and held steady at just above 2% in the most recent inflation report.
The proportion of components that make up the "CPI basket" has also declined in recent months.

Canadian Housing and Employment

Housing activity declined in the fourth quarter and is being held back by slow population growth, economic uncertainty, and ongoing affordability issues.
The labour market is soft, with subdued employment growth over the past year and job losses in sectors targeted by US tariffs.
The unemployment rate remains in the 6.5% to 7% range, reflecting both weak hiring and fewer job seekers.

Global Economic Commentary

In the United States, growth is still expected to be solid over the Bank's projection horizon, boosted by AI-related investment and consumption growth.
China's economy is being supported by robust exports.
In the euro area, higher prices for oil and natural gas will weigh on economic activity.
Overall, the global economy is expected to grow by about 3% in 2026, 2027, and 2028.
The Bank's projections for inflation over the next year have been revised up because of the jump in energy prices.

Financial Conditions and Bond Yields

Financial conditions have been volatile, reflecting daily developments in the Middle East and shifting market expectations for inflation and interest rates.
Bond yields are modestly higher since January, while equity markets — which weakened sharply at the outset of the war — have recovered.
Since the start of the war, the US dollar has appreciated against most major currencies.
The Canada-US exchange rate has been relatively stable.

War in the Middle East and Shifting Trade Patterns

The Bank again made special mention of the evolving conflict in the Middle East, saying it is "causing heightened volatility." It further added that the Iran war has led to sharply higher energy prices and transportation disruptions, "diminishing growth prospects in oil-importing countries and boosting inflation worldwide."

It also noted that US trade policy continues to reshape global trade patterns. Both trade policy and the conflict in the Middle East are "ongoing sources of uncertainty."

The Bank's April outlook assumes tariffs remain unchanged and the global benchmark price of oil declines to US$75 per barrel by mid-2027.

Rationale for Today's Decision and Outlook

In commenting on its decision to hold its policy rate steady, the BoC made several key points:

With GDP growing slightly above potential, the current excess supply in the economy will be gradually absorbed.
While the war in Iran may alter its composition, overall GDP growth is little changed in the updated forecast. Since Canada is a large net exporter of oil, higher oil prices increase national income even as consumers are squeezed by higher gasoline prices.
As expected, so far there is "little evidence" that oil prices have fed through more broadly to goods and services prices — but this warrants close attention in the months ahead.
Near-term inflation expectations have moved up with higher gasoline prices and still-elevated food price inflation, but longer-term inflation expectations have remained "anchored."
CPI inflation will likely rise further in April to about 3%. Based on the assumption that oil prices will ease, inflation is forecast to come down to the 2% target early next year and remain around 2% over the projection horizon.

The Bank offered that "against this backdrop," and taking into account its current projection, it decided to maintain its policy rate at 2.25%. The Bank further stated:

"We are closely monitoring the impact of the conflict in the Middle East and how the economy is responding to US tariffs and trade policy uncertainty. The Bank's Governing Council is 'looking through' the war's immediate impact on inflation but will not let higher energy prices become persistent inflation. As the outlook evolves, we stand ready to respond as needed."

Next Up

The Bank is scheduled to make its next policy interest rate announcement on June 10th. First National's executive summary will follow. In the meantime, please visit the Resources page of this website for other important insights.

Canada’s Economy Is Barely Growing. What Does That Mean for Mortgage Rates?

Tue, 31 Mar 2026 20:42:38 GMT

WEAK GROWTH, RISING UNCERTAINTY, AND WHAT IT MEANS FOR INTEREST RATES

This morning, Canada’s GDP rose just 0.1% in January , beating the consensus forecast of zero growth but pointing to a fragile economy heading into the Iran oil shock.

Manufacturing was the weak spot, falling 1.4% as motor vehicle production collapsed 23.5%, the sector’s worst showing since September 2021.

The economy contracted 0.6% annualized in Q4 2025 , and first-quarter growth is tracking around 1.5%, well below the Bank of Canada’s forecast.

Weak growth strengthens the case for a rate cut on April 29 , but the Bank cannot move until the inflation picture from the oil shock becomes clearer.

A FRAGILE START TO THE YEAR

This morning, Statistics Canada reported that the economy grew 0.1 percent in January. That was slightly better than the consensus forecast of zero growth, but it paints a picture of an economy barely moving forward . D ecember’s revised gain of 0.2 percent already showed momentum fading.

Thi s is pre-war data. January’s numbers capture the economy before the U.S.–Israeli campaign against Iran disrupted energy markets in late February. As a result, the real question is not whether the economy was limping in January, but whether it can absorb the oil shock that followed.

An advance estimate from Statistics Canada suggests February GDP may have risen 0.2 percent. If that holds and March comes in flat, first-quarter growth would track around 1.5 percent annualized. That is a step up from the 0.6 percent contraction in Q4 2025, but still well below the Bank of Canada’s January forecast.

WHAT THE NUMBERS SHOW

Goods-producing industries carried the weight. That part of the economy, which makes up roughly one quarter of GDP, grew 0.2 percent for the second month in a row. Mining, quarrying, oil and gas extraction, and construction were the biggest contributors.

Construction expanded for the third consecutive month. However, manufacturing dragged the gains back. The sector fell 1.4 percent, erasing all of December’s progress.

The damage was concentrated in auto production. Motor vehicle and parts manufacturing posted its worst contraction since September 2021, falling 10.8 percent as seasonal winter shutdowns at auto plants extended into January. Motor vehicle production itself dropped 23.5 percent , holding back both output and exports.

Those auto stoppages also drove a 1.2 percent decline in wholesale trade. Beyond the auto disruption, U.S. tariffs on steel, aluminum, lumber, and copper products continue to weigh on Canadian manufacturing broadly.

Services, the largest part of the economy, stalled . Wholesale trade, transportation, and real estate all shrank, while retail, finance, and educational services posted gains that were not enough to move the needle. In total, only nine of 20 industrial sectors recorded growth in January.

WHAT THIS MEANS FOR CANADIAN MORTGAGE RATES
Weak GD P is normally the clearest signal that rate cuts are coming. The Bank of Canada’s overnight rate sits at 2.25 percent, and it has held there for three consecutive meetings. Governor Macklem has already described the growth outlook as tilted to the downside.

This GDP report reinforces that view. An economy that grew just 0.1 percent in January, coming off a contraction in Q4, is not one that needs higher rates. In fact, by any traditional reading, it needs lower ones .

But the Bank remains stuck. The Iran war has pushed Brent crude well past US$100, and the March inflation print, due April 20, will almost certainly reflect that surge. Until the Bank can see whether the energy shock is temporary or broadening into core prices, it cannot cut and variable rates stay where they are.

BOTTOM LINE

Today’s GDP data tells us the economy was fragile before the war even started. Manufacturing is being hollowed out by tariffs, services have stalled, and only the resource sector is pulling its weight. That is not a foundation that absorbs an oil shock well.

For mortgage holders, the math is straightforward but frustrating. Growth is weak enough to justify rate cuts, yet inflation is too uncertain to allow them. The next decision point is April 29 , when the Bank releases its Monetary Policy Report.

Between now and then, two data points will shape the outcome. The March CPI print on April 20 will show how much the oil shock has fed into prices. The April 8 labour force survey will reveal whether the economy is still creating jobs or starting to shed them.

If inflation stays contained and the labour market softens further, an April cut is on the table. If energy costs have pushed core prices higher, the Bank will hold again. Either way, the GDP data released this week makes one thing clear: the economy is not strong enough to carry higher rates for much longer .

Why It Matters Who Handles Your Mortgage — A Real-Life Reminder

Mon, 05 Jan 2026 16:25:00 GMT

Every so often, something happens in the mortgage world that reinforces an important truth:

your mortgage experience depends enormously on the expertise of the person guiding you.

A young couple we had pre-approved earlier this year recently had an experience that highlighted this in a very real way. Their story isn’t stressful or dramatic — it’s simply a helpful reminder of why choosing the right support can make your home-buying journey smoother.

HOW A SIMPLE FHSA WITHDRAWAL TURNED INTO A BIGGER CONVERSATION

When the couple stopped by their local bank branch to withdraw funds from their First Home Savings Account (FHSA), the branch adviser kindly offered to help with their mortgage as well. It’s a very common scenario — you’re already in the branch, someone offers assistance, and it feels convenient.

They explored rates at another bank too, but our promo was still the best option available to them.

Everything seemed on track.

WHEN A STRONG FILE DOESN’T GET THE GREEN LIGHT

After the branch adviser submitted their mortgage application, it ended up being declined. He even escalated it internally, but the result didn’t change.

When the clients reached out to us afterward, they were understandably confused — and honestly, so were we. Their file was strong: solid income, clean credit, and manageable debt ratios.

The issue came down to how their income was interpreted.

Like many Canadians, their pay structure wasn’t perfectly straightforward. But with their T4s and employment documentation, there were clear ways to present their income that aligned with lender guidelines. In our initial review, everything checked out.

WHY WE COULDN’T STEP IN TO FIX THE DECLINE

We contacted the bank to ask whether we could re-submit the file, properly packaged, with a clear explanation of their income. Unfortunately, the bank’s internal policy doesn’t allow a second submission once a file has already been escalated and declined through the branch.

It wasn’t anyone’s fault — just a matter of process.

And while the outcome wasn’t ideal, it highlighted something important:

branch advisers and mortgage specialists often work with the same lenders, but they don’t always approach files in the same way.

A HELPFUL REMINDER FOR FUTURE BUYERS

This story isn’t about pointing fingers or suggesting one institution is better than another. In fact, many branch advisers are wonderful, thoughtful professionals.

The difference comes down to focus.

A branch adviser handles many financial products and client needs.
A mortgage specialist or broker works exclusively with mortgages — all day, every day.

That specialization can make a meaningful difference when it comes to interpreting income, matching you with the right lender, and positioning your application correctly the first time.

THE TAKEAWAY

Buying a home involves many moving parts, and your mortgage is one of the biggest ones. Choosing someone who specializes in this area helps ensure your file is packaged properly, your income is understood, and your options stay open.

Before handing your mortgage to whichever adviser happens to be available at the branch, it’s worth asking:

Do they work primarily with mortgages?
Are they familiar with income structures like mine?
Do they know how to navigate lender policies and guidelines?

The right expertise can make a good experience even better — and ensure you’re set up for success from Day 1.

If you ever have questions about how mortgage approvals work, how income is assessed, or what steps come next, our team is always happy to walk through it with you. Buying a home should feel exciting and empowering, and we’re here to help make that happen.

First Time Home Buyer Programs in Canada

Thu, 02 Oct 2025 20:28:59 GMT

What Qualifies as a first-time homebuyer in Canada? The answer: It depends

Here's a breakdown of Canada’s first time home buyer (FTHB) programs

To start, each program defines a first time home buyer in a different way, which can make things confusing to some clients.

Here are the three major programs Canadians most often utilize: The Ontario Land Transfer Tax Rebate; The RRSP Home Buyers’ Plan (HBP); The First Home Savings Account (FHSA).

Ontario land transfer tax rebate

If you’re buying property in Ontario, the land transfer tax (LTT) rebate is available. It can save you up to $4,000 on the provincial land transfer tax, plus up to another $4,475 on the Toronto municipal land transfer tax if you’re buying in Toronto. The LTT rebate has strict guidelines in order to qualify:

-You must be at least 18 years old

-You must have never owned a home or any interest in a home anywhere in the world

-You must live in the home as your principal residence within nine months of the purchase

-Your spouse or common-law partner must also never have owned a home while you’ve been together

-residency restrictions also apply

RRSP Home Buyers’ Plan

The HBP allows qualified FTHB to use up to $60K in RRSP savings to help with a down payment. To qualify:

-You must not have lived in a home that you (or your spouse/common-law partner) owned in the current year or the four preceding calendar years

-You need a signed agreement to buy or build a qualifying home

-You must intend to make that home your principal residence within one year

-You must be a resident of Canada at the time of the withdrawal and when you buy the home

First Home Savings Account

To open and use an FHSA:

-You must be between 18 and 71 years old and a Canadian resident

-You must not have owned or jointly owned, or lived in, a qualifying home in the calendar year before you open the FHSA or during the previous four calendar years. *This rule also considers property owned by your spouse or common-law partner that you lived in

Does being a first-time buyer impact your mortgage?

For a High Ratio/ Insured mortgage, being a FTHB can provide additional options:

-Previous home owner buyers are eligible for a 30-year amortization with mortgage insurance only when purchasing newly built homes.

-First-time homebuyers are eligible regardless of whether they are buying a new or resale home.

Educating first time home buyers is our job. Supporting your home ownership journey from beginning to end is our purpose. We don't just help you buy it - we help you own it.

Reach out to see what we can do for you!

Unlocking Savings: Canadian Programs for First-Time Buyers, Renovations & Accessibility

Tue, 26 Aug 2025 18:23:25 GMT

First-Time Home Buyer Programs

1. First-Time Home Buyers' Tax Credit (HBTC)

Amount : Up to $750
Eligibility : Must be a first-time home buyer and have purchased a qualifying home.
Claim : Non-refundable tax credit, reducing tax payable.

2. Home Buyers' Plan (HBP)

Amount : Withdraw up to $60,000 from your RRSP (or $70,000 for couples) to buy or build a qualifying home.
Repayment : Must be repaid within 15 years.
Eligibility : Funds must be in the RRSP for at least 90 days before withdrawal. 3. First Home Savings Account (FHSA)
Contribution Limit : Up to $8,000 per year, with a lifetime limit of $40,000.
Tax Benefits : Contributions are tax-deductible, and withdrawals for a qualifying home purchase are tax-free.
Eligibility : Must be a first-time home buyer.

4. Land Transfer Tax Refund

Amount : Up to $4,000 for first-time home buyers.
Toronto Residents : Eligible for an additional rebate of up to $4,475, totalling up to $8,475 in rebates.
Eligibility : Must be a first-time home buyer and occupy the home as your principal residence.

5. GST/HST New Housing Rebate

Amount : Rebate of part of the GST or HST paid on a new or substantially renovated home.
Eligibility : Must be the purchaser and occupy the home as your primary place of residence.

Homeowner Renovation & Energy Efficiency Programs

1. Home Renovation Savings Program

Rebates : Up to 30% of costs for upgrades like windows, insulation, and heat pumps.
Eligibility : Available to homeowners in Ontario.
Administered by : Save on Energy and Enbridge Gas, supported by the Ontario government.

2. Home Efficiency Rebate Plus (HER+)

Rebates : Up to $5,000 for energy-efficient upgrades such as insulation, air sealing, and heat pumps.
Eligibility : Must be an Enbridge Gas customer and complete at least two eligible upgrades.
Note : Program intake has ended; however, homeowners who have already begun the process can still claim rebates by completing their projects.

3. Canada Greener Homes Grant

Grants : Up to $5,000 for energy-efficient upgrades.
Eligibility : Homeowners must complete a pre- and post-retrofit energy assessment.
Note : Program intake has ended; however, homeowners who have already begun the process can still claim rebates by completing their projects.

4. Ontario Renovates Program

Assistance : Financial aid for low-income homeowners for essential repairs, including accessibility modifications and energy-efficient upgrades.
Eligibility : Income-tested; available to eligible homeowners in Ontario.

5. Save on Energy Rebates

Incentives : Rebates for energy-efficient appliances and HVAC systems.
Eligibility : Available to homeowners in Ontario.
Note : Rebate amounts vary based on the type of upgrade.

Accessibility & Multigenerational Living Tax Credits

1. Home Accessibility Tax Credit (HATC)

Amount : Up to $3,000 for qualifying home renovations that improve accessibility or reduce the risk of harm.
Eligibility : Available to homeowners aged 65 and older, or those eligible for the Disability Tax Credit.

2. Multigenerational Home Renovation Tax Credit (MHRTC)

Credit : 15% of qualifying renovation expenses, up to $7,500.
Eligibility : Renovations must create a secondary unit for a senior or an adult with a disability to live with a qualifying relative.

Additional Considerations

Extended Mortgage Amortization : As of December 15, 2024, the Canadian government has extended mortgage amortization periods to 30 years for first-time homebuyers and purchasers of newly built homes.
Increased Insured Mortgage Cap : The cap for insured mortgages has been raised from $1 million to $1.5 million, allowing more buyers to qualify for mortgage insurance with a minimum down payment of 5%.

For personalized advice and to determine eligibility for these programs, consider reaching out for more information.

Economic Update, Mid-2025

Tue, 19 Aug 2025 17:26:45 GMT

As of mid-2025, the worst of the tariff turbulence looks to be in the rearview mirror, and Canada’s economy appears to be charting a slow, cautious course forward. This keeps future rate cuts on the table, but only if warranted by clear evidence of further weakness. The Canadian job market is gradually regaining its footing after the tariff-induced jolt earlier this year. This tentative stabilization, coupled with cooling inflation, has bought the Bank of Canada time to hold interest rates steady. While global issues from the U.S.-induced trade war persist, the current outlook is for moderate growth and steady rates for the time being.

Quick Takes:

Canada’s labour market is soft but stabilizing, with July job losses offset by a steady 6.9 percent unemployment rate and limited new damage in trade-exposed sectors, suggesting the tariff shock is largely behind us.
Inflation has eased toward 2 percent while growth is mixed, so the Bank of Canada is holding at 2.75 percent, and mortgage rates are likely to remain broadly stable for now.
Key watch points are core inflation, employment, and U.S. policy, since a clear domestic slowdown could reopen the door to cuts while a firm U.S. economy and a cautious Fed limit how far Canadian yields can fall.

First National Financial LP - Capital Markets Update - Aug 15 2025

Canada’s job market has been on a rollercoaster in 2025 because of trade uncertainty and tariffs. After a brief steady patch in late 2024 and early 2025, unemployment began edging up again, especially in trade-sensitive industries. The latest July employment report reflects this volatility: Canada shed 41,000 jobs in July, erasing roughly half of June’s outsized gain (+83,000), yet the unemployment rate held at 6.9% (just below May’s 7.0%). In other words, July’s job losses were significant but not enough to push unemployment higher, thanks in part to some workers leaving the labour force. Indeed, Statistics Canada noted the uptick in unemployment over the past year has been driven more by longer job searches and new entrants struggling to find work, rather than mass layoffs.

Encouragingly, July’s pullback in employment was not concentrated in export-driven sectors as one might expect from tariff impacts. The manufacturing and trade sector employment was largely unchanged on the month (with transportation and warehousing even adding 26,000 jobs). Instead, the declines came from areas like information, culture, and recreation (-29k) and construction (-22k), as well as a notable drop in summer youth employment. Overall, Canada’s labour market remains softer than usual, but recent data hints at stabilization. The July labour market data is showing that tariff-related suggests that tariff-related damages may already be behind us, with leading indicators like business sentiment and job postings starting to stabilize over the summer after a pronounced cooling in the spring. In plain terms, the worst shock to hiring from the tariff turmoil may be behind us.

That said, conditions vary widely across sectors and regions. Tariff anxiety has undeniably dampened hiring plans broadly, and actual job losses remain concentrated in industries tied to cross-border trade. Manufacturing employment, for example, is down compared to a year ago, with Ontario accounting for over 60% of the past year’s increase in unemployment as factories shed jobs. Southwestern Ontario cities like Windsor have seen jobless rates spike into the double-digits amid the auto sector slowdown. In contrast, areas less exposed to U.S. trade, including parts of Atlantic Canada and the Prairies, have shown resilience or even declining unemployment. These fault lines underscore that while the national labour market may be stabilizing in aggregate, regional disparities remain significant. Importantly, permanent layoffs nationally have not spiked; rather, it’s taking longer for displaced workers to find new jobs, reflecting a slower churn in hiring. This “softening but not collapsing” theme echoes the view that trade disruptions are a headwind, yet likely to be “contained,” with the unemployment rate peaking at levels slightly above 7.0%”.

Tariffs, Growth, and Inflation: Mixed Economic Signals

The tariff backdrop that emerged from late 2024 into 2025 weighed on Canada’s economic momentum. Uncertainty around U.S. trade policy prompted businesses to pull back, especially in export-focused sectors. After strong GDP growth in Q1 2025 (when exporters front-loaded shipments to get ahead of anticipated tariffs), the economy likely contracted about 1.5% in Q2 as that temporary export surge reversed. The Bank of Canada noted that U.S. tariffs have disrupted trade flows; a sharp drop in exports and softer U.S. demand for Canadian goods contributed to the second-quarter downturn. Heightened uncertainty also restrained business investment and household spending in recent months. In short, the tariff shock acted like a flash freeze on portions of the economy in the spring.

Yet outside of trade-heavy sectors, Canada’s domestic economy has shown pockets of resilience. Consumer-facing industries saw modest growth earlier this year, and housing activity has started to stabilize after a prolonged slowdown. As tariffs took effect, Canadian firms and consumers proved reasonably adaptable: global financial conditions improved modestly (equity markets rose, credit spreads narrowed) and longer-term bond yields ticked up on signs that worst-case economic scenarios were being avoided. For Canada, this means fixed mortgage rates have not fallen much despite the Bank of Canada’s rate cuts earlier in the year; bond markets are pricing in a relatively resilient outlook. The BoC’s July Monetary Policy Report opted not to issue a single GDP forecast but instead mapped out scenarios. In its “current tariff scenario” (reflecting tariffs in place as of July), the Bank projects a return to modest GDP growth (1% annualized) in the second half of 2025 as exports stabilize and consumer spending gradually picks up. Economic slack is expected to persist into 2026, keeping growth below potential for some time, but not spiralling into a severe recession.

Inflation dynamics in Canada have improved even amid the trade turmoil. Headline CPI inflation was 1.9% in June, essentially back within the Bank’s 2% target range. Easing price pressures, particularly as earlier interest rate hikes cooled domestic demand and housing costs, has offset some tariff-driven cost increases. The Bank estimates underlying inflation (excluding volatile components and adjusted for tax changes) is about 2.5%, a bit above target but trending down. Tariffs are exerting some upward pressure on prices, especially for affected goods; but weaker economic conditions are counterbalancing this. In fact, under the Bank’s main tariff scenario, these opposing forces roughly cancel out, keeping Canadian inflation near 2% through the forecast horizon.

Put simply, softer demand is helping to contain domestic inflation even as import costs rise. This outcome differs from the U.S., where tariffs cover a much broader swath of imports and are starting to nudge consumer prices higher. (Notably, over 75% of U.S. imports face tariffs of at least 10%, compared to less than 10% of Canadian imports, thanks to exemptions under USMCA rules.) Thus, Canada’s inflation outlook is a bit more benign than America’s, giving the Bank of Canada slightly more breathing room on policy.

Nonetheless, the tariff cloud is far from cleared. The BoC warns that tariffs are now a “permanent fixture” in the outlook, likely dampening investment and productivity beyond the immediate cycle. Businesses face ongoing costs to reconfigure supply chains and diversify markets, which could still filter through to consumer prices over time. The central bank also modeled alternative scenarios: a de-escalation in trade tensions (average U.S. tariff falling to 10%) would spur a quicker economic rebound for Canada but also pull inflation slightly below target, whereas an escalation (average tariff jumping to 28%) could push Canada into a prolonged recession through early 2026 while lifting inflation above 2.5%. This worst-case “stagflation” scenario underscores why policymakers remain cautious. For now, though, tariffs in place have been “less severe than feared” and largely targeted in scope, leaving the majority of Canadian exports to the U.S. still duty-free under trade agreements. So long as a broader trade war doesn’t materialize, Canada’s economy should manage a slow-growth trajectory with contained inflation.

Bank of Canada Outlook: On Hold, But Watching Closely

In response to this data, the Bank of Canada has adopted a patient, data-dependent stance. After aggressively tightening policy in 2022-2023 to combat high inflation, the Bank pivoted to easing in late 2024 and through early 2025 delivered a total of 7 rate cuts (a cumulative 2.25 percentage points of reduction) as growth faltered. By March 2025, the overnight rate was brought down to 2.75%, where it has remained since. At its most recent decision (July 30, 2025), the BoC held the policy rate at 2.75% for a third consecutive meeting, opting to assess incoming data before considering any further moves. The tone was notably cautious yet balanced. On one hand, officials acknowledged that Canadian growth has softened since the start of the year, and that excess supply (economic slack) is increasing – classic arguments for easier policy.

On the other hand, they pointed out that the economy has proven more resilient than worst-case scenarios envisioned in the spring, and inflation isn’t falling much below target either. A few recent inflation readings surprised slightly to the upside, giving the Bank reason to pause on additional stimulus. The Governing Council also noted that some of the heavy lifting is being done by fiscal policy (e.g., targeted government support for trade-impacted sectors), reducing pressure on monetary policy to respond.

From a mortgage market perspective, this likely translates into a period of relative stability in interest rates. The BoC’s earlier cuts are still working their way through the system. With mortgage rates having only stabilized at levels near or above those of 2020–21 originations, the stimulus effect has been modest. For households and borrowers, it feels less like a return to ultra-cheap credit and more like a slight easing off the brake pedal. Fixed mortgage rates, influenced by bond yields, remain elevated by historical standards. Indeed, the recent resilience in the economy has seen longer-term bond yields firm up, rather than fall, in anticipation that no immediate rate relief is needed. Barring a negative surprise, variable mortgage rates linked to the overnight rate should hold steady as well. Lenders and mortgage professionals can thus expect the cost of borrowing to hover around current levels in the coming months. Any shifts will hinge on incoming evidence: a decisive slide in growth or inflation would tilt the Bank toward a cut, whereas signs of re-accelerating inflation (or a robust rebound in jobs) could delay easing further.

On the Radar: CREA Slashes 2025 Sales Forecast as Housing Recovery Stalls

Fri, 25 Jul 2025 17:26:02 GMT

Canada’s housing market just got a wake-up call. This week, the Canadian Real Estate Association (CREA) revised its 2025 outlook, forecasting 469,503 home sales—a 3% drop from 2024. That’s a sharp turnaround from the 8% growth they projected in January, and even April’s flat forecast. Behind the shift? High mortgage rates, trade risks, and stubborn inflation—all putting the brakes on buyer demand.

Let’s break down what’s happening and what it means for investors and buyers watching the market.

Key Highlights:

CREA now expects 469,503 home sales in 2025 , down 3% from last year.
The five-year Government of Canada bond yield remains above 3% , keeping mortgage rates high.
June inflation came in at 1.9% , not low enough to trigger another rate cut.
Until core inflation dips and yields fall , mortgage stress tests will continue capping buying power and delaying a full recovery.

GTA Data Paints a Stark Picture

The slowdown is especially visible in major markets like Toronto. According to Urbanation’s Q2-2025 condo market report:

Only 502 new condo units sold , down 69% from last year and a staggering 91% below the 10-year average.
Unsold inventory hit a record high with 2,478 move-in ready units—roughly five years of supply.
Average asking prices dropped 6% year-over-year to $1,212 per square foot.

Nationally, activity is sluggish. Sales rose a modest 2.8% from May and 3.5% from last June, but CREA now expects the average home price to fall 1.7% to roughly $677,000 —about $10,000 lower than its April forecast.

Bond Yields and Mortgage Pressure

The Bank of Canada paused its rate-cut cycle after its June move, holding the overnight rate at 2.75%. With core inflation still near 3% and new U.S. trade threats emerging, the odds of another cut at the July 30 meeting are low—under 6%, according to market pricing.

This matters because fixed mortgage rates follow bond yields . And those remain elevated. Until we see the 5-year bond yield dip below 3% , mortgage costs will stay firm. Worse, the federal stress test still requires borrowers to qualify at 2% above their actual rate , meaning every 25 basis point rise cuts buying power by roughly 3%.

Tariff Shock Adds to Uncertainty

External shocks aren’t helping. On July 10, former U.S. President Donald Trump announced a 35% tariff on Canadian goods , effective August 1. The move rattled markets and pushed up yields further, as investors demand a premium for long-term risk exposure tied to trade uncertainty.

These trade tensions only reinforce a broader theme: rate relief is on hold until inflation and geopolitical risks cool off .

What History Tells Us

This isn’t the first time housing has paused while waiting for a break on rates.

In 2008–09 , the Bank of Canada cut rates by 425 basis points during the global financial crisis. Mortgage rates dropped and sales rebounded within a year.
In 2015 , after an oil shock, two rate cuts helped stabilize the market.
But in 2022 , surging inflation led to aggressive tightening—raising rates from 0.25% to 4.25% in ten months. The result? 2023 sales plunged nearly 20%.

The lesson: Real estate is highly rate-sensitive. When inflation is under control, the Bank can step in to boost demand. But until that day comes, today’s high rates, stress tests, and global risks will keep the recovery in check.

Bottom Line

CREA’s downgrade confirms what many in the industry have been feeling on the ground: buyers are hesitant, inventory is stacking up, and affordability is still under pressure .

If you’re a buyer, seller, or investor, the key takeaway is this: watch inflation and bond yields closely . A shift in either could kick-start a turnaround—but until then, we’re in a holding pattern.

Want to talk strategy? Whether you're thinking of investing, buying, or just staying informed, let’s connect and make a plan that works in today's market.

Expert opinions on Bank of Canada interest rate cuts are shifting.

Fri, 04 Jul 2025 14:01:18 GMT

A growing number of market watchers are backing away from their predictions of two more reductions this year. Several are now saying the Bank has likely reached the end of the current trimming cycle.

The central bank held its trend-setting Policy Rate at 2.75% for a second time in its decision on June 4. Since then, inflation numbers and Gross Domestic Product readings have given the BoC reasonable grounds to stand pat.

Statistics Canada’s latest figures for GDP show it declined by 0.1% in April compared to March. Much of that decline was led by the manufacturing sector, which is falling victim to U.S. tariffs and trade uncertainty. A similar reduction is forecast for May. While many economists admit the slowdown shows the economy is softening, they say it is not on the verge of collapse. GDP is 1.3% higher that it was a year earlier.

The other key factor in the Bank’s rate decisions, inflation, held steady at 1.7% in May. That headline number is actually below the Bank’s target of 2.0% and would normally suggest there is room for a further rate cut. However, that is a little deceiving.

Headline inflation (aka the Consumer Price Index) continued to be skewed by the elimination of the consumer carbon tax. As well, core inflation, which is the BoC’s preferred measure, remains stuck at 3.0%, which is the high end of the Bank’s desired inflation range.

The Bank finds itself trying to balance economic growth against the risk of rising inflation. The Bank’s next interest rate announcement is set for July 30.

Will the Bank of Canada cut rates?

Mon, 02 Jun 2025 17:06:22 GMT

Will the Bank of Canada cut rates?

Core inflation is still above the two-percent target, so the Bank of Canada remains cautious even as headline prices fall.

GDP growth and hiring have stalled, raising pressure for rate relief.

Most economists now lean slightly toward no change; a Bloomberg survey shows that 17 of 30 expect a hold, compared to 13 who expect a cut.

Why did the Bank pause in April?

Headline inflation kept sliding, yet core prices stayed above the two-percent target and even firmed early in 2025. New U.S. tariffs lifted input costs and inflation expectations, so another rate cut would risk stoking demand just as supply shocks were pushing prices higher. Governor Tiff Macklem said the Bank must prevent tariff-related price spikes from becoming embedded. The Governing Council, therefore, held the overnight rate at 2.75 percent to reaffirm its commitment to price stability even as growth lost momentum.

Trade uncertainty reinforced caution. The April Monetary Policy Report outlined two stark paths: limited tariffs with near-trend growth, or a prolonged trade war that could tip Canada into recession and push inflation above three percent. With outcomes ranging from mild slowdown to stagflation, the Council paused to gather more precise data and keep its options open. Future moves will hinge on how growth, inflation, and tariff risks evolve.

Inflation trends: Headline vs. core CPI

Canadian inflation now presents policymakers with a mixed picture. Headline CPI fell to 1.7 percent year-over-year in April from 2.3 percent in March, dropping below the two-percent target for the first time in more than two years. Three forces explain the decline. Ottawa scrapped its consumer carbon tax on April 1, 2025, immediately shaving several tenths off the index. Energy helped too: gasoline is about 18 percent cheaper than a year ago, and natural gas prices are 14 percent lower. Finally, food inflation eased as global commodity prices retreated. The Bank expected headline CPI to be near 1.5 percent for the second quarter, so the April reading was no surprise, but it does give households welcome relief.

Core inflation, however, refuses to cooperate. Measures that strip out volatile and one-off items remain above target and are edging higher. CPI-Median climbed from 2.8 percent to 3.2 percent in April, its strongest reading since March 2024, while CPI-Trim reached 3.1 percent. These broad price pressures show domestic costs—wages, services, shelter—are still firm even as headline inflation slows. Core has hovered near three percent for six months, underscoring sticky underlying momentum.

The Bank is therefore threading the needle—acknowledging that headline inflation is temporarily low while guarding against a re-acceleration driven by tariffs and expectations. Governor Macklem says tariff-related price spikes cannot be allowed to become embedded. Until core measures convincingly cool toward two percent, policymakers will keep additional easing on a short leash.

GDP growth and employment: A slowing economy

Canada’s late-2024 rebound has cooled. Real GDP fell by 0.2 percent in February—the first monthly decline since November—as mining, energy, and construction weakened. Some output was pulled forward in January when manufacturers rushed orders ahead of looming U.S. tariffs, then pared back. First-quarter GDP still grew 0.40 percent quarter-over-quarter, about 1.5 percent annualized, but consumer spending, business investment, and exports slowed. New U.S. duties on steel, aluminum, and autos are already cutting foreign sales, and the Bank of Canada warns a broader trade war could tip the economy into recession.

Labour data echo the slowdown. Canada lost 33,000 jobs in March and gained only 7,400 in April, lifting the unemployment rate to 6.9 percent—an eight-year high outside the pandemic. Manufacturing alone cut 31,000 positions in April as U.S. orders dried up; retail and wholesale trade also fell. The number of unemployed workers rose by 39,000 in April and is almost 14 percent higher year-over-year, while 61 percent of those jobless in March were still searching a month later. Wage growth for permanent employees is 3.4 percent, only marginally above inflation, pointing to slack rather than overheating.

BoC commentary: Caution amid uncertainty

Governor Macklem says tariff turmoil forces the Bank to “change the way it conducts policy to become less forward-looking than normal.” Guessing wrong could “make matters worse,” so policy will rely on incoming data and “set policy that minimizes the risk.” Each meeting is live: if conditions “crystallize,” officials may “act quickly,” cutting for a severe downturn or holding if inflation heats up. Nothing is pre-committed.

The two-percent inflation target is non-negotiable. Macklem insists there is “no doubt” about that mandate. April’s statement pledged to keep Canadians’ “confidence in price stability” while supporting growth. Risks run both ways—tariffs can sap exports yet lift consumer prices—so policy must strike a balance.

Monetary policy cannot erase trade uncertainty, but it can steady demand. April’s pause showed the Bank will not slash rates simply because growth softens if price pressures linger. Forward guidance stresses vigilance and readiness to “proceed carefully” as each new data point arrives.

Market expectations for June 4th: A close call

Momentum shifted on May 20th. Core inflation above three percent trimmed the implied June-cut probability to roughly 40 percent. Most economists now lean slightly toward no change; a Bloomberg survey shows 17 of 30 expect a hold. A 90-day U.S. tariff delay announced in April reduced near-term risk.

Beyond June, investors broadly assume more easing. The two-year yield of around 2.60 percent already sits below the 2.75 percent overnight rate, signaling future cuts. Markets and economists alike expect the policy rate to end 2025 in the low-two-percent range, but whether the next move comes in June, July, or later depends on how growth and inflation change.

Canada’s Rental Crunch: More Than Just a Supply Issue

Wed, 28 May 2025 12:31:45 GMT

Why 2.2 million non-permanent residents changed the housing landscape

Between 2015 and 2024, Canada welcomed over 2.2 million non-permanent residents—a staggering increase compared to the 358,000 who arrived in the previous decade. This demographic shift hasn’t just made headlines; it’s reshaping the housing market in ways we’re still struggling to keep up with.

So what happened?

The short answer: demand exploded, but supply didn’t.

Canada’s rental stock hasn’t grown at the pace needed to accommodate this wave of newcomers. Purpose-built rental construction has lagged for decades, leaving a significant gap in available housing. With vacancy rates at historic lows and affordability stretched thin, pressure built fast.

Investors filled the gap—but not for the reason you think.

Contrary to the narrative that investors swooped in for quick profit, many entered the market to respond to a clear and growing need. People needed places to live—millions of them—and there simply weren’t enough purpose-built rentals to go around.

The result? Investors turned homes into rental units. Not because of speculation, but because the system wasn't delivering enough housing options. In effect, private landlords became the de facto rental supply chain.

The real issue: 2 million new renters, and nowhere to go.

This isn’t just a market problem—it’s a structural one. When you add 2 million new renters in less than a decade without building the infrastructure to support them, affordability suffers, competition spikes, and households are forced to compromise on space, location, or cost.

We’re seeing the impact in real time:

Rent prices surging in major cities
More families sharing homes
First-time buyers pushed further out
Immigrants and young adults stuck in limbo

What’s next?

Solving this crisis requires more than blaming speculators or tightening policies. We need a serious commitment to building rental housing at scale—and we need to treat rental demand as a permanent, growing part of our national housing strategy. We need to add more supply - that meets the current demand - but that is an important distinction. In order to meet the demand, we don't need more 1 and 2 bedroom condos. We need units with 3+ bedrooms, parking for 2 cars and higher density student housing closer to campus and transit.

Affordability Tops the Agenda as New Government Takes Office

Thu, 08 May 2025 21:16:18 GMT

With the federal election behind us, Canadians are looking ahead, eager to see campaign promises turn into action. And while debates over trade and international relations took up headlines, polls show that affordability remains the top concern for most voters.

Affordability: A National Priority A recent Ipsos poll found that 38% of Canadians rank affordability and the cost of living as their top issue, surpassing those concerned with the U.S.-Canada relationship (23%). The divide becomes more pronounced across age groups: 43% of voters aged 55+ cited U.S. relations as their priority, compared to only 18% of those aged 18–34. Among younger Canadians, the dream of homeownership remains strong, but many feel it’s increasingly out of reach.

Campaign Promises and the Housing Challenge

All major political parties pledged to address housing affordability. Both the Liberal and Conservative platforms proposed similar solutions: removing GST on new home builds and ramping up construction to increase supply.

However, the federal government has limited control over housing development. Zoning and approval processes fall under provincial and municipal jurisdictions, where regulatory red tape often slows progress. With housing starts projected to decline, supply will likely tighten further, driving prices even higher.

The Mortgage Stress Test: A Key Policy Pressure Point

One specific federal policy under scrutiny is the mortgage stress test. Many in the mortgage and real estate industry are urging the government to relax or eliminate it. For younger and first-time buyers, easing this restriction could mean the difference between renting indefinitely and finally owning a home.

Looking Ahead

As the new government begins its term, Canadians will be watching closely to see whether housing affordability receives the attention it deserves. With economic pressures mounting and homeownership slipping further away for many, decisive action will be crucial.

Exploring Old University: Guelph's Timeless Gem

Wed, 07 May 2025 13:35:25 GMT

Tucked away in the heart of Guelph lies the charming and historic Old University neighbourhood. As one of the city's most coveted areas, it’s a blend of rich history, vibrant community life, and picturesque surroundings that draws residents and visitors alike.

A Step Back in Time

True to its name, Old University boasts a storied past linked to its proximity to the University of Guelph. This neighbourhood grew alongside the institution, and its history is reflected in its beautiful heritage homes. Tree-lined streets are adorned with houses ranging from century-old architectural gems to more contemporary styles, giving the area a unique aesthetic that balances old-world charm with modern living.

A Haven for Nature Enthusiasts

For those who crave outdoor adventures, Old University delivers. With the scenic Speed River winding through the area and its proximity to the University Arboretum, nature lovers have ample opportunities to explore. Whether it’s a leisurely stroll along the riverbank or a picnic in one of the nearby parks, Old University offers a serene escape from city life.

Favourite Local Spots

Old University has a couple of standout locations that are cherished by the community:

- Royal City Park: Nestled along the Speed River, this park is a beautiful green space perfect for walks, picnics, and simply enjoying the outdoors. It’s a favourite destination for nature lovers and families alike.

- The Boathouse: A delightful spot by the river, The Boathouse is renowned for its cozy atmosphere and delicious ice cream, as well as the picturesque views from its patio. Here you can also rent canoes and kayaks.

Community Spirit at Its Best

One of the standout features of Old University is its vibrant community. With a mix of longtime residents, young families, and students, there’s a diverse and welcoming atmosphere. The neighbourhood has a peaceful and refined charm that makes it feel truly special.

Proximity to Everything

Location is another key advantage. Old University offers easy access to the University of Guelph campus, making it an ideal spot for academics and students. Downtown Guelph is just a short distance away, providing residents with all the amenities and entertainment they could need. Yet, despite being so close to the action, the neighbourhood retains a peaceful, tucked-away vibe.

Why Old University Shines

Whether you’re exploring its historical roots, enjoying its natural beauty, or simply soaking in its community spirit, Old University is a neighbourhood that leaves a lasting impression. It’s a place where history meets modernity, where nature and city life coexist, and where community connections are at the heart of it all.

Bank of Canada Holds Interest Rate at 2.75%

Thu, 17 Apr 2025 17:27:55 GMT

Despite significant geopolitical tensions, the Bank of Canada announced today that it is keeping its benchmark interest rate at 2.75% , unchanged from March 2025. This ends a string of seven rate cuts dating back to June 2024.

Below, we summarize the Bank’s observations and its outlook.

Canadian Economic Performance and Wages

The Canadian economy is slowing as tariff announcements and uncertainty pull down consumer and business confidence
Consumption, residential investment and business spending all look to have weakened in the first quarter
Trade tensions are also disrupting recovery in the labour market, with a decline in employment in March and businesses reporting plans to slow their hiring
Wage growth continues to show signs of moderation

Canadian Inflation and Outlook

Inflation was 2.3% in March, lower than in February but still higher than 1.8% at the time of the Bank’s January Monetary Policy Report
Higher inflation in the last couple of months reflects some rebound in goods’ price inflation and the end of the temporary suspension of the GST/HST
Starting in April, CPI inflation will be pulled down for one year by the removal of the consumer carbon tax
Lower global oil prices will also dampen inflation in the near term; however, the BoC expects tariffs and supply chain disruptions to push up some prices
How much upward pressure this puts on inflation will depend on the evolution of tariffs and how quickly businesses pass on higher costs to consumers
Short-term inflation expectations have moved up, as businesses and consumers anticipate higher costs from trade conflict and supply disruptions
Longer-term inflation expectations are little changed

Global Economic Performance

Global economic growth was solid in late 2024, and inflation has been easing towards central bank targets, however, tariffs and uncertainty have weakened the outlook
In the United States, the economy is showing signs of slowing amid rising policy uncertainty and rapidly deteriorating sentiment, while inflation expectations have risen
In the euro area, growth has been modest in early 2025, with continued weakness in the manufacturing sector
China’s economy was strong at the end of 2024, but more recent data shows it slowing modestly

Tariff Impacts on Financial Markets, Oil Prices and F/X

The BoC made a point of noting that financial markets have been “roiled” by serial tariff announcements, postponements and continued threats of escalation.
This extreme market volatility is adding to uncertainty.
Oil prices have declined substantially since January, mainly reflecting weaker prospects for global growth.
Canada’s exchange rate has recently appreciated as a result of broad US dollar weakness.

An Uncertain Outlook

The Bank noted that the “major shift” in direction of US trade policy and the unpredictability of tariffs have increased uncertainty, diminished prospects for economic growth, and raised inflation expectations. This “pervasive uncertainty” makes it unusually challenging to project GDP growth and inflation in Canada and globally.

Instead, the Bank’s April Monetary Policy Report presents two scenarios that explore different paths for US trade policy. In the first scenario, uncertainty is high, but tariffs are limited in scope. Canadian growth weakens temporarily, and inflation remains around the 2% target. In the second scenario, a protracted trade war causes Canada’s economy to fall into recession this year and inflation rises temporarily above 3% next year. The BoC noted, however, that “many other trade policy scenarios” are possible and that there is also an unusual degree of uncertainty about the economic outcomes within any scenario, “since the magnitude and speed of the shift in US trade policy are unprecedented.”

As a result, the Bank’s Governing Council will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs. Its focus will be on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. This means the Bank will support economic growth while ensuring that inflation remains “well controlled.”

The Governing Council also noted that it will proceed carefully, with particular attention to the risks and uncertainties facing the Canadian economy. These include: the extent to which higher tariffs reduce demand for Canadian exports; how much this spills over into business investment, employment and household spending; how much and how quickly cost increases are passed on to consumer prices; and how inflation expectations evolve.

Final Comments

The Bank once again noted the limitations of monetary policy, saying it “cannot resolve trade uncertainty or offset the impacts of a trade war. What it can and must do is maintain price stability for Canadians.”

More Scheduled BoC News

The Bank is scheduled to make its fourth policy interest rate decision of 2025 on June 4th. First National’s executive summary will follow that announcement. In the meantime, please reach out to us directly for deeper insight into how this may impact your personal situation.

Ontario’s Housing Market in 2025: A Cooling Trend Across Regions

Fri, 04 Apr 2025 19:13:13 GMT

The Ontario housing market is experiencing a significant shift, with declining sales, rising inventory, and legal disputes highlighting the challenges faced by buyers, developers, and builders.

Legal Battles in Toronto’s Condo Market

Toronto developers CentreCourt and Mod Developments have filed nearly 130 lawsuits against buyers who failed to close on pre-construction condo units. These buyers, many of whom were investors, placed 10% deposits on studios priced over $800,000 but are now being sued for damages exceeding their deposits. Falling appraisals—down 10% to 30% from original purchase prices—have created financing gaps that buyers cannot bridge due to higher interest rates. This situation underscores the risks of speculative investments, as many buyers relied on assignment flips rather than long-term ownership or financing capacity. With record completions in 2024 and 2025 flooding the market, prices continue to decline, challenging the assumption that “real estate always goes up.”

Record Low Sales in the GTA
February 2025 marked the worst February on record for new home sales in the Greater Toronto Area (GTA). Only 400 new homes were sold, an 84% drop from the 10-year February average of 2,570 sales. Single-family home sales fell by 38%, while condo sales plummeted 62%. Inventory rose to 21,863 units, representing a 14-month supply, further emphasizing the cooling market.

Waterloo Region: High Inventory and Slowing Sales

The Waterloo Region is also feeling the effects of a cooling market. In March 2025, 459 homes were sold, a 23.1% decrease compared to March 2024 and a 45.2% drop from the 10-year average for the month. Inventory levels reached their highest point for March since 2015, providing buyers with more options and time to make decisions. Detached homes saw a 24.7% decline in sales, while townhouses and condos experienced drops of 24.0% and 29.4%, respectively. Interestingly, semi-detached homes saw an 8.1% increase in sales. The average sale price for all residential properties in the region was $771,915, a 4.4% decrease from March 2024.

Why It Matters
These trends reflect a broader shift in Ontario’s housing market. For buyers, the increased inventory and slower sales offer opportunities to make more informed decisions. For developers and builders, adapting to changing market dynamics is crucial. Speculative investments based on unwavering price growth have faced tough lessons, as higher interest rates and an oversupplied market reshape the real estate landscape.

Ontario’s housing market in 2025 serves as a reminder that strategic planning and realistic expectations are essential in navigating these challenging times.

Outdoor Spring Cleaning Checklist: How to Get Your Backyard Ready for Spring

Mon, 24 Mar 2025 17:11:56 GMT

Spring is the perfect time to refresh your outdoor space and get your backyard ready for warm-weather enjoyment. A little effort now can make a big difference in how your outdoor areas look and function.

Use this Outdoor Spring Cleaning Checklist to tackle your porch, patio, siding, gutters, and landscaping so you can fully enjoy the season ahead.

PORCH & PATIO SPRING CLEANING CHECKLIST

Your porch and patio are the heart of outdoor relaxation, so giving them a deep clean is a great way to start the season. Here’s what to do:

Sweep and power wash patios, decks, and walkways to remove dirt and grime, preventing slips and maintaining their appearance.
Check for loose or damaged boards, railings, and steps to ensure safety and avoid costly repairs later.
Clean outdoor furniture with warm, soapy water to remove dirt and allergens, making it inviting for guests.
Wash outdoor cushions and check for mold or mildew to extend their lifespan and keep them fresh.
Clean and inspect your grill to ensure it's safe and ready for summer BBQs.
Refresh or repaint furniture and planters to give your outdoor space a renewed look.
Set up any umbrellas, canopies, or shade structures to provide comfort and protection from the sun.

SPRING CLEANING SIDING CHECKLIST

Over the winter, your home's siding can accumulate dirt, algae, and stains. Follow this checklist to bring back its curb appeal:

Hose down or pressure wash siding to remove surface dirt and prevent long-term discoloration.
Use a soft-bristle brush and mild detergent to scrub away stubborn grime, improving your home's overall look.
Check for any cracks, peeling paint, or damage to prevent moisture from seeping in and causing costly repairs.
Clean windows and window screens to allow more natural light into your home and improve visibility.
Remove cobwebs and dust from outdoor light fixtures to brighten up your exterior and enhance curb appeal.

GUTTERS & DOWNSPOUTS CHECKLIST FOR SPRING CLEANING

Gutters and downspouts play a crucial role in preventing water damage, so keeping them clear is essential. Follow these steps:

Remove leaves, twigs, and debris from gutters to prevent clogs and water overflow that can damage your home's foundation.
Flush gutters with a garden hose to ensure proper drainage and detect blockages early.
Check for any sagging or leaks to avoid water damage to your roof and walls.
Ensure downspouts direct water away from your home’s foundation to prevent flooding and soil erosion.
Install or check gutter guards to minimize future debris buildup and reduce maintenance needs.

GARDEN & LANDSCAPE SPRING BACKYARD IDEAS CHECKLIST

A well-maintained garden and landscape can enhance the beauty of your backyard. Here’s how to revive your outdoor greenery:

Rake up dead leaves and debris to prevent mold growth and promote healthy plant life.
Prune dead or damaged branches from trees and shrubs to encourage new growth and prevent potential hazards.
Apply fresh mulch to garden beds to retain moisture, suppress weeds, and improve soil health.
Aerate and fertilize the lawn to promote lush, green growth throughout the season.
Plant seasonal flowers and fresh herbs to add colour and fragrance to your backyard.
Inspect and repair garden pathways, edging, and retaining walls to maintain a neat and safe landscape.
Check your irrigation system or sprinklers for any leaks or clogs to ensure efficient watering and prevent water waste.

MISCELLANEOUS OUTDOOR SPRING CLEANING CHECKLIST

To ensure your entire backyard is in top shape, don’t forget these extra tasks:

Wash and disinfect trash bins to eliminate odours and deter pests.
Check fences and gates for any loose boards to maintain security and appearance.
Clean and organize your outdoor storage shed or garage to create more functional space.
Inspect outdoor playsets for safety to ensure a fun and secure environment for kids.
Test and replace any burnt-out light bulbs in your outdoor fixtures to improve visibility and security at night.
Remove any standing water to prevent mosquito breeding and keep your backyard comfortable.

By following this Outdoor Spring Cleaning Checklist , you’ll create a fresh, inviting space perfect for outdoor gatherings, relaxation, and warm-weather fun. A little maintenance now can save you time, money, and hassle later . Happy spring cleaning!

A Simple Guide to Tax Deductions for Your Rental Property

Wed, 05 Mar 2025 16:21:35 GMT

A Simple Guide to Tax Deductions for Your Rental Property

Managing a rental property comes with its perks, but it also means navigating the world of tax deductions. The good news? With the right tools and a little know-how, you can maximize your deductions and minimize your tax bill. Here’s a simple guide to help you through the process.

Use TurboTax (or a Similar Tool)

If you’re new to rental property deductions, using a tool like TurboTax can make the process easier. TurboTax is run by Intuit and even integrates with QuickBooks Online if you want to get into the finer details. It allows you to input your expenses and automatically calculate the deductible amounts, saving you time and reducing errors.

Calculating Rental Expense Deductions

When deducting expenses related to your rental property, you’ll need to prorate certain costs based on the space you’re renting out. Here’s how to do that:

Determine the Rental Space Percentage
Divide the size of your rental unit by the total area of your home. For example, if your rental unit is 700 sq ft and your total home is 3,000 sq ft, that equals approximately 23% (700/3,000 = 0.233).
Apply This Percentage to Monthly Costs
You can deduct this percentage of monthly housing expenses, including:

Utilities (electricity, water, internet)
Property taxes
Home insurance
General home maintenance and repairs

Many tax software programs, including TurboTax, allow you to enter the full amount and then apply a percentage. Alternatively, you can calculate the deductible amount manually.

Mortgage Interest Deductions

You can also deduct a portion of your mortgage interest . Use the total interest from your 2024 mortgage statement (not individual monthly payments) and apply the same rental space percentage.

Important: You can only deduct the interest portion of your mortgage payment—not the principal, which goes toward paying down your loan balance.

Phone Expense Deductions

If you use your phone for managing the rental, you can deduct a reasonable percentage of your bill. 25% is a safe estimate, while 50% might be the upper limit if you use it extensively for rental-related tasks.

Accounting for Partial-Year Rentals

If your rental unit was only in operation for part of the year, you need to adjust your annual expenses accordingly.

For example, if you rented for 4 months , you would deduct 4/12ths (33.33%) of annual costs like:

Mortgage interest
Property taxes
Home insurance

For monthly costs, you can simply use the bills from the months the unit was rented.

Fully Deductible Rental Expenses

Certain costs are 100% deductible if they are directly related to the rental unit. These include:

Appliances purchased for the rental (e.g., a new fridge)
Repairs specific to the rental unit (e.g., fixing a plumbing issue)
Setup costs (e.g., painting, disposal fees)

You can also deduct any leasing fees or report the net rent you received after these costs.

What If You Show a Profit or a Loss?

Once you add everything up, you may find you’re either breaking even, showing a loss, or making a profit:

If you show a loss: This could lead to a small tax refund .
If you show a significant profit: Reach out, and we can discuss strategies to minimize your tax liability.

Don’t Stress—You’ve Got This

The process may seem complex, but it’s manageable with the right approach. Even if you make a minor mistake, it’s unlikely to cause major issues. The chances of an audit are relatively low, especially for honest landlords reporting their income accurately.

If you’re unsure about anything or want to go over the finer points, feel free to schedule a call. We’re here to help make tax season a little easier.

Happy Renting!

How Tariffs, Interest Rates, and Guelph’s Economy Could Shape the Real Estate Market

Thu, 20 Feb 2025 18:00:58 GMT

We’ve been keeping an eye on the latest threats of tariffs, and while it’s too early to say how everything will play out, there are a few key ways this could impact the real estate market—both broadly and here in Guelph.

Tariffs, Inflation & Interest Rates: What’s the Connection?

If these tariffs actually go into effect, they could raise the cost of goods, particularly materials like steel, aluminum, and lumber, which would impact everything from auto manufacturing to home construction. Higher costs generally mean higher inflation, and when inflation rises, central banks tend to keep interest rates elevated to slow things down. That’s the scenario where borrowing costs stay high, and affordability remains a challenge for buyers.

But there’s also another possible outcome. If tariffs slow the economy enough, we could see a downturn, leading central banks (including the Bank of Canada) to start aggressively cutting interest rates to prevent a recession. And if rates drop, real estate typically reacts quickly.

For every 0.25% drop in interest rates, mortgage payments become more affordable. That directly increases purchasing power for buyers.
If rates fall 1% from today’s levels, that could mean the difference between a negative and break-even cash flow for investors. And if they go lower, we could see stronger investor demand again. 1% is probably a bit of a stretch unless things got really bad

Rates are already expected to continue decreasing during 2025, but only a few cuts, and at a slower pace than 2024, but if tariffs create an economic slowdown, rate cuts could possibly happen faster and deeper than expected.

If Rates Drop, Home Prices Could Climb

We’ve seen this pattern before—when interest rates fall, more buyers enter the market, and competition pushes home prices higher. This happened in a big way during the pandemic, and while we’re not expecting another extreme surge, even a moderate drop in rates could bring a wave of new demand.

For buyers, this means there may be a short window where prices are relatively stable before things heat up. For investors, lower rates improve cash flow potential, making rental properties more attractive.

Guelph’s Unique Position: The Auto Industry Factor

Here’s where things get specific to Guelph. Our local economy has a strong manufacturing base, particularly in auto parts. If the U.S. government moves forward with tariffs on imported vehicles and parts, it could have ripple effects on the factories here that supply the U.S. market.

Potential impacts on real estate:

Job uncertainty could temporarily slow demand. If major employers face increased costs or reduced demand, hiring could slow down, and some workers might hold off on home purchases.

Rents could stabilize or soften in the short term. If fewer workers are relocating or upgrading housing, rental demand might see a brief slowdown—though long-term pressure remains strong.

Long-term outlook remains positive. Even if the economy takes a hit, rate cuts would likely help balance things out, and Guelph’s strong population growth and housing shortage should keep upward pressure on prices over time.

Long-Term Perspective on Guelph Real Estate

While tariffs and economic shifts may have a short- to mid-term impact (1-4 years), real estate should always be viewed as a long-term investment—ideally on a 10-year horizon.

We’re not likely to see the kind of dramatic price swings we experienced between 2016 and 2022, so while prices may fluctuate in the short run, anyone buying today should plan for a longer hold period to see meaningful appreciation. Selling within 5 years? You’re likely looking at minimal net gain once you factor in real estate transaction costs, including commission, legal fees, and potential land transfer taxes.

That said, there are “cheat codes” to working around this timeline—opportunities that allow for shorter-term profit. This is where working with an experienced agent who understands real estate investing, development, and the local market dynamics can make all the difference. Whether it’s strategic property selection, value-add opportunities, or creative financing, the right approach can accelerate returns even in a market that’s moving more steadily.

What’s Next?

A lot depends on whether these tariffs are just campaign posturing or if they actually happen. If they do, we’ll likely see effects within 6-12 months, starting with manufacturing, then interest rates, and finally real estate pricing.

For now, I’d keep an eye on material costs, Fed and Bank of Canada commentary, and how developers are reacting. If tariffs cause a slowdown and rates drop, real estate could be in a strong position to appreciate again.

If you want to chat about how this could affect a specific deal or investment strategy, happy to go through it in more detail.

Student-Friendly Neighbourhoods in Guelph

Wed, 08 Jan 2025 15:01:27 GMT

A Guide to Finding the Perfect Place for Your Lifestyle and Budget

Guelph is a fantastic place for students, offering a variety of neighbourhoods that cater to diverse lifestyles and budgets. Whether you’re looking for proximity to campus, vibrant community vibes, or affordable housing, there’s something for everyone. Here’s a guide to some of Guelph’s most student-friendly neighbourhoods:

1. OLD UNIVERSITY

Why Students Love It:

Located right next to the University of Guelph, Old University is one of the most popular neighbourhoods for students. Its charming streets are lined with a mix of older homes and rental properties, making it a convenient choice for students who want to walk or bike to campus.

Key Features:

Proximity to campus (10-15 minute walk).
Quiet residential vibe, perfect for focused studying.
Close to Royal City Park and the Speed River for outdoor relaxation.

Considerations:
Rental prices here can be higher due to its desirable location, so start your housing search early.

2. DOWNTOWN GUELPH

Why Students Love It:
For students who enjoy an active social scene, Downtown Guelph is the place to be. With trendy coffee shops, restaurants, and entertainment venues, you’ll always have something to do. Plus, it’s a quick bus ride to campus.

Key Features:

Walkable access to local cafes, shops, and the Guelph Farmers’ Market.
Frequent public transit connections to the university.
Vibrant arts and culture scene.

Considerations:
Parking can be challenging, and some rentals may have noise from nightlife.

3. KORTRIGHT WEST

Why Students Love It:
Kortright West offers a quieter, suburban feel while still being close to the University of Guelph. It’s ideal for students who prefer living in a peaceful environment but want to remain connected to campus life.

Key Features:

Spacious homes and apartments, great for group rentals.
Green spaces like Preservation Park nearby.
Good access to bus routes.

Considerations:
Slightly farther from campus; biking or bus travel may take 20-30 minutes.

4. SOUTH END

Why Students Love It:
This newer neighbourhood features modern apartment buildings and townhomes, making it a favourite for upper-year and graduate students. It’s close to shopping plazas, restaurants, and amenities like grocery stores.

Key Features:

Modern housing options, including condos and shared accommodations.
Amenities like Stone Road Mall and multiple grocery stores nearby.
Frequent bus routes to campus.

Considerations:
Slightly more expensive than other neighbourhoods due to newer developments.

5. COLLEGE HEIGHTS

Why Students Love It:
College Heights is an affordable option for students who don’t mind a short commute to campus. This area offers a mix of rental housing and access to local conveniences.

Key Features:

Affordable rental prices.
Close to Stone Road Mall and public transit.
Student-friendly landlords and housing options.

Considerations:
Housing options may be older or require sharing with multiple roommates.

TIPS FOR RENTING IN GUELPH

Start Early: Housing demand is high, so begin your search as soon as possible.
Know Your Budget: Guelph’s rental prices vary, with Downtown and Old University typically being the most expensive.
Check Proximity to Transit: If you’re not living within walking distance of campus, ensure your rental is close to a bus stop.
Inspect Before Signing: Always visit the property and meet the landlord before committing.
Ask About Utilities: Some rentals include utilities in the rent, while others charge extra. Be sure to clarify to avoid surprises.

NEED HELP FINDING A PLACE?

Navigating the rental market can feel overwhelming, but the LiveHere team is here to help! Whether you’re looking for a cozy apartment near campus or a spacious house to share with friends, we can connect you with the best student housing options in Guelph.

Get in touch with the LiveHere team today and make your housing search stress-free!

Thriving in Guelph: A Guide to Student Life

Wed, 08 Jan 2025 14:38:13 GMT

Guelph, Ontario, isn’t just a charming city with beautiful landscapes and friendly faces—it’s a vibrant hub for students. Whether you're attending the University of Guelph, Conestoga College, or another local institution, student life in Guelph is a unique blend of academic opportunities, cultural experiences, and community spirit.

Academics: More Than Just Books The University of Guelph is renowned for its strong programs in agriculture, veterinary science, and environmental studies. However, it also boasts a diverse range of disciplines from arts to engineering. With small class sizes and approachable professors, it’s an environment where students feel supported.

Pro Tip: Make use of the McLaughlin Library for group study rooms, writing assistance, and late-night study spaces.

A Tight-Knit Community

Guelph is known for its welcoming atmosphere. The city’s small size fosters a sense of belonging, and students quickly feel at home. From volunteering opportunities to local clubs, there’s no shortage of ways to get involved.

Pro Tip: Join student clubs or organizations to meet like-minded peers and build lifelong friendships.

Exploring the Downtown Core

Downtown Guelph is a hub of activity for students. With quaint coffee shops like Balzac’s and trendy restaurants like Miijidaa, there’s always a new place to try. Don’t miss the Guelph Farmers’ Market on Saturdays for fresh produce and artisan goods.

Budget-Friendly Idea: Many downtown spots offer student discounts, so don’t forget your student ID!

Green Spaces and Outdoor Adventures

Guelph is home to stunning natural areas perfect for study breaks or weekend adventures. The Arboretum at the University of Guelph is a serene spot for walking, running, or even picnicking. Riverside Park and the Speed River offer more scenic beauty.

Pro Tip: Rent a canoe or kayak for a fun afternoon on the water.

Events and Entertainment

From the Hillside Festival to Gryphon sports games, there’s always something happening in Guelph. The River Run Centre and local pubs host live music and comedy nights, giving students plenty of options to unwind.

Insider Tip: Look out for student-priced tickets to events for an affordable night out.

Housing: On and Off-Campus Options

Guelph offers a range of housing options to suit every need. First-year students often enjoy the convenience of on-campus residences, while upper-year students explore off-campus housing in areas like Old University and South End.

Pro Tip: Start your housing search early to secure the best deals and locations.

Getting Around

Guelph Transit makes it easy to navigate the city, and your student card often doubles as a bus pass. For those who prefer cycling, the city’s bike lanes and trails are a major plus.

Student life in Guelph is as dynamic as it is rewarding. From academic support to vibrant social scenes, this city offers the perfect environment to grow, learn, and make unforgettable memories.

Bank of Canada Lowers Benchmark Interest Rate by 50 Basis Points to 3.25%

Wed, 11 Dec 2024 21:10:13 GMT

The Bank of Canada concluded 2024 with another reduction to its policy interest rate, cutting it by 50 basis points to 3.25%.

This marks the fifth rate cut since June, reflecting the Bank’s ongoing efforts to support economic growth and maintain inflation near its target range.

Below is a summary of the decision's rationale, its implications, and what it means for Canadian borrowers.

Canadian Economic Performance and Housing Market Trends

Economic Growth: Canada’s economy grew by 1% in Q3, below the Bank’s October forecast, with Q4 growth also expected to underperform.

Sector Trends: Business investment, inventories, and exports constrained growth, while consumer spending and housing activity gained momentum, indicating that lower interest rates are stimulating household demand.

Historical Revisions: Adjustments to the National Accounts revealed higher GDP levels over the past three years, primarily due to stronger investment and consumption.

Labour Market: The unemployment rate rose to 6.8% in November, with employment growth lagging behind labour force expansion. Wage growth has moderated slightly but remains elevated compared to productivity gains.

Canadian Inflation and Outlook

Inflation Trends: Consumer Price Index (CPI) inflation has remained near 2% since the summer, aligning with the Bank’s target. It is expected to average close to this level over the next two years.

Key Drivers: Upward inflationary pressures from shelter costs and downward pressures from goods prices have eased as anticipated.

GST Holiday Impact: A temporary GST holiday will lower inflation in the near term, but its effects will reverse when the measure ends. Core inflation measures will guide the Bank’s policy decisions.

Global Economic Conditions and the Canadian Dollar

Global Context: The global economy is evolving in line with the Bank’s October outlook. The U.S. economy remains robust, while growth in the euro area is slowing, and China’s policies are supporting modest gains.

Currency Movement: The Canadian dollar has depreciated amid a strong U.S. dollar and easing global financial conditions.

What This Means for Borrowers

If you have a variable-rate mortgage, the Bank of Canada’s rate reduction will likely lead to a corresponding drop in your interest rate. Banks typically adjust their Prime lending rates to match changes to the overnight rate.

Impact on Payments: Depending on your variable-rate mortgage type and the bank holding it, your payment may automatically decrease when the Prime rate drops. For others, payments may remain the same, with more of the payment going toward the mortgage principal. This helps reduce the overall amortization period.

Fixed-Rate Mortgages: While the overnight rate cut has an immediate effect on variable-rate interest calculations, its impact on fixed rates may take longer. Fixed mortgage rates are influenced heavily by bond markets, which don’t always move in sync with changes to the Prime lending rate.

If you have questions about how this change affects your mortgage or your options for a renewal or purchase, feel free to reach out for personalized advice!

Summary Comments

The Bank of Canada justified today’s decision by noting that “with inflation around 2%, the economy in excess supply, and recent indicators pointing to weaker growth than projected, Governing Council decided to reduce the policy rate by a further 50 basis points.”

The Bank acknowledged several policy measures that could influence growth and inflation, including reduced immigration targets and changes to mortgage rules, along with temporary GST holidays.

Looking Ahead

The Bank reiterated its commitment to price stability, emphasizing that future rate decisions will depend on incoming data and its implications for inflation trends.

The next interest rate decision is scheduled for January 29, 2025. Stay tuned for updates!

What is a VTB Mortgage and How Does It Work?

Fri, 06 Dec 2024 21:45:30 GMT

A vendor take-back (VTB) mortgage is an alternative to a traditional mortgage where the seller of a property also becomes the lender. Instead of obtaining financing through a bank, buyers work directly with the seller to negotiate the loan terms, including the down payment, interest rate, and repayment schedule. This arrangement is typically offered by sellers who own their property outright (no existing mortgage).

The buyer makes regular payments to the seller over the loan term, using the property as collateral. Unlike traditional mortgages, where the relationship ends after the sale, a VTB mortgage creates an ongoing financial arrangement between buyer and seller, requiring direct interaction throughout the repayment period.

Why Choose a VTB Mortgage?

Flexible Terms

VTB mortgages offer far more flexibility than traditional loans. Buyers and sellers can negotiate terms that meet their specific needs, including lower down payments, custom interest rates, or repayment schedules tailored to unique financial situations. For example, a buyer might secure a property with a smaller initial investment, while a seller benefits from a higher interest rate.

Steady Income for Sellers

For sellers, a VTB mortgage provides a consistent income stream over time instead of a one-time payout. This steady cash flow can be particularly appealing for retirees or individuals seeking reliable income to support long-term financial stability.

Potential Tax Benefits

Receiving payments over time rather than a lump sum can help sellers manage their tax liability by spreading income over several years. This approach may reduce their overall tax burden and keep them in a lower tax bracket, though professional tax advice is recommended.

Faster and Simpler Transactions

Since VTB mortgages eliminate the need for bank approval, they often lead to quicker, smoother transactions. This can be a significant advantage for buyers who struggle to meet traditional lenders’ requirements or for sellers looking to close a deal promptly.

Access to Larger Mortgages

A VTB arrangement can sometimes allow buyers to secure financing beyond what a bank would approve. This opens opportunities to purchase more desirable properties or larger homes that might otherwise be out of reach.

Custom Repayment Plans

The ability to tailor repayment schedules is another major perk. Buyers and sellers can agree on terms like interest-only payments for an initial period or flexible amounts based on seasonal income. This customization can help buyers better manage their finances while maintaining steady payments.

A VTB mortgage can be a win- win solution, offering flexibility and benefits for both buyers and sellers. If you’re considering this option, consult a real estate or financial professional to ensure it aligns with your goals.

OSFI’s stress test on mortgage switches ends November 21: What you need to know.

Thu, 21 Nov 2024 15:42:40 GMT

Starting November 22, certain mortgage borrowers will find it easier to switch lenders, thanks to the removal of the requirement to qualify at a higher stress test rate.

OSFI, Canada’s banking regulator, announced in September that it would remove the Minimum Qualifying Rate (MQR) requirement for straight switches of uninsured mortgages effective November 21, 2024.

WHAT’S A STRAIGHT SWITCH? A straight switch refers to transferring a mortgage from one lender to another without increasing the loan amount.
WHAT’S AN UNINSURED MORTGAGE? An uninsured mortgage is a home loan that doesn’t have mortgage default insurance. This typically applies to loans with a down payment of 20% or more.

Under the current requirements, borrowers wanting to switch lenders had to prove they could afford payments based on a re-qualification at an interest rate two percentage points above their contract rate. This limited their options and reduced their negotiating power, especially if their financial situation had deteriorated.

The move by OSFI is seen as a win for mortgage borrowers, offering more flexibility to switch lenders in search of better rates or more favourable terms. It also comes at a critical time for Canadian homeowners, with roughly 70% of all outstanding mortgages expected to come up for renewal by the end of 2026.

With mortgages originated between 2020 and 2022 facing payment increases of about 40%, competition is expected to intensify as lenders vie for new business and work to retain their existing clients.

The change was driven by industry feedback over the imbalance between insured and uninsured mortgagors at renewal—since insured borrowers don’t have to re-qualify at the stress test when switching—and the fact that expected risks had not materialized.

“We have observed that the prudential risks that this was intended to address have not significantly materialized,” OSFI said. “As a prudential regulator, we enable banks and lenders to compete and take reasonable risks.”

Lenders have reportedly received no guidance from OSFI, beyond its public statements, on how to proceed with the new requirements. However, OSFI has scheduled calls with industry stakeholders and the media on Thursday as part of its quarterly release schedule.

Shop Local in Guelph This Holiday Season

Tue, 19 Nov 2024 14:00:00 GMT

Shop Local in Guelph this Holiday Season: Supporting Our Community & Finding Unique Gifts

As the holiday season draws near, there’s no better way to spread cheer than by supporting the vibrant local businesses in Guelph. Shopping local is a wonderful opportunity to sustain our community while discovering unique, thoughtful gifts that add a personal touch to your celebrations. Here’s how and why you should prioritize local shopping in Guelph this holiday season.

1. Why Shop Local?

Supporting small businesses in Guelph has a lasting impact, benefiting both the local economy and your holiday spirit:

Boosts the Local Economy: Small businesses reinvest earnings into the community, creating local jobs and supporting nearby suppliers and services.
Unique Holiday Gifts: Guelph's local shops offer handcrafted, one-of-a-kind items that stand out from generic retail options, making your presents truly memorable.
Fosters Community Connections: Building relationships with local shop owners enhances the personal aspect of holiday shopping, creating a meaningful and enjoyable experience.

2. Where to Shop Local in Guelph

Guelph boasts an array of locally-owned businesses perfect for holiday shopping. Here are some top destinations:

Downtown Guelph: A hub for unique boutiques, cozy cafes, and festive decorations, Downtown Guelph captures the holiday spirit.
The Bookshelf: A treasure trove for book lovers with bestsellers, rare finds, and a café for a coffee break.
Blooms & Flora: Perfect for plant enthusiasts, offering beautiful arrangements and decor.
The Dragon: A haven for gamers and comic fans, featuring board games, collectibles, and hobby supplies.
Reid's Candy and Nut Shop: A Guelph classic for homemade fudge, nostalgic treats, and stocking stuffers.
Handmade Markets & Pop-Ups: Explore local markets like the Guelph Farmers' Market and holiday craft fairs for artisanal goods, hand-knit scarves, and holiday-themed decorations.

3. Unique Holiday Gift Ideas

Looking for inspiration? Check out these local holiday gift ideas to make your shopping list shine:

Gift Cards for Local Experiences: Treat loved ones to Guelph’s restaurants, cafes, or wellness centers for a memorable experience.
Creative Subscriptions: Support small businesses by gifting memberships for pottery classes, yoga studios, or meal delivery services.
Handcrafted Home Decor: Local artists offer festive items like ornaments and prints that make meaningful gifts.

4. Tips for Sustainable Shopping

Guelph’s eco-conscious community encourages sustainable shopping practices:

Bring Reusable Bags: Reduce waste by carrying your own bags.
Shop Early: Beat the rush and ensure access to the best selection of unique gifts.
Support Local Artists: Choose handmade goods to celebrate Guelph’s creative talent.

5. Celebrate Guelph's Holiday Spirit

Guelph comes alive during the holiday season with events like the Downtown Guelph Christmas Market and the Festival of Lights. These gatherings often feature pop-up shops, seasonal treats, and local artisans, making them perfect for festive shopping and family fun.

By shopping local, you’re not just purchasing gifts—you’re supporting a thriving community and fostering connections that make Guelph special. This holiday season, explore the charm of Guelph’s local businesses , discover unique treasures, and celebrate the joy of giving back.

Happy holidays and happy shopping!

Holiday Decor Tips for Selling Your Home: Striking the Perfect Balance

Fri, 15 Nov 2024 15:43:07 GMT

Holiday Decor Tips for Selling Your Home: Striking the Perfect Balance

Selling your home during the holiday season offers a unique opportunity to highlight its charm and warmth. By thoughtfully incorporating seasonal decor, you can create a space that feels festive and welcoming while still allowing buyers to focus on your home’s best features. Here are some holiday home staging tips to achieve the perfect balance:

1. Keep It Simple and Neutral

Use a Light Touch: When it comes to staging homes for the holidays , less is more. Subtle decorations enhance the ambiance without overwhelming the space, making it easier for buyers to envision themselves living there.
Stick to Neutral Colours: Neutral, nature-inspired tones like whites, greens, and metallics blend seamlessly with any decor and feel elegant. This approach complements the space, avoiding decor that might clash with the home’s aesthetic.

2. Showcase Key Features with Festive Accents

Highlight the Fireplace: Fireplaces are top selling points in winter real estate listings. Accentuate yours with a simple garland, candles, or string lights to make it a focal point of warmth and coziness.
Keep Windows Bright: Buyers value natural light, even in winter. Minimalist touches, like a festive wreath or subtle string lights, can add seasonal charm without obstructing views or light sources.

3. Be Mindful of Scale

Choose a Modest Tree: A smaller, tastefully decorated tree ensures the room feels spacious. This is a must for holiday home staging in smaller spaces, where oversized decor could detract from the layout.
Limit Outdoor Displays: Keep exterior decorations simple with white string lights or a classic wreath to maintain curb appeal without distracting from your home’s architectural features.

4. Create a Warm and Inviting Atmosphere

Seasonal Scents: Subtle holiday scents like cinnamon or pine can create a welcoming environment, an effective strategy for appealing to buyers' senses during winter real estate showings .
Cozy Textures: Use neutral-coloured throws, pillows, and rugs to add warmth and comfort to the space, enhancing its appeal without detracting from its functionality.

5. Maintain Flexibility and Cleanliness

Inclusive Decor: Avoid overly specific holiday themes. General decor, like greenery and candles, appeals to a broader audience in the holiday real estate market .
Spotless Presentation: Regular cleaning ensures decorations and living spaces look their best for showings, an essential factor in selling homes quickly during the holidays.

6. Minimize Personal Items

Neutralize the Space: Keep personalized decor, such as monogrammed stockings or family photos, to a minimum. Buyers are drawn to homes they can imagine as their own.
Store Gifts Out of Sight: Reducing clutter, including stacked presents, ensures your rooms feel open and inviting.

7. Optimize Accessibility and Lighting

Clear Pathways: Ensure all walkways, both indoors and outdoors, remain clutter-free. This not only enhances safety but also makes your home feel more spacious and welcoming.
Ample Lighting: Use holiday lights and candles to add ambiance, but ensure functional lighting is sufficient for buyers to view every detail of the home.

8. Adjust and Refresh as Needed

Stay Flexible: If your home remains on the market after the holidays, pack up seasonal decorations promptly to keep it looking current.
Streamline Decor: If showings aren’t going as planned, consider scaling back the holiday decor to appeal to a broader audience.

Winter House Showing Tips: How to Prepare Your Home for Cold-Weather Viewings

Tue, 12 Nov 2024 18:59:42 GMT

How to Prepare Your Home for Cold-Weather Viewings

As temperatures drop and winter sets in, selling your home can present unique challenges. However, with some thoughtful preparation and attention to winter home buying tips , you can make showings just as successful and welcoming as any other season. Here’s how to make the best impression on potential buyers during the colder months:

Keep Walkways Clear and Safe
First impressions matter, especially in winter when curb appeal can be affected by snow and ice. Shovel sidewalks, steps, and driveways, and apply salt to any icy spots. A well-maintained path shows buyers that you prioritize property upkeep —an attractive feature for those looking for move-in ready homes .
Create a Warm Welcome Inside
As buyers step into your home from the cold, they should feel a warm, cozy embrace. Keep the thermostat set to a comfortable temperature to encourage them to take their time exploring, which is crucial in the winter home showing market . An inviting entrance with cozy touches and a well-heated interior helps buyers feel comfortable envisioning the space as their own.
Maximize Natural Light
Winter days are shorter, so home lighting tips for winter showings become essential. Open curtains and blinds to let in natural light, and consider using brighter LED bulbs. This ensures your home doesn’t feel dim or cramped, enhancing your winter listing's appeal.
Stage with Cozy Accents
Small touches like plush blankets, decorative throw pillows, and warm rugs make a home feel more welcoming in winter. Adding cozy elements helps create a desirable atmosphere for winter buyers . Set up a tray of tea or hot chocolate as a visual cue of comfort—a popular tactic in home staging tips for winter .
Highlight Energy Efficiency
Winter is the perfect season to showcas e energy-efficient home features . Point out upgrades like insulation, modern windows, and energy-efficient appliances. Buyers are often looking to minimize home heating costs in winter , so a well-insulated home with energy-efficient features can stand out in the winter market.
Create a Fresh Scent
Avoid strong artificial scents, opting instead for natural seasonal ones like cinnamon or vanilla. For buyers seeking homes with a cozy ambiance , a su btle, fresh scent can enhance their experience without overpowering them.
Prepare for Weather with Spare Supplies
Providing small details like an umbrella stand and disposable boot covers shows that you're attentive to visitors’ comfort. In Guelph’s winter real estate market , t his extra thoughtfulness can be a memorable factor for potential buyers.
Take Care of Exterior Maintenance
Clear gutters of leaves and debris to prevent ice build-up, and trim any trees near entryways. Keeping winter curb appeal top-notch is essential for showing your home at its best, even when the weather’s challenging.
Show Your Home’s Year-Round Appeal
Including photos of your home in various seasons can help buyers visualize its potentia l. In Guelph’s competitive winter housing market , showing a property’s year-round appeal can make it more attractive, especially for buyers envisioning spring and summer outdoor activities.

New Mortgage Rules and the Real Impact on Canadian Homebuyers

Wed, 06 Nov 2024 20:16:40 GMT

New Mortgage Rules and the Real Impact on Canadian Homebuyers

With the new rules effective December 15, many Canadians are curious about the impact on home affordability. For example, a home priced at $1,499,999 with a minimum down payment of $124,999.90 will require an insurance premium of $57,750. To qualify for this mortgage, an annual income of approximately $327,000 is necessary based on current interest rates and stress test figures. While this policy aims to expand housing access, the required income for qualification may still place it out of reach for the targeted demographic, leaving it viable mostly for higher earners, like recent medical graduates, rather than for most first-time homebuyers.

Though those able to qualify for a $1.5 million home aren’t the primary target of this policy, middle-income families seeking homes in the $1.05 to $1.2 million range may stand to benefit more. The industry initially advocated for a $1.25 million mortgage cap on high-ratio mortgages, so this increase to $1.5 million is unexpected. However, many experts argue that adjusting the stress test requirements would have the greatest impact. Since the stress test was introduced, higher interest rates have driven many Canadians toward subprime and private lenders, increasing financial strain on middle-income families. While the new policy brings certain benefits, a more flexible stress test could have offered greater accessibility to those needing it most, potentially easing the path for more Canadians into homeownership.

Investor Update: Fall Market Opportunities and Insights

Wed, 06 Nov 2024 20:16:39 GMT

Investor Update: Fall Market Opportunities and Insights

As we transition through fall, the student rental market starts to come into focus for most investors. Historically, September and October tend to be quieter months in student real estate, as most of the student leasing for Fall 2025 happens through the winter months. We have only seen a few opportunities in some of the more popular student areas, and with awkward timing for a May 1st lease start date, we have so far sat on the sidelines.

Recent Market Insights: Opportunities in a Competitive Landscape

A recent client acquisition on McElderry was a clear example of timing and market alignment. With rates easing, and a price adjustment, the investment offered a rewarding combination of cash flow potential and value appreciation for someone willing to sit on a vacant property for a few months to be fully optimized for the next student leasing cycle. While properties remain scarce, certain homes are still moving quickly, and some even fetch aggressive offers. For instance, a house on Aspen Valley, despite having electric baseboard heating (which we typically advise against), attracted a bully offer that led to a sale at $200,000 over asking. This level of demand suggests that even non-ideal properties can spark competition in an undersupplied market.
Student rentals, particularly in high-demand areas like Kortright West, are seeing renewed interest, with parents now looking to secure housing for their children in 2024. As inventory remains tight, competitive bids are expected, particularly as parents prioritize location, convenience, and suitability for student living. For investors focusing on these neighbourhoods, this means acting quickly on any viable listings.

Preparing for a Competitive Market: Steps for Savvy Investors

In such an environment, readiness is everything. A strong financing position and familiarity with recent property sales can give you the edge you need to act swiftly. We encourage investors to secure pre-approvals and start reviewing properties within their budget. Even brief visits can help build confidence and streamline decision-making when the right opportunity arises. Detached homes and student rental properties remain strong choices for buyers aiming for reliable returns and long-term value.

Leasing demand is solid in Guelph, particularly for student rental units and detached properties that are versatile enough to accommodate varying tenant needs. We’re also tracking a few select townhouse complexes that appear promising, though caution is warranted with condo board restrictions in some areas. The most successful rental investors will have flexibility in unit configurations to meet student housing demand without running afoul of condo regulations.

Maximizing Your Rental Revenue: The Importance of Lease Management

For current owners, maximizing rental income is crucial in today’s market. With rising rents, owners have an opportunity to adjust rates and bring long-term tenants up to current market levels. Many tenants pay below-market rents due to long leases, creating a gap between current tenant payments and potential income. For example, while some tenants pay around $600-700 monthly, the market easily supports rates upwards of $1,000 or more for similar units. Even slight adjustments can generate significant additional revenue.

With this competitive environment expected to carry into early 2024, now is an ideal time to talk to your tenants about lease renewals or adjustments. Proactive management can help prevent revenue loss and position your property to meet market demands effectively.

Looking Ahead: What to Expect for Winter and Beyond

As we move into winter, expect the market to slow briefly, with an uptick in demand in January and February as more investors and buyers re-enter. For those on the lookout, the next month offers a window to assess, prepare, and make informed decisions without the heightened competition of spring. For anyone considering expansion or repositioning in their portfolio, this is an optimal time to review your goals and financing options.

Whether you're actively looking to purchase, need help managing properties, or are exploring ways to optimize your investments, we’re here to provide guidance tailored to your needs. Stay tuned for more insights and updates as we continue to monitor market opportunities, and don’t hesitate to reach out to discuss your investment strategy.

Monthly Market Update: October Recap and November Outlook

admin@thelivehere.com (Dave Neill) — Tue, 05 Nov 2024 19:44:09 GMT

Monthly Market Update : October Recap and November Outlook

As we look back on October and into the market trends of November, real estate prices remain relatively stable overall, though some distinctions are emerging between different property types. Condos, for instance, continue to show softer price trends, while detached housing is seeing an uptick in activity. Even with their higher price points, detached homes are experiencing increased demand, partially driven by recent adjustments in interest rates that have made mortgage qualifying slightly easier for buyers.

In fact, one of the most notable developments is the dip in interest rates, with renewal rates for 5-year fixed terms now falling below 4%. This drop represents a meaningful benchmark that is likely to make homeownership a more achievable goal for many potential buyers.

Inventory, Bidding Wars, and High-Demand Areas

Listing activity, however, has seen a roughly 9% decrease month-over-month, creating a leaner inventory that’s pushing some areas into competitive bidding scenarios. In high-demand neighbourhoods such as Kortright West, student rentals have attracted particularly strong interest, with some properties seeing bully offers and closing at up to $200,000 over asking price within just a couple of days. As demand outpaces supply, quick sales and premium offers are becoming more common.

If you’re considering buying, now could be an ideal time to start the pre-approval process and explore financing options to set your budget and prepare for a possible purchase. This proactive approach allows buyers to make timely decisions, particularly in fast-paced and competitive segments of the market.

Property Management Services and Leasing for Next Year

For current property owners, now is the season for fall maintenance and property preparation. If you need help managing your property, we offer comprehensive in-house property management services and are organizing fall cleanups for our clients. Additionally, we’re already beginning to lease properties for the next year, so if you have tenants or are looking to rent out your property, now’s the time to start planning.

For any questions about buying, selling, or property management, please feel free to reach out. We’re here to help you navigate the evolving real estate landscape, and we’ll be back with another update next month!

Non-Resident Speculation Tax (NRST)

Tue, 19 Dec 2023 17:12:07 GMT

What is Non-Resident Speculation Tax (NRST)?

The NRST applies on the purchase or acquisition of an interest in residential property located anywhere in Ontario by individuals who are foreign nationals (individuals who are not Canadian citizens or permanent residents of Canada) or by foreign corporations or taxable trustees. Effective October 25, 2022, the NRST rate is 25%.

Who pays NRST
The NRST applies to the value of the consideration for the transfer of residential property if any one of the transferees is a foreign entity or taxable trustee. For example, if a transfer of residential property is made to three transferees, one of whom is a foreign entity that acquires a 33% share in the land, the NRST would apply to 100% of the value of the consideration for the transfer.

As an example, Tomoko, Shoshana, and Lieven buy a home together. Tomoko acquires 33%, Shoshana acquires 33% and Lieven acquires 34% interest, with a value of the consideration of $1,500,000. Tomoko and Shoshana are Canadian citizens, but Lieven is a foreign national. The NRST is applied to the full value of the consideration, resulting in NRST payable of $375,000. They do not pay NRST on just 34% of the value of the consideration. The NRST is not prorated to the interest acquired by the foreign national.

Each transferee is liable for any NRST payable. If a foreign entity or taxable trustee does not pay the NRST, the other transferees will be required to pay the tax. This applies even if the other transferees are Canadian citizens, permanent residents of Canada or non-foreign corporations.

Exemptions from the NRST
An exemption from NRST may be available for registered transfers if the transferee is a nominee, a protected person or a spouse of a Canadian citizen, a permanent resident of Canada, a nominee or a protected person. Exemptions in the Act and its regulations that apply to LTT also apply to the NRST.

Supporting documentation may be required by the ministry to substantiate all claims for an NRST exemption.

To learn more, refer to Ontario.ca's page on: Transfers that are exempt from the NRST.

Rebate and refund of the NRST
A rebate of the NRST, may be available for registered transfers if the transferee becomes a permanent resident of Canada. If the land purchased is within the Greater Golden Horseshoe Region of Ontario, and if a binding agreement of purchase and sale was signed on or before March 29, 2022, and not assigned to other persons after March 29, 2022, then a foreign national may qualify for the International Student NRST Rebate or the Foreign National Working in Ontario NRST Rebate.

A refund of the NRST may be available for eligible transferees if the tax has been improperly paid or overpaid.

Supporting documentation will be required to substantiate all applications for a rebate or refund.

To learn more, refer to our NRST rebates and refunds webpage.

Tax avoidance and offences
All transfers of land in Ontario are subject to audit.

Anti-avoidance provisions will be enforced to ensure the NRST is reported and paid as required. This includes examining circumstances where Canadian citizens or permanent residents of Canada, as taxable trustees, hold property in trust for a foreign entity. This also includes preventing the use of multiple conveyances to avoid the NRST.

Failure to pay the NRST as required may result in a penalty, fine and/or imprisonment.

OSFI shelves some regulatory proposals

Tue, 17 Oct 2023 18:52:06 GMT

Some important information passed on by our Mortgage Underwriter, Scott .

Our mortgage underwriter Scott shared an update with us this morning that we feel is important to share with our clients alike. This update is on OSFI's review of the proposed regulation changes, and their current position on various regulations based on industry feedback over the past several months.

Scott said "I anticipated that some of these changes would have a very significant impact on a specific portion of the market, and submitted a detailed response myself in the spring. The LTI (mortgage to income ratio), and DSC (debt service coverage) would have had a very negative impact on banks ability to make exceptions to lending policies for both BFS and Professional clients who have significant deductions from income, or maintain significant retained earning in their PC's."

Canada’s banking regulator confirmed today that it will no longer pursue at least several of the proposed mortgage regulations it had introduced earlier this year after they were met with widespread concern and criticism during its public consultation period.

Nine months after the Office of the Superintendent of Financial Institutions (OSFI) unveiled its proposed measure related to debt serviceability and kicked off a public consultation period, the regulator today released the results of its discussions with industry stakeholders.

“The majority of stakeholders agreed that risks to lenders arising from high household indebtedness are important,” OSFI concluded in a report published today. “However, stakeholders were generally not supportive of additional debt serviceability measures.”

Respondents warned that OSFI’s latest proposed measures would have a disproportionate effect on smaller institutions with unique business models and wouldn’t adequately address the root cause of Canada’s household debt problem.

However, OSFI confirmed that it would no longer pursue two of its proposals at this time: debt-to-income (DTI) restrictions (while keeping LTI restrictions on the table) and debt service loan coverage restrictions.

While these comments were included in OSFI’s consultation feedback report, it hasn’t yet made final decisions in terms of the implementation of its remaining proposals.

In January, OSFI asked the public for feedback on three new regulatory changes to Guideline B-20 which were intended to restrict mortgage lending in response to record levels of household indebtedness.

Stakeholders expressed concerns over the proposed changes

The proposals included loan-to-income (LTI) and debt-to-income (DTI) restrictions, debt service coverage restrictions and more “risk-sensitive” interest rate affordability stress tests.

The following is the feedback OSFI received in response to each proposal.

Loan-to-income (LTI) and debt-to-income (DTI) restrictions

Specifically, the proposed LTI and DTI restrictions would limit lenders to a certain volume of loans that exceed a “prudent” threshold “to help financial institutions better manage the risks associated with significant buildups of household debt in their loan books,” according to OSFI’s Annual Risk Outlook semi-annual update. This would effectively cap 75% of all mortgage customers to loan amounts of up to 450% of their income.

According to the feedback published on Monday, respondents were generally not supportive of the measure, suggesting some would be redundant, too late to implement effectively and would disproportionately impact smaller lenders.

OSFI’s response:

“We consider a DTI (total indebtedness) restriction to be too complex to implement at this time,” it said in the report.

“We agree that debt service ratios (i.e., GDS and TDS), under certain conditions, can produce similar outcomes to LTI/DTI although they are focused on debt affordability as opposed to limiting exposure to high indebtedness. We also acknowledge that most lenders do not use LTI/DTI measures in underwriting,” it added. “We also believe proportional implementation, versus a one-size-fits-all approach, would be most appropriate given differences in FRFIs’ business models.”

“We appreciated lenders’ analysis on predictors of default and agree that credit score and other factors can be better predictors than high LTI or DTI,” OSFI noted. “That said, high household indebtedness is still relevant to credit risk, the safety and soundness of FRFIs, and the overall stability of the financial system.”

Debt-service coverage restrictions

This would involve measures that restrict ongoing debt service (principal, interest and other related expenses) obligations as a percentage of borrower income.

Respondents expressed “mixed views,” with some supporting a qualifying amortization limit but most expressing opposition to regulatory limits and alignment with insured mortgage criteria. Instead, the feedback found strong support to preserve the lender-determined risk-based limits and criteria for debt service coverage.

OSFI’s response:

“We believe there is merit in lenders applying an explicit, qualifying amortization limit and we will continue to evaluate this proposal,” OSFI said. “Such a limit would add more rigour to qualifying debt service calculations while still permitting lenders flexibility to offer a longer contractual amortization to some qualified borrowers.”

However, OSFI added that “After careful consideration of stakeholder feedback, we agree that regulatory limits on debt service coverage should not be pursued. While such limits could result in greater consistency, they would remove too much risk-based decision-making and risk ownership from lenders.

Interest rate affordability stress test

This measure would impose a more “risk-sensitive” test beyond the current Minimum Qualifying Rate (currently 5.25%), including implementing different MRQs for different product types, such as mortgage terms.

Respondents were similarly opposed to MQR adaptations and other affordability tests, specifically due to the negative effect on other public policy objectives and concerns over unintended consequences.

OSFI adds that any regulatory measures it considers would be implemented “incrementally and sequentially” with debt service coverage measures taking the priority, followed by adjustments to the MRQ, with an LTI limit as a last resort.

OSFI’s response:

“We will continue to reflect on how best to encourage lenders to apply more rigorous affordability tests, especially when higher risk attributes are present in a mortgage application. We should be able to observe variation in qualifying debt service ratios as evidence of this,” OSFI said.

“Encouraging longer borrowing terms and payment stability through MQR design has merit from a risk perspective.”

Other feedback

In addition to feedback specifically on the three proposals, respondents also commented on the importance of improved income verification in deterring mortgage misrepresentation.

They suggested that OSFI could work with the Canada Revenue Agency (CRA) to allow independent income verification, something Mortgage Professionals Canada has identified as a priority as part of its advocacy initiatives.

“We welcome any initiative that advances our B-20 expectation that FRFIs use income sources that are independently verifiable and difficult to falsify. We and our federal financial sector partners are aware of ongoing CRA efforts in this regard,” OSFI said.

Respondents also encouraged a focus on higher risk markets like the Greater Toronto and Vancouver markets, though OSFI said it’s against any geography-based measures, as vulnerabilities and risks are common regardless of geography.

At the end of the day, OSFI agrees with other industry watchers in acknowledging the only real way to address Canada’s housing affordability crisis is by addressing supply shortages.

“We believe that housing market imbalances are driven by both demand and supply-side factors,” the report states. “Adequate housing supply that keeps pace with demographic needs supports a stable, well-functioning mortgage market and the broader Canadian economy.”

View original article here.

(J. Lindzon, 2023)

Green Street Garden Suite

Fri, 25 Aug 2023 18:08:55 GMT

"This project took some time to come together, largely due to the distance between the property and our office."

This project took some time to come together, largely due to the distance between the property and our office: about a 4-hour flight and three time zones. This recently purchased multi-unit home in Victoria, BC had a detached garage that the previous owners had renovated to prepare for an apartment, but never got around to finishing the job. With some help from our West Coast property management team, we were able to bring it to market as a cozy self contained 1-bedroom suite. Not only did it serve as a place to stay for a few nights while we were on the Island, it doubled our monthly cash flow and added 1% to our cap rate.

The Vanier Project

Thu, 24 Aug 2023 20:58:47 GMT

"If our clients find themselves in a tight spot, so do we!"

On the sales side, we found a client a great buy on a 2,400 square foot, 2-story home on a quiet street, backing onto a park, with a layout that set up comfortably for a 6-bedroom upper unit, with a wide open unfinished basement that made for a 2-bedroom accessory apartment.

The purchase went off without a hitch, however, a week after closing, the contractor who was lined up to do the work, decided it wasn't a job he wanted, and left us with eight tenants needing housing, and 2 months to get the work done.

We picked up some tools (and a few extra sets of hands) and got to work. The upper unit was fairly simple to put together, a few partition walls, framing in some closets and moving a few doors. That was the easy part. The full basement apartment took some time and extra effort, but we were able to create an excellent 2-bedroom basement apartment with an open concept kitchen/dining/living area, 2 large bedrooms, and a 3-piece bathroom. We took the time to add in some extra comforts and sound proofing, cut in an extra window, and with a little flex in the timeline, we had all eight tenants moved in and comfortable by the time school started in September.

It wasn't easy, but if our clients find themselves in a tight spot, so do we!

The Yorkshire Project

Thu, 24 Aug 2023 20:33:50 GMT

We had a client approach us with an offer for us to buy his property, except there was a catch...

The catch: it is not currently liveable (interior was pulled back to the studs, no insulation, plumbing or wiring). It is also on a lot that is so small, it is legal non-conforming. The foundation is in need of structural repair, and to top it all off, the property is adjacent to the GO Train tracks. So, this is not an opportunity for everyone.

Luckily, we had just the right client, who is a carpenter by trade, who doesn't currently own a home, and who could use his unique skillset to see this one through. So, a partnership was born.

The lot has been purchased (for essentially the value of the land) and we've been hard at work coming up with a new building plan that can be approved by the City of Guelph, despite our current 'non conforming' issues. Let me tell you, this process has been time consuming and expensive. We've had two engineers in to assess various aspects of the home, and have had to work with MetroLinx (due to proximity to train tracks), the Heritage Committee, the City planning office, and Committee of Adjustments. This all takes time, and time costs money.

The hope is to break ground in 2024 with a fully rebuilt home (plus a little extra). We're counting on our planning consultant, Odete, to bring this one home and deliver us an approved building plan.

Until then, we're letting the pro's do their thing.

The Barn Project

Tue, 22 Aug 2023 18:44:57 GMT

What started as a rebuild of an old wooden barn/storage building, resulted in the prototype for the main house renovation.

We needed to rebuild the 'barn' to kick off the entire Hume Road project, because once the house addition was completed, getting machines and materials back to the barn would prove to be more challenging. So the barn project set the timeline for everything.

We knew we wanted a bigger structure than the original barn, and something that was winterized with a poured concrete floor. With that in mind, and knowing we were building a structure with full foundation, we decided that adding a second story would be cost effective, since we were really just tacking on another 8-feet to the height. And anyone who knows us, knows that we aren't afraid to add some extra kitchens and bedrooms to create the potential for rental income. So, our 30' x 40' shop grew to include a 1,200 square foot two-bedroom apartment above. This did create some challenges, requiring a septic tank tied into the existing system, as well as a furnace and water line to be run from the main house. Working with the right trades made these tasks easy, and proved great practice for the next phase of construction.

What made this project challenging, was the timeline running through March 2020, and the dreaded COVID supply chain issues that followed. This caused some issues with our product selection for wood exterior, and required us to space out some trade timelines to allow for 'social distancing' but man, what a time to live through. One of the key design concepts that we incorporated was a 1,500 square foot south facing single pitch roof design, specifically for future solar panel installation. We angled the structure to ensure optimal sun exposure on the roof, and trenched in extra conduit to run power from the house to the barn, but also back from the barn to the house. ( Stay tuned for a separate blog on The Barn Solar Project in 2024! )

The interior design had some help from our #1 contractor Marko Barakoski , who added some personal touches, including a two-sided fireplace, a modern European style kitchen, and an open floor plan. Still to be added are a deck to take advantage of the stunning Hume Road views.

We were originally against a white interior, but after running with the colorless palate in the barn, it really made the natural wood tones pop. The exterior was a trial and error with some wood stain, black windows and beam effects that tied in, but failed to match to the main house. Our panelized stone skirting on the lower half was a budget way to try out the stone/wood mix, and while we would have loved to work with natural stone, the budget for barn siding just didn't have room.

Overall, we started with a budget around $150,000, and added an extra $50,000 to create the two-bedroom living suite above. Great value in our opinion and totally worth the added cost.

Next up: Solar panels!

The Difference Between Hard and Soft Intensification

Tue, 22 Aug 2023 18:11:34 GMT

LIVEHERE Real Estate's Realtor® Andrew Mackie describes the difference between hard and soft intensification as it relates to the City of Guelph's planning and zoning as noted in Bill 23.

Hard intensification and soft intensification are two different approaches to city planning and zoning that aim to accommodate population growth and increase urban density. Here's a description of the differences between the two:

Hard intensification refers to a planning and zoning approach that focuses on maximizing the use of land within existing urban areas by allowing for substantial increases in building heights and densities. The key characteristics of hard intensification include:

a. High-Rise Development: Hard intensification often involves the construction of tall buildings, including high-rise residential and commercial structures. These buildings are typically designed to accommodate a large number of people or businesses on a relatively small land footprint.

b. Increased Building Density: Hard intensification promotes higher building densities, allowing for more units or floor space within a given area. This can involve a mix of residential, commercial, and industrial developments.

c. Infrastructure Expansion: To support the increased population density resulting from hard intensification, infrastructure improvements are often necessary. This can include the expansion of transportation networks, utilities, and other public amenities.

d. Mixed-Use Developments: Hard intensification may encourage the development of mixed-use areas, where residential, commercial, and recreational spaces coexist within a concentrated urban environment. This promotes walkability and reduces the need for long commutes.

Soft intensification, on the other hand, takes a more incremental and subtle approach to accommodating growth and increasing urban density. It focuses on making efficient use of existing infrastructure and spaces while preserving the character of neighborhoods. The main features of soft intensification include:

a. Infill Development: Soft intensification prioritizes infill development, which involves utilizing vacant or underutilized spaces within existing urban areas. This can include building smaller residential units or repurposing existing buildings.

b. Adaptive Reuse: Soft intensification promotes the adaptive reuse of older buildings, such as converting industrial structures into residential lofts or repurposing heritage buildings for commercial or cultural purposes. This preserves the architectural heritage while accommodating growth.

c. Neighborhood-Scale Planning: Soft intensification often emphasizes planning at the neighborhood scale. It focuses on maintaining the scale, character, and identity of individual neighborhoods while allowing for incremental growth and increased density.

d. Public Spaces and Green Infrastructure: Soft intensification recognizes the importance of public spaces, parks, and green infrastructure. It aims to enhance these elements within urban areas to provide recreational opportunities, improve air quality, and promote the well-being of residents.

The choice between hard and soft intensification depends on various factors, including local context, community preferences, and the availability of land. In some cases, a combination of both approaches may be employed, with hard intensification in certain areas and soft intensification in others, to achieve a balanced and sustainable urban environment.

Why is intensification important in sustainable development?

Intensification is important in sustainable development for several reasons:

Efficient Land Use
Reduced Environmental Impact
Infrastructure Optimization
Preservation of Rural Areas
Social and Economic Vibrancy
Efficient Resource Allocation
Revitalization of Existing Areas

Overall, intensification plays a crucial role in sustainable development by promoting efficient land use, reducing environmental impact, optimizing infrastructure, preserving rural areas, fostering social and economic vibrancy, and enabling the efficient allocation of resources. It supports the goal of creating sustainable, resilient, and inclusive cities for current and future generations.

How can soft intensification provide real estate investment opportunities?

Soft intensification can provide real estate investment opportunities in several ways:

Infill Development
Adaptive Reuse
Neighborhood Revitalization
Mixed-Use Developments
Sustainable and Innovative Projects
Collaboration with Local Authorities
Affordable Housing Initiatives

It's important for real estate investors to conduct thorough market research, understand local regulations and zoning requirements, and consider the needs and preferences of the target market when identifying soft intensification investment opportunities. Additionally, engaging with urban planners, community organizations, and local stakeholders can provide valuable insights and help align investments with the overall vision for sustainable urban development.

The Alma Project

Thu, 25 May 2023 20:11:10 GMT

"I am excited to be working on this Project with Dave and LIVEHERE Real Estate!"

Andrew purchased this property in Alma, Ontario with his family in 2022 with the intentions of converting the 1,200 square foot garage into a studio apartment. The process of finding the property itself took about a year, and we're looking forward to documenting and sharing the process with you over the next few months as the studio apartment starts taking shape!

Pandemic brings local REALTOR® and the Guelph Food Bank together

Mon, 10 Apr 2023 14:18:58 GMT

"Having enough to eat is vital"

Dave Neill sits down with Pauline Cripps of the GFB

At the outset of the pandemic, uncertainty was everywhere. As a business owner, REALTOR® Dave Neill sat in his office and planned out how long the team could stay in business without any revenue, and how that might impact the operation of the business, and the life of his employees. He contemplated the financial impact that a worst-case scenario might have on the business and all the families it provides for.

Fortunately, as things would unfold, his business was able to remain stable throughout the pandemic and resulting economic shocks.

“However, we recognized that not everyone was in the same boat,” he says. “We began to look for opportunities to help those less fortunate and tried to find something that would have an immediate impact directly on those in our community that could use support. And then the call went out for volunteers at the Guelph Food Bank.”

In a world that produces enough food to feed everyone, nobody should be going hungry, and yet hunger is an unfortunate reality for many.

The Guelph Food Bank aims to alleviate these effects by connecting those in need with supplemental food supports that might otherwise be out of reach. Established by Spiritwind Christian Centre in 1989, the organization’s goal is to help those in our community who are in need of food support while encouraging them to become self-sufficient by supporting them with various life skills programs.

Neill interviewed Pauline Cripps, Administrator at the Guelph Food Bank.

The pair discussed the importance of the food bank, what it is that hunger represents, and how people can get involved and lend a hand.

DN: Can you tell us about the importance of the Guelph Food Bank and what it offers the community?

PC: For more than 30 years, the Guelph Food Bank, like many food banks across the province and country, has been fulfilling a need in the community that has otherwise gone ignored by those in a position to effect real change. As the local member of Feed Ontario , the Guelph Food Bank acknowledges that “Hunger in Ontario is not a consequence of a lack of food, but a symptom of poverty. To end hunger, we must come together to create policy solutions that alleviate poverty.”

The work that this organization is doing at a local level is in direct response to the needs of the community it serves, need that is easily seen on a daily basis, and this work is done without any regular government or United Way Funding. With more than 1.7 million pounds of food distributed last year alone, the organization’s work is crucial to our local community and wouldn’t be possible without the support of those in this city who support the various programs and services offered by the Guelph Food Bank and its partners.

DN: What is the Guelph Food Bank policy?

PC: Anyone faced with financial hardship may access emergency food support services offered by the Guelph Food Bank or its network of partnered satellite locations. For more information on service options at alternate locations, please contact the main office at 519-767-1380.

Clients accessing the Guelph Food Bank directly can come in Monday to Friday between 9 am and 11:45 am to be seen without an appointment.

New clients will need the following to register:

ID for everyone in the household
Proof of address within our servicing area

We will also ask for your primary income source and rent information to support our data-driven advocacy work both in Guelph and that done by Feed Ontario and Food Banks Canada .

NOTE: Clients must arrange their own transportation to and from 100 Crimea St. You may request a worker or trusted individual to pick up on your behalf with the proper identification; please contact our office to arrange ahead of time.

DN: Can you describe the various programs the Guelph Food Bank offers?

PC: We offer Direct to Client Food Supports, Community Food Hub Distribution, Agency Excess Distribution, Food Collection, Work Placements, Adopt-A-Family and Community Food Drives.

DN: What are the various ways people can contribute and get involved in their community?

PC: People can:

Make a monetary donation (either online or in person)
Donate food (either at one of the grocery store or fire hall drop-off locations or in person)
Support one of our seasonal food drives
Become a supporter through farmer / grower direct partnerships
Plant a row, grow a row when maintaining your own garden
Volunteer your time
Host a team building / group volunteering event
Learn more about the organization’s work, ask questions and spread the word

DN: If someone needs food bank assistance, how can they get in touch?

PC: Here are our contact details:

100 Crimea St., Unit C12
Guelph, Ontario N1H 2Y6

Phone: 519-767-1380
Fax: 519-824-1640

E-mail: guelphfoodbank@gmail.com

Online Form

Hours of Operation: Monday to Friday 9 am to 11:45 am for client servicing

Our office / donation receiving hours are 9:00 am to 4:00 pm

DN: Are the programs anonymous?

PC: Client confidentiality is highly important to the Guelph Food Bank and while we do collect some personal information for data/advocacy purposes, this information is not made public for any reason.

For more information on client servicing supports, please contact the office directly at 519-767-1380 to get the best information suited to your needs.

DN: What are some of the items accepted for donation and what does the food bank need right now?

PC: This list is ever-changing, however our current needs as of April 2023 are:

Canned Meats – Tuna/Salmon/Ham/Chicken
Peanut Butter, Cheese Spread
Canned Fruit, Canned Vegetables
Canned Soups, Meal Helper
Canned Tomatoes, Pasta Sauce
Cereal, Dry Pasta, Rice
Baby Formula, Baby Foods
Girls & Boys Diapers Size 5 & 6

Special Diet Foods:

Diabetic Products
Low-Salt Products
Gluten/Wheat-Free Products
Ethnic Food Options
Boost or Ensure

DN: How can people contact the food bank to get involved with volunteering?

PC: They can fill out this volunteer form and return it to the GFB.

LIVEHERE Real Estate’s mission: The reasons we volunteer:

We were made aware of the need for volunteers at the Guelph Food Bank, and given the rising food inflation, it seemed like the best way for us to start helping those in need. Having enough to eat is vital for your health and the health of your family. The Guelph Food Bank are incredibly welcoming and appreciative of volunteers. It is a great environment to step into and immediately start having an impact.

Brantford

Fri, 10 Mar 2023 16:51:01 GMT

ABOUT THE AREA

Located in the heart of southern Ontario, Brantford is about an hour's drive from Toronto, London, and St. Catharines. Choose from award-winning accommodations at one of the 7 hotel chains located within the Brantford city limits. Explore world-class entertainment options, shop at unique boutiques, taste your way through the city, from low-key pubs to fine dining, and be sure to brush up on the local history at one of the many museums and galleries. You may even want to catch a tournament, or spend some time in nature admiring the beautiful trails or Grand River.

Population: 102,159

Cambridge

Thu, 09 Mar 2023 17:56:44 GMT

ABOUT THE AREA

The Province of Ontario formed the City of Cambridge on January 1, 1973. The former communities of Galt, Preston, Hespeler, and Blair make up the current city of Cambridge. Though the history of the area dates back to a much earlier time. Today, Cambridge is a modern city with a rich architectural heritage still clearly seen today. Cambridge is now the second largest community within Waterloo Region. This is partly due to the strong economy and culture. In recognition of the past, the City maintains three unique downtown cores.

Population: 102,159

Elmira

Wed, 08 Mar 2023 18:11:51 GMT

ABOUT THE AREA

Elmira is located in the Regional Municipality of Waterloo, just a 15 minute drive north of Waterloo and Kitchener. This delightful village is home to the largest population of Mennonites in Canada. Often seen around town on their horse-drawn buggies, Elmira Mennonites trace their origins back to German and Dutch speaking Pennsylvania Mennonites who immigrated to the area in 1806. Visitors flock to Elmira for its quaint atmosphere, down-to-earth sensibilities, artisan goods and organic fare, seasonal festivals, farmers’ markets and the historical buildings that remain unchanged yet functional.

Population: 10,790

Elora

Tue, 07 Mar 2023 18:22:47 GMT

ABOUT THE AREA

Located on the edge of a spectacular gorge and nestled along the banks of the Grand & Irvine Rivers lies enchanting Elora—Ontario's most beautiful village. The town is chock full of unique shops throughout the downtown core. Elora is an advocate for the culinary arts. You can grab a fabulous meal and a drink, pull up a stool and watch the river float by on one of our many restaurant patios or try the taste of Elora at our craft brewery or distillery. Elora and Fergus are the primary communities that make up The Township of Centre Wellington in the heart of Wellington County.

Population: 3,060

Fergus

Mon, 06 Mar 2023 18:51:04 GMT

ABOUT THE AREA

Fergus has deep Scottish roots dating back to 1833 when settlers called it "Little Falls" because of its scenic waterfalls. In 1858, the town was incorporated and renamed "Fergus" in honour of one of its Scottish founders, Adam Fergusson. This historic river town is divided by the stunning Grand River and is a little over one hour's drive from Toronto. The Fergus Scottish Festival and Highland Games is the town's largest and most recognized festival. An annual tradition that draws over 30,000 people each year. Fergus and Elora (Ontario's most beautiful village) are the primary communities that make up The Township of Centre Wellington in the heart of Wellington County.

Population: 20,767

Guelph

Sun, 05 Mar 2023 16:50:27 GMT

ABOUT THE AREA

With an unquestionable identity from its booming craft beer scene, and variety of independent eateries, Guelph is a great place to live! You'll be sure to love the beautiful rivers and picturesque views that complement the historic landmarks and culture. The ever-popular University of Guelph is well known for its warm and friendly campus atmosphere. For several years, the UofG has been ranked as the best university in Ontario for its learning and living environment, and support for students. Whether you’re looking for quaint, charming family neighbourhoods or trendy, energetic pockets of the city, you’ll find it within Guelph!

Population: 135,474

Kitchener

Sat, 04 Mar 2023 19:43:29 GMT

ABOUT THE AREA

Population: 20,767

Puslinch

Fri, 03 Mar 2023 19:50:32 GMT

ABOUT THE AREA

Puslinch is the ideal place to call home. With its laidback country feel and neighboring proximity to major cities, it's truly the perfect blend of rural and urban living. The outdoor spaces in Puslinch welcome community involvement and are host to recreational activities and events. An added bonus of living here is that the Township has an endless amount of natural beauty for you to explore. There are so many things to discover in the Township of Puslinch that you may find yourself staying a few extra days or even planning your move. From hiking on the trails, brushing up on the history, attending one of the festivals or events, LIVEHERE Real Estate promises that you will fall in love with Puslinch and is has to offer.

Population: 7,336

Rockwood

Thu, 02 Mar 2023 20:28:45 GMT

ABOUT THE AREA

Rockwood, the center of the Township of Guelph-Eramosa, is a thriving community that boasts an excellent quality of life. Proximity to Guelph and the GTA interlaced with the area’s natural beauty, local shops, and amenities make Rockwood a delightful place for families, naturalists and retirees alike. Here you'll find tall limestone cliffs, caves and glacial potholes which are a few of the natural wonders within Rockwood. You can view them from hiking trails on either side of the Eramosa River or rent a canoe for an up-close-and-personal view. The area's distinct setting makes it a popular location for TV shows, movies and photography back drops.

Population: 4,625

St. Jacobs

Wed, 01 Mar 2023 20:39:30 GMT

ABOUT THE AREA

Located in the Township of Woolwich, the history of St. Jacobs is steeped in local Mennonite history. It has become a retreat for locals and visitors alike with the St. Jacobs Farmers’ Market, which is the largest year-round farmers’ market in Canada, as well as the Village of St. Jacobs, which has great shopping, restaurants, and a craft brewery. There are also many roadside stands where visitors can get fresh produce, meat, eggs, cheese, honey, maple syrup, and much more.

Population: 1,959

Victoria, BC.

Tue, 28 Feb 2023 21:13:15 GMT

ABOUT THE AREA

Victoria, the Capital City of BC, is home to a dynamic, thriving economy and vibrant arts and culture scene, with an unparalleled natural environment enjoyed by residents and visitors. It’s a place where sustainability, health and well-being are the cornerstones of creating a prosperous and inclusive future. Victoria has a wealth of natural and man-made riches, including stunning heritage architecture, ocean views and mountain vistas. It is this rare juxtaposition of heritage charm, scenic backdrop and modern city-scape that makes Victoria one of the most uniquely special places in Canada.

Population: 394,000

Waterloo

Mon, 27 Feb 2023 20:58:53 GMT

ABOUT THE AREA

Waterloo Region is a mid-sized community situated in the heart of southwestern Ontario's greenbelt. There are lots of amenities similar to larger cities, while still maintaining the charm and character of a smaller rural community. The peaceful landscape is dotted with many distinct towns and historic communities as well as farms offering delicious meats, maple syrup, baked goods, cheeses, and Mennonite furniture. In Waterloo, there are two universities, just a 10-minute walk from each other on University Avenue. The University of Waterloo is is ranked #8 in Best Global Universities in Canada, while, Wilfred Laurier University is ranked #29 in Best Global Universities in Canada. The schools were evaluated based on their research performance and their ratings by members of the academic community.

Population: 113,520

Advice on when to get into the real estate market.

admin@thelivehere.com (Dave Neill) — Mon, 05 Dec 2022 21:37:44 GMT

Take advantage of the market now to get started on your real estate journey, with help from Guelph REALTOR® Dave Neill.

There’s a misconception that the real estate bubble has popped, and prices will continue to collapse—then take a decade or more to recover. While we have seen a decrease in prices, there is definitely a ‘price floor’ that has developed; it is not likely to see significant decreases beyond current market levels, without another substantial change in interest rates.

There are three factors that will continue to underpin real estate prices. First, the replacement value of real estate. While prices have come down, construction costs have not. Gone are the days when a builder can put up a townhouse for less than $200,000. So you can expect new construction homes and condos to hit the market at prices that will continue to increase.

Second, the cost of rent is also a good indicator of how close market prices are to sustainable values. With many buyers either holding off on making a purchase or failing to qualify for financing due to increased interest rates, we have seen a flood of people in need of rental housing, which has pushed rent prices up. There are still opportunities that exist in the market where an investor can purchase a home and rent it for enough to cover a home’s monthly carrying costs. As long as these opportunities exist, there will be support for current market values.

Third—and this is the largest factor that will impact real estate price stability over time—there is massive demand for housing, and given current immigration levels, this will continue to exist. Unlike the real estate crash in the 80’s, when cities were still expanding, and builders were selling new homes by the thousands, we still don’t have enough supply, and that math isn’t likely to change any time soon. While we will continue to see new housing added through intensification and infill, it’s not enough to meet the growing demand. This factor will continue to underpin real estate values, especially for detached homes on large lots, which will become a smaller percentage of the real estate market as we work to accommodate more people within our existing footprint.

Many are surprised to learn that there are lots of options available based on your own individual circumstances and financial situation, and that getting started on the real estate ladder is also possible at times like these, when the market has seen a meaningful decrease in prices.

“Anyone who is looking at the current statistics on housing prices knows that compared to the peak in late winter 2022, we have seen prices come down by a meaningful amount,” says REALTOR® Dave Neill. “So what happens to those who bought six months ago—and why would someone consider buying now, instead of waiting for prices to keep falling?”

First, it’s important to note that anyone who bought at the peak earlier this year really only loses money if they sell, and most people who buy real estate don’t sell it within the first few years. Could they have waited and paid less? Possibly, but with interest rates rising at a record pace—including those that are used to qualify for a purchase—those buyers may no longer qualify to buy the home they want, even if that home is listed at a lower price. And if they sold a home to buy one, the odds are they would end up in the same spot, since the price of the home they sold would have come down by a similar amount.

While home prices have certainly fallen, ownership costs have not, in fact in some cases they may have increased along with the higher interest rates.

“Each situation is unique, but the savings in monthly costs with a $150,000 decrease in a mortgage amount can be offset by a 2% increase in interest rates. In this case, we’ve seen rates spike about 3% in 8 months, which means from a monthly cost perspective, housing affordability hasn’t changed much,” says the REALTOR®.

“For anyone considering purchasing real estate, if they decide to hold off in order to wait for ‘the bottom’, they are at risk of missing out on some good opportunities in what some may consider a ‘buyers’ market’. They’re also overlooking the long-term view that is helpful when evaluating a real estate purchase,” says Neill. “You’re looking at the value of your assets in 10, 15 or 25 years, not next month.”

If you’re looking to buy real estate, LIVEHERE Real Estate can support that journey from start to finish. They’ll set up a budget and evaluate your financing options, and help you make the decision that is in your best interests. Once you’ve firmed up on a purchase, they’ll be there for the lifetime of your ownership to help you navigate any issues that might arise.

For more information on owning real estate in Guelph, Brantford, Elora, Fergus and Puslinch, including student rentals in and around the University of Guelph, visit www.thelivehere.com , Coldwell Banker Neumann Real Estate Brokerage or call 519-760-9619 . You can also follow Neill’s team on Instagram and Facebook.

I want to successfully invest in real estate, where do I start?

Wed, 30 Nov 2022 19:23:27 GMT

Dave Neill gives his advice on how to find an investment property that will be profitable and what to look for to ensure success.

To start, Dave recommends talking to an agent who has personal experience investing in the market—the same market you are interested in. This person should have gone through the process of advertising for and screening tenants, knows what the market rent rates are and will help ensure you get the most out of your rental income.

Dave has over 20 years of personal experience buying, selling, renting and managing his own investment portfolio in the Guelph area, and it is that experience that provides the most value for his clients. “Your agent should also have a network of contacts who can solve problems that may come up, and the experience to help you solve them when they do,” he says.

He doesn’t think you need to worry about finding a good tenant. “The easiest guarantee we can provide to clients is that their home will rent and there will be a strong supply of quality tenants who will happily pay their rent in exchange for a comfortable place to live,” says the REALTOR®.

What to look for

Savvy investors should look for properties that have the potential for revenue growth, or price appreciation.

“I’ve always been drawn to the uniqueness of real estate,” says Neill. “Cool living spaces, large yards, sun exposure, Walk Scores, etc., are all unique aspects of real estate that can provide long-term value, both in attracting great tenants and obtaining top dollar when it is time to sell.”

But how can you tell if an investment property will be profitable? You have to crunch the numbers. According to Neill, you should have a good handle on the prospective rental income, as well as your fixed costs for ownership, such as mortgage, insurance, tax and utilities.

He also advises that you take a good, close look at the condition of both the interior and the exterior of the home to help you budget for future expenses; this can give you an idea of what might come up down the road. “There will always be something unexpected that comes up, so having a financial plan to cover those expenses is something you should prepare for. If those numbers don’t show a profit on a monthly, annual or a 5-year cycle, then you may want to look at a different opportunity,” says the REALTOR®.

Helpful property investment services

Companies like his not only help investors get started, they are available to assist throughout the ownership of the property. His business provides all of the services and information needed to get started, so you’re never going it alone. They stick around throughout the length of the ownership to ensure everything goes smoothly.

Says Neill, “If you have a problem, then so do we—and we get to work to help you solve it.”

Different levels of service are available. Those interested in turnkey investment services are totally hands-off for clients; they own the property, but LIVEHERE deals with leasing, maintenance and tenant communication. “We have clients whose tenants think that we own the property, since we are their only point of contact,” notes Neill.

The Leasing-only services focus on finding and qualifying suitable tenants and handing them off to the landlord. For clients who want to save some money or be more hands-on in the process, they can take advantage of the guidance and support the team offers. Whenever you have a question, for as long as you own the property, that service is covered by the commission on the sale of the property.

You can have the help of professionals who are on-call 24 hours a day to ensure that your investment continues to grow—for as long as you own it.

Tips for success

Neill’s best piece of advice for clients is “Don’t sell!” The investors who have the most success tend to be the ones who invest for the long term.

He also cautions new investors not to spend money on a weekend seminar or a book series to learn how to invest. Neither are necessary for successful real estate investing.

Says Neill, “Owning real estate can be frustrating at times, but it’s rare you will see someone who regrets making a purchase or investment 10 years later. We’re here to manage those frustrations for you and get you to that 10-year horizon—or longer—and make sure you’re glad you did.”

The process starts with a conversation, which is always free.

For more information on finding homes for sale in Guelph, Brantford, Elora, Fergus and Puslinch, including student rentals in and around the University of Guelph, connect with us here or call 519-760-9619

The Hume Project

Thu, 21 Oct 2021 13:16:56 GMT

"It took a few years of planning and logistics to figure it all out"

Moving to 187 Hume Road back in 2014, we always knew we'd need to renovate one day ( See the 'before' photos ). But I don't think '2014 Dave' would have agreed with '2021 Dave' on exactly how the final product would come together. It took a few years of planning and logistics to figure it all out, and countless nights spent measuring, plotting, going back to the drawing board, and revising the budget up.

We took our vision to DJ Designs Architect, and at the same time, sat down with a few designers to come up with the final set of plans. After a few months of revisions, we settled upon the final plans and finalized our 'construction drawings'. At the time, we thought that the big decisions were made. As it turns out, that was the easy part. We were able to do the renovations and construction in phases, which allowed us to keep living in the house. This was helpful as the work took 2 years to complete.

Step one was demolition and renovation of the upper level of the existing home, creating the master suite and giving us some much needed extra square footage. After 6 years of living in a 900 sq ft basement apartment, it was nice to get some living space above grade. Next, we got to work rebuilding the 'barn' in the back yard, since access back there would become more difficult once the addition to the main house was complete. That's a story on it's own: the creation of a two-story outbuilding with 1,200 sq ft of open span storage, and a 1,200 sq ft two-bedroom apartment on the 2nd level, with great views of the rest of the yard. (See The Barn Project).

Once we had the barn built, we got to work on the addition, which was essentially building a new 2,700 sq ft house half an inch away from our old one. We started by tearing down the old garage, clearing some trees, building the new septic system and regrading the yard to allow for a walk-out basement. There were a lot of struggles along the way; an error in the land surveying calculations required some rework and delayed pouring of the new foundation, which then put us on a tight timeline against winter, and an early December deep freeze saw a race to backfill and place some insulated tarps to protect the footings from frost.

Fast forward through a long and mucky winter, we landed into the start of a global pandemic. A few weeks into April, we received a call from our framer... It turns out he was behind on his own schedule and wouldn't be able to fit us into his summer schedule as planned. Luckily, the guys at ANC connected us with another framer who happened to have some time available , but only if he could start immediately. At that time, we weren't in a position to say "no", and what a stroke of luck that turned out to be. We called Turkstra and ordered our lumber. As it turns out, we received what seemed to have been the last available wood in the country before the pandemic supply chain crisis sent costs and lead times skyrocketing. We were fortunate to get in all of our ordering before the pandemic pricing really took hold, and in the end, this saved us hundreds of thousands of dollars on the final bill.

The framing team did a great job putting everything together, and just like that, we were well on our way into the renovation.

Once the framing came together, we took some time to carefully plan out our rough-ins, with Billy at Leaks Plumbing and Tyson at Connected GE getting us ready to board. The guys at Kina construction did a great job with the sprayfoam insulation and drywall, and Groulx windows and doors nailed the install and replacement of all of the windows in the new house and old. It is at this point in the construction that it really starts to come together.

The finishes were the part that required the most skill and attention. Luckily, you can hire those qualities. Nolan at Elements and Adrian at Homestead were really great at working together to tie in woodwork and stone features, which really brought the project to the next level. Having Marko Barakoski on site every day as an extra set of hands and quality control supervisor helped grease the wheels and provide solutions for the little things that needed to be tied together.

We pushed hard to get everything complete inside and out in time to book an appraisal to refinance the house based on the renovated value just before interest rates started to rise significantly. This set up the fuel we needed for the next project...

To be continued...

livehere

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The Bank of Canada maintains its interest rate policy to close out April

Canada’s Economy Is Barely Growing. What Does That Mean for Mortgage Rates?

Why It Matters Who Handles Your Mortgage — A Real-Life Reminder

First Time Home Buyer Programs in Canada

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Unlocking Savings: Canadian Programs for First-Time Buyers, Renovations & Accessibility

First-Time Home Buyer Programs

1. First-Time Home Buyers' Tax Credit (HBTC)

2. Home Buyers' Plan (HBP)

4. Land Transfer Tax Refund

5. GST/HST New Housing Rebate

Homeowner Renovation & Energy Efficiency Programs

1. Home Renovation Savings Program

2. Home Efficiency Rebate Plus (HER+)

3. Canada Greener Homes Grant

4. Ontario Renovates Program

5. Save on Energy Rebates

Accessibility & Multigenerational Living Tax Credits

1. Home Accessibility Tax Credit (HATC)

2. Multigenerational Home Renovation Tax Credit (MHRTC)

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Economic Update, Mid-2025

On the Radar: CREA Slashes 2025 Sales Forecast as Housing Recovery Stalls

Key Highlights:

GTA Data Paints a Stark Picture

Bond Yields and Mortgage Pressure

Tariff Shock Adds to Uncertainty

What History Tells Us

Bottom Line

Expert opinions on Bank of Canada interest rate cuts are shifting.

A growing number of market watchers are backing away from their predictions of two more reductions this year. Several are now saying the Bank has likely reached the end of the current trimming cycle.

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Despite significant geopolitical tensions, the Bank of Canada announced today that it is keeping its benchmark interest rate at 2.75% , unchanged from March 2025. This ends a string of seven rate cuts dating back to June 2024.

Below, we summarize the Bank’s observations and its outlook.