Real Estate Blog - homebuyers

Investing in Canadian Real Estate - Still a Good Idea?

Over the last few years, investors have played a significant role in the housing boom that has taken place in the Canadian real estate market, especially in the major markets such as Toronto and Vancouver.

Late last year, there was a lot of buzz when it was reported that more than one-quarter of the Ontario real estate market was controlled by investors. Teranet data highlighted that the number of people who owned more than one property in the nation’s most populous province accounted for more than 25 per cent of buyers.

What a difference a decade can make. In 2011, investors represented just a small percentage of overall residential real estate transactions.

But this trend is happening nationwide, too. In Toronto,…

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Canadian Real Estate Prices Hit New High. Is Densification the Solution?

Just when you thought the price of Canadian real estate couldn’t get any higher, the latest data show the market continues to defy expectations – and gravity. Industry experts see no end to rising prices, in the face of growing demand and the ongoing housing supply shortage. Many young Canadians have been priced out, while older ones are increasingly dipping into their own savings to help their children get a foot in the door. Industry experts maintain that adding more housing supply into the mix is the only way to ease runaway prices.

Canadian Real Estate Prices Break Records in February 2022

February was a record-breaking month, according to the Canadian Real Estate Association (CREA), when the average home price in…

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Using Your RRSP to Maximize Your Down Payment

Saving a down payment for a house can be a daunting task. In this day and age, it can take years to save up enough money to afford a home, depending on various personal and economic factors. However, the Canadian government has created a Home Buyers’ Plan program, which allows first-time homebuyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) to increase their down payment. If you’re buying with someone who also qualifies for the program, that gives you up to $70,000 to put toward your home purchase.

Essentially, by using your RRSP, you are borrowing funds from yourself to purchase your home. Below, we will explain both how much of a down payment you require and how you can leverage your…

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Bank of Canada Increases Interest Rate

Photo by Alex Shutin on Unsplash

On March 2, 2022, the Bank of Canada began its rate hike cycle by increasing its target for the overnight lending rate by 25 basis points to 0.5%. The Bank will also be maintaining its portfolio of government bonds until it is deemed necessary to start reducing the overall size of its balance sheet.

The Bank views the Russia-Ukraine conflict as major source of uncertainty, that which has led to increases in oil and other commodity prices, stoking further global inflationary pressures, and likely causing a drag on global growth. Amidst these recent geopolitical developments however, the global economic recovery to date has so far turned out to be in line with the Bank’s projections, with some advanced economies even…

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Get Set for a Headline-grabbing Spring Market

The housing market is highly seasonal. I’m writing this in the dead of winter. There aren’t typically a lot of listings at this time of year so, by extension, not a lot of sales, even if everything that becomes available is still selling. For that reason, many people don’t seem to pay as much attention to housing between, roughly, the start of a new school year and the following spring.

Over the last couple of years, I’ve noticed  many observers of the real estate market seem surprised in March, that the market has continued to evolve over the six or so months they hadn’t been paying attention to it.

As we head into what might be the most headline-grabbing housing year ever, this blog post is to provide an update for those who may have been…

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2021 RE/MAX Market Share Reports

The 2021 Market Share Reports are here and prove, yet again, that RE/MAX is #1! The #REMAXHustle never stops!

The RE/MAX Market Share Reports are great resources to show that RE/MAX Agents can get your home sold!

Market Share Reports show:

• RE/MAX agents sell more real estate than any other Canadian brand.
• RE/MAX is the most recognized name in real estate and #1 in brand awareness.
• Over 95 per cent of homebuyers and sellers know of RE/MAX.
• Each year, RE/MAX agents’ help hundreds of thousands of families buy or sell a home.

Connect with your own RE/MAX Agent today! #BrandPower

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6 Things to Know About the Offer Process

Buying the perfect home is not as simple as it can look on TV. Buyers and sellers must first navigate the offer process, which can involve many steps and quick decisions. Here’s what first-time buyers and sellers can expect, and how your REALTOR® can help guide you throughout.

1) What must happen before you can make an offer?

Many renters think they can move on a house right away. But first, there are some things to take care of, says Katia Samson, a REALTOR® with RE/MAX L’ESPACE in Montreal.

“It’s very important to give your landlord notice three months before the end of the lease, because leases are usually renewed automatically every year,” explains Samson. 

Next, get pre-approved for your mortgage unless you’re paying cash, she adds. 

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What is the Mortgage Stress Test in Canada?

A common goal for many Canadians upon completing their education and gaining employment is purchasing their first home. Home ownership is, after all, the Canadian dream. While it’s general knowledge that saving money for a down payment is the first step to eventually purchasing a home, many are not aware of the mortgage stress test. So, what is the mortgage stress test in Canada, anyway?

To put it simply, the mortgage stress test is a mortgage qualifier tool used to determine if the borrower would still be able to continue making mortgage payments, should they lose their job, undergo some other type of financial strain, or if interest rates were to rise.

Before being approved for a mortgage on a home, the borrower must…

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Understanding Fixed vs Variable Rate Mortgages

In 2022, financial experts have been homing in on mortgage rates. Market analysts believe the Bank of Canada (BoC) will raise interest rates. The debate among housing observers, economists and investors is by how much. And with all this talk of fixed vs variable rate mortgages, what is the difference between the two products anyway? Let’s explore.

With Canada’s inflation rate the highest it has been since 1991, some anticipate the central bank will be aggressive on rate hikes, while others believe it will adopt a more cautious approach after about two years of ultra-loose and accommodative monetary policy in response to the pandemic.

One corner of the mortgage market attracting plenty of attention is variable…

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Canadian home buyers face record listings shortage to begin 2022

Statistics released by the Canadian Real Estate Association (CREA) show national home sales remained historically high in December 2021, as the end-of-month supply of properties for sale hit an all-time low.

HIGHLIGHTS

• National home sales inched up 0.2% on a month-over-month basis in December.

• Actual (not seasonally adjusted) monthly activity came in 9.9% below the record posted in December 2020.

• The number of newly listed properties fell 3.2% from November to December.

• The MLS® Home Price Index (MLS® HPI) rose 2.5% month-over-month and was up a record 26.6% year-over-year.

• The actual (not seasonally adjusted) national average sale price posted a 17.7% year-over-year gain in December. 

…

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