They say good news comes in threes. First, Ottawa announced a bombshell loosening of mortgage insurance rules. Second, inflation stunned economists by undershooting the two per cent target. Third, the United States Federal Reserve threw a party for the markets with a jumbo rate cut.

All of the above went down in the short span of 75 hours.

Here’s a quick peek at how this trifecta could ignite Canada’s real estate market.

Mortgage insurance easing

Out of nowhere, the government decided that Canada’s default insurance market needed stimulation. Starting December 15, for those seeking insured mortgages, the government will allow:

A 50% increase in the maximum allowable home value (i.e., $1.5 million instead of the $1 million it’s been stuck at since 2012) 

30-year amortizations for buyers of new builds 

30-year amortizations for all first-time buyers 

The first measure corrects the fact that value limits on insured homes haven’t kept up with the 76 per cent surge in home values since the rule was instituted.

The second measure creates a more liquid pool of buyers for new homes, incentivizing the construction Canada desperately needs.

The third change levels the playing field for first-time buyers who don’t have down payment assistance from their families.

Surprise below-target inflation

For months on end, the Bank of Canada has predicted that inflation would reach the two per cent target in late 2025. But on Tuesday, inflation unexpectedly slowed to just 1.95 per cent. That’s more than three quarters ahead of schedule.

Suddenly, the Bank of Canada has more leeway to cut rates without fear of re-invigorating inflation. And that’s precisely what it’ll do, with markets pricing in 200 basis points of rate cuts within 24 months, according to forward rate data from CanDeal DNA.

Such a drop would drastically slash payments, increasing the appeal of home buying relative to renting. It would also trim borrower’s debt-to-income ratios, making mortgage qualifying significantly easier. The resulting additional demand could mop up much of the inventory that’s piled up since 2022.

The U.S. Fed’s mega rate cut

Nine out of 10 economists expected the U.S. Federal Reserve to trim rates just 25 bps on Wednesday. Despite the U.S. economy being in “good shape” the central bank instead decided on a supersized 50 bps cut. A 50-basis-pointer theoretically lets the Bank of Canada cut more as well, since it doesn’t have to worry about a widening U.S.-Canada rate differential tanking our currency.

Real estate stimulus

This week’s trio of bullish mortgage events should give real estate a shot in the arm by the first quarter or before. As with all policy loosening, though, some buyers will try to jump the gun and beat the crowd.

Adding to demand is slowly improving affordability. Real estate has been correcting sideways for two years. Lower prices and rising incomes have been quietly working magic behind the scenes. For instance, the typical home is now just 4.2 times gross income for dual-income households earning average weekly wages. That’s down from a nosebleed 5.9 in February 2022.

All GREAT News for Buyers & Sellers. FINALLY!



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Hey everyone, welcome back! Today, we're taking a look at the latest update from the Greater Toronto Area housing market for August 2024. Let's dive right in!


So, what’s happening? Home sales in the GTA were down by 5.3% compared to last year, with 4,975 sales in August 2024, compared to 5,251 in August 2023. Despite that, new listings were up slightly by 1.5%, with 12,547 homes hitting the market. The average selling price edged lower by just 0.8%, now sitting at $1,074,425, compared to August last year.


Why does this matter? Well, with the Bank of Canada announcing another rate cut on September 4, affordability is expected to improve, especially for first-time buyers who are sensitive to mortgage rates. While prices are slightly down, this could encourage more activity in the market, especially in condos, as mortgage rates continue to trend lower.


So, what should you do now? If you're a buyer, this could be a good opportunity to explore the market while prices and mortgage rates remain favorable. Sellers, remember that while the market is still well-supplied, inventory is expected to recede over time, so keeping an eye on market trends is crucial. Also, municipalities need to focus on boosting affordable housing to meet growing demand in the coming years.


That’s all for this update! Thanks for watching, and don’t forget to like, comment, and share for more market insights. See you next time!



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As the leaves begin to turn and Toronto's vibrant summer transitions into a crisp fall, the real estate market continues to be a focal point for both buyers and sellers. This year, a significant event on the horizon is the upcoming interest rate announcement by the Bank of Canada on September 4, 2024. This announcement is poised to have a considerable impact on the housing market, and understanding its potential effects is crucial for anyone involved in real estate.

Current Market Snapshot

Toronto's real estate market has seen its fair share of fluctuations over the past year. Despite economic uncertainties and global challenges, the demand for housing in Toronto remains robust. The city’s diverse economy, cultural richness, and high quality of life continue to attract both domestic and international buyers.

In recent months, we've observed a moderate cooling compared to the frenetic pace of the previous year. This deceleration is largely attributed to the incremental interest rate hikes that have been implemented to curb inflation. Nevertheless, Toronto's real estate market remains resilient, with a steady stream of transactions and a consistent demand for properties across various segments.

The Anticipated Interest Rate Announcement


The Bank of Canada's interest rate decisions are closely monitored by everyone with a stake in the housing market. Interest rates directly influence mortgage rates, which in turn affect buyers' purchasing power and overall affordability. The announcement on September 4 is particularly significant, as it comes at a time when the market is delicately balanced between affordability concerns and sustained demand.

Economic indicators suggest a mixed bag. On one hand, inflation has shown signs of easing, thanks to previous rate hikes and stabilizing global supply chains. On the other hand, economic growth remains tepid, and there's a palpable caution among investors and consumers alike. The Bank of Canada faces a challenging decision: to continue with rate hikes to ensure inflation stays in check or to pause and assess the broader economic landscape.

 Potential Scenarios and Their Implications


1. **Rate Hike**: If the Bank of Canada decides to raise rates, even by a modest 25 basis points, it could further dampen buyer enthusiasm. Higher borrowing costs would likely lead to a more pronounced slowdown in the market, with some potential buyers opting to wait on the sidelines. For current homeowners with variable-rate mortgages, this could mean higher monthly payments, potentially leading to an increase in listings as some seek to downsize or refinance.

2. **Rate Hold**: A decision to hold rates steady would likely be seen as a cautious, wait-and-see approach. This could instill a sense of stability in the market, encouraging both buyers and sellers to proceed with their plans. Mortgage rates would remain relatively unchanged, maintaining the current level of affordability for new buyers.

3. **Rate Cut**: A rate cut would be a significant boon for the market. Lower borrowing costs would spur a surge in buying activity, potentially driving prices higher as demand outstrips supply. This scenario could reignite the competitive bidding wars that characterized the market in previous years.

 Preparing for the Announcement

For buyers, sellers, and real estate professionals, staying informed and prepared is key. Buyers should review their mortgage pre-approvals and understand how different rate scenarios could affect their purchasing power. Sellers might consider the timing of listing their properties to align with market conditions post-announcement.

Real estate professionals should be ready to advise clients on the potential impacts of the rate decision and offer strategic guidance tailored to their unique circumstances. Whether the announcement leads to higher rates, stable rates, or a cut, having a clear plan in place will be essential.

The Toronto real estate market is on the cusp of another pivotal moment with the upcoming interest rate announcement on September 4, 2024. While the outcome remains uncertain, the market's resilience and adaptability continue to shine through. As we navigate these changes, staying informed, flexible, and proactive will ensure that we can make the most of the opportunities that lie ahead. Whether you're a buyer, seller, or industry professional, understanding the potential impacts of this announcement will help you navigate the market with confidence and clarity.

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In today’s bustling real estate market, finding a move-in-ready home that fits your budget can seem impossible. However, there is a strategic option for savvy buyers who aren’t afraid to take on a project: Purchase Plus Improvements.

This innovative program empowers homebuyers to borrow additional funds for renovations at the time of purchase, integrating the cost of upgrades into the mortgage. This means you can buy the worst house on the nicest street and transform it into your dream home without relying on high-interest loans or credit cards.

How It Works

1. **Initial Purchase**: Secure an accepted offer for the purchase price of the home.
2. **Improvement Estimate**: Obtain quotes for the renovations you plan to complete.
3. **Include Costs**: The lender adds the estimated cost of improvements to your mortgage amount.
4. **Renovations**: Complete the approved renovations, typically within 90-120 days.
5. **Final Inspection**: Ensure the work meets the agreed-upon standards through a final inspection.
6. **Final Step**: The lender releases the funds so contractors can be paid for the completed work. Some lenders may even consider progressive disbursements as the work progresses.

Advantages of the Purchase Plus Improvements Program

- **Convenience**: Simplify your finances by rolling renovation costs into your mortgage, saving money compared to using a credit card or cashing in investments.
- **Increased Property Value**: Upgrading your home can significantly boost its market value, offering a better return on investment immediately rather than waiting for natural appreciation over the years.
- **Customization**: This program allows you to buy a home needing renovations and customize it to your unique style, especially in markets where finding a move-in-ready home within your budget is challenging.

Don’t be discouraged by homes that seem out of your price range or don’t meet your needs. With the Purchase Plus Improvements Program, you can buy a house on a more desirable street and transform it into your dream home.

As with any mortgage program, the Purchase Plus Improvements Program has its nuances. With our trusted partnerships, we can connect you with a list of mortgage agents who can help you decide if this program fits your needs.

By incorporating this strategic approach, you're not just buying a house—you're making a smart investment in your future. Let's transform challenges into opportunities and turn your real estate dreams into reality. Reach out today to start your journey towards owning the best house on the best street.

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