With Mark Carney stepping in as the new leader of the Liberal Party, his first speech has sparked important discussions about the future of Canada’s economy—including the housing market. While change can bring uncertainty, it also creates opportunities for those who stay informed and ready to pivot. Whether you’re a home buyer, seller, builder, or real estate investor in Ontario, understanding these shifts can help you make strategic decisions in the months ahead.

1. Home Buyers: Seizing Opportunities Amid Affordability Concerns

Housing affordability remains a top concern for many Canadians, and Carney’s speech suggests his government will prioritize measures to ease financial pressures. While we wait for specifics, here’s how buyers can stay ahead:

• Leverage a Potentially Stabilizing Interest Rate Environment: If economic policies help curb inflation, we could see mortgage rates stabilize or even decrease over time. Buyers should monitor interest rate trends and be ready to lock in favorable rates.
• Look for Government Incentives: With a promise to build “millions of homes,” Carney’s policies may introduce new homebuyer incentives or tax credits. Stay informed about first-time homebuyer programs and affordability initiatives.
• Be Flexible with Housing Options: If prices remain high, consider alternative paths to homeownership—such as co-ownership, new-build homes with builder incentives, or properties that offer rental potential to offset mortgage costs.

2. Home Sellers: Navigating a Potential Market Shift

For sellers, the key is to understand how supply and demand might change under new policies.

• Sell Strategically Before Inventory Rises: If the government takes aggressive steps to boost housing supply, sellers in the short term may benefit from listing their homes before competition increases.
• Enhance Property Value: Small upgrades—like fresh paint, energy-efficient improvements, and staging—can make homes stand out in a competitive market.
• Price Realistically: With affordability top of mind for buyers, competitive pricing will be crucial. Work with a local real estate expert to position your home strategically.

3. Builders & Developers: Growth Potential on the Horizon

New home builders are poised to play a major role in Canada’s evolving housing market.

• Incentives for Development: Carney’s rejection of a capital gains tax hike signals that real estate investors and developers may be encouraged to build. Builders should explore government grants and zoning changes that promote new housing.
• Lower Costs Through Trade & Policy Adjustments: If new trade agreements or policy shifts make construction materials more affordable, developers should seize the opportunity to expand projects.
• Focus on High-Demand Housing Types: Affordable housing, multi-unit developments, and purpose-built rentals will likely see strong demand. Builders should align their projects with the evolving needs of homebuyers and investors.

4. Real Estate Investors: A Market of Strategic Moves

With policies aimed at strengthening the economy and keeping capital gains tax rates steady, investors have an opportunity to make calculated, long-term moves.

• Look at Emerging Markets: If housing supply increases in major cities, investors may find better returns in growing secondary markets like Collingwood, Wasaga Beach, and other Ontario towns where demand remains strong.
• Capitalize on Rental Demand: With affordability concerns persisting, rental properties will continue to be a valuable asset. Investors should focus on acquiring multi-unit properties or adding secondary suites to maximize rental income.
• Stay Ahead of Policy Changes: Smart investors will stay informed about housing policies and adjust their strategies accordingly, whether that means buying pre-construction, diversifying portfolios, or refinancing for growth.

The Bottom Line: Stay Agile & Informed

Uncertain times bring both challenges and opportunities. The key to success in Ontario’s housing market is staying informed, adaptable, and ready to act when opportunities arise. Whether you’re buying, selling, building, or investing, working with experienced real estate professionals and keeping a close eye on economic shifts will position you for success.

Want to discuss how to navigate this evolving market? Reach out—I’m here to help you make the best move in any market condition.

The Realities of Purchasing an Older Home: What Buyers Need to Know

I've had a number of conversations with first time buyers that go a little something like this... "I want a house, my budget is below average market value, and I really want something with character"  The houses with character AND in their budget usually mean that there's a lot of heavy lifting involved in the renos, the building techniques are outdated (Asbestos?! More on that later) 

Buying an older home can be a dream come true for many. These properties often come with charming architecture, unique details, and a sense of history that newer homes just can’t replicate. However, before you fall in love with that century-old Victorian or mid-century bungalow, it’s important to understand the realities that come with purchasing and maintaining an older home.

1. Structural and Foundation Concerns

One of the biggest potential challenges with older homes is their foundation and structural integrity. Many homes built decades (or even a century) ago were constructed using materials and techniques that may not meet today’s standards. Cracks in the foundation, uneven floors, and shifting walls could indicate major structural issues that require costly repairs. A thorough home inspection by a professional who specializes in older homes is essential.

2. Outdated Electrical and Plumbing Systems

Older homes often have outdated electrical and plumbing systems that may not be up to code. Knob-and-tube wiring, aluminum wiring, or an undersized electrical panel may pose fire hazards or be insufficient for modern energy demands. Likewise, galvanized pipes can corrode over time, leading to reduced water pressure or leaks. Upgrading these systems can be expensive, so be prepared for potential costs.

3. Asbestos and Lead Paint Risks

Homes built before the 1980s may contain hazardous materials such as asbestos and lead-based paint. Asbestos can be found in insulation, ceilings, and floor tiles, while lead paint was commonly used on walls and trim. If disturbed, these materials pose serious health risks. Remediation can be expensive but is often necessary to ensure a safe living environment.

4. Inefficient Insulation and Heating Systems

Many older homes lack modern insulation, leading to higher heating and cooling costs. Single-pane windows, drafty doors, and inadequate attic insulation can make maintaining a comfortable temperature a challenge. Heating systems may also be outdated, such as oil furnaces or inefficient radiators, requiring costly upgrades to modern HVAC systems.

5. Historic Charm vs. Modern Convenience

The character of an older home is often its biggest draw—think original hardwood floors, detailed woodwork, stained glass windows, and classic architectural styles. However, this charm may come at the cost of modern conveniences. Storage space may be limited, floor plans may be less open, and ceiling heights may be lower than what buyers are accustomed to in newer builds. Renovations can help, but they may need to be carefully planned to preserve the home’s historic integrity.

6. Permit and Zoning Challenges

Renovating an older home isn’t always as straightforward as it is with newer properties. Depending on the home’s age and location, you may run into restrictions related to heritage preservation, zoning laws, or outdated building permits. If you plan on making significant changes, such as adding an extension or modifying the exterior, be sure to research any legal constraints before purchasing.

7. Higher Maintenance Costs

An older home often comes with a higher maintenance commitment. Regular upkeep, such as repointing brickwork, replacing old roofing, and repairing aging woodwork, can add up over time. Unlike a brand-new home with a builder’s warranty, older homes require diligent attention to prevent small issues from becoming major problems.

8. Financing Considerations

Some older homes may not qualify for certain types of financing, particularly if they have major structural concerns or outdated electrical and plumbing systems. Lenders may require additional inspections or repairs before approving a mortgage. If you’re considering an older home in need of major work, a renovation loan or line of credit may be necessary.

Is an Older Home Right for You?

Managing your own expectations is a key part of this process - there is no such thing as a perfect house, you just have to find the one that's perfect for you. I love our rural fixer upper in the woods, but the maintenance, the laundry list of "required upgrades", landscaping, etc. can be a bit daunting. I have to remind myself at least once a month why this house was the right choice for us. 

Despite these challenges, purchasing an older home can be a rewarding experience. If you love character, craftsmanship, and are willing to put in the effort (and budget) for maintenance and potential upgrades, an older home may be a great fit. However, if you prefer a more turnkey, low-maintenance property, you may want to consider a newer build instead.

Are you considering purchasing an older home? Let’s chat about what to expect and how to find the perfect property for you!

When buying a new construction home, there are deals to be had and the journey can be exciting and full of promise! 

However, navigating the process requires planning and informed decisions. Here’s a comprehensive guide to help you step confidently into the world of new home construction.

1. Understand the Benefits of New Construction

Purchasing a newly constructed home offers several advantages:

• Customization Options: Many builders allow you to personalize finishes, layouts, and features.

• Energy Efficiency: New homes often include modern appliances, insulation, and windows, reducing utility costs.

• Warranties: Builders typically provide warranties for structural components and systems, offering peace of mind.

• Low Maintenance: New materials and construction techniques mean fewer repairs in the early years.

2. Research Builders

Warning: Not all builders are created equal. Take the time to:

• Reviews: While reviews are a great tool, in general, people use them as an opportunity to vent. As your realtor, I will canvas the neighborhood to ask original purchasers what their experience was with the builder. 

• Visit Model Homes: Inspect the quality of work in completed projects.

• Verify Credentials: Ensure the builder is licensed and adheres to local building codes.

3. Know Your Budget

Building a home can come with hidden costs. Be prepared by:

• Factoring in Upgrades: Builder-provided upgrades, like premium countertops or hardwood floors, often come at an additional cost.

• Considering Closing Costs: These can include legal fees, taxes, and adjustments.

• Budgeting for Landscaping and Extras: New builds often lack features like fences, patios, or finished basements.

4. Understand the Timeline

New construction doesn’t happen overnight. The timeline can vary depending on:

• The Builder’s Schedule: High demand or labor shortages may delay construction.

• Weather Conditions: Rain, snow, or extreme temperatures can affect timelines.

• Permit Approvals: Municipal permits can sometimes take longer than expected.

Plan for potential delays and have a contingency plan if you’re selling your current home or arranging a move.

5. Work with a REALTOR®

Having an experienced real estate agent on your side is invaluable. A REALTOR® can:

• Negotiate Terms: Builders rarely lower base prices but may offer incentives or upgrades.

• Explain Contracts: Builder contracts differ from resale agreements and often favor the builder.

• Provide Market Insights: They can help you understand if the price aligns with local market trends.

6. Review the Warranty

New construction homes typically come with warranties, which can include:

• Workmanship and Materials: Covers items like plumbing, electrical, and finishes.

• Structural Components: Protects against defects in the foundation, roof, or framing.

• Manufacturer Warranties: Appliances and systems often come with their own coverage.

Review the warranty terms carefully to understand what is covered and for how long.

7. Who and/or What is Tarion?

If you’re buying a new construction home in Ontario, you’ll encounter Tarion, a not-for-profit consumer protection organization. Tarion administers the Ontario New Home Warranties Plan Act, which ensures builders adhere to high standards and provides warranty coverage for buyers.

Tarion’s role includes:

• Warranty Coverage: Impartial third party that warranties for defects in materials, workmanship, and structural integrity.

• Builder Licensing: Ensuring builders are qualified and meet provincial standards.

• Dispute Resolution: Offering mediation services for warranty-related conflicts.

Understanding Tarion is key to knowing your rights and protections as a new homebuyer.

8. Don’t Skip the Inspection

Even brand-new homes can have issues. Hire a licensed home inspector to:

• Mistakes to Avoid: It's great to catch paint and caulking touchups, but focus on actual defects and physical damage (dents, scratches, gouges, etc). Physical damage not noted during the "PDI"/Pre-Delivery Inspection could be labelled "Non-Warranty" later in the process.  

• Spot Defects: Identify problems before you take possession.

• Inspect Milestones: Consider inspections at various stages, like foundation pouring and drywall installation. 

9. Plan for Move-In Day

While your new home will be move-in ready, some final touches might still be needed:

• Utilities: Arrange to have electricity, water, and internet set up in advance.

• Appliances: Confirm whether items like refrigerators and washers are included or need to be purchased.

• Furnishings: Measure spaces to ensure furniture fits and matches the design.

Conclusion

By understanding the process, researching thoroughly, and budgeting wisely, you’ll be well on your way to enjoying a home built just for you.

Looking for expert guidance in navigating new home construction? Reach out today to get started on your journey!

Buying a new home from a production builder is an exciting process, filled with the promise of modern designs, energy-efficient features, and the ability to select finishes that reflect your personal style. However, financing a new construction home is a unique process with some key differences compared to buying a resale home. Here, we’ll explore the essential aspects of financing new home construction in Ontario, including builder incentives and tips to make the most of your investment.

1. Builder Incentives: Sweetening the Deal

Many production builders offer financing incentives to attract buyers. These incentives often include:

• Closing Cost Contributions: Builders may cover part or all of your closing costs if you use their preferred lender. This can save buyers thousands of dollars upfront.

• Interest Rate Buydowns: Some builders offer rate buydown programs, where they pay a portion of the cost to lower your mortgage interest rate for the first few years or the life of the loan.

• Upgrades and Discounts: In some cases, builders will include free upgrades or discounts on premium features like hardwood flooring, upgraded cabinetry, or energy-efficient appliances if you sign a contract by a certain date.

Pro Tip: While these incentives are appealing, it’s important to compare the builder’s preferred lender’s terms to other lenders to ensure you’re getting the best deal overall.

2. Construction Timelines and Financing

When purchasing a new home, buyers should be aware of how construction timelines can affect their financing. Key considerations include:

• Rate Locks: Since new home construction can take several months (or longer), locking in a mortgage rate for the duration of the build is crucial to avoid surprises if interest rates rise. Some lenders offer extended rate lock programs specifically for new construction loans, though they may require a fee.

• Builder’s Deposit Requirements: Builders typically require a deposit at the time of contract signing. This amount is applied toward the purchase price but is separate from your mortgage. Make sure you understand the deposit policy and whether it is refundable under certain conditions.

Pro Tip: Before signing, ask about the builder’s policies on delays. Construction can be impacted by supply chain issues, weather, or labor shortages, so clarity on timelines and contingencies is essential.

3. The Role of the Builder’s Preferred Lender

Most production builders partner with specific lenders. While it’s not mandatory to use the builder’s lender, doing so often comes with perks like the incentives mentioned earlier. That said, it’s essential to:

• Shop Around: Get pre-approvals from other lenders to compare interest rates, fees, and loan terms.

• Understand Transparency: Ensure that the preferred lender’s terms don’t come with hidden costs or higher rates offsetting the initial incentives.

• Ease of Communication: Builder’s lenders are often well-versed in their specific processes and timelines, which can simplify the financing process.

4. Appraisals and Final Loan Approval

For new construction, appraisals can be tricky. The appraised value of the home must align with the purchase price to secure loan approval. Key considerations include:

• Inclusions vs. Upgrades: Ensure that upgrades you’ve selected are accounted for in the appraisal. Provide documentation for these features to the lender and appraiser.

• Market Trends: The local real estate market can impact appraisals, so it’s important to monitor trends and discuss potential risks with your lender.

Pro Tip: If the appraisal comes in lower than the agreed purchase price, you may need to renegotiate with the builder or bring additional funds to closing.

5. Mortgage Options for New Construction in Ontario

In Ontario, buyers of new construction homes often rely on conventional mortgage options, including:

• Conventional Loans: These are a common choice for new home buyers, offering flexibility in loan terms and down payment options. A minimum down payment of 5% is required for homes under $500,000, with incremental increases for homes priced higher.

• Insured Mortgages: If your down payment is less than 20%, you’ll need to pay for mortgage default insurance through providers like CMHC, Sagen, or Canada Guaranty. This insurance protects the lender but allows buyers to qualify with a lower down payment.

• Bridge Financing: If your new home’s closing date doesn’t align with the sale of your current home, bridge financing can help cover the gap.

Pro Tip: Work with your lender to determine which mortgage product is best for your situation, considering builder requirements and your long-term financial goals.

6. Managing Costs and Avoiding Pitfalls

To ensure a smooth financing process, consider the following:

• Budget for Upgrades: Builders often offer a range of optional upgrades. Set a clear budget for these additions to avoid overspending.

• Understand HOA Fees: Many new developments include homeowners’ associations (HOAs) with monthly or annual fees. Confirm these costs before committing.

• Contingency Funds: Keep a financial cushion for unexpected expenses, such as additional closing costs or last-minute upgrades.

7. Final Thoughts

Financing a new home construction requires careful planning and a clear understanding of your options. Take advantage of builder incentives, but don’t hesitate to compare lenders to ensure you’re getting the best deal. Communicate openly with your lender, builder, and real estate agent to avoid surprises and keep the process on track.

Your dream of owning a brand-new home is closer than you think – and with the right approach to financing, you can make it a reality. If you have any questions or need guidance, feel free to reach out. I’m here to help you every step of the way!

Are you ready to explore your options for new home construction? Contact me today to get started!