Recent changes in the housing market present exciting opportunities for homebuyers. As a realtor, your role is crucial in guiding clients through these updates, helping them build effective plans to achieve their homeownership goals by having them reach out to a mortgage broker to see what they are able to afford.

Knowing these new rules and guidelines will help with strategy and future goals of climbing the “real estate ladder.”

Expanded amortizations for first-time homebuyers

Starting December 15, first-time homebuyers will have access to 30-year amortizations. This change can benefit your clients in two significant ways:

1. Lower income requirement. By extending the amortization period, the income required to qualify for a home purchase decreases. This means more clients can meet the necessary criteria.

2. Reduced monthly payments. Clients will experience a decrease in their monthly payments, making homeownership more financially manageable. For instance, on a $600,000 purchase, the monthly payment could drop by approximately $250, providing greater flexibility in budgeting.

Increased insured mortgage cap to $1.5 million

For clients with high incomes but difficulties saving for a down payment, the increase in the insured mortgage cap to $1.5 million can accelerate their path to homeownership. Previously, purchasing a $1.4 million home required a down payment of $280,000. Now, as of December, clients can potentially purchase the same property with a down payment of about $115,000 — a savings of $165,000.00 in upfront requirements.

This change is also advantageous for “right-sizers” looking to downsize. It allows them to allocate more funds from the sale of their larger home toward retirement, as they can put less down on a new, smaller property. However, clients should keep in mind that closing costs, typically around 3.0 per cent of the purchase price, need to be accounted for in each scenario.

For a $600,000 purchase price, anticipate that clients will need an annual income of approximately $150,000 to meet today’s stress-test requirements.

Switching lenders at renewal: A business opportunity

While you may not initially think about how switching lenders can benefit your business, it’s essential to understand that mortgages encompass more than just interest rates. The Canadian Mortgage Charter now allows insured mortgage holders to switch lenders at renewal without undergoing a stress test. This change opens up opportunities for borrowers to shop around for better rates and terms, potentially saving them thousands of dollars.

Encourage your clients to consider lenders that don’t adhere to posted rates. This strategy can significantly reduce Interest Rate Differential (IRD) penalties.

Case in point

For example, let’s compare a $1 million mortgage with three years left on a five-year term at a 5.0 per cent interest rate: 

By choosing a monoline lender (provided qualifications are met), your client could save $25,000 in IRD penalties, allowing them to manage financial changes better and seize new opportunities.

Tax-efficient savings strategies

As well, two important tax-efficient savings methods have emerged that can empower your clients on their journey to homeownership:

1. RRSP withdrawal limit increase. The amount that can be withdrawn from an RRSP has increased from $35,000 to $60,000 per borrower. This change provides additional funds for clients to put toward their down payments.

2. First-time home saver account. Introduced in 2023, this account allows clients to save $8,000 per year in contribution room, which reduces their taxable income. Unlike RRSP withdrawals, funds from this account do not need to be repaid and any gains earned within it are tax-free. This account, however, has a sunset clause in 2028, making it vital for clients to act quickly to maximize its benefits.

These recent changes create valuable opportunities for your clients. By understanding the implications of expanded amortizations, increased mortgage caps, flexible lender options and tax-efficient savings strategies, you can help them make informed decisions on their path to homeownership.

Recently, I had a productive conversation with clients who were planning their retirement. We discussed timelines and strategies to secure their future, including selling their current home and weighing the benefits of continuing homeownership versus stepping away from the housing market.

Their current home is valued at around $1.2 million, with no mortgage. They also have savings and RRSPs, but most of our focus was on how to optimize their real estate assets for retirement. If they sold their home, they’d have around $1.14 million in equity to invest, so the key question was how to best use that money to achieve their goals, including frequent travel.

Here’s a look at the options we explored based on their real estate and assets. A scenario like this could apply to many of your clients and come in handy when discussing their options.

Option 1: Sell and invest locally

One possibility was selling their home and purchasing a property in Oshawa with a legal accessory apartment for around $800,000. After covering purchase and closing costs, they would have $300,000 left to invest.

At a 4.0 per cent return, this would generate approximately $12,000 in annual income. In addition, the accessory apartment could be rented for about $1,800 per month, bringing in an additional $21,600 annually.

This would give them a total of $33,600 per year in combined income, which would be taxable but with minimal tax implications given their lower retirement income. Plus, some home expenses could be written off as rental deductions.

Option 2: Buy a seasonal or vacation home

Another appealing option was using the $300,000 to purchase a winter home in Florida instead of investing it in the stock market. After converting the funds to American dollars, they would have about $225,000 to buy a property in “The Villages” northwest of Orlando.

The carrying costs would be about $300 per month. Although this option wouldn’t generate investment income, they would still earn $21,600 annually from renting out their Oshawa property. Additionally, they could rent out their Florida home when not using it, potentially generating $3,000 to $4,000 per month in U.S. dollars.

Helping your clients explore equity-shifting opportunities

This conversation highlighted how many homeowners, particularly those who have lived in their homes for decades, overlook the financial potential of downsizing or shifting their equity into different types of properties. Even if they opted to rent rather than purchase a vacation home, the income from investments or property rentals could still comfortably cover their travel and living expenses.

For homeowners in the Durham Region and many other areas, selling and reinvesting home equity offers a range of benefits, from financial freedom to increased quality of life. I’ve spoken to many who regret holding onto their homes for too long, only to find that rising maintenance costs strained their budget and limited their ability to enjoy retirement luxuries like travel.

At a certain point, it’s important to reassess whether homeownership continues to make sense or if downsizing is the smarter financial move. For my clients, their next step was to consult their accountant about the tax implications of owning rental properties both locally and in Florida.

It’s a good problem to have as they enter this exciting new phase of life. Your clients might be in a very similar position.

Struggling to close deals in today’s market? Let’s get practical and tactical and look at three simple goal-setting techniques that will help you increase your closing ratios.

Early on in my career, I woke up without a plan. I would log into MLS, get distracted by the notifications, decide to update my profile, open my email and social media accounts and dive headfirst into the wormhole. 

I would get a lead and be super excited about the opportunity, but I didn’t have a system for getting from the call to closing. I felt “busy,” but I wasn’t getting the expected results. 

So I found people who were. And I studied them in depth. What did they do differently by which they were achieving success when so many in this industry gave up before they even had a chance to succeed?!

Do some goal-setting before investing time, skill or money

A huge unlock for me was zooming out and setting up goals for what I wanted to accomplish BEFORE I deployed time, skill or money.

The three pillars I focused on to start with were setting clear goals personally, professionally and transactionally.

Personal goals

If your personal life is falling apart, it will seep into your professional life, and people can FEEL it. 

No one wants to do business with people they don’t trust or who don’t show discipline or professionalism in their personal life.

If you had to grade the following from 1-10, with 7 not being an option,* where would these fall in your life? (This is my stack. Modify it to whatever tracks with your ambitions.)

• Faith
• Fitness
• Family
• Friends
• Finances

If I take care of my stack in order, by the time I get to work, I’m PUMPED and EXCITED that I GET to do my job. 

Others I meet resent their work because their family is upset they work all the time. Or they feel sluggish and unhealthy, which studies have proven makes you more irritable and likely to fly off the handle. 

What you focus on expands. 

It doesn’t mean I’m perfect by any means, but if any of these fall below a 6, I ask myself what small action I can do to make it an 8-10. 

Often, it’s just frontloading the calendar with family trips, walks to the beach and time-blocking my workouts in at a time I KNOW they’ll get done. Personally, I had to start waking up earlier to get my mind and body right before the world started pulling on me. It took time and effort to make the change, but I can tell you that the version of myself now would run OVER Justin 1.0. 

If I don’t take the time to ask myself these questions, how fast will time pass without me making improvements? I can tell you: Decades in the blink of an eye.

Professional goals

Having a plan for what you would like to be known for, including transaction volume, marketing plans and budgets, is no different than plotting a course for a journey across the ocean.

Not having a plan is also no different than not plotting a course across the ocean.

Which would you rather do if you were crossing the Pacific?

Reverse engineer success. As an example, if you want 50 deals:

• 8 dials = 1 contact
• 12 contacts = 1 lead
• 5 leads = 1 appointment 
• 2 appointments = 1 contract
• 2 contracts = 1 transaction 
• 240 contacts = 1 transaction

By this metric, if you wanted to do 50 deals a year, you should contact 230 people a week. Let’s say you can only commit to prospecting four days a week. That’s 55 people (rounded down).

That’s not a lot. If you sit down for 30 minutes, open your CRM, hit 45-50 people a day x5 days a week — there are your 50 deals. 

The key is like my morning routine: start with 1-5 people daily until you develop a system. What you focus on improves. If you commit to it, you get faster. My bet is with one hour of focused prospecting time daily, you can get to 100-200 touches quickly. But it starts with one. 

The real secret? Most successful agents do 1-3 hours a day because they understand one clear thing: prospecting is the easiest way to always stay in business. 

This doesn’t mean turning into a boiler room cold-calling machine. Prospecting can be DMing a contact on Instagram, texting or emailing, but yes, a human call is the mother of all connections. The key is to log the contact in a system where you can track your efforts. 

The basics are undefeated. 

Transactional goals

Many people don’t realize that it’s essential to have a clear picture of success in a transaction with a client. Be it a buyer or seller, tenant or landlord, all of these have different measures of success.

Some are price-related, some are condition-related, some are tied to an overall portfolio strategy where the transaction is part of a bigger plan. 

The best thing you can do for a client is spend the time to reverse engineer what success looks like for THEM. Many agents get this wrong — they fail to remember that we are FIDUCIARIES. This means that the client’s goals are above our own. 

Think about how this has played out in the industry:

Agents who throw cutting comments amid tense negotiations to belittle others so they can feel important or because they felt slighted in the past and are looking for revenge — all while their client suffers the costs, unbeknownst to them. 

A broker-owner so caught up in a personal vendetta that he chooses to exert power over a minor contractual disagreement that could lead to an unneeded legal battle between clients when everything could have been easily mediated.

The listing agent who literally tells a client that they need to buy through them “because it’ll be easier to get the deal done” and builds a reputation for it. 

I could probably write three articles on stories that all give you the same “feeling,” but I think you get the point. All of these are typically a sign of shortsightedness and insecurity. 

Over time, focusing on the transactional goal will allow you and your clients to develop a stronger bond and relationship as you’re tested with various challenging situations because, if documented, you can always zoom out to the original goal, then zoom in to the problem at hand for a pragmatic solution. 

Plan ahead to execute well

So, what goals are YOU going to set — personally, professionally and transactionally?

I bet there are deals and things you can think of RIGHT NOW.

I know that simply writing this has reminded me to update mine. I used to business plan every December, but over the years I’ve realized that in our business, you need to be working 60-90 days AHEAD of when you’re looking to execute. This means that planning for me now starts after Labour Day so I’ve got a clean plan in writing by October. 

If you need help or accountability, reach out anytime. Sometimes all it takes is sending a message.

* 7 is a non-answer — if you force yourself to choose 6 or 8, you know where you really stand.

We know the majority of real estate agents love selling homes because they love architecture or helping and working with people. For many agents, there is nothing more satisfying than helping people find their first home or a new home, and they often wear many hats other than just helping to buy or sell properties.

The public asks a lot of their agents but maybe not enough when it comes to selling condominiums. Assessing the property value of a condominium is so much different than a single-family home. 

Be your client’s first line of defense in a potential condo purchase with warning signs

Buyers are purchasing a unit in a corporation run by a board of directors voted on by its owners — do real estate agents take this complex situation into consideration when selling a condominium unit?

Agents can be the first line of defense when showing potential condominium owners new units by helping them identify the signs of a bad board of directors — and to do this, they don’t have to review documents. A condominium board has a fiduciary responsibility to the owners and the corporation itself, so they are directly responsible for a neglected building.

The first time I walked into the building of my first condominium I was a little surprised that the entry system had not been updated. There was no fob system either, just the same old lock and key system installed over 20 years ago. A little ping in my head went off, and I remember thinking how odd it was — it’s not a huge expense to introduce a fob system into a building so what did this mean?

This was the first red flag I should have considered because the problems didn’t stop after I stepped into the building.

Bring up potential issues as you view a property

Real estate agents can help potential buyers by identifying a few potential red flags, which can be communicated while showing the property. Depending on the number of warning signs, it may be necessary to consider an additional review of documents.

Buyers can see the red flags but they often don’t register because buying a home is overwhelming.  We all know the only thing most buyers see is that fantastic kitchen or large patio, for example. Everything else just fades away and any practical signs are often overshadowed by those great features. If a realtor can help identify some of these flags, they can assist potential owners in making sure they don’t get stuck in a really bad condominium building with a unit that happens to have a great kitchen. 

Watch for these common red flags

These little signs will allow you to possibly make a suggestion to your buyer that a more detailed review will be needed: 

1. Little to no upgrades. If you’re walking into a time warp, it’s a sign that the board is not working well together. Why the building hasn’t been upgraded should be something you think about before your client buys.

2. Meeting minutes. A lack of minutes isn’t necessarily a flag but it could be something to consider. The board may be very efficient and do a lot of governing by emailing each other so they don’t meet every month, or maybe it’s because the board is dysfunctional or undemocratic and doesn’t hold meetings.

3. Neglect. Have a look in the corners of the common areas, elevators and back alley to see how often the building has been cleaned. Buildings need a good commercial cleaning and a power wash on the inside and outside every couple of years — if it’s not done, that’s a pretty good sign something is not working in the corporation.

4. No welcome or information package. The more services a building provides, even for small buildings, the more important these types of documents become. They should include items such as passwords, garbage policies, recycling and any number of helpful things an owner should know about their building. If there isn’t anything provided, it’s a sign that there is very little organization from the board and you may need to dig deeper.

Best to take it one step at a time

While it’s a big thrill to sit and write the offer for a unit on the spot, if the building is exhibiting several reg flags it’s worth the extra effort to first wait and check out how the building and corporation function.

If the owner isn’t interested in the time or expense of a detailed document review then it’s prudent to at least suggest taking a second look. Have the buyer bring a friend or family member to the building that isn’t wearing those rose-coloured glasses and can point out some of the flaws.

Selling a condominium should take a little extra attention and more work because of the nature of communal living. Ensuring your buyer is investing in the best building is your first priority. There are too many problems with boards and property managers that affect the health and well-being of an owner, unlike what they’d experience in a single-family home.

Working to safeguard and protect your buyer in picking the right condominium in a building where the board operates in the best interests of its owners should be at the top of the list.

The sayings “You get what you pay for” and “Penny wise, pound foolish” are tales as old as time.

I’ve seen these messages play out in the real estate industry throughout my career, and they apply to everything, including choosing a lawyer. It’s tough to ignore price, but this should not be your clients’ focal point. What should be foremost in their minds is getting value for their money.

‘Cheaper’ law firms

When I recommend lawyers to my clients, I don’t tell them “this is the cheapest lawyer” or “this lawyer won’t charge you as much as the others.” Instead, my lawyer recommendations are based on personal experience, ability, eye for detail and their upfront honesty and work ethic.

I have heard and witnessed horror stories of clients who don’t listen to my advice. They make up their mind that “cheap is best.” But nothing could be further from the truth.

For example, one of my clients chose a lawyer that purposely advertised their fees as being X amount of dollars flat rate and everything done with no hidden fees. Well, you guessed it, the hidden fees are what absolutely caused a transaction to not close. This law firm did not provide them with the correct land transfer tax figure or the correct cost of title insurance, they charged “hidden fees,” and they then tried to blame the client for the reasons the amounts were different (higher) than previously advised.

Unrealistic amount of 4-5 star reviews

There have been issues with law firms, from what I hear from other firms, blatantly “buying” reviews. If a law firm is offering a discount for a review, those are indeed “bought” as people want money back or a “discount” on their costs to buy or sell a home.

These reviews could be, and lots of the time are, disingenuous or inaccurately reflective of the law firm, its staff and its services. When you look at the 1-2 star reviews, you might hear a tone that doesn’t match the “cookie cutter” positive reviews but does match one other about problems, lack of services and post-closing issues that cost clients more than what they saved.

What a quote should indicate

When you request a quote from a law firm, you want to see the following, with an amount, next to each item:

Legal fees

• Purchase/sale – $X.XX
• Mortgage/discharge of mortgage – $X.XX
• First-time home buyer documents – $X.XX
• Land transfer tax compliance – $X.XX
• Applications/notice of assignment of rents, etc. – $X.XX

Disbursements

• Title search – $X.XX
• Office disbursements – $X.XX
• Tax certificate – $X.XX
• Water certificate – $X.XX
• Software – $X.XX
• Bank charges – $X.XX
• Other fees/charges
• Title insurance – $X.XX
• Registration – $X.XX
• Land transfer tax – $X.XX

This is a quote you can trust.

One of the best quotes that I have seen, advised who exactly was receiving the money. This law firm’s quote specifically stated the amount of money that was being paid to Service Ontario, the amount that was being paid to the Minister of Finance, the amount paid to the title insurance company, which title insurance company the law firm was using, etc.

This gave the clients a comprehensive breakdown of not only the amount of money owed but who was benefiting from that money, and they could also do a bit of research into the title insurance company and have some ease knowing what protection they were getting from that specific company. When you look at the amounts on a quote, it can seem very overwhelming, and quite frankly expensive — but the point is, you see it!

There should be no hidden costs, no surprises, no scrambling last second to come up with money. Your client is well prepared when they see a full, upfront and honest quote.

Purchasing a new build

The costs associated with purchasing a new build always catch my clients off-guard. To account for this, law firms with experience in purchasing new builds will advise clients that they need to prepare for a significant amount of money to be provided. Since the COVID-19 pandemic, the material costs, development costs and, depending on the nature of the purchase i.e. a condominium, townhouse, single-family house, etc., other associated costs are not a simple mathematical equation done by an agent or mortgage broker.

We usually tell clients on resales to anticipate anywhere from 1-3 per cent of the purchase price, but with new builds, this can be an extremely low estimate. An amazing law firm will, after reviewing the Agreement of Purchase and Sale (APS), provide a ballpark of the amount but with the warning that it could be a lot more. The biggest hitter on these charges is development fees, which are paid to cities/municipalities, provinces, government ministries, etc. to cover and accommodate the new influx of people moving into the area. This includes, for example, adding more public transportation, new roadways that will need to be maintained each season (e.g. snow plowing), schools, parks and more.

On a basic 1-2 bedroom condominium, these fees can be $6,000-$7,000, and on an average semi-detached or detached home (depending on location) they can be $12,500-$25,000. And this is only one charge. Hydro and water connections range from $350-$1,500 each, driveway paving ranges from $650-$1,250 and tree planting can be around $500-$1,000. Since these are not normal costs on a resale property, the 1-3 per cent estimate doesn’t work. 

Conversations with buyers about these charges should not only start with me as a real estate agent but should also be reiterated by the law firm. This is why the most important thing to do with new build purchases is to have a clause that allows for solicitor review, as law firms can write a letter asking that these costs be “capped” to a certain amount and can then negotiate on your client’s behalf. Depending on the property being purchased, a great law firm will get these additional costs, including development fees, capped at $5,500-$15,000. This will give your clients an idea of how much “extra” money they need at closing.* 

Title insurance

Buyers should never close a transaction without the protection of title insurance, especially with the amount of fraud that’s so prevalent these days. Title insurance is their sword and shield — it steps in to sort out issues. Nonetheless, this insurance is always a sore spot with my clients. They don’t understand why their $1.5 million home purchase has title insurance in the amount of $1,300-$1,500, even when lawyers advise that after $500,000 premiums are paid in increments as the purchase price gets higher. 

This one-time payment protects homeowners for as long as they own the home, for example, from mortgage or total title fraud. It also covers outstanding bills, like water or property taxes, that the seller didn’t pay, along with undisclosed orders on the property and more.

I had a client buy a (commercial) property with TSSA (Technical Standards and Safety Authority) orders that would have cost him around $150,000 out of pocket, but title insurance paid the value of the whole policy plus the 10 per cent increase after one year, making the damage minimal to his pocket.

An amazing lawyer will ensure buyers have Deal Protection Endorsement and Market Value Endorsement (MVE). MVE will protect the value and equity in the home. If an issue pops up, say, 10 years from closing and the home has exponentially increased in value, if they’re to be paid out anything, MVE ensures it’s for the current market value, not the original value shown on the policy.

The bottom line: if a law firm doesn’t explain this to their clients, it’s not a law firm that you should be recommending or using, ever.

The law clerk/legal assistant

Your client’s main point of contact will be the law clerk and/or legal assistant assigned to their file. One telltale sign of a disorganized law firm, or a law firm that won’t take a client’s best interest to heart, is if the transaction has been “bounced” around to multiple parties at the office. Now, if there has been an emergency and the clerk/assistant is not in the office, that’s a reasonable explanation for a file to be moved to a new person. These situations happen and they don’t mean the law office is less than par, but if they’ve been given to more than four different people, this should be worrisome.

It’s one thing if they mostly talk to the assistant and then the clerk calls to clarify something (as the clerk has the better legal knowledge and does most of the legal work on the file), but if they’ve spoken to multiple clerks/assistants and are constantly getting asked the same questions over and over again, this is a “cause for pause” and a conversation they need to demand they have with a lawyer.

My favourite law firm has the law clerk talking to everyone, she makes notes in every file and the front of every file has a checklist to indicate what happened/is happening, when and why, what’s outstanding and still needs to be addressed, etc. Your clients need to be comfortable with the clerks and assistants.

My rule has always been if they’re not forthcoming with what to anticipate or if they find out but don’t divulge information clients most definitely should know, that’s a sign for concern. A prime example here is if the law firm finds out your client is in a “train transaction,” meaning they’re selling to buy and the people they’re buying from are also selling to buy: the parties are reliant on the very first transaction. In this case, a good firm would tell them to try and get a same-day bridge loan. This will stop them from incurring costs on the purchase in the event that the seller doesn’t get their mortgage funds, funds don’t come in time, etc.

No law firm wants to deal with extremely costly extensions due to subsequent train transactions. These are law firms that know what potential situations can incur and the costs they might involve, and they’ll do everything to ensure clients aren’t getting “screwed” financially.

Above all, the law firm your clients go with will make or break their experience, finances and sanity. Help them make the best choice.

* I’ve heard of cases where builders set water/hydro connections at $70,000 to “get around” the capping agreement, as these charges aren’t included in capping (also not included in capping are property tax, common expenses, grading/performance deposit, etc.). Lawsuits have come out of this and possibly still are.

Canada’s post-secondary education system is globally recognized, attracting students from around the world. However, a severe shortage of student housing threatens this success, posing a broader socioeconomic challenge that demands urgent action.

The Canadian housing market faces a significant supply and demand imbalance, with over four million homes needed over the next six years to restore affordability.* Other policymakers, such as the Canadian Human Rights Commission, believe this number could be even higher. Rising government charges and insufficient construction capacity have exacerbated this crisis.

Without positive government intervention and policy adjustments — such as the recently introduced HST exemptions on rental housing — amid the currently challenged financial environment, the lack of housing starts witnessed in the past two years will persist, particularly in university cities and towns where demand for all housing is exceptionally high. 

The magnitude of the student housing shortfall 

Canada is experiencing an unprecedented shortfall in student housing, with a deficit of over 400,000 beds nationwide.** This shortage is particularly acute in the country’s 20 largest university markets, which host approximately 1.5 million post-secondary students but offer only around 170,000 beds.*** The result? An overwhelming majority of students are forced to compete for already limited and expensive rental housing, exacerbating the housing crisis in local communities. 

In university towns like Guelph, Ontario, the housing shortage is particularly severe, reflecting a broader trend across many such communities. The strain on local rental markets, driven by insufficient student housing, has led to rising rents and forced many, including students, into substandard or overcrowded accommodations. Compounding this issue, the provincial tuition freeze mandate for domestic students has compelled universities to increase international student intake to cover rising costs, further straining the housing supply. 

The role of purpose-built student accommodations 

Purpose-built student accommodations (PBSAs) offer a viable solution to this crisis. Unlike traditional rental units, PBSAs are specifically designed to meet the unique needs of students, providing them with safe, affordable and community-oriented living spaces.

Countries like the United Kingdom and the United States have successfully implemented PBSAs at scale, significantly alleviating housing pressures on students and local communities alike. Off-campus PBSA accounts for 60 per cent in the U.S., 58 per cent in the U.K. and 69 per cent in Australia, but only 29 per cent in Canada.**** The PBSA market in Canada remains underdeveloped.

To close the gap, we must incentivize the development of PBSAs through policy changes, financial support and streamlined regulatory processes. The recent introduction of PBSA in the Government of Canada’s Affordable Housing Fund, which aims to provide low-interest loans for new affordable housing projects, is a step in the right direction, though details have yet to be released. Still, more needs to be done given PBSAs are essential to drive affordable housing and economic growth, by alleviating existing housing stock that can be made available to the general non-student population.

Student housing in Ontario amid ongoing municipal approval challenges 

Bill 185 in Ontario is a significant development for expediting approvals in the student housing sector. This legislation has enabled Forum Asset Management to unlock approximately 1,100 units across projects in Guelph and Toronto, providing University of Guelph and York University students with high-quality, community-focused housing.

However, despite the progress made by Bill 185, developers continue to face headwinds, from continually escalating development charges (which in Toronto, according to data from Scotiabank, have increased by 2,000 per cent over 20 years) to higher construction and financing costs. 

The way forward: Collaborative efforts and policy reform 

The Canadian student housing crisis cannot be solved by developers alone. It requires a combined effort from all stakeholders, including government agencies, educational institutions and the private sector. Key policy changes, such as the inclusion of PBSA in the definition of affordable housing (which would create development charge exemptions) and the adoption of policies similar to Bill 185 across other provinces, are essential to unlocking the potential of this sector. 

Additionally, property tax exemptions for student housing catering to specific university student bases, both on and off-campus, should be created. These exemptions could play a pivotal role in supporting universities’ broader educational and community missions, regardless of whether the housing is university-owned or operated by the private sector.

By lowering the operational costs for student housing providers, such exemptions could directly translate into lower rents for students. This is particularly critical as students often face significant financial pressures, including the burden of repaying student loans upon graduation. Alleviating financial strain allows students to focus more on education and well-being, and less on the economic challenges associated with finding suitable housing.*****

Moreover, universities must take a more active role in facilitating the development of PBSAs on or near their campuses. The QUAD at York University is an example of what can be achieved when public and private entities work together toward a common goal. 

Canada’s housing crisis is multifaceted and impacts all Canadians as well as international students. By adopting supportive policies, we can create more PBSA, which delivers a “two birds, one stone” approach by freeing up traditional housing while providing students with the safe, affordable housing they deserve.

Successful projects such as ALMA @ Guelph and The QUAD at York University offer a blueprint for creating vibrant communities that benefit both students and the broader population. Crucially, these projects require experienced developers who understand the unique needs of students, as PBSAs are far more than just conventional apartment developments — they’re about building communities that foster social belonging, well-being and positive environments essential to the development of our future leaders.

* Canada Mortgage and Housing Corporation, Housing shortages in Canada, Updating how much housing we need by 2030.
** Forum estimate using data from Bonard, Student Housing Market Canada. November 2023, and Statistics Canada.
*** Bonard, Student Housing Market Canada. November 2023.
**** Canada Mortgage and Housing Corporation, Canada’s Housing Supply Shortages: Estimating what is needed to solve Canada’s housing affordability crisis by 2030.
***** Simplydbs. Student Housing Index Survey. Student housing and youth mental health: Survey finds strong correlation.

Following the Bank of Canada’s third consecutive cut to the overnight lending rate this year, reducing it by another 25 basis points in September to 4.25 per cent, Canada’s housing market should see an increase in activity this fall and continue into next year.

For consumers, the drop is a positive sign that we’ve moved past the peak of high lending rates, and with further rate cuts expected, many sidelined buyers will feel confident enough to re-enter the market amid more favourable borrowing conditions. But is it enough to make a material difference in the budgets of first-time buyers?

Several hurdles besides borrowing costs: Saving for down payment, passing stress test & finding the right property

High interest rates are just one of several financial hurdles that first-time buyers have to overcome. In addition to the high cost of borrowing, saving for a down payment — which is difficult to do when rental rates are high — plus passing the stress test to qualify for a mortgage and finding an appropriately-sized property in a desirable region within their price range pose a significant challenge. More supply — most importantly, the right type of supply — is needed to help young families achieve their goal of homeownership.  

While there are government initiatives targeted at helping people save and making lending practices more favourable for the next generation of buyers, such as allowing Canadian lenders to offer 30-year amortizations for insured mortgages of new construction homes, more needs to be done to incentivize development and make the construction of new homes easier, faster and more affordable for builders.

This is especially true in the country’s most expensive and densely-populated markets, where high construction and borrowing costs remain a major barrier for developers. Without further intervention from the government, new construction will continue to decline in the coming years. 

Increase in inventory required to make homeownership attainable

While home prices have remained stable in most markets this year and declining interest rates are making owning a home a bit more accessible to some buyers who have been waiting in the wings, we cannot afford to take the spotlight off the bigger issue: there are still too few homes for our growing population.

We’re approaching the intersection of declining interest rates and home price appreciation. If activity picks up in the months ahead, we’ll reach a point where the increased affordability offered by lower borrowing costs is outweighed by price gains due to increased competition.

According to a 2023 report by the Canada Mortgage and Housing Corporation (CMHC), Canada needs to build approximately 3.5 million additional housing units by 2030 in order to restore affordability. However, experts have refuted this figure, citing that with continued population growth, hundreds of thousands more homes will be required.

For first-time buyers, a difficult choice looms: whether to transact now or hold off until further rate reductions are announced.

As sidelined buyers gradually return to the market, an increase in demand could trigger a sudden uptick in competition, resulting in home price appreciation. Cautious buyers are likely to enter the market sooner than later — while competition is low and inventory is building — while those with a higher risk tolerance will opt to continue to wait for further rate decreases. The fact remains that young Canadians should not be forced to “time the market.”

Young Canadians prioritizing homeownership

Despite higher home prices and borrowing costs having been prohibitive to young Canadians looking to enter the market in recent years, there’s still a strong desire to own a home.

A recent Royal LePage survey found that 84 per cent of Canadians belonging to the adult Generation Z and young Millennial cohort — those aged 18 to 38 or born between 1986 and 2006 — believe that homeownership is a worthwhile investment, and they are committed to achieving this goal. For many, this means making significant lifestyle adjustments, whether it be cutting back on expenses or postponing major life milestones. 

Our country’s ongoing and worsening housing supply shortage needs to be addressed immediately

Young Canadians are not only cutting back on discretionary spending (travel and entertainment, for example) but also making financial decisions that could impact their long-term stability, such as delaying education or saving for retirement, as well as other significant investments.

If there was any doubt, this should serve as further proof to policymakers and regulators that our country’s ongoing and worsening housing supply shortage needs to be addressed immediately. While the dire need for more housing inventory grows ever more crucial, the financial stability and future opportunities of young Canadians are being impacted.

It’s quite clear that young Canadians are eager to transition from renting to owning their own home, securing their place on the property ladder as their parents did. While reduced interest rates can help make homeownership more attainable for first-time buyers, this is not the only solution to the larger, more complex challenges within Canada’s real estate economy. 

Can housing affordability be restored? Is it just a matter of a few interest rate cuts and transit-oriented development? Reducing housing costs involves more than simply tweaking interest rates — it calls for a multifaceted approach that reflects the complexity of the problem. 

Lowering housing costs depends on several critical factors: the impact of government policies on the cost of homeownership, the necessity for community-focused strategies in new developments, the crucial role of collaborations between government and the private sector in enhancing quality of life indicators like housing accessibility and the embracing of proptech (property technology) advancements and data-driven decision making in real estate. 

Government participation in strengthening Canadian communities 

Developers want to create vibrant communities across Canada and support the needs of a growing national population. This is particularly relevant in Canada’s key metropolitan regions — Vancouver, Montreal and Toronto — as they receive the bulk of newcomers in the country.

By collaborating with developers to lower development and construction costs, municipalities and regional districts in British Columbia can significantly boost the financial viability of projects for developers. This strategy can open the door to new opportunities for building vibrant communities outside metropolitan areas where land is more readily available, while also stimulating growth in urban neighbourhoods that have seen limited changes.

The difficulty in managing costs can be seen in Vancouver’s 15-month delay in obtaining permits, which can substantially increase developers’ costs. This not only raises interest on project financing as funds remain idle but it also allows inflation to drive up material and labour costs. Additionally, this extended waiting period often leads to resource misallocation, potentially resulting in penalties for rescheduling construction crews and equipment. These disruptions can have a ripple effect, impacting broader financial plans and cash flow management.

Government policy is another crucial ingredient, as zoning regulations, building codes and taxation can significantly influence the availability and cost of housing. Policymakers must work closely with industry stakeholders to foster an environment that promotes sustainable growth and affordability.

Examining the impact of the new 30-year mortgage rule

However, policy for the sake of policy is not the answer. Take the new 30-year mortgage rule that the federal government introduced for first-time buyers. While this can increase the borrowing power of first-time buyers, the reality is that this will not impact the vast majority of Canadians who need relief when it comes to buying a home. Meanwhile, it does serve as an effective political soundbite. 

In larger markets like Vancouver and Toronto, a 30-year mortgage stretches payments over three decades, leading to higher interest costs for homebuyers in the long run despite immediate payment relief.

We must engage with local and provincial governments to ensure that both homeowners and developers are actively involved in decision-making processes.

Notably, developers in the United States have an easier time accessing information, permits and data. For example, in Seattle, developers who have applied for a development permit can obtain the permit in a minimum of 21 days. In contrast, in Canadian cities like Vancouver, permits are obtained within an average of 15.2 months. Our current high borrowing costs and extensive time spent waiting for permits ultimately get passed down to homebuyers.

Embracing proptech advancements alongside new policies 

Government policy alone won’t move the needle when it comes to helping first-time buyers get into their dream homes. But new policies combined with technology and innovation have the power to revolutionize the real estate industry, offering new ways to reduce costs and enhance efficiency. 

Proptech advancements, such as virtual reality tours and AI-driven property management systems, streamline operations and improve customer experiences. This goes hand in hand with innovations to speed up the approval process and grant building permits at the municipal and provincial levels. 

These technologies reduce the time and cost associated with buying, selling and managing properties. Additionally, the use of data and analytics allows for more informed decision-making, helping developers and policymakers identify emerging trends. 

Leveraging these technologies, alongside government programs and incentives designed to retain engineering and tech talent within Canada, will position us as leaders in innovation. This strategic approach will enable us to break new ground in the realm of development and affordable housing.

Meeting housing needs and strengthening Canada’s future 

Addressing the high cost of development and homeownership in Canada requires more than just lower interest rates. Local governments need to foster public-private partnerships, reassess zoning laws and incentivize affordable housing development. This goes along with embracing technological innovations that can enhance transparency and efficiency, while a proactive approach to managing real assets ensures long-term value and cost-effectiveness.

Governments at all levels should also be exploring strategies to streamline their cost structures, as current systems and processes lag behind the advanced technologies being adopted worldwide.

In addition, succession planning can provide stability and continuity in housing strategies. These measures collectively encourage smarter policymaking and will work to increase affordable housing supply, resulting in stronger Canadian communities.

Realtors, let’s admit it — most houses listed for sale on the market look pretty much the same. Sure, they may come in different sizes, shapes and colours, but the basic layout, design and features often feel like deja vu. 

However, every once in a great while, you may be contacted by someone who wants to sell their truly one-of-a-kind house. This could be a property with a distinct portability feature or a house with an unbelievably low price tag for its sheer size. 

So, if and when you get the chance to sell one of these special homes, do you plan on using your usual sales approach? 

We certainly hope not! Unlike conventional homes, unique properties have a limited buyer pool and distinctive features which means they need a special selling strategy. To guide you through this challenge, we gathered tips from top real estate agents on how to best sell these one-of-a-kind homes. Below are the strategies they shared. 

Tiny houses: Small properties that don’t cost much

A tiny house is what its name implies, a small home usually about 60 to 500 square feet. They’re cost, energy and space-efficient and budget-friendly, too. In fact, prices of some tiny homes in Ontario have recently been as low as $69,000.

Who are the target buyers for this unique property?

• Homebuyers on a budget
• A rent-weary tenant
• Environmentalists and minimalists

What strategies can help sell this one-of-a-kind property?

Emphasize its unique value proposition. As stated, tiny homes are all about affordability and energy efficiency. So, this is what you must focus on during marketing. Here’s an example of how you can highlight the affordability factor of tiny homes to a tenant who is fed up with rent increases.

Let’s suppose you’re selling a tiny home in Toronto — a market where you can get a tiny home for under $100,000. First, show your buyer the market data of how the average asking rent for even a condominium apartment is quite pricey:

Then, point out that it’s not really smart to pay around $2.400 for a condominium apartment in Toronto or even settle for a $2,000 rental in Barrie (as reported for August by rentals.ca). Instead, they could buy the tiny house in Toronto with a 5.0 per cent down payment, pay around $500 monthly on mortgage payments and build their own equity. 

When it comes to the energy-efficiency perk of tiny houses, also highlight it with numbers. For example, you can say that a normal-sized house uses an average of 26-33kW power every day but a tiny home uses just 3-4kW power.

Don’t let compact space be a dealbreaker for buyers. Kamal Pillai, a realtor in Ontario experienced in selling tiny homes, shares, “One main concern that tiny home buyers usually have is limited square footage. Hence, the seller of these houses should try their best to show that the home is thoughtfully designed to maximize every square inch.

They could achieve this by adding space-saving solutions in the home like a fold-out kitchen table or built-in storage. It’s all about making the most of what you have and presenting it in the best light possible.”

Price the home correctly. Unlike traditional homes, you don’t have much historical data to rely on for tiny houses, which makes pricing these properties trickier.

So, set a fair price for the tiny home by calculating the home’s construction costs and the estimated value of its unique features. Also, assess the current demand for tiny homes in the particular neighbourhood to make sure your price aligns with what buyers are willing to pay.

Houseboats: Homes on the water

Yes, houses on the water, also known as houseboats, can be found in the Canadian housing market. In fact, according to some houseboat owners, buying this type of property is one of the best lifestyle choices they have ever made.

A houseboat is a boat designed or modified to be mainly used as a living space rather than for transportation purposes. Some people live on houseboats all year round to enjoy the beautiful views of the water every day while others use them as vacation homes. 

Who are the target buyers for this unique property?

• Nature lovers
• Homebuyers on a budget
• Real estate investors 

What strategies can help sell this one-of-a-kind property?

Give the houseboat a clean and charming look. First impressions matter, even when selling a houseboat. So, advise the seller of the boat to deep-clean every nook and cranny of their houseboat before opening its door to buyers.

Pay extra attention to the kitchen and bathrooms, as they often leave the strongest impression. Also, if saltwater has caused rusty metal hulls in the boat, give it a fresh coat of paint. 

Make sure the houseboat has no severe safety issues. Apart from fixing the aesthetic issues in the houseboat, make sure the houseboat doesn’t have any major safety problems.

To do this, hire an expert marine surveyor who can assess the houseboat’s overall condition including the hull, engine, electrical systems and plumbing. You must also ask the seller if all necessary permits, registrations and insurance documents of the houseboat are up-to-date.

Pick the best time to put the houseboat on the market. The prime selling season for houseboats in Canada is usually from late May to early October.

This is when the weather starts to get warmer in Canada, and people are most interested in spending time on the water. So, showcasing the property during peak boating season lets potential buyers experience the houseboat lifestyle firsthand.

Cottage homes: A vacation home away from home

A cottage is often a cozy, rustic and charming house usually located in a rural or countryside setting.

Most cottages in Canada are specifically built for the warmer months, meaning they can’t handle the chilly weather. However, you can also find a few four-season cottages for sale that are inhabitable at all times of the year.

Who are the target buyers for this unique property?

• Second home-buyers
• Vacation rental investors
• Retirees

What strategies can help sell this one-of-a-kind property?

Highlight how investing in a cottage can pay off. Make sure to highlight to a would-be recreational property buyer that, according to a Re/Max report, Ontario cottages are expected to see a price increase in 72 per cent of recreational markets this year, with values potentially rising by up to 33 per cent.

Also, as interest rates fall, the price and demand for properties including cottages will likely surge more. Sharing these market statistics will help support your point on why your client should make a move now. 

Keep the cottage looking its best for sale. On hearing the word “cottage,” images of a charming property usually come to mind. This is the image the would-be buyers of the property for sale would be expecting, too.

So, do your best to ensure the cottage looks charming, inviting and well-cared for. This means tidy rooms, neatly arranged furniture, sparkling clean windows, shining kitchen counters, a trimmed lawn, blooming flowers and a welcoming porch. 

With carefully thought out and planned strategies like these to sell unique properties, you can easily adapt your sales tactics and get set to achieve a successful sale. 

A lot can go wrong in a home that can be costly to repair. When showing a home or viewing it with clients, there are some common issues realtors can make buyers aware of when it comes to plumbing.

Every homeowner should at least have a basic understanding of problems that could arise as well as the appropriate professional to remedy the situation. It’s helpful for your clients to have a trusted plumber to call when there’s a problem — sometimes even with small issues because things can quickly escalate.

Following are some plumbing problems your clients may come across. It’s important to have an expert on hand to pinpoint and fix any issues before water damage occurs. On top of dealing with that, they could even end up paying more in water bills thanks to deficiencies.

7 plumbing issues that may require a plumber’s expertise

1. Dripping faucets. Faucets and fixtures in sinks, bathtubs, showers and dishwashers should not drip when turned off. Dripping is often due to worn seals and can lead to higher water bills over time. Addressing these drips promptly can save money and prevent further wear.

2. Leaky pipes. Leaks can occur in both visible and hidden pipes, leading to water damage, mould growth and increased utility costs. A plumber is needed to locate the source of leaks, especially those hidden behind walls or under floors, and to repair or replace the affected pipes.

3. Running toilets. Toilets should not continue to run after flushing. A running toilet indicates an internal leak, which wastes water and increases bills. If jiggling the handle is necessary, components like the flapper valve, float or fill tube may need adjustment or replacement.

4. Clogged or slow-draining sinks. Kitchen sinks often clog due to food debris and bathroom sinks frequently become clogged with hair. While some clogs can be cleared with over-the-counter solutions, persistent issues require professional attention. Using strainers can help prevent clogs by keeping debris out of drains.

5. Sewer line backups. A clogged sewer line can cause significant damage by backing up raw sewage into the home. This issue is often due to tree roots or broken pipes and requires specialized equipment and expertise to diagnose and resolve.

6. Water heater issues. Leaks, sediment buildup or faulty thermostats can lead to inefficient heating or complete failure. A plumber can assess the water heater’s condition and perform necessary repairs or replacements to ensure it operates safely and efficiently.

7. Outdated or banned piping. In older homes, you may find galvanized or polybutylene pipes, which are prone to corrosion and can lead to lead contamination or system failure. Replacing these pipes with modern materials is a complex task that requires a plumber’s expertise.

Other issues

Additional common plumbing issues our inspectors often come across include: 

• No water shut-offs — essential for quickly stopping water flow in emergencies
• No backflow valve — prevents contaminated water from entering the clean water supply
• Improper fittings — can lead to leaks or inefficient water flow
• Incorrect dishwasher connections — improperly installed drain lines can cause leaks
• Loose toilets — can lead to leaks and water damage
• Poor water pressure — may be a sign of underlying plumbing issues

Encouraging your clients to schedule annual home maintenance inspections can help identify these issues early. Home inspectors can spot problems and may recommend local plumbing experts to address any concerns.

An annual inspection is also a great time for homeowners to bring up any issues they’ve noticed throughout the year that weren’t remedied right away. Preventative maintenance not only provides peace of mind, but it can also save money by addressing potential problems before they become major issues.