Real Estate Blog - homebuyers

How Does Your Credit Score Affect Your Mortgage Interest Rate?

It takes credit to build credit ­– most of us have heard this at some point in our early years of adulthood. Some of us heard it when we got our first credit card; others when they went to apply for a loan of some type and realized they didn’t have a credit score. The crux is that while it takes credit to build credit, it also takes credit to destroy credit. So, what exactly is “credit” when it comes to finances, and how does your credit score affect your mortgage interest rate?

Credit is essentially a numbering system that gauges how likely you are to repay borrowed money. The higher your score, the ‘safer’ you seem to lenders, and the lower your score, the ‘riskier’ you are.

The first step to building your credit is to…

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The Evolution of Open Houses

REALTORS® have been conducting open houses for decades. They’re an opportunity for real estate professionals to grow their business, network with other agents, and meet with potential buyers. But over the years, open house culture has shifted. 

Open houses used to be simple—a real estate professional would promote the event, have visitors sign-in, offer brochures and marketing materials, and chat and mingle with potential buyers, agents, and visitors. Now, REALTORS® have adapted to the changing expectations of clients and created open houses that are more of a social event, providing benefits to everyone in attendance. 

The benefits of open houses

In a competitive market, an open house is an opportunity…

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The Lowdown on Private Mortgages

Some prospective homebuyers are turning to private mortgages in this red-hot Canadian real estate market. A private mortgage is a home mortgage from a private individual or company that is not a federally regulated financial institution. In an environment of historically low-interest rates and strengthening demand for limited residential properties, Canada’s private mortgage lending market is thriving amid tighter federal rules and regulations. Private lenders will argue that the current rules are too conservative and could leave too many people on the sidelines, especially when prices are growing at exponential levels.

Statistics Canada data show that non-bank residential mortgages rose to approximately $339 billion as of…

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Why is Housing Supply So Low?

There is no other way to sugar-coat what is happening in Canada’s housing market: The nation is facing a severe supply shortage. Why is housing supply so low?

Current market conditions, be it record-low inventories or strengthening demand, have sparked a housing affordability crisis. With interest rates on the rise and an inevitable increase in the mortgage stress test, buying a home within typical Canadian incomes and budgets will become more difficult this year, and potential into the foreseeable future.

But while factors such as historically low-interest rates and pandemic-era pent-up savings have contributed to the current housing frenzy, the fundamental principle of supply and demand has been the chief component in…

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What the Census 2021 Data Tells Us About the Housing Market

The population data from the census 2021 is now available and it offers us a wealth of information about where Canadians live, where they’re moving to and what communities are growing in size as a result. 

The latest census arrives at a critical time in Canada’s real estate history, when governments of all levels are weighing their options to boost supply and improve housing affordability. Over the past two years, the COVID-19 pandemic has also played a critical role in influencing the migration of Canadians, including those new to the country. 

“This type of information is critical in helping to answer many of the important questions being asked in Canada’s national housing conversation,” said Shaun Cathcart, Senior Economist and Director of…

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What Does It Cost to Build a House in Canada (2022)?

• The cost of building a house in Canada
• Getting a loan for building a house
• Average time to build a house
• Ways of reducing costs when building a house
• Alternatives to custom-built homes

If you’ve wondered about the average cost to build a house in Canada, you’re not alone, with current market conditions from coast to coast characterized by a severe housing inventory shortage. Quite simply, it could be easier to purchase bare land or a tear-down home and build something brand new. But aside from stock, there are many other advantages to building your home from scratch. You have the opportunity to customize the space to fit your lifestyle. Room by room, you have the final say on the layout, features, and…

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Tips for Single Home Buyers

Buying a home is one of the most exciting times of your life, however, it can be extremely daunting for individuals looking to make the biggest purchase of your life. Buying a home as a single person can be intimidating, but we have some smart tips for single home buyers that will make the process much smoother.

With home prices across Canada rising at a fever pitch, entering the housing market as a solo act can carry more stress from a financial perspective than if you were going in with another person. However, each scenario has distinct advantages. For example, as a single you don’t have to consider another person’s needs and wants when it comes to finding your dream home. This means less compromising. If you work…

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Mortgage Types You Should Know: Open, Closed, Convertible, Hybrid

Just like searching for a home, there are many options beyond fixed or variable rates when it comes to mortgages. In Canada, there are several types of residential mortgages available for everyone’s unique financial circumstances, no matter if you’re looking for an open mortgage or a hybrid option.

So whether you’re a new buyer qualifying for your first mortgage or an existing holder, what are the key things you need to know about the most common mortgage types? Frances Hinojosa, ​​CEO, co-founder, and principal mortgage broker at Tribe Financial Group offers some insights.

Open and closed mortgages

If you anticipate making any lump sum payments on your mortgage, you might want to weigh your options between a closed or open mortgage.

…

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How Sellers Win When Housing Inventory is Low

A recent report from the Canadian Real Estate Association (CREA) revealed that two-thirds of the nation’s housing markets are slanted in favour of sellers. With supply failing to keep up with demand, this could be the top trend for the foreseeable future.

For years, housing development has been tepid, resulting in supply falling short of demand levels. This imbalance might be more intense in more-populous markets such as Toronto and Vancouver, but this trend is prevalent throughout Canada, leading to accelerating home prices.

Under current conditions, sellers who bought even five years ago would benefit from this tight housing market. Here’s how sellers win when housing inventory is low.

How Sellers Win When Housing…

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How Modular Homes Work and Why They're Gaining Popularity

Image via HONOMOBO on Instagram

Looking for a unique, well-built home that’s ready for you in as little as 16 weeks? Welcome to the world of the modular home, an increasingly popular trend across Canada. These prefabricated (prefab) homes are generally cost effective and beautifully designed, and several companies have popped up in recent years to deliver on this trend. 

Daniel Engelman, president and co-founder of Edmonton-based HONOMOBO, launched in 2016, and says business is booming.  

“Numbers are going crazy now; last year, we did about 30 homes and this year, we’ll probably double it or more,” he says, adding buyers are typically busy professionals who want something beautiful, modern, and ready quickly. “We think modular homes are the…

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