Why Real Estate Should Be Your Top Investment Choice

Real Estate - a stable, long-term investment that offers numerous benefits, including inflation protection, and the potential for significant returns. Investing in real estate can be a smart financial move, especially for first-time homebuyers. Here are a few reasons why:

Long-Term Appreciation

Over time, property values tend to appreciate, which means that the value of your home will likely increase in the long run. While there may be short-term fluctuations, real estate has historically proven to be a reliable long-term investment. This makes it a great way to build wealth over time.

Forced Savings

When you make mortgage payments, a portion of each payment goes toward paying down the principal on your loan. This means that every…

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Why Millennials Are Increasingly Becoming First-Time Homebuyers

As the real estate market continues to evolve, one trend that has emerged in recent years is the increasing number of millennials becoming first-time homebuyers. According to data from the Canadian Real Estate Association (CREA), mortgage-related searches by millennials have been on the rise, indicating that younger buyers are not only preparing to buy homes, but are actually making purchases. In this blog post, we'll explore some of the reasons why millennials are increasingly becoming first-time homebuyers.

Affordability

One of the primary reasons why millennials are entering the housing market is affordability. Despite high home prices in many areas, low mortgage rates have made it easier for younger buyers to enter the market. In…

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What Does the Future of Home Sales Look Like in Canada?

Real estate experts have been predicting how the Canadian housing market will fare in 2023 since the beginning of 2021. With current trends pointing towards a steady increase in home sales, it’s no wonder that many are eager to know what the future holds. With new trends and economic shifts, the landscape of home sales can be difficult to predict. In this blog post, we'll take a closer look at why home sales are expected to continue to rise over the next few years, and what buyers and sellers can expect from the markets in 2023. 

How We Got Here 

Before we can look into the future, it’s important to understand how we got here. The Canadian housing market has seen an unprecedented surge over the past year due to both COVID-19 safety measures and…

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Pros and Cons of Banks Versus Mortgage Brokers

When looking for a good mortgage rate, there are two main options: going directly through a bank or working with a mortgage broker. Each can be a good option, depending on your financial situation. So how do you decide which one to try? Let’s look at the difference between banks versus mortgage brokers, their pros and cons, and how to figure out which is best for you.

The Difference Between Banks Versus Mortgage Brokers

The big difference between a bank and a mortgage broker is that a mortgage broker can provide you with mortgage products from several different lenders, while a bank can only give you the mortgage option from their own company. Mortgage brokers have access to a variety of lenders and rates, which means…

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Bank of Canada Raises Target for Overnight Lending Rate

Bank of Canada Raises Target for Overnight Lending Rate Again, Changes Language on Future Rate Hikes

The Bank of Canada hiked its target for the overnight lending rate by 50 basis points to 4.25% while continuing its policy of quantitative tightening but stated that looking ahead it would need to consider whether the policy rate should rise further—a much more neutral stance than previous announcements.

After the announcement, financial markets were pricing in the potential for one more interest rate hike by the third quarter of 2023.

The Bank noted economic growth was stronger than expected in the third quarter of 2022 and continued to operate in excess demand. The Bank expects growth to stall through the end of the year and into the…

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How Do You Pay Off Your Mortgage Faster?

Buying a home is a big investment and a huge commitment, but most homeowners will attest that the pay-off is worth the pains and strains of making those regular mortgage payments. Most people focus on their mortgage interest rate as a way of saving money (or at least, ensuring more of it goes toward your principal), but there are other ways to decrease the amount paid in interest. One way is to pay your mortgage off faster. More on that below, but let’s start with a basic mortgage 101.

What is a mortgage?

In order to buy a home in Canada, you’ll need a down payment of at least five per cent of the home’s purchase price (but it can be more). These funds are typically saved over time and can be boosted with the help of…

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5.8M Homes Needed by 2030 To Tackle Affordability Crisis

The Canadian real estate market is experiencing a correction period. While many industry observers are stopping short of calling this downturn a crash, it is clear that the once-sizzling housing sector is being doused by rising interest rates and broader uncertainty surrounding market conditions. So, are we still experiencing an affordability crisis?

In September, the national average home price tumbled 3.9 per cent from the same time a year ago to $637,673, according to the Canadian Real Estate Association (CREA). Even when Toronto and Vancouver – two of the hottest housing markets in Canada – are eliminated from the equation, the typical residential property in the country sold for more than $500,000. While this is…

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Locking In a Variable Rate Mortgage

When mortgage interest rates were on a downward trend in the early days of the coronavirus pandemic, a variable mortgage rate made sense. With no signs of tightening on the horizon, the housing market boomed at extraordinary levels never seen before.

Now that interest rates are rising as the central bank attempts to rein in out-of-control price inflation, the discussion is how high mortgage rates will go. It is a crucial conversation, since rising rates will increase your monthly mortgage payments. While it’s challenging to forecast just how high mortgage rates will climb, Canada Mortgage and Housing Corporation (CMHC) thinks they will start to stabilize in 2024, which is when some market analysts expect the Canadian real estate market to…

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Are Higher Fixed Mortgage Rates Here To Stay?

One question many Canadians are asking is are higher fixed mortgage rates here to stay? At the September policy meeting, the Bank of Canada (BoC) raised interest rates by 75 basis points, bringing the benchmark rate to 3.25 per cent, maintaining its hawkish approach to monetary policy. The central bank signalled that it would be prepared to keep pulling the trigger on rate hikes until there is sufficient evidence the consumer price index (CPI) is showing signs of coming down.

Although the Canadian annual inflation rate has eased from its 30-year high of 8.1 per cent in August, officials conceded that this was driven mainly by gasoline prices. The national economy endured “a further broadening of price pressures, particularly…

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The Advantages of Putting 20% Down on Your Home

Is it possible to have a down payment strategy in today’s sizzling Canadian real estate market? From the Prairies to Atlantic Canada, it is clear that all kinds of residential properties are rising in value. And while there are obvious advantages of putting 20% down on your home, current conditions are posing challenges to many homebuyers.

When you factor in higher interest rates, rampant price inflation, and accelerating price growth for single-family homes and condominium units alike, it can be a challenge for prospective homebuyers to find a place.

One of the biggest hurdles for buyers to overcome is the down payment.

According to the federal government’s rules, homebuyers need a minimum of five per cent down…

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