In March 2020, the Bank of Canada (BOC) shrunk their target interest rate in an attempt to mitigate economic damage brought on by the COVID-19 pandemic. Today, in an effort to curb inflation, these rates are back on the rise. 

Earlier this year the BOC’s target interest rate grew from 0.25% to 0.50%. Not long after in April, the target rate grew another 50 basis points reaching 1.0%. As new rates bring higher costs to financial institutions, these increases will in turn impact anyone looking to get a mortgage.

Along with the hikes in target interest rates, the government recently announced a series of new initiatives designed to cool the housing market and make more inventory available for Canadians. So how exactly will these changes affect home buyers?

As always, seeking out expert advice is the best approach for navigating the home buying process. We spoke with Michael Oziel from Sherwood Mortgage Group about how these new changes may impact buyers. 

Buying as a downsizer? Download our complete guide to rightsizing.  

How Are These Hikes Impacting Buyers Today?

“The biggest change we’ve seen in buyers as a result of these interest rate increases is morale,” explains Michael. Over the past two years, buyers have become accustomed to extremely low rates, so these increases seem more drastic than they really are. Yet, many buyers have become discouraged. Michael notes, “In reality, interest rates are essentially back to where they were before the pandemic. So while yes, mortgages will be more costly now compared to this time last year, they’re still at a relatively low rate and quite affordable. 

If these new rates don’t make a big difference for buyers, what’s with all the fuss? Michael explains, “Ultimately, any kind of change in the economy will inevitably cause panic. When Canadians see these kinds of announcements on the news it can create unnecessary panic. 

In the grand scheme of things, interest rates are still low and the recent hikes will only mean a small change in your mortgage payments long term. 

Considering a move? Check out these resources from our blog. 

• Why Right Now is the Best Time to Sell Your Home
• Should You Wait to Sell Your Home After COVID-19?
• Why You Should Never Skip Out on Staging

What Should Current Homeowners Know?

Like buyers, these new interest rates won’t have a large impact on existing homeowners. That said, if your mortgage is up for refinancing soon you will see a small increase in your monthly payments. Essentially, for every quarter-point climb in your rate, your monthly mortgage costs will increase by just $11 for every $100K owed according to Michael. 

If you’re planning on moving soon, know that you have options. Mortgages are portable, meaning you can transfer them to your new home. However, some buyers prefer to break their mortgage and start fresh. 

Variable vs Fixed? 

When you apply for a mortgage, you’ll have the option to select either a fixed or variable rate. As the name suggests, a variable rate mortgage means your interest costs will fluctuate based on the market. These days, variable rate mortgages are almost always the best option for buyers. 

According to Michael, of all the mortgages currently held in Canada, about 70% are variable. Trends are showing that this number is likely to increase over time – and for good reason. “Right now, the difference between variable and fixed rates is 1.5% – that’s a long runway,” says Michael. He continues, “If you look at the big picture, you’ll typically pay less over the term of the mortgage if you choose a variable rate.” 

So what about the other 30%? Michael explains, “When we look at the much higher interest rate environment in the 80s, it can appear that locking into a fixed rate is a low-risk way to quickly pay off your mortgage. In reality, when we consider market trends and factors, variable rates are still the best route for new homeowners looking to pay less”. 

Michael also points out, “If you are to break your mortgage, you could face a higher penalty with a fixed rate. Another great reason to opt for a variable.”  

Getting ready to buy your first home? Explore these resources to help make it a great success. 

• What to do if Your Pre-construction Condo is Delayed
• A Condo Buying Guide For Millenials
• How to Realistically Save For a Downpayment in Toronto

What About The Foreign Buyer’s Ban?

Shortly after the BOC’s initial rate increase, the federal government announced a handful of new initiatives meant to support Canadians throughout the ongoing housing crisis. Among these initiatives is a two-year restriction on any foreign buyers purchasing property in Canada. However, one critical detail is that this ban will only apply to buyers who don’t plan to live on the property. 

This small restriction is not likely to noticeably influence housing costs. Michael points out, “Foreign investors were already an insignificant portion of the market.” He continues, “Unfortunately, this small change will do very little to alter housing supply and virtually no one in the industry is expecting this change to impact domestic buyers.” 

Looking Ahead

When planning for the future, buyers and homeowners can rely on relatively consistent market conditions. Economists predict the BOC will make one more increase to the target rate this year, then remain steady for a while. 

If you have concerns about financial planning or whether or not you can afford a home in today’s market, talk to an expert. A mortgage broker can offer an honest analysis of your finances and let you know what the best path will be for you. You can also work with your real estate agent to find a great home that meets your needs and budget.

Have questions for a mortgage broker? Contact Michael or learn more about Sherwood Mortgage Group here. 

Ready to begin your home buying journey? Get in touch with us. 

With one of the hottest condo markets in North America, a growing number of Torontonians are opting to buy pre-construction units. Like any construction project, delays with pre-construction condos can occur. Although condominium projects can fall behind schedule for any number of reasons, delays are especially common when there are a number of competing developments in one area. The good news is that there are rights and protections in place to support buyers when these setbacks occur. 

Whether you’re planning on moving in yourself or having tenants, it’s important to understand the potential delays that come with a pre-construction purchase, and what your options are when they arise. In some cases, you’ll be entitled to compensation or have the ability to terminate your contract. Working with your real estate agent can help you alleviate some of the stress that comes with construction delays. 

About to buy a pre-construction condo? Read our blog post about rising interest rates here.

Defining Delayed Occupancy 

Delayed occupancy occurs when a buyer does not receive their unit by the initial tenancy date outlined in the purchase agreement. This is one of the most critical details of a purchase agreement and is something buyers should pay close attention to. It’s also important to note that a purchase agreement can have more than one tenancy date. 

There are two crucial occupancy dates outlined in an agreement, firm and outside. The firm occupancy date is the date on which a builder commits to having a buyer’s unit completed. The outside occupancy date refers to the absolute latest date a builder expects to make the unit available to the buyer. These dates are critical for buyers and can both be impacted by delays. 

Moving into a smaller space? Check out these helpful resources. 

• Case Study: Moving From 3500 Square Feet  to 1000
• Downsizing Differently
• Helping Your Parents Rightsize

Keep Track of Changes

In Ontario, builders are allowed to delay the initial tentative occupancy date for any reason as long as they provide tenants with notice of 90 days and set a new tenancy date. Of course, there are restrictions as to how long they can do this. 30 days after the roof is completed on a condo building, a developer is required to set a final tenancy date. If the developer is unable to provide access by the firm occupancy date, the buyer is entitled to compensation and other rights. 

Not sure when to sell? Learn why now is a great time to list your home on our blog. 

Compensation and Cancellation

Once the firm tenancy date has passed, buyers who don’t yet have tenancy of their unit are officially entitled to compensation. This compensation is generally to help cover temporary living expenses and other costs related to the interruption. In Ontario, the fixed compensation amount is $150 per day, up to a maximum of $7500. Compensation begins the day after the initial occupancy date established in the purchase agreement. 

Buyers can also be entitled to compensation for the ten days before the firm tenancy date based on the circumstances. With a maximum total of $1500, this can be claimed if a developer does not provide adequate notice of the delays. 

If significant delays to tenancy occur, buyers will also have the option to cancel their purchase. Known as the Purchaser’s Termination Period, this permits buyers who choose to back out of their purchase agreement to receive the relevant fixed compensation amount, plus a full refund of costs they’ve paid on the condo so far. This total refund includes a return on deposits, interest, upgrades and other fees. 

Getting ready to move? Check out these helpful posts from our blog. 

• Why You Shouldn’t Skip Staging
• 5 Seller Insights From the Magic of Listing
• How to Read Between the Lines of Agent Reviews

Have a Plan B

For buyers who are planning on living in their condo, one of the most stressful challenges that can come with a delayed tenancy is finding a place to stay while unit access is delayed. Having a backup plan for temporary housing in case of delays is a great way for buyers to avoid disaster.

Purpose-built rentals are a great option for temporary housing as they are typically furnished and offer flexible lease periods. Plus many of these developments offer some incredible amenities for them to enjoy while they wait for their condo to become available.

Explore our list of luxury purpose-built rentals in Toronto here.

Ask an Agent

While potential delays shouldn’t deter buyers from exploring the pre-construction market outright, recognizing the reality of delays can help prevent unpleasant surprises down the line. When purchasing a pre-construction condo, buyers should choose a real estate agent that will advocate for them. As condo market experts, a great agent can help buyers navigate delays and interruptions. They’ll also be able to ensure buyers receive the best compensation possible when setbacks occur. 

Have questions about buying or selling? Our team of local experts is here to help. Get in touch.

When the global impact of COVID-19 became a shocking reality for Canadians in 2020, it felt like every facet of our day-to-day lives had been flipped upside down. Before the pandemic, Toronto’s housing market was hotter than ever in favour of sellers. But like nearly every other industry, COVID-19 brought a wave of uncertainty about what was to come for real estate in the city. Two years later, many homeowners in the GTA who are considering selling have concerns about how the pandemic may have impacted the value of their home. 

Here are a few things homeowners should know about selling in 2022. 

Thinking about downsizing? Explore these helpful resources. 

• 5 Great Toronto Neighbourhoods For Empty Nesters
• Selling to Rent: What Downsizers Need to Know
• What to Expect When Rightsizing

Early Pandemic Impact

When Toronto entered its first lockdown just over two years ago, many real estate agents anticipated the famously hot market to slow down. However, what really happened was the exact opposite. Across North America, the real estate market surged tremendously with more active buyers than ever. 

In the two years since then, a handful of trends and market studies have provided us with a greater understanding of how COVID-19 has impacted real estate overall. While there are a number of overall takeaways from these insights, one thing is clear – it’s still a great time to be a seller. 

Have concerns about selling your home in 2022? Learn why now is the best time to sell on our blog. 

New Perspectives

One of the primary factors driving up home purchases during the pandemic were new circumstances and perspectives Canadians faced about life at home. As the home became more of a 24/7 hub, rather than simply a place to spend evenings and weekends, our relationships with our homes changed. Early on, apartment and condo dwellers began to desire more space. As a result, many Tororntoians chose to upsize and purchased properties outside of the city centre. 

Along with new priorities emerging related to living spaces, lifestyle changes brought on by the pandemic also offered many residents new perspectives on their communities. As a large portion of Canadians transitioned to working from home, homeowners and prospective homeowners were offered greater freedom as to where they could live. Without having to worry about commuting and other factors, many buyers set their sights on new areas. Some buyers choose to relocate to adjacent suburbs or exurbs, and others choose to head closer to the city centre. In some cases, homeowners chose new cities or even provinces to call home. 

The good news is that these emerging perspectives only complimented Toronto’s already hot seller’s market. With more buyers entering the market, bidding wars became increasingly prominent and selling prices broke records around the GTA. 

Want more information on how the pandemic has impacted Toronto real estate? Check out our answers to the top 12 COVID-19 real estate questions on our blog. 

Selling Today

While the increasingly strong seller’s market is good news for the final sale price of your home, what does it mean for sellers who are looking to buy again? One of the primary reasons that current homeowners are hesitant to sell is that they fear they may not be able to reenter the market as buyers. 

The good news is that if you sell now, you can still earn enough for a smaller home or condo in a handful of great affordable areas in the GTA. Plus, as the Bank of Canada continues to increase interest rates, it’s better to enter the market as a buyer sooner rather than later. Of course, selling now doesn’t mean you have to buy right away. Depending on your unique circumstances, renting can be a great option in the short or long term. A great real estate agent can offer you the best possible advice based on your needs. 

Considering a move? Explore these resources to help make it a great success. 

• Leveraging Mortgage Rules When You Don’t Have Traditional Income
• Should You Renovate Your Home Before Selling?
• 5 Seller Insights From the Magic of Listing 

Looking Ahead

Whether you’re looking to downsize, relocate to a new community or are simply looking for a change, there’s never been a better time to be a seller in the GTA. While the market is trending to continue heating up in the future, the COVID-19 pandemic has shown us just how quickly things can change. Although this can seem overwhelming, a great real estate agent will be able to help you navigate the selling process based on your unique needs and goals. 

As local experts, we know all there is to know about Toronto’s evolving market. If you’re ready to begin the journey of finding a new home, get in touch with us. 

Selling your home is a big decision that requires careful thought and planning. As some homeowners prepare to move on from their older properties, they may feel compelled to renovate their home to make it feel more appealing to buyers. While upgrading your home can increase its value and attract potential offers, renovation projects may not be necessary for certain market circumstances and can even lead to missed opportunities if they take too long to complete. Here are a few things to keep in mind if you’re considering a renovation project before listing your home. 

Ready to move? Find out why now is the best time to sell your home on our blog. 

Timeline

So you’ve made the decision to sell your home – congratulations. Whether you’re entering a new chapter in your life or simply looking for a change, putting your house on the market is no small accomplishment. One of the important things to consider when preparing to sell is how quickly you’d like (or need) to do it. 

While renovating can improve the value of your home, undergoing a new project means more time before being able to get your house on the market. Even with the expected timeline of a project, there are plenty of variables that can lead to your renovations taking longer than expected. If you plan on hiring contractors or other professionals, the risk of delays becomes even higher. If you plan on renting after selling, delays could also mean missing out on securing a great rental property. 

Planning on renting next? We’ve put together some tips to make the transition easier here.  

Financial Limitations

Like any investment, renovating your home requires careful consideration of your finances. If you don’t have a traditional income, funding pre-sell renovations may be difficult. For many retired Canadians, getting a mortgage from one of the big banks while on a fixed income can be extremely difficult. Mortgage brokers can help you find a potential solution, but this will add extra time and energy to an already stressful selling process. 

Learn more about what it means to be ‘house poor’ on our blog.

Competitive Factors

There’s no doubting that a home improvement project can have a positive impact on how potential buyers see your home. This factor is most important when you are selling in a buyer’s market. If there are more homes available in your area than interested buyers, renovations can help make your property stand out amongst your neighbours. However, when homes are in short supply, undergoing renovations may simply not be necessary. 

Market Trends

As you likely know, Toronto’s housing market has been heating up drastically. In recent years average home prices have skyrocketed with no signs of slowing down. Toronto has become a seller’s market where home sales frequently end in bidding wars between buyers. When considering that most homes sell above the asking price, renovating for the sole purpose of boosting your asking price may be unnecessary. This is especially true for instances where the projected value of the home post-renovation is only slightly higher than pre-renovation. 

Not having to worry about delays in renovations gives you full control over when your house enters the market. This gives you the power to list it when prices are highest. Though the seller’s market in Toronto is strong, small fluctuations can impact your offers and final selling price. 

Curious about Toronto’s housing market? Check out these resources. 

• Has Toronto Real Estate Killed the ‘Asking Price’? 
• Toronto Neighbourhoods Young Professionals Love
• Best Toronto Neighbourhoods For Downsizers

Consult the Experts

Every seller is unique, and determining whether or not to renovate your home before selling can seem like a daunting decision. Luckily, a great real estate agent can evaluate your situation and offer guidance on which path is right for you. Working with a local expert means not having to worry about market trends on your own. They’ll also likely have access to critical insights that you don’t, such as if homes in your area were or weren’t renovated before selling. 

As local experts, we know all there is to know about Toronto’s housing market. We can help you find your perfect neighbourhood, regardless of what your unique goals or vision may be. 

If you’re ready to begin the journey of selling your home, get in touch with us.

For empty nesters, making the move into a smaller living space can open up a world of opportunities. Downsizing your home doesn’t mean sacrificing a great lifestyle. In fact, moving from a suburban area towards the city centre can often make life a lot more exciting. Toronto is an expansive city with a diverse range of unique neighbourhoods, and finding the right one for you can seem like a daunting task. As local experts, we’re here to help. 

We’ve selected 5 Toronto neighbourhoods that are perfect for empty nesters looking to enjoy the next chapter in their lives. 

Thinking about a new living space? Download our complete guide to rightsizing here.

1. Cabbagetown

Located just east of downtown, Cabbagetown is one of Toronto’s most charming neighbourhoods. Along its tree-lined streets, the area boasts North America’s largest collection of preserved Victorian houses. With an influx in development in recent years, there are many new condos and townhomes, providing lots of great options for downsizers. 

In addition to being one of the city’s most beautiful areas, Cabbagetown is also one of the friendliest. The community has become known for its neighbourly, down-to-earth vibe. For fans of the outdoors, Cabbetown features great walkability and green spaces, with Riverdale Park just steps away. 

Want to learn more about Cabbagetown? Read our Neighbourhood Guide. 

2. St. Lawrence Market

The neighbourhood of St. Lawrence Market is one of the oldest in the city. Located between Yonge and Parliament streets, St. Lawrence Market is overflowing with restaurants, cultural centres, parks and other amenities. The neighbourhood celebrates its history by maintaining and utilizing some of Toronto’s most beautiful historic buildings. 

Of course, this includes the world-famous St Lawrence food market from which the neighbourhood takes its name. St Lawrence Market is also home to the Flatiron Building, another one of Toronto’s staple landmarks. The area features a blend of housing types, with plenty of condo and townhouse options for downsizers. 

3. The Waterfront

Known for both its abundance of outdoor activities and proximity to the downtown core, the Waterfront communities offer the best of both worlds. With several TTC routes, the neighbourhood has excellent transit services that can connect residents to Union Station in a flash. As the city has announced initiatives to preserve the lake shore and introduce even more green spaces to the area, the future of the Waterfront communities is certainly bright. 

Existing parks, bike paths, skating rinks and easy access to Toronto Islands via ferry also make the neighbourhood perfect for those who love the outdoors. As a newer community, the Waterfront’s residential layout mainly consists of condos, offering lots of options for downsizers. 

Want to learn more about the Waterfront? Read our Neighbourhood Guide. 

4. Liberty Village

Liberty Village is one of Toronto’s fastest-growing and most exciting neighbourhoods. Located just outside the downtown core, residents have easy access to the city centre and surrounding neighbourhoods of Parkdale and Queen West. In addition to great transit access, Liberty Village offers its residents unmatched walkability. With a variety of boutiques, supermarkets and restaurants located across the neighbourhood, all the essentials are only steps away. 

As an area that has only become primarily residential in the past few decades, Liberty Village is unique in its volume of condos and townhomes. This makes it great for downsizers as there are plenty of housing options to meet your needs. 

5. Summerhill

Nestled between Bloor and St. Clair along the Yonge St. corridor, Summerhill is a charming neighbourhood known for its historic homes and trendy boutiques. Its south-midtown location makes it perfect for those who prefer to feel close to the hustle and bustle of downtown, with Yonge-Dundas square being only a short subway ride away. 

For fans of recreation, Summerhill is home to the well-known York Racquets Club, plus parks and green spaces. Despite being a primarily residential neighbourhood, Summerhill features a number of modern condos and refurbished townhomes that are great for downsizers. 

Don’t see your perfect neighbourhood here? Explore our expanded Toronto Neighbourhood Guides to find your perfect match.

As local experts, we know all there is to know about Toronto’s evolving landscape. We can help you find your perfect neighbourhood, regardless of what your unique goals or vision may be. 

If you’re ready to begin the journey of finding a new home, get in touch with us.

Finding love after a divorce or separation can be exciting, but the logistics involved aren’t always simple. When you and your new partner are selling your homes to purchase a place together, things can get especially complicated. There’s no shortage of moving parts, which is why creating a game plan is so important. 

Here are a few tips for merging two households, minus the stress…

Communicate clearly

The first thing to be aware of is the need to communicate with your significant other. From the budget you’re working with to the amenities you’re looking for, there are many factors involved in finding the perfect place with someone else. It all starts with a conversation, so talk early—and often. You may also have to communicate with your former spouse (about selling your current home) and children if you have them (especially if they’ll be part of the move).

Compromise is also key, especially when you start to think about combining your belongings. You may not love your significant other’s battered La-Z-Boy, and they might not embrace your preferred colour scheme, but you’re going to have to work things out. That could mean coming to an agreement whereby you’ll reupholster the chair you’re not crazy about and work together to find hues you’ll both love. 

Decide whether to buy or sell first

One of the first decisions you’ll likely have to make is whether to buy your new home before you sell your current one, or vice versa. There are pros and cons to both options, and they’re certainly worth considering. 

One thing to think about is whether you’ll be able to obtain a mortgage if you and your partner decide to buy a home first. If you’re still paying off the loans for two properties, it could be harder to qualify. You may also have to find a seller who’s willing to accept an offer that’s conditional on your home sale. That could work against you, since many sellers opt for clean offers (aka those that are free from conditions). 

Preparing to sell your home? Here are a few resources to check out.

• How to Sell Your Home After a Divorce
• Why Now is a Great Time to Sell Your Home
• XYZ Storage: Storing Your Furniture When Selling a Property in Toronto

Declutter both existing households

Once you’re ready to buy a home, it’s time to declutter. This step can be a lot of work when you’re dealing with two homes, not one. In other words: start as early as you can. Many sellers find that creating “keep” and “donate” piles works well, as does working through one room at a time. You should also consider getting rid of duplicate items—so consider who’s toaster and blender you want to keep.

You and your new partner will want to help each other out when you’re decluttering. Doing so will give you the opportunity to talk about what you’ll hold onto and where it might fit into your new home. It can also make what would otherwise be a mundane task a lot more fun. 

Measure everything

You’ll want to make sure that everything you bring with you when you move not only fits comfortably in your new space, but looks great too. The first step is measuring your new space carefully (don’t forget the stairs and doorways, since you’ll need to move stuff in). 

It’s at this point that you and your significant other will need to decide which pieces you plan to bring. From there, you’ll take down their measurements—and ensure that they match the dimensions of your new home. Don’t forget to factor in plenty of space around your furnishings so that you won’t feel cramped!

When you’re ready to find the perfect home, start by checking out our featured listings here!

Start something new

Buying a home together is partly about combining your belongings, but you might also want to begin creating an aesthetic together. From pieces of art to a standing lamp or antique side table, taking some time to shop for items you both love can make your shared space feel like a reflection of you and your partner. 

If you’re ready to merge households, now is an exciting time. As you move into this new phase, make sure you plan carefully. It can make the process infinitely smoother—and set you up for future happiness!

Are you ready to sell your home to buy a new one with your partner? Why not start by learning how much your current property is worth right here?