Multi-generational homes are residences that house multiple generations of a family, including grandparents, parents, and children, under one roof. These homes provide a practical solution to the changing demographics of Canadian society, economic pressures, and social and cultural factors.

Multi-generational homes are becoming more popular in Canada as families seek to live together to save on expenses, provide care for aging parents, and strengthen family bonds. With rising housing costs and changing demographics, multi-generational living is a viable option for families in Canada.

What’s Behind the Popularity of Multi-Generational Homes

There are several reasons for the growing popularity of multi-generational homes in Canada:

Economic Benefits – By living together, family members can share expenses such as mortgage payments, utilities, and groceries, which can help to reduce the financial burden on each individual. With rising housing costs in many Canadian cities, multi-generational living can also make home ownership more affordable for families.

Changing Demographics – Canada’s population is aging, and seniors are living longer. Many seniors prefer to age in place, and multi-generational homes provide a practical solution for families to care for their aging parents. At the same time, young adults are facing challenges entering the housing market, and multi-generational homes offer a viable option for them to live independently while staying close to their families.

Social and Cultural Factors – Living together with extended family members is a norm in many cultures, and multi-generational homes allow families to maintain their cultural traditions while living in Canada.

Advantages of Multi-Generational Homes

Multi-generational homes provide opportunities for support and care for all family members. Here are some of the advantages of multi-generational homes:

Family Support – By living together, family members can provide emotional and practical support to each other, which is essential for maintaining strong family relationships. Children can develop closer relationships with their grandparents, and seniors can benefit from the companionship of their grandchildren. Additionally, living together can help to strengthen cultural traditions and family values.

Sharing of Expenses and Responsibilities – By living together, family members can share the cost of mortgage payments, utilities, and groceries, which can help to reduce the financial burden on each individual. Additionally, sharing responsibilities such as household chores and childcare can help to reduce stress and workload for each family member.

Enhanced Care for Children, Seniors, and Disabled Individuals – By living together, family members can provide care and support to each other. For example, grandparents can help to care for young children, while adult children can care for aging parents. This can help to reduce the need for external caregivers and provide better quality care for family members.

Design Considerations for Multi-Generational Homes

A multi-generational home can be comfortable for all family members with the right home and layout. A few design considerations can help ensure each family member has a cozy yet functional living space.

The layout and space allocation of multi-generational homes should be designed to accommodate the unique needs of each family member. For example, separate living spaces should be provided for each family member to ensure everyone has personal space and privacy. Additionally, common areas should be designed to encourage social interaction and bonding between family members. The layout should also include easy accessibility to all parts of the home to accommodate the needs of elderly family members.

Accessibility and safety features should be significant considerations in designing multi-generational homes, especially when seniors or disabled individuals live there. Homes should be designed to accommodate the needs of family members with disabilities or mobility issues. This may include installing ramps, wider doorways, and bathroom grab bars. Safety features such as smoke detectors, fire extinguishers, and adequate lighting should be installed throughout the home to ensure the safety of all family members.

Privacy and personal space considerations are crucial in designing multi-generational homes. Family members should have separate living spaces, including bedrooms and bathrooms. Additionally, common areas should be designed to ensure family members can socialize without compromising privacy.

As the population ages and housing costs rise in Canada, multi-generational living is becoming an increasingly popular housing option for families. With the right adjustments, a multi-generational home can be a convenient living arrangement for all family members. Contact the Barnett Real Estate Team to help you find the perfect multi-generational home for your extended family.

Many people dream of having their own house at some point. Owning a home is an excellent way to build financial security and equity. And while renting gives you the freedom to move when you want, the urge to own often rises to the surface. But how do you know when you’re ready? Here are six signs that it’s time to buy a house.

Your Rent is Increasing… Again

Both buying and renting have their drawbacks, but one of the great grievances with renting in recent years is rising rental prices. These make it difficult to have enough for monthly costs and save for the future. Unlike paying rent, owning a house builds equity, and the monthly costs are cheaper in many areas, even with extra expenses like property taxes and maintenance factored in.

You Have Excellent Credit

Besides not having enough for a down payment, low credit scores are a common reason that renters can’t qualify for a mortgage. But if you have a healthy credit score – most lenders look for at least 650 – then it is likely that you will be approved. The better your credit score, the better rate you will get on your mortgage and the easier it will be to get approved since lenders will be less worried about you going into default on your loan.

Your Debt is Manageable

Another thing that mortgage lenders look for in the application process is the applicant’s debt-to-income ratio (DTI). This is calculated by adding up your monthly debts and dividing the sum by your gross monthly income. No lender expects you to be completely debt free, but the higher your DTI ratio, the more risk you pose to a lender and the less likely you are to get approved. Most prefer a ratio of no more than 43 percent.

You Have a Down Payment Saved

The single biggest factor in whether you are ready to buy a house is whether you have a down payment saved. In Canada, a down payment of 5 percent is required to buy a house. However, the larger your initial down payment, the more you will save over the lifetime of your mortgage loan. Putting down an extra five or ten thousand dollars could help you get a bigger house or cut down on your mortgage costs.

Remember that there are additional costs to buying a house than just the down payment, such as closing costs, maintenance, and emergency funds. You will want to have the down payment saved plus extra.

You Want to Settle Down for a While

If you know that you will be moving away in the next few years, buying a house may not make sense since you may not break even on the home sale and instead lose money. Similarly, buying a house is probably not a good idea if you are worried about losing your job since part of settling down is knowing that you have career stability. But if you want to remain in your location for the foreseeable future and have a stable income that can support a mortgage, then it might be time to buy a house in your area.

Your Lifestyle Can Support It

It is a lot harder to sell a house than it is to break a lease, so you want to make sure that you are in a good place in life to pay a mortgage long-term. This means not only job stability but relationship stability, especially if you are buying a house together with your partner.

Sometimes certain aspects of your lifestyle are not very conducive to renting, such as if you have a large dog or are a musician. In these cases, owning a house can be a more comfortable way of living, giving you control over how you live and more privacy to do things the way you want.

Once you know you are ready to move into a house, determine what you need and what is important to you, such as location, amenities, and the type of house. There are many options out there, and each has its benefits and things to consider. If you are ready to take the leap into owning your own house, a mortgage lender can help you get pre-approved so that you know what you can afford.

Navigating the real estate market can be a challenge at the best of times. Moving is complicated and buying or selling a property involves a myriad of negotiations, paperwork and legal contracts. When the market shifts, things can get even more challenging. These two sentences sum up the current market perfectly:

1. Sellers are nervous about the value of their home and how long it will take to sell. 
2. Buyers can get cold feet, and many are holding off to see what happens next. 

If you’re thinking of buying or selling a home in Milton, a local real estate expert is more important than ever. The last two years have been hectic, to say the least. For a while, new agents felt like they could do no wrong. Every listing had multiple buyers lined up as far as the eye could see. They could almost always be sure of a fast and easy sale, usually far above the asking price, as bidding wars and low supply pushed up the cost of housing. Now everything is changing, and we are no longer in a seller’s market. Inexperienced agents have never had to work through different conditions, and many don’t know how to deal with it.

For the best results, you need someone who has developed negotiation skills and the finely-tuned instinct that comes from working in every type of market imaginable.

How An Experienced Agent Helps Sellers

Many homeowners are struggling right now. The new reality is confusing. It can be discouraging, especially on the heels of such a fast-paced market that we saw earlier in the year. New real estate agents are also struggling to price and market homes strategically to attract the attention of potential buyers.

The initial listing price is critical. This factor, more than anything, can often mean the difference between the house sitting on the market or selling quickly. How do you know the perfect range where buyers are intrigued, but you still earn the maximum value for your home? An appraisal is an excellent place to start. It will take into account any recent updates you’ve performed on the house, as well as the square footage, lot size, number of bedrooms and bathrooms.

However, an experienced agent will go much further. They will dig deep into the micro-market of your neighbourhood, finding out how many houses have sold in the past few months and for how much.

Want more information about how to enjoy a successful sale? These tips should help:

• The Barnett Seller’s Guide: Free Download
• How To Sell A Home On Behalf Of Your Elderly Parents
• Is Now A Good Time To Sell An Investment Property?

It’s important to have realistic expectations when setting your listing price. You may not earn as much by selling now, but you’re still in an excellent position. Finding your new home after you sell has become less competitive. Plus, any equity you have built up over the years can now be applied to your new property, which will also cost less.

The Importance Of Effective Marketing

A targeted and comprehensive promotion strategy becomes even more critical when the market shifts. It didn’t matter as much when the market was on fire. Back then, a simple listing on the MLS was often all it took for buyers to find your home. 

Now that there are more options to choose from, you need to work harder to get your listing out there. Your real estate agent should be well-versed in social media advertising, print marketing, and online promotions. However, a network of other agents might be the most valuable resource of all, especially with fewer people in the market. A network provides access to a hidden pool of potential buyers but is something an agent only has after years of experience in the area.

Why Buyers Need A Local Real Estate Expert  

On the one hand, the market is more favourable to buyers than it has been in a long time. Prices have decreased, and more “For Sale” signs are popping up every day. You no longer have to get caught up in emotional bidding wars. You can just move on to the next listing. More homes available means you never have to settle for something unsuitable just to break into the market.

We’ve reached a balanced market, a condition we haven’t seen in quite some time. That’s the good news.

The challenge now is that higher interest rates can offset any savings you might enjoy as the market settles. Depending on where rates land, you might end up paying more over time even though the house costs less. A mortgage broker can help you find the best rate possible. If you know you’re going to buy in the next few months, getting pre-approved and a rate hold now will protect you from any further rate hikes.

Why buy a house in Milton? It’s a great place to live with many fun activities to enjoy with your family. Like these:

• Fun Things To Do In The Milton And Surrounding Area This Summer
• Our Complete Milton Patio Guide

A local real estate agent is essential to prevent you from overpaying for your next house. Many homeowners are still trying to command the high prices from the market peak back in February, and it can be hard to know which ones are listed at a fair value. Your agent will help you sort through all of the listings and negotiate for a suitable home at the right price. 

Do you want to make your next decision based on facts and logic so you get the best possible terms? The Barnett Real Estate Team has served the Milton area for over 30 years, and we are happy to guide you through the current market. Reach out to us today to chat about your goals.

Milton is far more well known for its hiking trails and gorgeous Escarpment views than its beaches. However, that doesn’t mean you don’t have an abundance of options to cool off as the temperatures begin to climb. We have everything from beautiful conservation areas and outdoor quarries to swimming ponds and indoor recreational centres.

Whether you want to escape the heat for an hour or enjoy all day in the water, you won’t have to go very far. Here are a few of our top recommendations to keep cool even on sizzling summer afternoons:

Kelso’s Conservation Area

Though more famous as a ski hill, the Glen Eden and Kelso Conservation area also has a beautiful quarry for swimming. It’s surrounded by the beautiful greenery and hiking trails of the Niagara Escarpment. The quarry was originally built for industrial purposes, but the conservation authority took it over in 2006. Now, it’s one of the most popular spots in the area for swimming and boating and is only minutes away from Milton. Lifeguards are on duty all summer, making this the perfect spot for little ones to run, splash and play!

Looking for fun ideas in Milton without getting wet? Here are some more ideas for you:

• Fun Things To Do In Milton And Surrounding Areas This Summer
• Our Complete Milton Patio Guide
• 5 Milton Parks To Visit In The Spring

Emerald Lake

Located just 30 minutes away from Milton, Emerald Lake will provide hours of refreshing, splashy fun for visitors of all ages. The lake hosts an epic waterpark with giant floating toys, including trampolines, a rock-climbing wall and an obstacle course. Lifejackets are available to rent so you and your family can enjoy an afternoon of worry-free fun. Little ones will enjoy access to a 2-foot kiddie pool and a 3400 square-foot splash pad. 

Scream with joy as you bounce off the high diving board and plunge into the pristine, spring-fed quarry water, which reaches up to 40 feet in some places. If you’re not up for a long free fall, you can always start off with the low board. 

Alternatively, thrillseekers can glide down the 200-foot waterslide that empties into its own pool.

Looking forward to a more relaxing day? Emerald Lake offers a restful sandy beach area with lifeguard supervision. Once everyone dries off, you can enjoy a picnic at one of the pavilions and watch children play on the giant playground.

Lake Nettie

If you’re looking for something a little more peaceful and out of the way, Lake Nettie is worth a visit. It’s a little-known swimming area surrounded by nature located at 25 Side Rd in Milton. It’s a grass beach with no sand. However, there is a swimming dock for jumping. 

It’s the perfect place to practice your cannonballs!

Bronte Beach Park

Bronte Beach Park is in Oakville but is less than half an hour away by car. It’s a happening place to be on hot summer days! You can lounge in the sun, build a sandcastle or take a dip in the cool, refreshing water of Lake Ontario. If you prefer to stay dry, the fabulous trail by the beach still makes Bronte Beach Park well worth the drive. You’ll find plenty of cafes and unique shops to visit along Lakeshore Rd. Free parking and picnic tables are available if you want to pack a lunch. Depending on the time of year, you may see beautiful swans as they gracefully float along the water.

Rotary Outdoor Pool

Beaches and swimming ponds aren’t your only options for cooling off on a hot day in Milton. Why not try the Rotary Outdoor Pool? The fun kicked off on June 25. A beach-style entry awaits you, and you’ll have a blast with the interactive water spray feature. 

Want to learn to swim or brush up on your skills? The facility offers classes for people of all levels, including adults. Private lessons are also available for those who need a little more attention.

If you feel like getting a workout in, there is a larger pool for swimming laps. Rotary Park offers drop-in leisure swims and aquafit classes.

 A splash pad allows smaller children a safe space to cool off as they run through the water streams. With two tennis courts, three baseball diamonds, and a playground, Rotary Outdoor Pool offers your whole family a great place to spend a fun afternoon.

Want to know more about what it’s like to live in Milton? 

• Your Quick Guide To Living In Milton
• Thinking of Moving To Milton? Check Out Our Area FAQs
• What You Need To Know About Buying A House In Milton

Lions Sports Park Splash Pad

Are you pressed for time but still want the kids to burn off some energy and keep cool? Milton has plenty of great parks with spectacular splash pads. Lions Sports Park Splash Pad at 99 Thompson Rd South is one of our favourites, and the streaming jets are a blast to run through. There is also a swing set and playground once your child has had enough of the water.

Splash parks are a great escape for everyone, even when you have little time.

Milton Leisure Centre

The Milton Leisure Centre is a fantastic indoor getaway for any time of the year, including the hot, humid days of the summer. There is a lap pool and a weight room for fitness enthusiasts. Leisure swimmers love spiralling down the waterslide and splashing into the pool. If you get a little too chilly, you can always warm up and relax in the hot tub. A viewing area is also available for those who don’t want to get their feet wet.

Free parking makes the trip convenient and stress-free any day of the week.

Is Milton the perfect place for your family to call home? Check out some of our featured listings right here.

Have you thought about buying a new home but are feeling discouraged by the fierce competition and out-of-control prices? If so, you’re not alone. Property values have soared all over the country, and the average cost is higher than ever. 

The Bank of Canada introduced a record low interest rate at the beginning of the pandemic to try to stimulate the economy. This added fuel to an already hot seller’s market. 

However, over the last month, there have been some changes. 

The great news is that it is a better time to buy now than it has been for at least two years. Are you thinking of taking the plunge? If so, these resources can help:

• The Best Burlington Condos for First Time Buyers
• First Time Home Buyer Grants in Ontario
• What You Need to Know Before You Buy Real Estate

The low interest rates were only a temporary solution. In 2022, we have already seen two increases. What will happen to the real estate market as the interest rates rise? No one knows for certain, but here’s what we have noticed so far:

More Listings Are Available

If you tried to buy a house three months ago, you would have faced fierce competition. There are far more people out there looking to buy than homeowners who are willing to sell. Even those who wanted to sell hesitated to put their house on the market for fear of not being able to find a new place. 

This competition resulted in many multiple offer scenarios and even triggered bidding wars. Buyers tried everything to find a suitable home, from dropping off letters around the neighbourhood to submitting bully offers on the few listings they could find.

Now, we’ve just entered the Spring market, and for the first time in years, more listings are available. The scales haven’t tipped completely. The market still favours sellers, but it is slightly less competitive. Not every house receives multiple offers, and the percentage of “sold over asking” has decreased. In rare cases, some homes don’t sell at all and are pulled off the market.

Will this trend continue? It’s impossible to say, but the market may become more balanced if there is another interest rate hike this June.

Why Do Interest Rates Affect the Market?

When interest rates are low, the cost of borrowing decreases. Low rates make it easier for some people to purchase houses that would otherwise be out of their budget. When you’re talking about a mortgage loan of hundreds of thousands of dollars, any change to the rate can affect your payments. 

As rates go up, the higher cost of borrowing will make it more difficult for some buyers to qualify for financing. Others might drop out of the market to ensure they don’t get in over their head financially. The current inflation rate and high cost of living may also make some potential buyers more reluctant.

Good And Bad News For Buyers

The good news is that with fewer people searching for properties, there is less competition for those still intending to buy. The bad news, at least for now, is that there doesn’t seem to be any sign of significant price drops. Many analysts predict that the out-of-control price increases will slow down, and buyers won’t have to bid as far above asking. 

However, the market will continue to favour sellers for the foreseeable future. You have a better chance of finding your ideal home now than you did even a few months ago, but you are likely to pay a premium price for it. 

Financing Options to Protect You From Rising Interest Rates

The Bank of Canada is expected to make another announcement about interest rates in early June, which is causing a bit of alarm in the market. However, there really is no cause for concern. The rates are still much lower today than they have been in decades. 

If you bought a house in the lower or middle of your budget, you have very little to worry about. You may need to readjust your budget to allow for a slight increase in your monthly payments. 

What if, like many people, you had to buy a home at the high end of your budget? You should talk to your financial advisor or accountant, but options are still available to keep your payments affordable. 

1. You may be able to keep your monthly payments the same. The bank will adjust the ratio of interest to the principal. It will take longer to pay off your loan, but you don’t have to worry about fluctuating monthly payments.
2. Leave room in your budget to allow for rising interest rates but pay off your mortgage faster.
3. If you are up for refinancing, choose a fixed rate to protect you from any future changes.

In addition to flexible payment options, the stress test is designed to ensure that you will not encounter financial difficulty even as interest rates rise. 

Find out more about the new rules for the stress test here. 

Homeownership is becoming more attainable thanks to more stringent regulations and the abundance of financing options, and the default rate for mortgages in Canada is extremely low. 

Are you a first-time buyer hoping to purchase a new home soon? Our “First-Time Home Buyer” webinar will guide you and answer your questions. Sign up for free here.

Rising housing prices and inflation are causing financial challenges for many Canadians. Very few people are feeling the sting more than those aspiring to buy their first house. Lately, it seems that only those who enjoy very high incomes or have help from relatives can afford a place of their own. 

In light of the many challenges first-time buyers face, the Federal government introduced a piece of legislation called the “First Home Buyer Incentive.”

This program took effect in September 2019 as the average cost of housing prices began their steady, upward climb. On paper, the incentive might look like a dream come true for those struggling to buy a house, but there are some downsides to be aware of. 

Buying a home can be intimating, especially if it’s your first time. Here are some other resources that can help:

• What You Need to Know About Buying a Home in 2022
• The Best Burlington Condos For First Time Buyers
• Is it Better to Buy or Rent in Canada in 2022

Here’s everything you need to know:

The First Time Home Buyer Incentive – How it Works

If you qualify, the government puts up to 5% of the down payment on a resale house or 10% on a newly constructed project. This incentive is designed to help in two ways:

1. It makes it easier to afford the downpayment
2. With a larger down payment, your monthly mortgage payments are more affordable

Can the First Time Home Buyer Incentive help someone who couldn’t otherwise afford a home? In some cases, yes. However, it’s important to know that this isn’t free money. The program is similar to a second mortgage, except no monthly payments are due. 

What Are the Downsides to the Program?

You Will Have to Repay – and Then Some…

When you sign up for the program, the government basically becomes a co-owner of your property. Any funds received through the program must be repaid either when you sell the property or within 25 years. What does that mean when buying and selling?

Let’s imagine you bought a condo for $480,000 in 2019. It was a new build, so the government gave you 10%, or $48,0000 upfront, for your down payment. Now, in 2022, you want to sell the condo, which has risen in value to $900,000. Upon closing, it’s time to pay back the incentive. However, it’s not a standard loan where you pay back the principle plus interest. The government has a stake in your property for 10% of the resale price. In this case, because the value has risen to $900,000, you’re on the hook for $90,000!

It’s Too Little, Too Late…

In 2019, the incentive may have helped some first-time buyers. Now, housing prices have soared, and it’s almost impossible to qualify. To be considered, you must:

• Be a first-time buyer
• Have a combined household income of less than $120,000

Even if you meet these requirements, the mortgage is capped at a maximum of four times your annual household income. If you earn $100,000, your mortgage must be $400,000 or less to qualify for the program. 

 In 2022, the average house price in Burlington or Milton stands at around $1.3 million. Unless you have a massive downpayment available, a mortgage capped at $400,000 isn’t helpful for most people.

Is the First Time Buyer Incentive even worth it? Only you can decide. However, there are other programs designed to help you that don’t give the government such a significant stake in your property.

Want more help getting into the market as a first-time buyer? Our comprehensive Buyer’s Guide can help. You can download it for free here.

The Canada Home Buyer’s Plan

This program allows you to withdraw up to $35,000 from an RRSP without tax penalty as a down payment toward your first house. Here’s what you need to qualify:

• You must be a first-time buyer or buying on behalf of someone with a disability
• You must be a resident of Canada
• You must use the funds to buy property
• Within one year of buying or building the home, it must be your primary residence

First Time Home Buyer Tax Credit

As a first-time buyer, you can claim up to $5000 on your tax return, which results in a $750 reduction in taxes. It may not seem like a lot of money, but it can go a long way toward your moving costs, legal fees or utility hookups.

Land Transfer Rebate

Whenever you buy property, the land transfer tax is one of the closing costs you must factor in. It can amount to several thousands of dollars which can not be rolled into your mortgage.

However, in Ontario, you can apply for a rebate of the provincial portion, resulting in a savings of up to $4,000.

To buy your first home, you’ll need some creativity and perseverance. Knowledge of how government incentive programs work can go a long way. 

Did you know that we offer a monthly webinar dedicated to helping first-time buyers? You can sign up for free right here.

If you are thinking of upgrading your home in the near future, you undoubtedly have many questions on your mind. Some are easier to answer than others. 

Want to know how much your current home is worth?  That’s as easy as doing a quick assessment.

The most pressing question that we get asked a lot is “What should I do first?” Is it better to sell your home before you look to purchase a new one? Or should you look now and buy while still in your current house?  Depending on your financial situation, and the current real estate market, there is a strong case for both.

The Pros and Cons of Buying First

The significant advantage here is equity. The longer you keep your current home, the more equity you build. And with the market going up, your home naturally increases in value over time.

You can use this equity to finance your new purchase. Now, you’re building wealth on two properties. Buying first is ideal in many situations, but it’s not the right choice for everyone. 

Who should buy first?

Buying first is an excellent option if both of these scenarios apply:

1. Your finances allow you to hold two properties comfortably. (Interesting fact: this is the exact strategy some investors use to build their long-term wealth!) 
2. You don’t need to move urgently and have time to decide and plan. If you buy first, there is no rush to leave your current house. You can take your time packing and moving, which eliminates most of the stress from the process. Buying first also gives you all the time you need to find the perfect home, and you won’t need to settle for anything less.

The disadvantage is it can be a heavy burden to carry two mortgages. And unless your financial situation is very secure, buying first can be risky. If you cannot make both mortgage payments, you could lose one or both properties.

The best way to minimize this risk is to thoroughly analyze your finances to know if you can afford two payments, and for how long.

It’s also wise to have all the minor repairs and staging done on your current home, so it’s ready to sell on short notice if you ever feel overwhelmed. 

Want to know more about what it means to sell your home this year? Here are some more resources to guide you:

• Housing Market Insight for January 2022
• What You Need to Know About Selling a Home in 2022
• Our Top Seven First-Time-Seller FAQs

The Pros and Cons of Selling First

The advantages of selling first are clear. You have the cash in hand for a down payment on your new home. With this guaranteed financing, you can place strong offers and compete with other buyers. Selling first takes all of the guesswork out of the equation. You will know precisely what price range you can afford.

The disadvantage is how quickly the market can move after you sell. Prices are still on the rise. If you sell too early, you may find it challenging to re-enter the market.

Selling first may also put you in a time crunch. Closing dates are firm and don’t give you much time to find and purchase a new home.

Again, these risks can be reduced by having a plan in place.

You can research what’s available in different areas. For example, a home in Burlington right on the Lakeshore may be out of your price range. But if you’re flexible about your location, you’ll find more affordable options.

With a plan in place, you’ll be in a solid position to move quickly with your sale and subsequent new purchase.

Who should sell first?

You should always sell first if you have any concerns over your finances or you know you can’t bear the cost of two mortgages.

1. Selling first is ideal when you need to move quickly. If relocating for a new career, you probably won’t want the workload of owning two properties even for a short time.
2. You’re not comfortable with the risk associated with buying. Even if your finances allow you to carry two mortgages, it doesn’t mean you should. Deciding whether or not to take that risk is a highly personal choice, and not one to take lightly. 

What does buying a home look like in 2022? Check out some of our other informative articles below:

• What You Need to Know About Buying a Home in 2022
• The True Cost of Buying a Home
• What You Need to Know About the New Stress Test Changes

Whether you decide to sell or buy first, you need a strategy and expert guidance. A professional real estate agent who is familiar with the area is a resource you don’t want to be without. If you have any questions about buying or selling, we can help!

Many Canadians who currently rent are dreaming of homeownership. If you fall into this camp, you may be wondering whether 2022 is the time to make your dream come true. The truth is, there are many things to consider—including which option will most benefit you financially. 

If you’re trying to decide whether to buy or rent the next place you call home, here’s what you should know…

The current market

When you’re thinking about buying, it’s important to understand local market conditions. There’s no doubt that we’ve been in a seller’s market for some time now, and (while we certainly can’t predict the future) there’s no indication that this trend is going to change anytime soon. 

While 2022 has just begun, last month’s numbers can provide us with some much-needed insight. In Halton Region, the average home price is on the rise—and for December, it reached $1.34 million. In Milton, it was nearly $1.35 million, and in Burlington, it was $1.23 million.

In other words, it’s hard to get a foot in the market right now. Given the sums of money involved, it’s critical to think your decision through. That said, if you have the time and resources to compete, there are some substantial benefits to doing so. 

From long-term appreciation to greater financial security, there are many reasons why so many buyers can’t wait to take this step—even if it means starting with a small condo when they’re looking forward to buying a house. Let’s take a closer look at the financial advantages of purchasing a piece of real estate right now.

The first step towards buying a home is making sure you’re informed. You’ll find in-depth information about what the process is like right now in our recent blog posts below.

• How New Government Policies Could Help First-Time Buyers
• Your Guide To The First Time Buyers Incentive. Is It Worth It?
• Best Burlington Condos For First-Time Buyers

The financial perspective

Studies frequently show that in most cases, owning a home is more financially beneficial than renting in the long run. To start with, as The GTA’s population grows, so too does the number of people who need a place to live. That’s putting rentals in high demand, so it’s no surprise that rents are on the rise. Unfortunately, when you pay this monthly cost, your money doesn’t work for you. It helps your landlord pay their mortgage.

If, on the other hand, you decide to buy, a significant portion of your mortgage payments will go towards your principal. In a sense, it can be considered a forced savings account (since you’re constantly building equity). When you look at it this way, you can see how monthly rent can be significantly more costly than your mortgage payments. 

When it comes to improving your financial situation, owning a home gets even better. You’ll not only benefit from equity but long-term appreciation. In the vast majority of cases, local real estate becomes more valuable over time. While the market fluctuates, it also bounces back—and an experienced agent can help you get top dollar when you’re (eventually) ready to sell.

Buying a home also gives you the opportunity to bring in passive income if and when you decide to move into another home. By renting out the living space you buy, you can grow both your bank account and your personal net worth. Having an investment property is also a great way to diversify your portfolio. 

Ready to learn more about the purchase process? Start by downloading our buyer’s guide right here.

Your long-term priorities

Let’s say you don’t have your future financial security in mind, nor are you thinking about growing your wealth by investing. The truth is, you’ll almost certainly need to think seriously about money matters in the years ahead. Owning a piece of property can give you a significant headstart.

Of course, there are other reasons to buy a home, the biggest one being your quality of life. If you’ve always envisioned yourself in a place you can truly call your own—where you can renovate to your heart’s content and take pride in ownership—that’s one of the best possible reasons to purchase if you can afford to.

All of that said, there are situations where renting is the better option. Will it put you in financial peril if you buy today? Are you unsure of where you want to be in the near future? Does the commitment of owning (and all the potential hassle and costs associated with ongoing maintenance) feel like a deterrent?

At the end of the day, the decision to buy or rent is a significant one, and it shouldn’t be taken lightly. The good news is, a real estate professional who’s passionate about what they do should be happy to answer your questions—and help you determine whether buying is right for you!

Have unanswered questions about buying a home? We would be happy to discuss them with you. Get in touch here.

For many Canadians, getting their foot in the door of the real estate market is harder than ever. New stress test rules are making it harder to borrow. While recent years have seen the minimum down payment rules shift in favour of a larger lump sum. And that’s not even mentioning the current seller’s market climate with steep competition and rising real estate prices. 

However, all is not lost and the dream of homeownership is still a viable possibility for millennials and their contemporaries. 

Especially when we consider that a major part of the Liberal Party’s election platform hinged on policies targeted to help first-time buyers. 

Let’s take a look at how some of these programs could help you reach homeownership in 2022:

The Tax-Free First Home Savings Account

Currently, Canadians can draw funds tax-free from their RRSP for a house downpayment, however, the catch is that they are then beholden to pay that money back after a certain period of time. 

The Liberal Party has promised to implement a new type of savings account that will help first-time buyers save for a down payment without requiring them to repay. The account is designed for Canadians under 40 and will allow them to save up to $40,000 toward the purchase of their first home.  

Additionally, if you save $40,000 but do not use the full amount for your down payment, the leftover funds will revert back to an RRSP. 

Did you know that we host monthly webinars for first-time buyers? You can sign up for our latest webinar right here. 

The Buyer’s Bill of Rights

In today’s competitive seller’s market, buyers can feel discouraged about bidding on properties. First-time buyers especially, since they are the ones with less experience and, in most cases, less purchasing power. 

The Liberal Party’s Buyer Bill of Rights intends to soften some of these issues. Policies like a ban on blind bidding, establishing the legal right to a home inspection, and numerous clauses that improve the transparency of real estate transactions in favour of the buyer. 

Ready to buy your first home? Take a look at some of our great resources for first-time buyers:

• How Will Rising Interest Rates Affect Buyers?
• Our Top 6 Milton Condos for First-Time Buyers
• Our Top 8 First-Time Buyer FAQs

Doubling the First-Time Home Buyers Tax Credit

A lot of Canadians rely on the First-Time Home Buyers Tax Credit to help with many of the extra expenses associated with buying a home. It’s a helpful resource to pay for things like closing fees, moving expenses, and more. 

Currently, the tax credit is capped at $5,000 but the plan for 2022 is to increase it to $10,000. 

Want to learn more about getting a mortgage? We spoke with some of our amazing mortgage broker contacts to answer some of the top questions you might have. You can read the post here.

Still Available: The First-Time Home Buyer Incentive

This program has been around for a while now and has seen some improvements made over the year. The incentive is a shared equity mortgage designed to help qualified first-time homebuyers enjoy a lower monthly mortgage payment without having to pay a larger lump sum down payment. 

The incentive is shared with the Government of Canada. And the amount depends on the overall purchase price of your home. Although you are required to eventually pay back the investment, you are not required to pay interest or ongoing payments on the loan. 

Get your buying journey started by downloading our Buyer’s Guide right here. 

2021 was a landmark year for the real estate market in Canada. Not only did we see some of the busiest months on record, but we also saw housing inventory drop to the lowest level on record. Across the board, it was a record-setting year too, with prices rising and interest rates at the lowest they’ve been in years. 

For buyers, 2021 has been a tumultuous year, to say the least, and if you’ve been following the real estate market closely as we have, you’ll know that buying a home in these conditions is sometimes challenging.

So what does 2022 hold for the real estate market? Only time will tell, but we can make a few assumptions and predictions about what we will see in the new year. In this post, we’re providing our insight and advice on buying a home in 2022. 

Let’s get started…

Interest Rates are Rising

One of the biggest drivers of the current market conditions is the low-interest rates we are currently experiencing. Essentially, the Bank of Canada initially lowered interest rates in an effort to help the Canadian economy during the pandemic. As the country’s pandemic recovery continues to improve, regulators have determined that it is now safe to start increasing the rates again.

Expert economists predict that we will see interest rates go up at least three times in the next year or so, with the first jump happening sometime in the spring. 

As a buyer, this means you should do what you can to lock in a mortgage rate with your preferred lender sooner rather than later. Most mortgage interest rates can be secured for 30-90 days, so even if you are planning to purchase in February or March of 2022, you should get a head start with your mortgage approval process now to fully benefit from the current low-interest rates. 

Our team hosts monthly webinars for first-time buyers. Sign up here to learn everything you need to know about buying. 

The Market Will Remain Competitive

Housing supply remains a significant issue facing today’s buyers. Simply put, there are not enough homes on the market right now to satisfy the demand of buyers who want to purchase. As a result, many homes that are listed for sale sell quickly and often over the asking price. In many cases, listings go into a multiple offer situation where there are numerous buyers vying for the home and competing to present the best offer. 

So far, we believe that the supply issue will remain present well into 2022, and therefore, we will continue to navigate a competitive seller’s market. 

The best way to find success buying in this type of market is to work with a professional real estate agent who knows sellers in your area and can help you by showing off-market listings and helping you to craft compelling offers that will motivate sellers while also preserving your investment and protecting your best interests. 

Looking for your dream home? Check out our featured listings right here.

Tradition is No Longer the Status Quo

Most real estate markets across the country have two distinct ‘busy’ seasons. Typically, the fall market and the spring market are the most active markets in real estate. In fact, many sellers will strategically list their homes at those times because they know that most buyers will be active in the busy periods. 

However, after 2021, we can say with some confidence that this decades-old tradition is not as relevant as it used to be. More sellers are choosing to list their homes at a time that works for them on a personal level. 

There are many benefits to listing a home for sale in the ‘offseason’, and as a result, buyers need to be available and ready at all times of the year, not just during the traditional fall and spring markets.

We’re passionate about helping buyers find their perfect home. Check out some of our buying resources here:

• Our Top 6 Milton Condo Buildings for First-Time Buyers
• 5 Questions You’ve Always Wanted to Ask a Mortgage Broker
• A Buyer’s Guide to Pre-Emptive Offers
• Our Top 8 First-Time Buyer FAQs

Canadians Will Become More Concerned with Affordability

Limited housing supply and increased buyer demand will continue to contribute to rising prices in the Canadian market. However, at the same time, Canadians are becoming more concerned with affordability. 

As a result, homes with investment opportunities such as duplexes and basement apartments might become more popular in the future. 

Along with this type of thinking, many Canadians are still looking for homes with more space. Working from home is becoming more prevalent in the wake of the pandemic, and although buyers won’t exit urban markets at the same pace as 2020, we do expect to see many buyers choose to move out of bigger cities like Toronto and invest in smaller communities with more space and lower prices.

The Liberal Party’s Plans

After the federal election from this past fall, we learned a lot about what the Liberal Party has in store for Canadians when it comes to the housing market. The government has promised to implement policies such as a tax-free first-time home buyer savings account, rent-to-own measures, a buyer’s bill of rights, and improvements to the first-time home buyer’s incentive program, and more. 

How to Buy a House in 2022

If buying a new home is on your list to do for 2022, the best way to go about it is to work with a professional REALTOR®. In a competitive seller’s market when market conditions are not favourable for buyers, you need someone on your side to help give yourself an advantage. 

Professional REALTORS® know the area and the market and can provide you with advice and strategies to appeal to sellers, find your dream home, and successfully buy a house this year. 

Want to learn more about buying a home in Canada this year? Download our buyer’s guide here.