2025 is here, and big changes are coming to the real estate market! Experts believe this year will bring lots of opportunities for people looking to make a move in the Real Estate Market. Here’s what you need to know:

Great News for Buyers

This year, buying a home will be easier, especially if it’s your first time. New programs are available to help first-time buyers. Plus, changes to mortgage rules mean qualifying for a home should become a little bit easier with amortization changes and insured cap changes. 

Lower Interest Rates

Interest rates are expected to continue to go down in 2025. This is excellent news because lower rates mean smaller monthly payments and more money to spend on your dream home. The lower rates are expected to bring some buyers to the market.

More Homes for Sale

Many Canadians will need to renew their mortgages this year, but some will have to pay higher rates. Because of this, more people might decide to sell their homes. This means there could be more homes on the market for buyers to choose from.

We are looking for a balanced market in which a good number of homes are available for sale for the number of home buyers currently looking.

Making the Most of 2025

If you’re considering buying or selling a home, 2025 is a great time to do it. There are new rules and programs to help buyers, and more homes might be available. Working together with your preferred realtor to create a plan can make the process easier and help you find the best deals.

At Unna Real Estate Group, we’re here to help you every step of the way. Whether you’re buying your first home, selling your current one, or just exploring your options, we’re ready to guide you. Let’s make 2025 your year to achieve your real estate dreams!

Ask us how we have helped hundreds of clients upgrade to their new homes using our Uprise Method. 

Im sure you've seen the news all over the place. The bank of Canada has yet again reduced it's over night rate by 50 basis points down to 3.25%. This is the fifth consecutive cut by the Bank of Canada since June.

This rate cut comes at a time where many other changes are taking effect. Another significant update is the increase in the insured mortgage cap from $1 million to $1.25 million. This change allows more buyers in high-cost markets to qualify for insured mortgages. Additionally, 30-year amortization periods are making a comeback for certain mortgage products, offering buyers more manageable monthly payments, albeit with higher overall interest costs.

Furthermore, new stress test rules are being introduced to better align with current market conditions. Meaning you will no longer need to go through the stress test when renewing your mortgage. That will give homeowners flexibility to shop different lenders even when renewing their mortgages.

With these adjustments, more buyers may find themselves qualifying for mortgages they were previously excluded from.

As we head into December, these changes represent a pivotal moment for the real estate market in Ontario. Whether you're a buyer, seller, or investor, staying informed and working with knowledgeable professionals can make all the difference in navigating this evolving landscape. With professionalism and a commitment to your success, we at Unna Real Estate Group are here to help you seize opportunities and overcome challenges in this dynamic market.

During a season when change is normal, we expect to see the leaves changing colours, and the weather begins to change, but now our Real Estate Landscape in Ontario looks like it's changing as well.

Recently we've experienced a few rate drops in interest rates with economists saying we shall see more to come. Canada's inflation rate dropped to 1.6% in September, and we've seen a bunch of new mortgage rules that will come into effect shortly. We covered most of the mortgage rule changes in a previous article which can be found here: https://unnarealestate.com/blog.html/news-for-first-time-home-buyers-8289247

One more major mortgage rule change was announced after we published that article. The announcement of the removal of the Mortgage Stress Test when Renewing your mortgage. That is Huge news for homeowners.

Switching Lenders Without Stress Test Borrowers will also benefit from the ability to switch mortgage lenders at renewal without having to undergo another stress test. This change is designed to foster competition among lenders, offering homeowners more flexibility to find better mortgage rates without the barrier of requalification. This is expected to be especially beneficial for those in high-interest-rate environments.

What Does This Mean for Ontario Homebuyers? These reforms are designed to improve access to homeownership amid soaring housing prices. However, there are concerns that increased buying power might lead to further price inflation, particularly in already tight markets like Toronto. As these rules roll out, buyers and investors alike should carefully consider how these changes align with their financial goals and housing plans.

If you’re considering purchasing a home or renewing your mortgage, these rule changes could impact your strategy. We at Unna Real Estate Group are here to help you navigate the evolving market and make informed decisions that suit your needs. Feel free to reach out anytime.

This past week, the federal government announced changes that will help some buyers enter the Real Estate Market. If you are a first-time home buyer or if you are considering purchasing a brand new build, these changes are for you.

Here are our major takeaways from the announcement

• 30-Year Amortizations: The expansion to 30-year amortizations can lower monthly payments, making homeownership more accessible. These are now available to all first-time buyers and anyone purchasing new builds.
  

• Higher Insured Mortgage Cap: The increase to $1.5 million allows buyers in high-priced markets to access insured mortgages with lower down payments. So in otherwords you can now purchase a more expensive home with a lower down payment.

It is always important to analyze your personal situation and your Real Estate Goals before knowing if any of these changes will even make a difference for you. Here are a few things to keep in mind when thinking of buying Real Estate.

1. Market Conditions:

   • Interest Rates: Consider current interest rates. Lower rates can make borrowing cheaper, but if rates are high, it might offset the benefits of the longer amortization period.

   • Housing Prices: Evaluate if home prices are trending up or down. In a hot market, prices increase faster than the benefits from these changes.

2. Personal Financial Situation:

   • Affordability: Assess your own financial situation, including your ability to handle mortgage payments, property taxes, and maintenance costs.

     • The recent changes to the mortgage market can create favourable conditions for buyers, but whether it’s a good time to buy depends on several factors:

   • Long-Term Plans: Think about how long you plan to stay in the home and whether the longer amortization aligns with your financial goals.

Overall, if these changes align with your financial situation and the local housing market conditions are favourable, it could be a good time to buy. However, it’s always wise to consult with a financial advisor or mortgage professional to ensure it’s the right move for you.

On Wednesday, September 4, 2024, the Bank of Canada announced its third consecutive rate reduction, reducing the key interest rate to 4.25%. It's the third cut since June and the first time the central bank has posted three consecutive reductions since the 2009 global financial crisis.

The rate reduction comes shortly after the recent inflation announcement which gave some hope that our economy is improving. The Bank of Canada governor also mentioned that if the economy continued to improve, we might continue to see some more rate cuts. Their next announcement will be October 23, 2024.

Overall, I strongly believe the rate reduction is good for everyone. There is also a lot of talk about rates coming even lower in 2025, which may be possible. I believe a healthy interest rate is somewhere between 3-4%.

Now, what does this mean for you? Well, it really depends on what kind of situation you're in. I always strongly recommend people to speak to a professional whenever they are thinking about their financial situation, whether it be investing in Real Estate or other investments. Dont be distracted by the media and by what everyone around you is doing... Remember, not long ago, interest rates were almost Free, and they were telling us to take the free money, and many people got hurt.

Always analyze your personal situation. Sometimes, getting your foot in the door is better than waiting around for the perfect time or perfect interest rate. There also tends to be more activity as interest rates drop, which normally leads to price increases in the Real Estate Market.

Either way, at Unna Real Estate Group we're always available to chat with you about interest rates, Real Estate market or answer any other questions you might have. Feel free to reach out to us anytime.

As you may know, the Bank of Canada reduced the overnight lending rate from 5% to 4.75%. It continues to focus on elevated shelter costs as a significant contributor to inflation. However, it also noted that inflation measures are showing signs of downward momentum and are close to historical averages. To better understand how it works, we have asked one of our mortgage agent partners Lorena Sarnaglia to breakdown the numbers.

Variable-Rate Mortgages - If you’re holding a variable-rate mortgage, this rate cut signals a decrease in interest expenses. For example, for anyone with a variable rate with adjustable payments, you will see payments drop roughly $14 per $100,000 of mortgage (depending on your rate, amortization, etc.)

HELOCs - Interest-only payments would drop almost $21 per $100,000 as well.

Fixed-Rate Mortgages - Unchanged for now, but fixed rates are mainly influenced by the bond market and its expectations of the overnight rate’s direction. As we enter a rate-cutting cycle, bond yields should trend lower from here… and so should fixed mortgage rates.

We from Unna Real Estate Group, believe that the relationship between interest rates and home prices is a critical dynamic in the real estate market. When borrowing costs were at their lowest, home prices skyrocketed due to increased demand. As the overnight lending rate began to climb, the rapid growth in home prices started to slow down, illustrating the direct impact of interest rate policies on the housing market.

It is important to know that if the Bank of Canada reduces interest rates in response to economic conditions, it could stimulate the housing market, potentially reversing the recent price declines. The response of buyers to lower interest rates will be crucial. If confidence in the market remains high and borrowing costs decrease, a resurgence in home prices is likely.