Reports from local real estate boards and incoming data indicate the number of homes changing hands continued to increase from this year’s lows posted in April. The August data suggest that national home sales have risen for the fifth consecutive month. However, location is everything in the housing market, and the pace of sales varies widely across the country.

Hardest hit by unaffordability and condo overbuilding, the extended GTA—The Golden Horseshoe — suffered the most in the downturn and is expected to suffer the most from the US tariffs. The auto and steel sectors have already endured substantial layoffs, and household surveys suggest that the fear of being laid off in the next year has risen meaningfully.

Parts of BC have also seen a decline in activity, with prices falling, but not to the same extent as in Ontario. Balanced, if sometimes tight, conditions are driving property values higher in most of the Prairies, Quebec and parts of Atlantic Canada. In contrast, high inventory is depressing values in Ontario and British Columbia. Toronto experienced what we believe will be a temporary pause in August, following its gradual upturn.

These developments are in line with our view that rebuilding market confidence will support a slow recovery in the second half of 2025 and set the stage for stronger demand in 2026. There is pent-up demand for housing, and sellers are motivated. Many have been on the market for months, and reality has seeped in. Prices have fallen.

Local data shows that the MLS Home Price Index has fallen again in Toronto, Hamilton, Calgary, Edmonton, the Fraser Valley, and Vancouver—all of which are being weighed down by abundant inventory.

Strong construction has contributed most to the inventory build-up in Calgary and Edmonton.

The Toronto area took a breather in August after four months of solid advances. Home resales dipped slightly by 1.8% from July, seasonally adjusted, with continued softness in condos weighing on activity. Resales were up 2.3% year-over-year.

Falling interest rates, recent price drops, higher inventory and easing trade war concerns will gradually drive up activity.

The mild and broad price correction continued last month. The area’s composite MLS HPI edged 0.1% lower from July seasonally adjusted to $978,100—extending a year-long downtrend.

The condo price index fell the most, -7% from a year ago, but all categories saw a correction, including single-detached family homes (-5.6%).

We expect property values to continue falling while the market regains a firmer footing. But, affordability—while improving—will remain a big issue.

The economic backdrop shows signs of stress as labour markets have weakened and excess capacity is rising. The two most recent labour reports showed employment losses in both July and August, totaling more than 100,000 positions, while the jobless rate hit 7.1% last month, up by half a percentage point since January. The economy contracted by 1.6% in the second quarter—the most significant decline since the pandemic — reflecting a considerable drop in exports. Business investment is also weak, as is residential construction.

Recent economic weakness will likely outweigh the bank’s concerns about firm core inflation over the past few months. A broad range of underlying price pressures showed some cooling.

The average of the Bank of Canada’s two preferred core measures decelerated to 3.05%, from 3.1% in July. The three-month moving average of these core rates held steady at 2.52%.

Shelter inflation slowed to 2.6%, while CPI excluding food and energy decelerated to 2.4%. CPI excluding eight volatile components and indirect taxes held steady at 2.6%. Still, the share of components within the consumer price index basket that are rising by 3% or more — another key metric closely watched by policymakers — rose to 39.1%, from 37.3% in July.

The Bank of Canada cut the policy rate by 25 bps on September 17, taking the overnight rate to 2.5%–half the level posted at the high of 5%. The central bank is likely to cut rates one or two more times this year. The Governing Council meets again on October 29 and December 10.

And that’s a wrap for October! I hope you all have a candy-filled spooky season and manage to sort out your costumes before the 31st. Happy Halloween and see you back here in November.

Did you know that appliances and electronics account for up to 23% of the average monthly electricity bill? The biggest culprits are your fridge (coming in at around 4% of the total bill), and your washer and dryer (coming in at around 3.5% of the total bill). We’re all looking to save some cash where we can, so let’s look at some ways to reduce that monthly energy bill from our appliances and electronics.

Option 1: Use Existing Appliances Smarter

Now I don’t recommend unplugging your fridge or wearing filthy clothes – but there are a few ways to get your appliance and electronics energy use down. First up, in warmer months, line dry your clothes to skip the dryer altogether. Next, clean your existing appliances – from the fridge coils to the lint traps, a clean machine is an efficient machine.

For your electronics, turn off your TV and computer when you’re not using them or use a smart power bar to plug them in. I know there’s plenty of us who just close the laptop at 5pm but taking that extra second to turn it off every day adds up. You can also turn down screen brightness and turn off standby modes.

Option 2: Upgrading Appliances

Looking to replace an old appliance with an energy efficient one this year? It’s a great investment in your home, even if you plan to sell in the next few years. The ROI on new appliances is 60-80% – and that doesn’t even include the cost savings you get each month on your bill. If you’re serious about an appliance upgrade, here are the best of the best Energy Star certified products in each appliance category for 2025.

One thing to look for in a new appliance is that Energy Star logo and certification. The logo is that light blue (or black) box with a white star and cursive ‘energy’. The certification is the manufacturer’s assurance that the product meets Federal Government standards for minimum energy performance standards, typically defined as 10-65% more efficient that traditional models (depending on the appliance and scenario). The program is run by Natural Resources Canada and has been in place since 2001.

What About Other Improvements?

Of course, there are many improvements you could make to your home to improve energy efficiency – from upgrading the HVAC system to installing energy efficient windows and doors. In fact, a bigger investment in these areas might be even more cost effective since heating your home accounts for the biggest portion of the average energy bill by far. For those of you who’ve gotten a CMHC insured mortgage in the past 2 years there’s an even bigger incentive to take the plunge. If you’ve upgraded your appliances in that mortgaged home, you can submit an application to the CMHC to get up to 25% of your CHMC insurance fees back! Read more details on that program or give me a call to discuss.

Buying your first home – no matter what your age – is a significant life event. It can bring up all kinds of stresses, both financially and emotionally. Being prepared for what’s to come can put your mind at ease. So, as an expert in the process, here are my best tips to minimize stress, and avoid hiccups and surprises throughout the process.

Set Limits: Allot a maximum amount of time for house shopping and scrolling on socials, websites, etc. per day. Don’t get overwhelmed by browsing homes for hours on end, listening to everything you hear on social media, etc.

Build Your Team: You’ll need a real estate agent you’re comfortable working with, a lawyer to review documents, a thorough home inspector, and a mortgage broker to get your financing in order. It’s okay to meet a few of each profession and make sure you get the right team lined up. Asking for a referral is a great way to find that perfect someone.

Get Pre-Qualified & Pre-Approved: Using a mortgage calculator (or downloading my app) will help you determine what mortgage payments and subsequent home shopping budget you’d qualify for. A pre-approval looks more carefully at your credit score and income, giving you an estimate what a bank would lend YOU. A mortgage broker is the perfect person to help you get it.

Create a Budget – And Stick to It: Once you know what your downpayment and ongoing mortgage payments will be, you’ve got to also consider the other costs of buying a home (like an inspection, moving, closing fees, legal fees, etc.). Know how much cash upfront you’ll need and don’t overspend leading up to a home purchase.

Spend Time in Prospective Neighbourhoods: It’ll minimize surprises about the neighbours and habits of the residents, plus you’ll get familiar with routines like school buses, playground zones, garbage days and more.

Lower Your Expectations: Thinking you’ll a home that’s 100% perfect, at the price you want, with no one else bidding on it… well that’s not very realistic. So set out the absolute must-haves, consider what you can compromise on, and don’t get too wrapped up in just one house. Take your time and wait for one that fits your budget and your (lowered) expectations.

Monotask: If you’re trying to choose between houses, calculate expenses, hire a mover, rent a carpet cleaner, and declutter your home all at once, you’ll become scattered and ineffective. Instead of multitasking and trying to get everything done at once, pick just one task at a time and work on that exclusively.

Try a Daily Affirmation: Choose something “I am making good financial decisions every day to support buying a home” or “I remain optimistic about finding my future home” or “I trust that my realtor is working in my best interest” and repeat it when you feel stress over the purchase, process, or whatever else is bothering you.

Enlist a Support System: If you’re feeling overwhelmed, lean on someone for support. That might be your broker if you’re confused about a process or requirement or a friend who recently bought a house to confirm their experience. It might even be your family or friends to vent or a gym buddy to get a stress-relieving workout in. Don’t ignore the stress as it can build throughout the process.

I hope these tips help you with your next home purchase – and please share them if you know someone who’s going through it too!

Helping your clients understand Gross Debt Servicing (GDS) and Total Debt Servicing (TDS) can guide them in determining what they can afford, how to qualify for RFA loans, and how to optimize their borrowing power.

Gross Debt Servicing (GDS)
GDS is the percentage of a borrower’s gross monthly income (before taxes and deductions) that goes toward housing expenses. This should not exceed 39% of their income.

Included in GDS:

Mortgage payments (principal & interest)

Property taxes

Heating costs

Condo or HOA fees

Note: Required documentation may vary by case.

Total Debt Servicing (TDS)
TDS reflects the percentage of a borrower’s gross monthly income needed to cover all debt obligations, including housing costs. This ratio should not exceed 44%.

Debts included in TDS (but not limited to):

Student loans

Car loans

Credit cards

Lines of credit

Installment loans

Personal loans

Other mortgages/properties

Revolving credit

Closing costs

Alimony or child support

Note: Documentation requirements may differ depending on the case.

🏡 Key Features in Ontario:
Eligibility: Must be 55 years or older (if there are two homeowners, both must be 55+).

Home ownership: You must own your home and live in it as your primary residence.

Loan amount: You can usually borrow up to 55% of your home’s appraised value.

No monthly payments: Interest is added to the loan balance.

Stay in your home: You keep ownership and can live there as long as you want.

💰 How You Get the Money:
You can choose to receive the funds:

As a lump sum

In regular payments

Or a combination of both

⚠️ Things to Keep in Mind:
The interest compounds, so the loan grows over time.

It reduces the equity in your home, which could affect inheritance for your heirs.

When the home is sold, the loan and interest must be repaid.

You’re still responsible for property taxes, home insurance, and maintenance.

A Beginner’s Guide to Mortgage Basics in Ontario, Canada

Purchasing a home is an exciting milestone, but it can also be overwhelming, especially when navigating the complexities of mortgages. If you’re in Ontario, Canada, and looking to buy your first home or understand the basics of mortgages, this guide is for you. Let’s break it down step by step.

What is a Mortgage?

A mortgage is a loan that you borrow from a financial institution to purchase a property. You’ll agree to repay the loan amount (principal) plus interest over a specific period, typically ranging from 15 to 30 years. The property itself serves as collateral, meaning the lender has the right to repossess it if you default on your payments.

Key Components of a Mortgage

Principal: This is the amount you borrow from the lender.

Interest Rate: The cost of borrowing the money, expressed as a percentage. In Canada, you’ll encounter two types of interest rates:

Fixed Rate: The interest rate remains constant throughout the term of the mortgage.

Variable Rate: The interest rate fluctuates based on market conditions.

Amortization Period: The total time it takes to pay off the mortgage (e.g., 25 years).

Mortgage Term: The length of time your mortgage agreement is in effect (e.g., 5 years). At the end of the term, you can renew, refinance, or pay off the remaining balance.

Down Payment: The upfront amount you pay towards the purchase price of the home. In Ontario, the minimum down payment varies based on the price of the property:

5% for homes up to $500,000.

10% for the portion of the price above $500,000.

20% (required to avoid mortgage insurance).

Mortgage Default Insurance: If your down payment is less than 20%, you’ll need to purchase this insurance to protect the lender in case of default. This is provided by organizations like CMHC, Sagen, or Canada Guaranty.

Types of Mortgages

Conventional Mortgage: Requires a down payment of at least 20% of the property’s purchase price and does not require mortgage default insurance.

High-Ratio Mortgage: For buyers with less than 20% down payment. It requires mortgage default insurance.

Open Mortgage: Allows you to pay off the mortgage in full or make large payments without penalty.

Closed Mortgage: Offers lower interest rates but restricts your ability to make extra payments without penalties.

Portable Mortgage: Lets you transfer your mortgage to a new property if you move.

Steps to Get a Mortgage in Ontario

Assess Your Financial Situation: Evaluate your income, savings, and credit score to determine how much you can afford.

Get Pre-Approved: Obtain a pre-approval from a lender to understand your borrowing limit and lock in an interest rate for 60 to 120 days.

Choose a Lender: Compare rates and terms from a mortgage broker. Apply Now

Submit Your Application: Provide documentation such as proof of income, employment, and identification.

Closing Process: Once approved, finalize the purchase with the help of a lawyer or notary.

Government Programs for First-Time Homebuyers

Ontario and Canada offer several programs to help first-time homebuyers:

Home Buyers’ Plan (HBP): Allows you to withdraw up to $60,000 from your RRSP tax-free for a down payment.

First-Time Home Buyer Tax Credit: A $5,000 non-refundable tax credit providing up to $750 in tax relief.

Land Transfer Tax Rebate: First-time buyers can receive up to $4,000 off their land transfer tax.

Tips for Choosing the Right Mortgage

Know Your Budget: Use a mortgage calculator to estimate your monthly payments and ensure they fit within your budget.

Understand the Terms: Carefully review the terms and conditions, including penalties for early repayment.

Consider Professional Advice: Work with a mortgage broker who can shop around for the best rates and terms.

Plan for Additional Costs: Factor in closing costs, property taxes, and maintenance expenses.

Final Thoughts

Understanding mortgage basics is the first step to achieving your dream of homeownership in Ontario. By educating yourself on the process, comparing options, and seeking professional guidance, you can make informed decisions and find a mortgage that suits your needs.

If you’re ready to take the plunge, start by assessing your finances and exploring available programs to make your home-buying journey as smooth as possible.