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Is Extending Your Amortization During Mortgage Renewal Beneficial? When it comes to mortgage renewal, Canadians are facing the reality of higher interest payments in the near future. Despite expectations of rate cuts by the Bank of Canada (BoC), existing mortgage holders, especially those who locked into fixed rates at record lows five years ago, are bracing for increased rates upon renewal. Amortization Extension: A Viable Solution One option for borrowers looking to mitigate higher mortgage payments is to extend the length of their mortgage’s amortization period. This entails spreading out the timeline over which the mortgage is paid off in full. By doing so, borrowers can potentially lower their monthly payments, providing immediate relief from increased financial strain. Understanding Amortization Extension In Canada, the maximum amortization period for mortgage renewal is typically 30 years, with certain exceptions for borrowers with 20% or more equity in their property. For those with less than 20% equity, such as high-ratio or insured mortgage holders, the amortization is capped at 25 years. Options Available for Borrowers Stick to Original Schedule: Some borrowers may choose to stick to their original amortization schedule and simply renew at the best available mortgage rate at the time of renewal. This option provides continuity but may not offer immediate relief from higher payments. Extend Amortization: Borrowers can opt to switch to an uninsured mortgage type at renewal and extend their amortization by up to five years, totaling 30 years. There is typically no penalty for extending the amortization at renewal, although legal assistance may be required to re-register the mortgage. Refinance for a Longer Amortization: Another option involves breaking the existing mortgage and refinancing into a new uninsured mortgage renewal with a full 30-year amortization, extending it further to 35 years. This can be done at mortgage renewal without penalty or at any time during the term, albeit with potential pre-payment penalties. Navigating mortgage renewals amidst rising interest rates requires careful consideration of available options. Extending the mortgage’s amortization period emerges as a viable solution for borrowers seeking immediate relief from higher monthly payments. By understanding the implications and available choices, borrowers can make informed decisions to better manage their financial obligations in the face of changing economic conditions. Related posts 13 May 2024 Is Extending Your Amortization During Mortgage Renewal Beneficial? Is Extending Your Amortization During Mortgage Renewal Beneficial? When it comes to mortgage renewal,… 19 April 2024 What Can We Expect From the Ontario Housing Market in 2024? What Can We Expect From the Ontario Housing Market in 2024? The Canadian housing market is a complex… 13 April 2024 Understanding Deposit Protection in Ontario’s New Home Market Understanding Deposit Protection in Ontario’s New Home Market Considering the excitement of buying… 11 April 2024 Economists Analyze Bank of Canada Interest Rates Economists Analyze Bank of Canada’s Rates The recent decision of Bank of Canada to maintain its… 09 April 2024 Insights into the GTA Real Estate Market: Navigating the Dynamics Insights into the GTA Real Estate Market: Navigating the Dynamics Amidst the aroma of freshly brewed… 08 April 2024 Toronto Real Estate Prices Rise Despite Lowest Sales Since 2009​ Toronto Real Estate Prices Rise Despite Lowest Sales since 2009 In March, the Greater Toronto real estate… 02 April 2024 Canadian Population Boom Fueled by Temporary Residents CANADIAN POPULATION BOOM FUELED BY TEMPORARY RESIDENTS There has been a remarkable surge in its Canadian…

What Can We Expect From the Ontario Housing Market in 2024? The Canadian housing market is a complex landscape, influenced by a myriad of factors ranging from interest rates to population growth to government policies. As we delve into the intricacies of this market, it becomes apparent that both buyers and sellers are engaged in a delicate dance, balancing hopes for affordability with desires for equity gains. March 2024 witnessed a subdued start in home sales and prices, attributed to higher interest rates and delayed rate-drop timing. However, as April approached, a glimmer of hope emerged with rising listings and sales activity. Despite this modest uptick, national home sales remained below the past decade’s average, indicating a cautious market sentiment. New listings experienced a slight decline in March, contrasting with February’s increase, while the MLS® Home Price Index exhibited a modest year-over-year growth of 1.0%. Nevertheless, industry observers suggest that the lion may yet show up in April and May, hinting at potential market shifts in the coming months. The anticipation of interest rate drops, expected no sooner than mid-year, has put housing activity on simmer, as both buyers and sellers adopt a wait-and-see approach. However, certain markets, like Calgary, are already experiencing heightened activity, fueled by rapid population growth and competition for existing supply. Amidst this backdrop, experts predict a continued rise in home prices throughout the year. Royal LePage, for instance, revised its forecast to a 9% national increase by year-end, with Toronto poised to surpass Vancouver as the ‘Most Expensive in Canada.’ However, several factors could temper this price growth trajectory. High home prices across Canada, coupled with increasing household non-mortgage debt and higher qualifying stress-test rates, may deter demand or increase supply. Additionally, forthcoming mortgage renewals could limit homeowners’ spending capacity for new purchases, potentially leading to increased listings. Government interventions, such as curbing short-term rental property ownership and incentivizing multi-housing and rental construction, aim to address housing affordability and supply constraints. Nevertheless, Canada faces a significant housing crunch, with a projected shortfall of over 5 million homes by 2030, exacerbating price pressures unless adequately addressed. The interplay between home price drops and interest rate drops remains a subject of speculation. While buyers hope for lower prices, sellers seek to maintain equity levels. The convergence of buyers entering the market and sellers listing upon rate drops could either stabilize prices or lead to a slow decline, influenced by shifting demand dynamics. Population growth, marked by a significant increase in the third quarter of 2023, underscores the ongoing demand for housing. However, housing starts lag behind population growth rates, contributing to an imbalance between supply and demand. Regional disparities in prices of the Ontario housing market highlight the diversity of the Canadian house market. While cities like Oakville-Milton and Greater Vancouver boast high average prices, other regions offer more affordable options, reflecting varying market conditions and local economic factors. The market balance, as indicated by the sales-to-new-listings ratio, tightened in March, edging closer to seller’s territory in some regions. Nevertheless, the long-term equilibrium hinges on interest rate movements and their impact on housing activity. Buyers’ and sellers’ market dynamics further influence pricing trends, with balanced markets providing stability and opportunity for negotiation. However, affordability concerns persist, with a significant percentage of homes selling below asking prices in key metropolitan areas. As we reflect on the past five years, Canadian housing market have shown overall appreciation, driven by fluctuating economic conditions and market forces. Despite periodic fluctuations, homeowners continue to take pride in their investments, navigating local price trends with resilience. In conclusion, navigating the Canadian housing market requires a nuanced understanding of evolving trends, challenges, and opportunities. As stakeholders adapt to changing dynamics, collaboration between government, industry, and communities is essential to foster a sustainable and inclusive housing ecosystem for all Canadians. Whether you’re a prospective buyer, seller, or industry participant, staying informed and proactive is key to making informed decisions in this dynamic market landscape. Related posts 19 April 2024 What Can We Expect From the Ontario Housing Market in 2024? 13 April 2024 Understanding Deposit Protection in Ontario’s New Home Market Understanding Deposit Protection in Ontario’s New Home Market Considering the excitement of buying… 11 April 2024 Economists Analyze Bank of Canada Interest Rates Economists Analyze Bank of Canada’s Rates The recent decision of Bank of Canada to maintain its… 09 April 2024 Insights into the GTA Real Estate Market: Navigating the Dynamics Insights into the GTA Real Estate Market: Navigating the Dynamics Amidst the aroma of freshly brewed… 08 April 2024 Toronto Real Estate Prices Rise Despite Lowest Sales Since 2009​ Toronto Real Estate Prices Rise Despite Lowest Sales since 2009 In March, the Greater Toronto real estate… 02 April 2024 Canadian Population Boom Fueled by Temporary Residents CANADIAN POPULATION BOOM FUELED BY TEMPORARY RESIDENTS There has been a remarkable surge in its Canadian… 13 October 2023 Co-ownership: An Answer for Canadians Navigating Property Challenges Co-ownership: An Answer for Canadians Navigating Property Challenges. Rising borrowing costs are causing…

Understanding Deposit Protection in Ontario’s New Home Market Considering the excitement of buying a new-build home, it’s natural to feel a mix of anticipation and concern. In Ontario, however, new home buyers can breathe a little easier. With deposit protection in place, there’s a safety net that safeguards your investment in case of unforeseen circumstances. Tarion, the trusted authority in Ontario’s new home construction, offers a new layer of protection by allowing buyers to register their purchase agreement. This simple step not only establishes a record of your transaction but also grants access to crucial information about your builder’s warranty coverage, including deposit protection. By registering your purchase agreement, Tarion can verify the builder’s legitimacy, providing immediate assistance if they’re not approved to sell new homes. It’s a proactive measure that empowers buyers with knowledge and assurance before taking possession of their dream home. Unpacking Deposit Protection: Safeguarding Your Investment This protection is your safety net in scenarios where the builder goes bankrupt or egregiously violates your agreement. While bankruptcy is straightforward, breaches of agreement can be nuanced. In such cases, seeking legal advice is recommended to navigate the complexities effectively. Moreover, deposit protection extends to situations where you exercise statutory rights to terminate the purchase agreement. For instance, if the builder delays your home’s completion beyond the agreed-upon timeline, then the protection ensures your financial interests are upheld. Understanding Coverage Limits: How Much Protection Do You Get? The extent of deposit protection hinges on factors like the purchase price and type of home. For freehold properties priced at $600,000 or less, deposits up to $60,000 are covered. Similarly, for properties exceeding $600,000, the protection extends to 10% of the purchase price, capped at $100,000 Condo buyers enjoy dual layers of deposit protection. Firstly, the Condominium Act mandates builders to hold deposits in trust accounts. Secondly, the new home warranty offers additional protection, covering deposits up to $20,000 in case trust provisions aren’t met. Beyond Deposits: Safeguarding Upfront Payments Deposit protection isn’t limited to initial deposits; it extends to other upfront payments related to your new home, such as upgrades and extras. Whether it’s hardwood flooring or granite countertops, these payments fall within the purview of deposit protection, subject to specified limits. However, it’s essential to note that the new home warranty doesn’t cover payments made for reservation agreements before signing the purchase agreement. While deposit protection offers robust safeguards, being mindful of payment structures is crucial to ensure comprehensive coverage. Navigating Refunds: What Happens If Things Go Awry? In the unfortunate event of a canceled or breached agreement, the onus is on the builder to refund your deposit. Should the builder fail to do so, you have recourse through Tarion‘s deposit protection claim process. Detailed instructions for submitting a claim can be found on Tarion’s website, offering a pathway to reclaiming your investment. Buying a pre-construction home in Ontario comes with its share of risks, but with deposit protection and Tarion’s oversight, buyers can navigate the process with confidence. By understanding the nuances of the protection, registering purchase agreements, and leveraging Tarion’s resources, buyers can safeguard their investments and embark on the journey of homeownership with peace of mind. Related posts 13 April 2024 Understanding Deposit Protection in Ontario’s New Home Market Understanding Deposit Protection in Ontario’s New Home Market Considering the excitement of buying… 11 April 2024 Economists Analyze Bank of Canada Interest Rates Economists Analyze Bank of Canada’s Rates The recent decision of Bank of Canada to maintain its… 09 April 2024 Insights into the GTA Real Estate Market: Navigating the Dynamics Insights into the GTA Real Estate Market: Navigating the Dynamics Amidst the aroma of freshly brewed… 08 April 2024 Toronto Real Estate Prices Rise Despite Lowest Sales Since 2009​ Toronto Real Estate Prices Rise Despite Lowest Sales since 2009 In March, the Greater Toronto real estate… 02 April 2024 Canadian Population Boom Fueled by Temporary Residents CANADIAN POPULATION BOOM FUELED BY TEMPORARY RESIDENTS There has been a remarkable surge in its Canadian… 13 October 2023 Co-ownership: An Answer for Canadians Navigating Property Challenges Co-ownership: An Answer for Canadians Navigating Property Challenges. Rising borrowing costs are causing… 04 October 2023 Decoding the Dynamics of Development Charges Decoding the Dynamics of Development Charges Development charges are fees levied by municipalities on…

Economists Analyze Bank of Canada’s Rates The recent decision of Bank of Canada to maintain its interest rates at five percent for the sixth consecutive announcement didn’t come as a shock to experts. However, it did serve as a signal for potential cuts in the coming months, particularly during the summer. Governor Tiff Macklem emphasized that while conditions for a rate cut are emerging, he prefers to witness sustained progress before implementing any reductions. This stance aligns with the consensus among economists, as indicated by Warren Lovely, chief rates strategist and managing director at National Bank Financial. He described the decision as “pretty appropriate,” reflecting the sentiments of his peers. Lovely highlighted the Bank of Canada‘s unpredictability compared to other major central banks. He noted that past decisions have kept economists guessing, but the recent announcement seemed to meet expectations. The central bank’s rhetoric suggests a wait-and-see approach, indicating a readiness to lower rates with sufficient evidence of progress, particularly in inflation metrics. Anticipating a potential rate cut in the near future, Lovely speculated that July is the most likely timeframe, though June remains a possibility. He projected that the Bank of Canada could implement two to three rate cuts within the year, contingent upon the evolution of inflation. Echoing this sentiment, economist Tu Nguyen from RSM Canada forecasted the first rate cut to occur in June, cautioning against delay to avoid repeating past mistakes of tardy action. She pointed to the slowdown in inflation, coupled with a weakening domestic labor market and global factors such as China’s export of deflation, as contributing factors. Phil Mesman, portfolio manager at Picton Mahoney Asset Management, observed the Bank of Canada’s cautious yet patient approach, acknowledging the influence of U.S. inflation dynamics. He noted the challenge of balancing Canada’s easing inflation and labor market issues against the backdrop of persistent inflationary pressures in the United States. Adding to the discussion, Brooke Thackray, research analyst at Horizons ETFs, highlighted the dilemma faced by the Bank of Canada amidst elevated inflation levels. Thackray suggested that Governor Macklem would likely require more concrete evidence of inflation stabilization before considering a rate cut. He speculated that a release of low inflation data could pave the way for the Bank of Canada to initiate its first rate cut at the next scheduled meeting in June. Overall, experts concur that while the Bank of Canada refrained from cutting rates in its recent announcement, the possibility of rate cuts looms on the horizon. The decision will hinge on sustained progress in inflation metrics and the labor market, as well as the resolution of external factors, particularly U.S. inflation dynamics Related posts 11 April 2024 Economists Analyze Bank of Canada Interest Rates Economists Analyze Bank of Canada’s Rates The Bank of Canada’s recent decision to maintain… 09 April 2024 Insights into the GTA Real Estate Market: Navigating the Dynamics Insights into the GTA Real Estate Market: Navigating the Dynamics Amidst the aroma of freshly brewed… 08 April 2024 Toronto Real Estate Prices Rise Despite Lowest Sales Since 2009​ Toronto Real Estate Prices Rise Despite Lowest Sales since 2009 In March, the Greater Toronto real estate… 02 April 2024 Canadian Population Boom Fueled by Temporary Residents CANADIAN POPULATION BOOM FUELED BY TEMPORARY RESIDENTS There has been a remarkable surge in its Canadian… 13 October 2023 Co-ownership: An Answer for Canadians Navigating Property Challenges Co-ownership: An Answer for Canadians Navigating Property Challenges. Rising borrowing costs are causing… 04 October 2023 Decoding the Dynamics of Development Charges Decoding the Dynamics of Development Charges Development charges are fees levied by municipalities on… 30 September 2023 Facts about Closing and Occupancy Delays How to Prepare Your Canadian Home for Winter If you’re buying a home or condo during its pre-construction…

Insights into the GTA Real Estate Market: Navigating the Dynamics Amidst the aroma of freshly brewed coffee, let’s delve into the intricate dynamics of the GTA Real Estate Market (Greater Toronto Area) through the lens of The Condo Connect’s monthly market report for March 2024. In March 2024, the GTA witnessed 6,560 sales through TRREB’s MLS®️ System, marking a modest decrease of 4.5% compared to March 2023. However, this decline was juxtaposed against a notable 15% surge in new listings over the same period. Despite a relatively better-supplied market compared to the previous year, the interplay of competitive buyer activity led to a moderate uptick in the average home price in March, compared to the preceding year. The average price for a detached home in the GTA real estate market stood firm at $1,466,397, mirroring the figures from March 2023. Conversely, semi-detached homes experienced a 3.1% price increment, with the average selling price reaching $1,121,645. Townhomes observed a more modest rise of 0.5%, resulting in an average price of $940,127. Meanwhile, the condo market witnessed a slight downturn of 0.5%, with the average sale price settling at $700,046. March 2024 saw home selling prices surging by 1.3% compared to the same period last year, with the average selling price for a home in the GTA reaching $1,121,615. Shifting gears to the rental landscape, the average rental prices in the GTA depict a spectrum: 1 Bedroom averaging at $2,428, One Bedroom plus Den at $2,647, and 2 Bedrooms at $3,387. This period has seen a gradual amelioration in market conditions, partly attributable to buyers adapting to the elevated interest rate environment. Simultaneously, homeowners might be anticipating an amelioration in market conditions as spring unfolds, evident in the substantial increase in new listings observed thus far. Assuming a prospective reduction in borrowing costs in the near term, sales are poised to escalate further, absorbing new listings and inducing tighter market conditions that could propel selling prices upwards in the latter half of 2024 and beyond into 2025. As the clamor for both ownership and rental housing intensifies, supply remains a paramount concern across the GTA and Canada at large. Governments at every echelon must sustain their commitment to pioneering solutions aimed at augmenting the quantity and diversity of housing supply to enhance affordability. This entails dismantling impediments to non-traditional arrangements, such as co-ownership models, designed to benefit a broad spectrum of homebuyers, including first-time buyers and seniors. Encouraging the proliferation of gentle density, including multiplexes, assumes critical importance in facilitating high-demand areas like the Greater Golden Horseshoe in meeting their housing supply objectives outlined for the future. In the intricate tapestry of the GTA Real Estate Market, the interplay of various factors shapes the landscape and dictates the rhythm of its evolution. Beyond the numerical snapshots and statistical trends lie deeper narratives, reflective of societal dynamics, economic shifts, and policy interventions. The ebbs and flows witnessed in March 2024 encapsulate a nuanced dance between supply and demand, as well as the intricate balance between buyer sentiment and market conditions. Despite the marginal decline in sales compared to the previous year, the notable uptick in new listings signals a resilience within the market, underpinned by an underlying confidence in the enduring value of real estate in the GTA. Within this dynamic ecosystem, each segment of the housing market tells its own story. Detached homes, the quintessential symbol of suburban living, maintain their allure with a steadfast average price, embodying stability amidst fluctuations. Conversely, semi-detached homes showcase a palpable upward trajectory, reflecting evolving preferences and lifestyle choices. Meanwhile, townhomes and condos navigate a landscape of their own, where affordability considerations intersect with urban lifestyles and communal amenities, shaping their respective price dynamics. Related posts 09 April 2024 Insights into the GTA Real Estate Market: Navigating the Dynamics Insights into the GTA Real Estate Market: Navigating the Dynamics Amidst the aroma of freshly brewed… 08 April 2024 Toronto Real Estate Prices Rise Despite Lowest Sales Since 2009​ Toronto Real Estate Prices Rise Despite Lowest Sales since 2009 In March, the Greater Toronto real estate… 02 April 2024 Canadian Population Boom Fueled by Temporary Residents CANADIAN POPULATION BOOM FUELED BY TEMPORARY RESIDENTS There has been a remarkable surge in its Canadian… 13 October 2023 Co-ownership: An Answer for Canadians Navigating Property Challenges Co-ownership: An Answer for Canadians Navigating Property Challenges. 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Toronto Real Estate Prices Rise Despite Lowest Sales since 2009 In March, the Greater Toronto real estate market experienced a remarkable surge in home prices, with the benchmark or typical home appreciating by 1.8%, equivalent to a staggering $19,700 increase, reaching a new level of $1,113,600. This significant uptick in prices is particularly striking when compared to the same month last year, where prices only saw a modest 0.31% increase, or $3,400. Several factors likely contributed to this sudden and substantial rise in home prices. Firstly, demand-side forces, such as low interest rates and pent-up buyer demand, may have intensified competition among buyers, leading to bidding wars and higher offer prices. Additionally, the psychological phenomenon of FOMO (fear of missing out) might have driven buyers to act quickly, fearing further price escalation in the future. On the supply side, while there was a double-digit increase in new inventory, it appears that it was insufficient to meet the heightened demand. This imbalance between supply and demand dynamics typically results in upward pressure on prices as buyers compete for the limited available properties. Furthermore, the broader economic context may have played a role. Despite economic uncertainty stemming from factors like the ongoing pandemic, there might be segments of the population experiencing improved financial stability or confidence, leading them to enter the housing market. Toronto Home Prices Rose $20k in March The disparity between surging home prices and declining sales in Greater Toronto during March highlights a notable divergence between pricing dynamics and sales activity in the market. While one might intuitively expect that rapidly rising prices would be accompanied by a corresponding surge in sales, the reality appears to defy this expectation. Several factors could help explain this apparent contradiction. Firstly, while rising prices may reflect heightened demand and competition among buyers, they can also contribute to affordability constraints, thereby reducing the pool of potential buyers able to complete transactions. As prices reach increasingly elevated levels, some prospective buyers may be priced out of the market or choose to postpone their purchasing decisions in hopes of more favorable conditions in the future. Additionally, the decline in sales activity could be attributed to various external factors impacting consumer behavior and market sentiment. Economic uncertainty, stemming from factors such as the ongoing COVID-19 pandemic or concerns about job security, may have dampened buyer confidence and willingness to make significant financial commitments. Furthermore, regulatory measures aimed at cooling the housing market or limiting speculative activity could have also played a role in constraining sales volume. Policies such as stricter mortgage qualification criteria or foreign buyer taxes may have contributed to a more cautious approach among potential buyers, thereby dampening sales activity despite robust price growth. Sales fell as Greater Toronto New Inventory rose 15% The increase in new listings by 15.1% to 13,120 in March suggests that Greater Toronto sellers were responding to the market dynamics, perhaps encouraged by the favorable conditions of rising prices. This surge in listings contributed to a higher sales to new listings ratio (SNLR) of 50% for the month, indicating a balanced market. A balanced market suggests that there is equilibrium between supply and demand, typically resulting in stable prices as the market is priced right for the level of demand. However, despite the balanced market conditions and the increase in new inventory, Greater Toronto experienced unusually weak existing home sales, with a decline of 4.5% to just 6,560 homes sold in March, the slowest since 2009. This weakening demand may have been influenced by various factors, including economic uncertainty and affordability concerns, despite the relatively high volume of new listings. Despite the increase in inventory and weakening sales, home prices in Greater Toronto continued to surge sharply. This divergence between weakening sales and rising prices suggests that other factors, such as low interest rates and intense buyer competition, may be exerting significant upward pressure on prices. The bidding wars and rapid price escalations observed in the market resemble the behavior typically associated with a low-rate squeeze, where buyers are eager to capitalize on favorable borrowing conditions and are willing to pay higher prices to secure properties. Related posts 08 April 2024 Toronto Real Estate Prices Rise Despite Lowest Sales Since 2009​ Toronto Real Estate Prices Rise Despite Lowest Sales since 2009 In March, the Greater Toronto real estate… 02 April 2024 Canadian Population Boom Fueled by Temporary Residents CANADIAN POPULATION BOOM FUELED BY TEMPORARY RESIDENTS There has been a remarkable surge in its Canadian… 13 October 2023 Co-ownership: An Answer for Canadians Navigating Property Challenges Co-ownership: An Answer for Canadians Navigating Property Challenges. Rising borrowing costs are causing… 04 October 2023 Decoding the Dynamics of Development Charges Decoding the Dynamics of Development Charges Development charges are fees levied by municipalities on… 30 September 2023 Facts about Closing and Occupancy Delays How to Prepare Your Canadian Home for Winter If you’re buying a home or condo during its pre-construction… 30 September 2023 5 tasks to be accomplished by the end of Pre-delivery Inspection 5 tasks to be accomplished by the end of PDI. When your new home is complete and ready for occupancy,… 26 September 2023 How to Prepare Your Canadian Home for Winter How to Prepare Your Canadian Home for Winter Canada’s winter, characterized by freezing temperatures,…

CANADIAN POPULATION BOOM FUELED BY TEMPORARY RESIDENTS There has been a remarkable surge in its Canadian population growth, reaching unprecedented numbers in recent years. According to data from Statistics Canada (Stat Can), the population growth in 2023 was the highest in over fifty years. What’s particularly striking about this growth is the predominant role played by immigration, with a significant portion comprising “temporary” residents. As Canada grapples with the implications of this demographic shift, upcoming policy changes aimed at restricting immigration are poised to have profound effects on future growth trajectories. Firstly, it’s essential to understand the driving forces behind Canada’s population growth surge. Immigration has emerged as the primary engine fueling this expansion, surpassing natural increase as the leading contributor to population growth. Canada’s immigration policies, known for their openness and inclusivity, have attracted a diverse pool of immigrants seeking economic opportunities, social stability, and a high quality of life. The country’s robust economy, supportive social welfare system, and reputation for tolerance and diversity have made it an attractive destination for individuals and families worldwide. Within the realm of immigration, the influx of temporary residents has played a significant role in shaping population dynamics. Temporary residents encompass a broad spectrum of individuals, including international students, temporary workers, and individuals on temporary visas. These individuals contribute to Canada’s labor force, enrich its cultural tapestry, and often serve as a pathway to permanent residency for those seeking to establish roots in the country. The surge in temporary residents can be attributed to various factors, including Canada’s temporary foreign worker programs, international student enrollment, and humanitarian initiatives such as refugee resettlement. Economic imperatives drive many temporary residents, as they seek employment opportunities in sectors experiencing labor shortages or specialized skill demands. Additionally, Canada’s renowned educational institutions attract a sizable cohort of international students, who often transition to temporary workers or permanent residents upon graduation. While temporary residents contribute to Canada’s economic vitality and cultural diversity, they also pose unique challenges and considerations. Integration into Canadian population, access to healthcare and social services, and pathways to permanent residency are among the complex issues that policymakers must navigate. Furthermore, the transient nature of temporary residency raises questions about long-term demographic stability and social cohesion. Against this backdrop of unprecedented growth fueled by immigration, Canada is poised to implement policy changes aimed at curbing future immigration levels. These changes, driven by a combination of political, economic, and social factors, signify a significant departure from Canada’s historically open immigration stance. Concerns over infrastructure strain, housing affordability, and labor market saturation have fueled calls for more restrictive immigration policies. The implications of these forthcoming policy changes are multifaceted and far-reaching. On one hand, tighter immigration controls may alleviate pressures on infrastructure, housing, and public services in certain regions experiencing rapid population growth. Moreover, a more selective immigration system could prioritize candidates with skills and qualifications aligned with Canada’s economic needs, enhancing the country’s competitiveness on the global stage. However, the potential consequences of reduced immigration levels cannot be overlooked. Canada’s demographic landscape, characterized by an aging population and declining birth rates, underscores the imperative of sustained immigration to replenish the labor force, support economic growth, and sustain social welfare programs. Moreover, immigration has long been central to Canada’s identity as a multicultural nation, fostering innovation, creativity, and cross-cultural exchange. Unpacking Canada’s Unprecedented Population Growth Since 1957 Canada’s population has been experiencing an unprecedented surge, marking the fastest rate of growth since 1957. The latest data from Statistics Canada (Stat Can) paints a picture of remarkable expansion, with the population reaching 40.769 million inhabitants as of January 1, 2024. This surge represents a 0.6% increase in the fourth quarter of 2023 alone and an astounding 3.2% rise over the entirety of 2023. Such a growth rate hasn’t been witnessed in Canada since 1957 when the population stood at a mere 16.69 million people. This surge raises questions about the driving forces behind this demographic phenomenon and its implications for Canada’s future. One of the primary drivers of Canada’s population growth surge is immigration. Canada’s immigration policies have long been recognized for their openness and inclusivity, attracting individuals and families from all corners of the globe. Economic opportunities, social stability, and the promise of a high quality of life have enticed immigrants to make Canada their home. In recent years, Canada has actively sought to increase its immigration levels to address labor market needs, stimulate economic growth, and counteract demographic challenges such as an aging population and declining birth rates. International migration, both permanent and temporary, has played a pivotal role in shaping Canada’s population dynamics. The influx of skilled workers, entrepreneurs, students, and refugees has contributed to Canada’s cultural diversity, economic vitality, and innovation ecosystem. Temporary residents, including international students and temporary workers, have also made significant contributions to Canada’s workforce and society, often serving as a pathway to permanent residency for those seeking to establish roots in Canada. Furthermore, Canada’s humanitarian efforts, such as refugee resettlement programs, have demonstrated its commitment to providing sanctuary to those fleeing persecution and conflict. These initiatives not only fulfill Canada’s international obligations but also enrich its social fabric and foster a sense of compassion and solidarity within Canadian societyThe surge in population growth brings both opportunities and challenges for Canada. On the one hand, a growing population can stimulate economic activity, drive consumer demand, and support a vibrant labor market. It can also contribute to a more dynamic and innovative society, as diverse perspectives and talents converge to tackle complex challenges and drive progress. On the other hand, rapid population growth can strain infrastructure, housing markets, and public services, leading to concerns about congestion, affordability, and sustainability. Urban centers, in particular, may face pressures related to housing shortages, traffic congestion, and environmental degradation. Moreover, managing cultural integration and social cohesion in the face of rapid demographic change poses significant policy challenges for governments at all levels. Looking ahead, Canada’s population growth trajectory is likely to shape its future in profound

Co-ownership: An Answer for Canadians Navigating Property Challenges. Rising borrowing costs are causing numerous prospective Canadian homebuyers to reconsider their immediate plans. A recent survey from Zoocasa, involving over 1,600 of its readers, revealed that 67% of Millennial participants postponed their home buying decisions, largely due to escalating interest rates. However, 65.9% still expressed a desire to purchase a home soon, suggesting the aspiration for homeownership remains intact, but the path may be evolving. For older generations, the initial home might have been the ultimate or they might have started small, upgrading over time using their equity. Nowadays, the journey to homeownership might involve more stages, yet remains achievable. Realty agent, Kristi Newman, shared insights on the emerging trend of co-ownership as a potential solution for aspiring homeowners. She elaborated, “If your dream home seems out of reach currently, your plan might involve multiple phases. Co-ownership is gaining traction because many find it challenging to penetrate the market, particularly in places like the Greater Toronto Area (GTA).” Co-ownership isn’t about merely sharing living space; it involves two or more parties merging funds to acquire a property, often with designated units or shared amenities. Newman remarked, “Given the benefits of countering inflation and building equity, it’s an avenue worth serious consideration. By entering the market sooner, many find they can secure properties beyond their solo financial reach.” A troubling trend from Statistics Canada reveals that homeownership rates for Millennials are declining. Between 2011 and 2021, ownership rates for those aged 25-29 fell from 44.1% to 36.5%. For the 30-34 age bracket, the rate decreased from 59.2% to 52.3%. These figures are significantly lower than the 72.8% and 74.6% rates for age groups 50-54 and 55-59, respectively. Given the inflation and persistent high property prices, co-ownership may offer Millennials a viable route to accumulate equity for future solo purchases. Newman emphasized the investment angle, “Your home should be seen as a financial asset. Retaining a co-owned property for 3-5 years before selling can position you for an upgrade.” On choosing a co-buyer, she imagines an app to connect like-minded purchasers. Viewing it as a business venture, she advises legal counsel for creating a fair agreement that accounts for unforeseen circumstances. Collaboration with a seasoned mortgage broker and a realtor familiar with such setups is key. Furthermore, she suggests co-owning for 3-5 years, leveraging the equity either to upscale or enter another co-ownership. She concluded, “Occasionally, slowing down paves the way to accelerate. Co-owning for a few years can significantly enhance your wealth-building pace.” If you’re contemplating a housing transition this season, be it solo or co-owned, let us guide you. Get in touch for expert advice on both buying and selling properties. Related posts 13 October 2023 Co-ownership: An Answer for Canadians Navigating Property Challenges 04 October 2023 Decoding the Dynamics of Development Charges Decoding the Dynamics of Development Charges Development charges are fees levied by municipalities on… 30 September 2023 Facts about Closing and Occupancy Delays How to Prepare Your Canadian Home for Winter If you’re buying a home or condo during its pre-construction… 30 September 2023 5 tasks to be accomplished by the end of Pre-delivery Inspection 5 tasks to be accomplished by the end of PDI. When your new home is complete and ready for occupancy,… 26 September 2023 How to Prepare Your Canadian Home for Winter How to Prepare Your Canadian Home for Winter Canada’s winter, characterized by freezing temperatures,… 22 September 2023 Why does Canada restrict foreign homebuyers? Why does Canada restrict foreign homebuyers? Experts are skeptical that Canada’s restriction on… 22 September 2023 Canada’s restriction on foreigners purchasing property may affect Indian non-residents demand Canada’s restriction on foreigners purchasing property may affect Indian non-resident demand The…

Decoding the Dynamics of Development Charges Development charges are fees levied by municipalities on developers, homebuilders, and institutions when they undertake construction or development projects on land. These charges help municipalities cover the costs of additional municipal services and infrastructure necessitated by population growth from the new development. The funds can be allocated towards both ‘hard services’ like roads, waste management, and water, as well as ‘soft services’ like parks, libraries, and recreation centers. Legislative Framework Ontario introduced the Development Charge Act in 1989, with significant updates in 1997. This Act guides municipalities on the establishment of development charge by-laws. To establish a new by-law, municipalities must first conduct a background study. This study, which must be updated every five years, outlines projected population growth and the associated service and infrastructure needs. The Act also clarifies the specific services that can be funded by these charges. Determining Population Growth and Charges Background studies delve deep into projected growth, both residential and non-residential. They also look at future capital costs and service levels. It’s crucial for developers to understand a municipality’s charge calculation process. Typically, information on development charge by-laws and background studies can be accessed on the municipal website. The Ontario Municipal Board (OMB) sometimes gets involved in disputes over these studies. Challenging the By-Law There have been instances where municipalities’ calculation methods for development charges have been found inconsistent with the Act. The OMB can hear appeals against a by-law, provided they are filed within 40 days of its passage. For instance, in past cases like the one involving Orangeville and another with Clarington/Markham, the OMB ruled that the respective municipalities’ methods of calculating growth were not in line with the Act. Addressing Incorrect Charges Mistakes can happen in the determination of development charges. If developers believe they’ve been wrongly charged, they can raise a complaint with the municipal council within 90 days of the charge’s due date. The council is then obligated to hold a hearing where the complainant can present their case. If the council’s decision is still unsatisfactory, the decision can be appealed to the OMB within 40 days. Related posts 04 October 2023 Decoding the Dynamics of Development Charges Decoding the Dynamics of Development Charges Development charges are fees levied by municipalities on… 30 September 2023 Facts about Closing and Occupancy Delays How to Prepare Your Canadian Home for Winter If you’re buying a home or condo during its pre-construction… 30 September 2023 5 tasks to be accomplished by the end of Pre-delivery Inspection 5 tasks to be accomplished by the end of PDI. When your new home is complete and ready for occupancy,… 26 September 2023 How to Prepare Your Canadian Home for Winter How to Prepare Your Canadian Home for Winter Canada’s winter, characterized by freezing temperatures,… 22 September 2023 Why does Canada restrict foreign homebuyers? Why does Canada restrict foreign homebuyers? Experts are skeptical that Canada’s restriction on… 22 September 2023 Canada’s restriction on foreigners purchasing property may affect Indian non-residents demand Canada’s restriction on foreigners purchasing property may affect Indian non-resident demand The… 18 September 2023 Canadians debate foreign students limit over housing problem Canadians debate foreign student limit over housing problem To combat the country’s soaring housing…

How to Prepare Your Canadian Home for Winter If you’re buying a home or condo during its pre-construction phase, you and the seller or builder will likely negotiate a move-in date. ​ This is the “closing date,” or “settlement date,” for freehold properties. This is often referred to as the “occupancy date” for condos. ​ This date might shift for a number of reasons. Additional lodging, transportation, and storage charges may accrue if there are closing and occupancy delays. ​If your vendor or builder fails to provide you with enough notice of a delay or if the construction of your house is delayed over a specific date, you will be reimbursed for the delay under the delayed closing/occupancy coverage of your new home warranty. ​ Refer to Your Addendum The Addendum to your Purchase and Sale Agreement contains information on your closing/occupancy date and the delayed closing warranty.​ Please give the Addendum your full attention.​ This document begins with a Statement of Critical Dates that specifies: ​ Closing and occupancy date extensions (if any) and when the vendor/builder anticipates work to be finished and you may expect to move in; Deadlines by which your contractor or supplier must inform you of a delay Closing Date Types​ A Firm Closing/Occupancy This option is available if the seller or builder guarantees that the house will be finished by a certain date.​ A Tentative Closing/Occupancy Date If the seller or builder is unsure of when the house will be ready for occupancy, they might utilize a “tentative closing/occupancy date.” Firm Closing/Occupancy Date The vendor/builder is obligated to pay for the inconvenience of a delayed closure or occupancy date if the Firm closure/Occupancy Date they established is missed. Tentative Closing/Occupancy Dates​ Freehold Homes If the vendor/builder gives you enough notice, they may push out the closing date two more times by up to 120 days each time.​ Condominiums​ If the vendor/builder gives you enough notice, they may push back the estimated move-in date many times without paying you more.  The Outside Closing/Occupancy Date Your vendor or builder will be able to accommodate you until the Outside Closing/Occupancy Date. Typically, a year must pass between the Firm Closing Date and the Second Tentative Closing Date for a freehold property. Condominium closing dates are established between the buyer and seller at the time of contract signing. ​ You have 30 days from the Outside Closing/Occupancy Date to cancel the agreement if your house is not ready for occupancy. The buyer has the right to cancel within this time. You are entitled to delayed closing/occupancy compensation and the return of any funds supplied if you cancel the Agreement. Related posts 30 September 2023 Facts about Closing and Occupancy Delays How to Prepare Your Canadian Home for Winter If you’re buying a home or condo during its pre-construction… 30 September 2023 5 tasks to be accomplished by the end of Pre-delivery Inspection 5 tasks to be accomplished by the end of PDI. When your new home is complete and ready for occupancy,… 26 September 2023 How to Prepare Your Canadian Home for Winter How to Prepare Your Canadian Home for Winter Canada’s winter, characterized by freezing temperatures,… 22 September 2023 Why does Canada restrict foreign homebuyers? Why does Canada restrict foreign homebuyers? Experts are skeptical that Canada’s restriction on… 22 September 2023 Canada’s restriction on foreigners purchasing property may affect Indian non-residents demand Canada’s restriction on foreigners purchasing property may affect Indian non-resident demand The… 18 September 2023 Canadians debate foreign students limit over housing problem Canadians debate foreign student limit over housing problem To combat the country’s soaring housing… 18 September 2023 Toronto homebuilding slows as developers halt or cancel projects Industry Responds to Feds Removing GST On New Rentals Despite the province’s new plans to reach…