Canada is in the midst of a deepening housing crisis, and the most alarming developments are unfolding in Ontario and British Columbia—provinces that together account for roughly half of the nation’s population. Amid ongoing challenges such as affordability, supply constraints, and rising demand, one critical question looms: how bad will new home construction get in Ontario and British Columbia?

The answer, backed by current trends and projections, is deeply concerning.

Why Ontario and British Columbia Matter Most

Whenever the topic of Canada’s housing market arises, discussions often shift to include perspectives from other provinces such as Saskatchewan or New Brunswick. While these regions are essential to Canada’s cultural and economic fabric, the population numbers tell a compelling story. Ontario and British Columbia are home to approximately 50% of Canada’s nearly 42 million residents. When Alberta and Quebec are added to the equation, that number rises to 86%.

In short, the majority of Canadians live in a handful of urbanized, high-demand areas. This concentrated population means that any significant changes to housing supply in Ontario and BC will have a disproportionate impact on the national housing landscape.

A Historic Collapse in Housing Starts for Ownership

A dramatic shift is underway in Canada’s home construction market. If one isolates new housing starts for ownership properties—excluding purpose-built rentals—the numbers in Ontario and British Columbia are plummeting toward levels not seen in over half a century. In Ontario, projections suggest that housing starts for homes intended for purchase (single-family homes, townhouses, semis, and condominiums) could fall below 15,000 units annually.

This decline would represent a historic low. For context, such figures harken back to a time long before modern population and urban growth—when the province's population was a fraction of what it is today. These are not normal market fluctuations; they are structural signals of a market at risk of paralysis.

The Rental Surge vs. Ownership Construction Collapse

To be clear, rental housing construction is still moving ahead at a relatively healthy pace. Purpose-built rental apartments, especially high-rise developments, are seeing strong investment and activity. In fact, rental construction is at or near a 35-year high in Ontario. However, this growth in rentals does not offset the severe shortfall in ownership-oriented construction.

There is nothing inherently wrong with expanding the rental supply. In fact, rental housing is a vital part of a balanced housing ecosystem. But when virtually all new construction focuses on rentals, and almost none addresses homeownership, the imbalance becomes dangerous—especially in provinces where the desire to own remains strong.

Structural Bottlenecks and Delays

The delays in construction for ownership housing are not accidental. They are driven by a combination of economic, regulatory, and planning challenges. For high-rise condominiums, the development cycle can take five to six years from project approval to occupancy. That means that if construction is not starting now, supply relief will not be seen until 2030 or later.

Low-rise developments—such as detached homes, townhouses, and semi-detached dwellings—are facing their own challenges. Land availability, municipal zoning restrictions, and high interest rates have made it financially unviable for many builders to proceed. Without significant change in policy or market conditions, the sector risks grinding to a near halt.

British Columbia’s Slow Rollout of Promised Plans

British Columbia, particularly the Greater Vancouver Area, is a case study in ambitious planning with limited execution. While there is no shortage of announcements—such as the Broadway Plan and other urban intensification strategies—the gap between planning and actual construction remains wide.

Despite bold visions and policy frameworks, builders are reluctant to move forward in uncertain economic conditions. Market volatility, construction costs, and prolonged approval timelines are slowing the pace at which these plans turn into real homes. Meanwhile, the demand for ownership housing in the Lower Mainland continues to outpace supply by a wide margin.

Federal Policy Focused on Rentals, Not Ownership

Recent federal announcements around housing policy indicate that new funding and support programs will continue to focus on affordable rentals, often owned or subsidized by municipalities. While affordable rental housing is an important and necessary part of the solution, it does not address the growing demand for homes to purchase.

Canadians still overwhelmingly aspire to homeownership. If government efforts do not begin to support construction of homes for sale—particularly in the low- and mid-density segments of the market—then the path to ownership will continue to narrow, locking out more prospective buyers.

The Coming Scarcity—and Its Consequences

The combination of halted ownership construction, continued immigration (even if at a slower pace), and steady demand will inevitably create a scarcity of homes for sale. This scarcity will likely lead to a resurgence in home prices, especially in the detached, semi-detached, and townhouse markets in Ontario and British Columbia.

Even in a moment where housing prices have seen some declines, the underlying supply-demand dynamics suggest that this may be a temporary reprieve. With no substantial new ownership housing coming online in the next few years, prices may begin to rise again—not because demand is surging, but because there will simply be nothing available to buy.

A Crisis Within a Crisis

What we are witnessing is a crisis layered within another crisis. On the surface, the Canadian housing market is already unaffordable, inaccessible, and under immense pressure. But beneath that, a more troubling trend is emerging: the complete erosion of new home construction for purchase in the two provinces where most Canadians live.

This is not merely a policy oversight or market anomaly. It is the result of cumulative decisions—municipal zoning policies, provincial funding priorities, federal housing strategy—that have prioritized rentals and regulatory caution at the expense of ownership supply.

What Needs to Change

To avoid long-term damage to the housing ecosystem in Ontario and British Columbia, a coordinated, urgent response is required:

1. Fast-track approvals for ownership developments—particularly in low- and mid-rise segments.

2. Provide financial incentives and tax relief to builders undertaking ownership projects.

3. Encourage densification in suburban and exurban areas where single-family and townhouse developments can be built cost-effectively.

4. Rebalance federal and provincial housing programs to include strong support for ownership supply.

Final Thoughts

In a nation as prosperous and resource-rich as Canada, a persistent and growing housing shortage should not be the norm. But if we allow ownership construction to collapse in Ontario and British Columbia, we are setting the stage for a generation locked out of homeownership—and for an even more distorted and inequitable housing market.

The time to act is now. Planning alone is no longer enough. Canada needs to start building again—especially homes that people can afford to buy.

Hamilton has transformed over the last decade from a quiet industrial city into one of Ontario’s most exciting and livable communities. With its mix of urban charm, natural beauty, and relative affordability compared to the GTA, it’s no surprise that Hamilton continues to attract buyers from all walks of life—first-time homebuyers, investors, retirees, and growing families alike.

But with over 100 neighbourhoods and a competitive real estate landscape, one of the biggest questions remains: Where should you buy in Hamilton in 2025?

This guide explores some of Hamilton’s top neighbourhoods, based on Zolo.ca's insights, local trends, and what makes each community unique.

Why Hamilton Real Estate Stands Out

Before diving into neighbourhoods, let’s talk about what’s driving interest in Hamilton this year:

• Affordability Compared to Toronto: The average home price in Hamilton is still significantly lower than in Toronto, making it a viable option for buyers priced out of the GTA.

• Lifestyle & Liveability: Access to trails, waterfalls, historic downtowns, and the waterfront makes Hamilton appealing for lifestyle buyers.

• Strong Rental Market: Investors are drawn to Hamilton’s student population (McMaster University, Mohawk College), plus rising rental demand.

• Transportation: Improved GO Train service and highway access continue to make commuting more feasible for professionals.

Top Hamilton Neighbourhoods to Consider in 2025

1. Ancaster – Family-Friendly and Upscale

Ancaster is one of the oldest and most prestigious neighbourhoods in Hamilton. Known for its large lots, excellent schools, and proximity to conservation areas, it’s a favourite for families and professionals looking for peace and luxury.

• Average Home Price: Higher than the city average, but offers value for spacious properties.

• Buyer Type: Families, professionals, retirees.

• Local Perks: Tiffany Falls, Ancaster Village shopping, great public schools.

Pro Tip: Inventory in Ancaster can be limited, so act quickly when well-priced homes come up.

2. Durand – Urban Living with Historic Charm

Located in downtown Hamilton, Durand is ideal for buyers who want walkability, culture, and a bit of architectural beauty. The area features stately heritage homes, condo developments, and access to Locke Street, one of Hamilton’s trendiest spots.

• Average Home Price: Mixed – from entry-level condos to million-dollar homes.

• Buyer Type: Young professionals, investors, downsizers.

• Local Perks: Close to GO Station, restaurants, cafes, and art galleries.

Durand is a great pick for buyers who love city living but still want character and community.

3. Corktown – A Hidden Gem for First-Time Buyers

Just east of downtown, Corktown is one of Hamilton’s oldest and most revitalized communities. It’s increasingly popular with first-time buyers and renters due to its walkability and relative affordability.

• Average Home Price: Lower than downtown core but rising steadily.

• Buyer Type: First-time buyers, young couples, students.

• Local Perks: Access to trails, St. Joseph’s Hospital, vibrant pub and food scene.

Corktown balances character with affordability, which is hard to find in 2025.

4. Stoney Creek – Suburban Growth & Value

If you’re looking for newer homes, suburban convenience, and access to Lake Ontario, Stoney Creek is worth a look. Located on the east side of Hamilton, it has seen consistent residential development and is popular with commuters.

• Average Home Price: Mid-range for Hamilton; competitive for newer builds.

• Buyer Type: Families, GTA commuters, investors.

• Local Perks: Confederation Park, Red Hill trails, newer schools and retail plazas.

Many buyers find better value in Stoney Creek compared to similar suburban areas in Burlington or Oakville.

5. Waterdown – A Village Vibe with City Access

Now part of Hamilton but retaining its small-town charm, Waterdown offers a mix of newer subdivisions and historic homes. It’s particularly popular with families and Toronto transplants.

• Average Home Price: Slightly higher, but steady.

• Buyer Type: Families, professionals, retirees.

• Local Perks: Family-oriented, strong school zones, great highway access.

Waterdown gives you that “small town outside the city” feel without sacrificing amenities.

Honourable Mentions

• Westdale: Popular with students and investors due to proximity to McMaster University.

• Binbrook: Great for those seeking space and newer builds at reasonable prices.

• Crown Point: Attracting artists, first-time buyers, and investors with its rising trendiness.

Key Tips for Buying in Hamilton in 2025

1. Know Your Goals: Are you buying to live, rent, or flip? Different neighbourhoods serve different purposes.

2. Act Quickly: Inventory remains tight in many top neighbourhoods—get pre-approved and ready to move.

3. Use Local Tools: Zolo.ca offers updated neighbourhood stats including average price, days on market, and active listings.

4. Work With a Hamilton-Based Agent: A local expert will understand the micro-markets and help you spot value.

5. Explore in Person: Hamilton’s neighbourhoods are diverse. Spend a weekend walking through a few—you’ll find surprises.

Final Thoughts

Hamilton is no longer just “the place west of Toronto”—it’s a destination in its own right. Whether you’re after downtown vibrance, suburban serenity, or investment potential, the city offers real estate options for every lifestyle and budget.

Using tools like Zolo.ca’s Hamilton neighbourhoods guide helps you make data-driven decisions as you compare communities. But beyond the numbers, what makes Hamilton special is its balance—nature meets urban, historic meets modern, and affordability meets opportunity.

Ready to explore Hamilton real estate? Let’s talk about which neighbourhood fits your goals best.

In its latest announcement, the Bank of Canada has chosen to keep its target for the overnight interest rate unchanged at 2.75%. The Bank Rate remains at 3%, while the deposit rate stays at 2.70%. At first glance, this might seem like business as usual — no immediate changes, no cause for alarm.

But dig a little deeper, and it becomes clear that this decision comes against a backdrop of rising global uncertainty, particularly around U.S. trade policies and how those changes might ripple across economies — including our own here in Canada.

So, while the interest rates haven’t changed for now, there’s a lot going on behind the scenes that could impact your finances in the coming months.

Why Interest Rates Matter

Let’s take a quick step back. Interest rates are one of the central tools the Bank of Canada uses to manage inflation and economic stability. When the Bank raises rates, it becomes more expensive to borrow money, which tends to slow down spending and borrowing. When it lowers rates, borrowing becomes cheaper, encouraging more economic activity.

By holding the rate steady, the Bank is signaling a “wait and see” approach — neither encouraging aggressive borrowing nor pushing for a slowdown. That neutral stance tells us they’re watching current global developments closely and don’t yet feel it’s time to intervene further.

What’s Driving This Decision?

The biggest factor on the Bank’s radar right now is the uncertainty surrounding international trade, especially with the evolving U.S. policies. These policies are creating potential headwinds for global economic growth — and Canada, being a trade-dependent country, is particularly sensitive to those changes.

The Bank of Canada has laid out two possible scenarios that could unfold depending on how the trade situation plays out:

Scenario 1: Short-Term Uncertainty, But No Major Damage

In this first possibility, we see ongoing trade tensions but only limited tariffs being imposed. That would likely lead to some short-term slowing of growth in Canada — perhaps less business investment, more cautious consumer spending, and a bit of market wobble.

The upside? Inflation would likely remain close to the Bank’s 2% target, and the economic softness would be more of a temporary slowdown than a serious downturn.

Scenario 2: Prolonged Trade War and a Canadian Recession

The second scenario is more concerning. If trade tensions escalate into a longer-term, more aggressive conflict — with rising tariffs and retaliatory measures — the Canadian economy could fall into a recession.

In this case, inflation could climb above 3%, making everyday goods and services more expensive. At the same time, we’d be dealing with weaker growth, fewer jobs, and reduced consumer confidence.

Neither of these scenarios is certain yet — and the Bank is keeping a close watch on how things unfold before making any further rate decisions.

What This Means for You

Even though interest rates haven’t moved, the message here is clear: economic uncertainty is rising, and now is the time to get ahead of it.

Here’s how this could affect different parts of your financial life — and what you can do to stay prepared:

1. Your Mortgage or Loans

If you have a variable-rate mortgage or any loans tied to the prime rate, the good news is your payments aren’t going up — for now. But with so much volatility in the air, you’ll want to watch for signs that rates could rise in the future. It might be worth speaking with your lender about locking in a fixed rate if you prefer more stability.

2. Your Investments

This is a great time to revisit your portfolio. Are you diversified enough? Do you have a mix of assets that can weather market ups and downs? Uncertainty can lead to volatility, but it can also open doors to opportunities. Stay focused on your long-term goals, and don’t panic over short-term market noise.

3. Your Budget

With inflation potentially on the rise — especially in Scenario 2 — your cost of living could increase. Take a close look at your spending habits now. Tighten up where you can and build a bit of a buffer in case things get more expensive down the road.

4. Your Business or Career

If you’re a business owner or even an employee in a trade-sensitive sector, it’s important to stay informed and agile. Be ready to pivot or adapt if conditions change. For example, a shift in tariffs could impact your supply chain, pricing, or customer demand.

What Should You Do Now?

We’re not in crisis mode — but we are in a period of heightened awareness. That makes now the perfect time to evaluate your position:

• Reassess your financial goals.

• Check in with your financial advisor.

• Ensure your financial plan is flexible and future-proof.

• Stay informed on global and domestic economic developments.

Think of this as a chance to strengthen your foundation. You don’t need to make drastic moves, but staying proactive can help you navigate whatever comes next with confidence.

What’s Next?

The next scheduled rate update from the Bank of Canada is on Wednesday, June 4. That announcement could offer more clarity on how the Bank plans to respond if the trade landscape continues to evolve. If new inflation data or economic indicators shift significantly, we could see changes in the Bank’s approach.

Until then, the best thing you can do is stay informed, stay flexible, and stay ready.

As Canada’s major industries, including automotive, steel, and aluminum, face job uncertainty due to ongoing U.S. trade tensions, another shift is quietly happening in Ontario’s housing market — and this time, it might just be in favour of buyers.

Recent data from RPS-Wahi, a respected property valuation firm, shows a clear softening in the Greater Toronto Area (GTA) real estate landscape. For the first time in years, bidding wars — once a defining feature of the market — are slowing down. If you've been waiting for a sign to enter the market, this might be it.

A Cooling Market: What the Data Tells Us

Spring typically brings a flurry of activity to the housing market, with eager buyers and tight inventories driving up prices. But this year, it’s a different story in many GTA neighbourhoods. According to a recent RPS-Wahi analysis, a striking 65% of homes sold in March went for below the asking price — the same as in February, and significantly higher than the 53% recorded a year ago.

Even more telling is that only 20% of GTA neighbourhoods with five or more sales experienced overbidding last month. This suggests that aggressive bidding is no longer the norm, particularly outside Toronto’s core.

Condominiums have been hit hardest, with 75% of sales closing below the list price, while 58% of single-family homes also sold for less than asking. The softest region? Halton, where a mere 3% of homes sold at asking price, and just 22% sold over — a significant pullback from past years.

Homes Are Being Relisted — For Less

A clear signal of the changing market is the growing number of homes being relisted — sometimes for up to $400,000 less than their original listing prices, according to a report by Zoocasa. Sellers are adjusting expectations to reflect more cautious buyers and a broader sense of economic uncertainty.

That uncertainty is being felt outside the GTA as well. The Hamilton and Burlington areas, long seen as popular alternatives to the city, are also seeing slower activity. Data from the Cornerstone Association of Realtors shows that March 2025 recorded the lowest sales volume for that month since 2009, with only 701 units sold across Hamilton, Burlington, Haldimand County, and Niagara North. Overall, Q3 sales were 27% lower than last year.

Why Buyers Are Holding Back — and Why That Might Be a Mistake

Uncertainty in the broader economy, especially with concerns around U.S. tariffs and potential job losses in key sectors, has many would-be buyers on the sidelines. Benjy Katchen, president and CEO of RPS-Wahi, acknowledges that fear and uncertainty are real — but he also sees opportunity.

“There’s definitely hesitation in the market,” Katchen said. “But that hesitation is what’s giving buyers a rare moment to breathe.”

With fewer buyers entering the fray, there’s less competition, less pressure to rush, and more negotiating power for those who are ready to make a move.

The (Temporary?) Pause on Bidding Wars

Anyone who’s tried to buy a home in the GTA over the past decade knows the frustration of bidding wars. Properties often sold tens or even hundreds of thousands over asking, with buyers facing emotional rollercoasters and repeated losses.

But for now, that frenzy appears to be paused. Katchen doesn’t believe bidding wars are gone for good — they’re too ingrained in the Toronto real estate culture — but he does think we’re in a rare window.

“I don’t think we’ll ever see an end to that in Toronto,” he said. “It’s just a question of the cycle. It might be a pause for three or four months, but I don’t think we’ll ever see an end to that.”

Indeed, the only places still seeing strong overbidding are specific pockets of Old Toronto, where median sale prices hover around $1.3 million — out of reach for many first-time buyers.

Mortgage Rules Are Easing in Your Favour

While the real estate market cools, new mortgage regulations are creating more favorable conditions for buyers — especially first-timers.

The federal government has increased the price cap for insured mortgages from $1 million to $1.5 million, and extended amortization periods to 30 years for new buyers. These changes open up access to more financing options, reduce monthly payments, and make homes more attainable.

This shift could make previously competitive areas like Davenport, Sinclair West, and Danforth Village more attractive — especially for buyers looking for detached or semi-detached homes near downtown Toronto.

More Time to Make the Right Choice

In a hot market, buyers often have to move quickly — sometimes making offers within hours of a showing, waiving conditions, and accepting higher prices just to stay competitive.

But now? You can take your time. You can compare listings, book second visits, and negotiate pricing. That breathing room can make all the difference, especially for major financial decisions like buying a home.

“If I was a buyer, I’d rather buy where I can take a little more time to get a deal and get good financing than have to stand against 25 other people in a line and lose out several times before I finally get what I wanted,” said Katchen.

Interest Rates: Another Hidden Advantage

Interest rates, while not at pandemic-era lows, remain competitive — and in some cases, are trending downward. Buyers can still access five-year fixed mortgage rates under 4%, and variable rates have also dipped, making financing more affordable than many expected.

“It's a different market from an interest rate standpoint versus a year ago,” Katchen added.

For buyers with stable employment and a long-term outlook, the combination of better mortgage conditions, lower prices, and less competition is a unique trifecta.

Final Thoughts: Is This the Right Time to Buy?

While every buyer’s situation is unique, there are compelling reasons to consider entering the market now:

• Prices are lower — in some cases, significantly.

• Fewer bidding wars mean more negotiating power.

• Improved mortgage rules make higher-value homes more accessible.

• Interest rates are attractive and may decline further.

• You have more time to make thoughtful decisions.

Yes, the market is uncertain. Yes, the broader economy is still finding its footing. But those very conditions are creating a window of opportunity that smart, prepared buyers could benefit from — before the next wave of competition arrives.

Thinking about buying this spring? Let’s chat about what makes sense for your goals and timeline. It may just be your best chance in years to get into the market — on your terms.

On the hunt for a budget-friendly mortgage? You’ve just struck gold. Welcome to Canada’s most comprehensive guide on mortgage rates, designed to help you secure top-tier pricing from mainstream lenders and rate aggregators—provided their rates are up to standard.

Having access to a broad selection of reputable lenders significantly improves your chances of landing the best mortgage deal. But finding the lowest rate isn’t the end of the journey. If you want to minimize your total borrowing costs, you need to understand the key factors influencing mortgage pricing and how to negotiate effectively.

Below, we’ll walk you through the ultimate playbook for securing the lowest overall borrowing costs in Canada.

How to Qualify for the Lowest Mortgage Rates

Mortgage Insurance and Its Impact on Rates

The lowest mortgage rates typically require default insurance. Why? Because mortgage insurance acts as a safety net for lenders, reducing their risk and allowing them to offer better pricing.

Most new mortgages with less than a 20% down payment require insurance by law. While it might seem counterintuitive that putting less money down leads to lower rates, insured mortgages actually lower costs and risks for lenders compared to uninsured financing.

Quick tip: If you switch lenders at maturity without increasing your loan amount or amortization, ensure the new lender keeps your insurance in force—this can help you qualify for lower rates today and in the future.

Insurable Mortgages: The Next Best Option

Besides borrower-paid default insurance, lender-paid insured mortgages—also known as "insurable" mortgages—offer another way to secure lower rates. Insurable rates apply to conventional mortgages that meet the following criteria:

• At least 20% equity

• Amortization of 25 years or less

• An owner-occupied home purchased for under $1 million

Insurable mortgages often come with rates that are 10–25 basis points (bps) lower than uninsured rates. (One basis point = 0.01% or 1/100th of a per cent.)

Quick tip: A 10 bps rate savings can keep over $470 in your pocket over five years for every $100,000 borrowed with a 25-year amortization.

Key Requirements for the Best Prime Mortgage Rates

To qualify for the best mortgage rates in Canada, you’ll typically need:

• A credit score of 720+ (some lenders allow lower scores, but 720+ is a solid benchmark)

• A clean credit report (no recent missed payments or derogatory marks)

• Monthly housing costs below 39% of gross income (including mortgage payments, property taxes, heating, and half of condo fees, if applicable)

• Total monthly debt load under 44% of gross income (including housing costs, loans, alimony, child support, and 3% of any credit card balances)

• Provable income (via job letter, pay stubs, or tax documentation for self-employed borrowers)

• A closing date within the lender’s rate hold period (some of the best rates require closing within 30 days)

• A marketable home (rural or unconventional properties may not qualify for the lowest rates)

Quick tip: The government’s mortgage stress test often determines approval rates. As of November 21, 2024, the stress test no longer applies when switching lenders, provided the loan amount and amortization remain the same.

Understanding Rate Surcharges

If you’re a non-prime borrower, be prepared to pay significantly higher rates. Non-prime borrowers include those with:

• Bad or no credit history

• Hard-to-prove income

• High debt ratios

• Offshore residency

• Unconventional properties

These factors can add 100–200 bps or more to your rate, plus additional lender and/or broker fees (typically 1%+ of the mortgage amount). Here are some common rate surcharges:

• Amortizations over 25 years (if uninsured): +10 bps

• Amortizations over 30 years (if uninsured): +100 bps or more, plus lender fees

• Non-owner occupied rental properties: +10–25 bps

• Vacation homes: +10–25 bps

• Pre-approvals: +0–25 bps (most pre-approvals don’t close, so lenders charge extra to offset costs)

Quick tip: Only non-prime lenders offer amortizations over 30 years. If you need long-term flexibility, consider a home equity line of credit (HELOC)—its interest-only payments have an indefinite amortization.

How to Negotiate the Best Mortgage Rate

Securing the best mortgage rate takes strategy. Here’s your eight-step survival guide for mortgage negotiations:

1. Confirm whether you qualify for prime rates using the checklist above.

2. Decide on the best mortgage term (seek professional advice if needed).

3. Determine your mortgage type: Insured, insurable, or uninsurable.

4. Shortlist promising rates and call lenders to assess their terms.

5. Consult an experienced mortgage broker to see if they can beat those rates.

6. Ensure the lender’s terms match your five-year financial plan.

7. Compare the overall cost of different options beyond just the rate.

8. Apply and lock in your rate to protect against potential rate increases.

Quick tip: High-volume brokers often get better pricing from lenders. Choose a full-time broker who’s closed $10M–$25M in mortgages over the past year.

Key Mortgage Features That Matter More Than the Rate

The lowest rate isn’t always the best deal. Flexible mortgage terms can save you thousands down the line. Here are some key features to look for:

1. Portability

If you might move before your mortgage matures, ensure your loan is portable—this lets you transfer it to a new home without penalties.

2. Mid-Term Refinancing

If you might need to borrow more later, ensure your lender allows mid-term refinances without hefty penalties.

3. Prepayment Privileges

If you plan to make extra payments, check for flexible prepayment options. Some mortgages allow 10–30% annual prepayments, while low-frills mortgages may restrict you.

4. Fair Prepayment Penalties

If you need to break your mortgage early, penalties can vary widely. Big Six banks often use higher penalties than fair-lending institutions.

5. Rate Drop Policies

Some lenders let you reset your rate if market rates drop before closing. Others don’t offer this feature.

6. Bridge Financing

If you’re buying a new home before selling your old one, check if your lender offers cost-effective bridge loans.

7. Cash Rebates

Some banks offer cashback incentives (sometimes over $4,000), which can reduce your borrowing costs—but they may claw this back if you break the mortgage early.

Final Thoughts: Ask These 7 Questions Before Locking In Your Mortgage

1. Can you buy down my rate further?

2. How long is my rate guarantee?

3. What are the prepayment terms and penalties?

4. How is the interest compounded?

5. Are there reinvestment fees if I break the mortgage early?

6. What’s your rate drop policy if rates fall before closing?

7. Do you cover all legal and appraisal fees when switching lenders?

A well-negotiated mortgage can save you thousands over its term. By understanding mortgage pricing, qualification requirements, and key lender terms, you can confidently navigate the mortgage landscape and secure the best deal possible.

The Allure and Challenges of Loft Living: A Buyer’s Guide

Loft apartments have long been associated with creative spaces, urban charm, and industrial aesthetics. Whether you’re considering purchasing a true loft in New York City or a converted industrial unit in Hamilton, Ontario, understanding the benefits and challenges of loft living is crucial. In this guide, we’ll explore what makes lofts unique, where to find them, and the key considerations before making a purchase.

What is a Loft Apartment?

A “true loft” refers to an apartment originally designed for industrial or commercial use that has been converted into a residential space. These spaces typically feature:

• High ceilings, often over 12 feet

• Large, factory-style windows allowing ample natural light

• Open floor plans with few interior walls

• Exposed beams, ductwork, or brickwork that preserve the industrial aesthetic

Unlike traditional apartments, lofts offer a unique blend of history and modernity, allowing homeowners to create personalized, expansive living spaces.

The Appeal of Loft Living

Loft apartments have gained popularity for several reasons:

1. Aesthetic and Design Potential

   The industrial-chic appeal of lofts is one of their biggest draws. The high ceilings, large windows, and open floor plans provide a sense of space and flexibility. Homeowners can create custom layouts, install mezzanines, or maintain the minimalist charm.

2. Natural Light and Airiness

   The oversized windows characteristic of lofts bring in plenty of natural light, making the space feel bright and open. For those who appreciate a well-lit home, lofts are an excellent option.

3. Live-Work Possibilities

   Many lofts, particularly those in artist communities, offer the opportunity to combine work and living spaces. This makes them ideal for entrepreneurs, freelancers, and creatives who require open space for studios or offices.

4. Prime Urban Locations

   Loft conversions typically occur in industrial districts, which are now some of the trendiest urban areas. Whether in Manhattan’s SoHo or Hamilton’s downtown core, these locations provide proximity to cultural hotspots, dining, and entertainment.

Loft Markets in New York City and Hamilton

Manhattan: The Loft Capital

In Manhattan, true lofts make up about 10% of the co-op and condo market. Many of these are found in former manufacturing districts like SoHo, Tribeca, and Chelsea. Because they are relatively rare, they tend to command higher prices than conventional apartments. Some areas in Brooklyn, such as Williamsburg and Dumbo, have also become loft hotspots, offering slightly more affordable options.

Hamilton’s Core Lofts: A Canadian Alternative

Hamilton, Ontario, has emerged as an attractive alternative for loft buyers looking for affordability and unique spaces. Core Lofts at 66 Bay Street South is a prime example. Originally a communications building, this complex was converted into residential units in 2005, preserving industrial elements while incorporating modern comforts. A unit like #105, featuring two levels, polished concrete floors, and 20+ foot ceilings, offers an appealing mix of urban sophistication and historic charm.

Challenges of Loft Living

While lofts have undeniable appeal, they come with their own set of challenges that buyers should consider:

1. Heating and Cooling Costs

   Due to high ceilings and large windows, lofts can be costly to heat in the winter and cool in the summer. Energy efficiency can be a concern, especially in older buildings with outdated insulation.

2. Lack of Defined Spaces

   The open concept of lofts is a double-edged sword. While it provides flexibility, it can also make privacy a challenge. Creating designated areas for bedrooms, workspaces, and living areas may require creative solutions like partitions or furniture placement.

3. Maintenance of Older Buildings

   Many true lofts are located in historic buildings that may have maintenance issues such as drafty windows, outdated plumbing, or structural concerns. Prospective buyers should carefully inspect a loft’s infrastructure before purchasing.

4. Zoning and Legal Considerations

   Some lofts were not originally intended for residential use, leading to zoning or certificate of occupancy complications. It’s essential to confirm that the unit complies with local residential codes.

Buying a Loft: Key Considerations

If you’re set on purchasing a loft, here are a few critical factors to keep in mind:

• Check the Building’s History: Research whether the building was converted for residential use and whether there have been any legal or structural issues.

• Evaluate the Amenities: Some loft buildings offer modern amenities like fitness centers and rooftop terraces, while others may have minimal services.

• Understand the Maintenance Fees: Lofts in older buildings may have higher maintenance costs due to their history and structure.

• Consider Your Lifestyle: Loft living is best suited for those who appreciate open spaces and urban aesthetics. If privacy and traditional layouts are priorities, a loft may not be the best fit.

Is a Loft Right for You?

Lofts offer a unique blend of history, character, and modern urban living. Whether in the heart of Manhattan or an up-and-coming city like Hamilton, they provide an opportunity to create a customized, spacious home. However, potential buyers should carefully weigh the pros and cons, ensuring the space fits their lifestyle and budget.

For those who appreciate high ceilings, expansive windows, and industrial charm, loft living can be a dream come true. But like any home purchase, due diligence is key. By understanding the market, considering potential challenges, and evaluating personal preferences, buyers can make an informed decision and find a loft that truly feels like home.

Canada’s New Prime Minister, Interest Rate Cuts, and the State of the Housing Market

Canada has a new prime minister, and with that comes significant economic and policy implications. Mark Carney, a former central banker, has taken the helm without a general election, leading to discussions about his policies and what they mean for the country. Additionally, the Bank of Canada has introduced more interest rate cuts, which will impact mortgage rates, homeownership, and the rental market. This blog delves into these crucial topics and what they mean for Canadians.

Mark Carney as Canada’s New Prime Minister

Mark Carney, a well-known figure in the global financial community, has stepped in as Canada’s new prime minister. Having previously served as the Governor of the Bank of Canada and later as the Governor of the Bank of England, Carney brings a wealth of experience. However, his transition from central banker to politician has raised concerns among many Canadians, as he was not elected in a general election but rather installed by members of the Liberal Party.

Carney’s policy inclinations have sparked debate, particularly regarding the energy sector. He is a strong advocate for Net Zero policies and the Environmental, Social, and Governance (ESG) movement. His past involvement in the Net Zero Banking Alliance, which sought to redirect financing away from fossil fuels toward renewable energy, has led some to question whether he will support Canada’s resource-driven economy. Given Canada’s wealth of natural resources, including oil, gas, and minerals, policies that restrict their development could have significant economic consequences.

Potential Implications for the Housing Market

One of the most pressing questions surrounding Carney’s leadership is his approach to housing. During a recent panel discussion, Bob Rennie, a key player in Vancouver’s real estate sector, revealed that he has been working with Carney on a proposal aimed at revitalizing the rental market. The plan suggests allowing foreign buyers to purchase Canadian properties under the condition that they commit to renting them out for 25 years. Additionally, it proposes using the Canada Mortgage and Housing Corporation (CMHC) to provide subsidized loans to these foreign investors.

Reopening the Market to Foreign Buyers

Currently, Canada has a foreign buyer ban in place, implemented in 2023 under Prime Minister Justin Trudeau in response to concerns about affordability. However, many argue that foreign capital still finds its way into the market through Canadian permanent residents or family members. By officially reopening the market to foreign investors and offering them preferential financing, the government hopes to stimulate housing construction. The catch is that these properties must remain rental units for a quarter-century.

While some developers see this as a necessary move to revive the pre-construction condo market, others worry that it could inflate property prices and divert taxpayer-subsidized financing to non-Canadians. The debate over whether this policy will help or hurt affordability continues.

The Pre-Construction Condo Market Crisis

A major concern in the housing sector is the collapse of the pre-construction condominium market. Developers are struggling to sell units due to high interest rates, declining rents, and an overall pullback from investors. As a result, many projects have been delayed or canceled, leading to a projected shortage of housing supply in the coming years.

Rising construction costs, coupled with a lack of investor confidence, have exacerbated the issue. If developers cannot meet their pre-sale requirements, they cannot secure financing to build. This could result in a severe housing supply crunch in the next five to seven years, contradicting the government’s goal of increasing housing availability.

Bank of Canada’s Interest Rate Cuts

In response to economic uncertainty and a weakening housing market, the Bank of Canada has continued cutting interest rates. This week, the central bank announced a 25-basis-point reduction, bringing the policy rate down from its peak of 5% to 2.75%. Some analysts predict that rates could drop to 2% by the end of the year, providing relief to borrowers.

Impact on Mortgage Rates

With rates falling, variable-rate mortgages are becoming more attractive again. As of now, the average variable mortgage rate sits around 4.25%, aligning with many fixed-rate options. Some borrowers can secure three- or five-year fixed mortgages at rates as low as 3.99%.

However, deciding between a fixed or variable mortgage remains a challenge. While variable rates could drop further if the Bank of Canada continues its cuts, global economic volatility—especially with ongoing trade tensions—makes fixed rates a safer bet for those seeking stability. Borrowers must consider their risk tolerance, job security, and cash reserves before making a decision.

Rising Inventory and Declining Rents

Another major development in the real estate market is the increasing inventory of unsold properties. In both Vancouver and Toronto, unsold pre-construction units have reached record highs. Meanwhile, the resale market is experiencing an influx of new listings, further increasing supply.

Adding to the challenges, rental rates are beginning to decline. According to Rentals.ca, the national average rent has fallen by 5% year-over-year, with larger drops in key metropolitan areas. In Vancouver, for example, rents have declined by 7-10% from their peak levels. This shift is particularly concerning for investors who purchased pre-construction units at high prices, expecting rents to remain strong. Now, many are facing negative cash flow, leading to distress sales and further price declines.

The Looming Issue of Pre-Sale Closings

A growing issue in the condo market is the wave of pre-sale closings that are now occurring at valuations lower than their original purchase prices. Many buyers who secured pre-construction units years ago at higher prices are now struggling to close due to a combination of declining values and higher borrowing costs. In some cases, buyers are finding that their unit’s current market value is 5-10% lower than what they originally paid, making it difficult to secure the necessary financing.

On top of this, closing costs such as GST, property transfer taxes, and realtor fees add another layer of financial strain. Many investors who intended to flip their units for a profit are now facing six-figure losses, further dampening sentiment in the pre-construction market.

Final Thoughts: What Lies Ahead?

The combination of a new prime minister, an uncertain economic outlook, and shifting housing policies makes this a pivotal moment for Canada. While Carney’s background as a central banker suggests a deep understanding of economic fundamentals, his commitment to climate policies and government intervention in housing raises concerns among many stakeholders.

The proposed plan to reopen the market to foreign buyers with CMHC-backed financing is controversial, as it could either revitalize housing construction or exacerbate affordability issues. Meanwhile, interest rate cuts may provide temporary relief to homeowners, but they won’t solve the fundamental supply and demand issues in the housing sector.

The coming months will be critical in shaping Canada’s economic trajectory. With ongoing trade tensions, fluctuating interest rates, and an evolving housing crisis, policymakers will need to strike a careful balance to ensure stability and growth. Canadians should stay informed and prepared for further shifts in the market.

Economic uncertainty is currently gripping Canada and the United States, particularly within the real estate sector. Investors and homebuyers who are making million-dollar or multi-million-dollar transactions require stability and certainty. However, with policy shifts and unpredictable economic events, the real estate market is experiencing significant turbulence. Every time there is a shift in government policy or economic conditions, the market tends to freeze.

If we examine the latest data from Vancouver and Toronto, the two largest real estate markets in Canada, we see a sharp decline in housing activity, particularly on the sales side. Vancouver home sales have declined by 11% year over year. While this might not seem drastic at first glance, zooming out reveals a concerning trend. February 2024 was one of the slowest months for sales in the last 25 years, trailing only behind 2019, 2013, and 2009. Inventory is beginning to build, but primarily in specific sectors—most notably, the condo market.

A Surge in Condo Listings and Investor Sell-Offs

New listings hit record highs in January and February, particularly in the condo market. Many investors are exiting due to years of negative cash flow, high mortgage rates, and softening rental conditions. Vacancies are increasing, and units are taking longer to rent, leading many investors to cut their losses. However, as they attempt to sell, they face an illiquid market due to an inventory surge.

Suburban markets are witnessing significant shifts as well. Since 2015, suburban condo prices in Greater Vancouver, particularly in the Fraser Valley, have doubled. The pandemic fueled demand as remote work became more common, pushing buyers further from city centers. However, as interest rates increased, these local end-user markets—often more sensitive to financial fluctuations—are seeing inventory pile up. Standing inventory in the Fraser Valley’s condo market is now at an all-time high. Historically, when inventory surges to such levels, prices tend to fall.

The Greater Toronto Area (GTA) is experiencing similar issues. Seasonally adjusted home sales declined by 28% on a month-over-month basis, marking the steepest drop since the pandemic and the global financial crisis. The condo segment, particularly among investors, is facing the most challenges. Pre-construction condo sales in 2024 hit a 30-year low. If developers cannot pre-sell units, they simply do not build, leading to a sharp drop in future housing supply.

Government Intervention and Pre-Construction Market Struggles

The British Columbia government recently extended the pre-construction sales period from 12 months to 18 months to allow developers more time to secure financing. This policy shift acknowledges the challenges in the pre-construction market, where projects are struggling to get off the ground. A similar trend is emerging in the GTA, where developers are also struggling to sell pre-construction units, further impacting future housing supply.

Despite the slowing construction market, the federal government is fast-tracking 6,000 undocumented construction workers. This move is ill-timed, as housing starts are already declining rapidly. The demand for construction workers was high during the peak of the market in 2020-2022, but with housing starts now plummeting, the industry will soon face an oversupply of labor. Many construction workers may struggle to find work as current projects wrap up and fewer new developments begin.

Tax Policies and Housing Market Challenges

In an effort to address budget deficits, the British Columbia government has increased the speculation and vacancy tax from 2% to 3% for foreign owners and from 0.5% to 1% for Canadian residents. This tax primarily affects secondary homeowners who use properties as vacation homes. The unintended consequence is that these taxes may discourage investment in housing markets where additional supply is already limited.

Adding to the complexity, the BC government has mandated multiplex housing across the province to increase density. However, utility companies, particularly BC Hydro, are struggling to meet the demand for new developments. Multiplex units require significant electrical infrastructure, including large transformers (PMTs), which take about 12 months for approval. Developers face high holding costs due to these delays, reducing the feasibility of these projects. If natural gas heating were permitted, many of these delays could be avoided, but current policies mandate electric-only heating, further complicating new developments.

The Road Ahead for Real Estate

The Canadian real estate market is at a critical juncture. Uncertainty surrounding economic policies, interest rates, and government intervention is creating an environment where investors and homebuyers are hesitant to act. The data suggests that condo markets, particularly in suburban areas, are at the highest risk of price declines due to rising inventory and decreasing demand. Meanwhile, pre-construction markets are stagnating, which will impact housing supply in the coming years.

Policymakers must carefully consider the timing and implications of their decisions. Fast-tracking construction workers during a market downturn, increasing taxes on secondary homes, and imposing rigid development regulations could exacerbate the current slowdown. Market participants must navigate these challenges with caution, keeping an eye on economic trends and policy changes that could impact their investments.

As the situation continues to evolve, it is essential to monitor housing activity, interest rate trends, and government policies. The coming months will be critical in determining whether the market stabilizes or if further turbulence lies ahead. Investors and homebuyers should prepare for continued uncertainty and make informed decisions based on the latest market data.