Click Here To See Full Market Stats

Sales increased year over year in September as Buyers are starting to take advantage of more affordable market conditions. When you pair the softer prices with the fixed and variable rate decreases over the last few months Buyers are increasingly deciding that now is a great time to dive back in.

Recent changes to mortgage rules, which will take effect in the coming months, should bring another cadre of buyers back to the market as we move into 2025.

CMHC has increased the maximum allowable home value for their home insurance to $1.5M starting December 15^th. This has obvious and not-so-obvious benefits for buyers. The obvious one is that buyers can now purchase homes about the $1M mark with less than 20% down. 

The not-so-obvious benefits are two-fold.  First, those buyers who have an existing insured mortgage and are looking to move up to a larger home can now move their existing mortgage to the new home.  This will allow many Buyers to keep lower insured rates in a move.  Secondly, even non-CMHC mortgages that are between $1M – $1.5M will likely see a 20-basis point reduction since this is the standard “risk” premium that banks add for non-insurable mortgages.  This leads to savings for everyone.

Secondly, CHMC will also now allow for refinancing of properties up to 90% loan to value to add a secondary suite or laneway suite to your home.  Homeowners will be able to add up to four additional units.  The big thing here is that you can refinance to your improved value.  This means that you can get the money upfront to do the actual renovation.  In the past, you have to fund it yourself and then plan for a re-finance later.  This should remove many barriers for homeowners and investors looking to add more long-term rental units to homes.

Lower rates, rule changes, and a strengthening market all point to a much stronger 2025 for real estate. If you’re considering making a move, it’s a good idea to book a call with me sooner rather than later so that we can plan out the best timing for you and your family over the next year or so.

Links to other e-newsletter Articles