General

Selling your home quickly and at the right price takes more than just listing it online. To draw in potential buyers and secure top offers, your home needs to stand out. That’s where home staging comes in. By strategically preparing your home—through redecorating, repairing, and making it look its best—you can make a lasting impression and significantly increase its appeal.

The numbers speak for themselves: according to the U.S.-based National Association of Realtors, 81% of buyers’ agents report that staging makes it easier for potential buyers to envision themselves living in a home. Moreover, 44% of buyers’ and sellers’ agents say that staging can increase a home’s sales price, and 48% of sellers agents agree it shortens the time a house spends on the market.¹

You can choose to stage your home yourself with advice from your real estate agent or work with a professional stager. Whichever route you take, here are seven essential strategies to transform your home into a buyer’s dream.

Step #1: Declutter and Depersonalize

The first step in staging is to declutter and depersonalize your home. A recent survey of real estate agents found that this simple step can increase your home’s sale price by 3-5%.²

This creates a clean, neutral canvas where potential buyers can imagine their own lives. Remember that staging isn’t interior design—the goal isn’t to add personal, homey touches but to take them away.³ While you may love having plenty of comfy furniture, family photos, and unique knick-knacks, these items can distract potential sellers and make your home feel smaller.⁴ Be especially mindful to remove children’s toys and pet items. 

The task can feel overwhelming, but consider it a head start on packing for your move — and an opportunity to clear out things you no longer need. If you have a lot of belongings, renting a storage unit might be a smart way to keep things tidy while your home is on the market. 

Step # 2: Deep Clean and Repair

A sparkling clean home leaves a fantastic first impression. Deep clean every room, paying special attention to areas that are often overlooked, like baseboards, windows, and appliances. Even minor smudges, scrapes, or signs of pet hair can put off some buyers. Your goal? Make it look like no one has ever lived there!⁵ 

Minor repairs are equally important. Fix slight imperfections like chipped paint, regrouting tiles, and replacing worn hardware. These easy cosmetic updates make a big difference in how buyers perceive your home’s value. For example, replacing your floors can offer a return on investment of 100-150%.⁶

Need help getting your home spic-and-span? Let us recommend a professional who can help.

Step #3: Pick Up a Paintbrush

While buyers may repaint after they move in, the colour and condition of your walls still have a big impact on their impression of the home as a whole. Neutral tones like beiges and off-whites appeal to the widest range of buyers—and to the friends and relatives who are also weighing on purchasing decisions.⁷

If your home features bold colours or striking wallpaper, consider a repaint before you list. When choosing paint colours, make sure to think about how they’ll appear in listing photos and videos. Light, neutral shades can make rooms look brighter and more spacious.

Repainting is especially important in high-traffic areas like the kitchen. Painting outdated cabinets in white or a soft gray can also modernize your space.⁸

Step #4: Enhance Curb Appeal

First impressions matter, and your home’s exterior is the first thing buyers will see. That’s why most real estate agents urge sellers to clean up their home’s exterior — and why curb appeal can drive up to 7% of a home’s sale price.⁹

Boost your home’s curb appeal by power-washing the exterior and touching up your deck’s varnish.⁵ If your exterior paint is faded or chipped, consider hiring painters — or for a smaller project, repaint your front door and freshen up first impressions with new hardware and hanging plants.¹⁰

And don’t forget landscaping! Keep your lawn tidy, remove dead or dying plants, and consider adding seasonal flowers. Even standard lawn service can lead to a 217% return on investment.¹¹ If you need assistance, we’re happy to offer a referral to landscapers in our area.

Step #5: Stage Key Rooms

When staging, concentrate on the rooms that matter most to buyers: the living room, primary bedroom, and kitchen. These spaces have the greatest influence on a buyer’s decision.¹ 

If you’re working with a professional stager, they may bring in furniture and decor.³ If not, make the most of what you have, and don’t worry about how you’d arrange furniture in real life. This is just about showing off the space. 

Arrange furniture to create an open, inviting flow.⁵ Use large rugs to make rooms appear bigger and ensure artwork complements rather than overwhelms the space.⁹ Add pops of colour with fresh flowers or simple decor like pillows to bring warmth without personalizing the space too much.

Step #6: Put Your Home in Its Best Light

Lighting is key to creating a welcoming atmosphere in your home. Natural light in particular makes any room feel more airy and spacious, so it’s essential to make the most of it. 

First, remove heavy curtains or blinds — if a room feels bare without a window treatment, hang sheer curtains or light-filtering shades to invite the outdoors in. Next, take a look at the landscaping surrounding your home. If overgrown hedges or trees block windows, especially on the ground floor, consider cutting them back or removing them entirely to let in the sunshine. 

Of course, homes need more than just natural light — and it’s important to use a combination of types of lighting to suit different uses and moods. Experts recommend that each room have three light sources: ambient lighting (think ceiling lights or chandeliers), task lighting (like lamps or under-cabinet lights), and accent lights (like track lighting and picture lights).¹³ If needed, replace outdated fixtures with more modern options.¹⁴ Even swapping out lightbulbs can make a difference—opt for warm, 2700k bulbs to create an inviting glow.⁷

Have hard-to-reach windows or need help installing new lighting fixtures? We’re happy to refer a professional who can help.

Step #7: Show Off Your Work with Photography

These days, most buyers will first see your home online, making high-quality photos essential. According to the U.S.-based National Association of Realtors, 89% of agents agree that professional photos are critical to marketing a listing.¹ 

Depending on your home and market, you may also benefit from marketing your property with videos, virtual tours, and even virtual staging, where photo editors swap out furniture and colours to show how your home would look with different decor.

Talk to your agent about what makes sense for your situation, and work with them to hire professionals who can capture your staged home in its best light. When it comes time, treat the photo shoot like an open house—everything should be spotless, well-lit, and arranged to show off your home’s best features.

BOTTOMLINE

Whether or not staging is worth the investment depends on your home’s condition, your desired sale timeline, and your local market. Before committing to professional help or cosmetic upgrades, reach out for a free consultation. We can help you assess the best path forward and connect you with the best professionals to make it happen.

The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

References:

1. National Association of Realtors –
   https://www.nar.realtor/sites/default/files/documents/2023-profile-of-home-staging-03-30-2023.pdf 
2. Homelight –
   https://www.homelight.com/blog/how-to-clean-out-a-house-to-sell/ 
3. National Association of Realtors –
   https://www.nar.realtor/blogs/styled-staged-sold/6-things-home-stagers-wish-real-estate-pros-knew-about-staging 
4. Coldwell Banker –
   https://blog.coldwellbanker.com/home-staging-mistakes-to-avoid/  
5. Zillow –
   https://www.zillow.com/learn/how-to-stage-house-to-sell/ 
6. HGTV –
   https://www.hgtv.ca/common-renovating-costs-flooring/ 
7. House Beautiful –
   https://www.housebeautiful.com/design-inspiration/real-estate/a61712558/how-to-make-your-house-sell-over-asking-according-to-professional-home-stagers/ 
8. HGTV –
   https://www.hgtv.com/lifestyle/real-estate/15-secrets-of-home-staging-pictures 
9. Spruce Magazine –
   https://www.sprucemagazine.ca/the-real-deal-on-curb-appeal/ 
10. HGTV –
    https://www.hgtv.ca/landscaping-ideas-to-increase-property-value/
11. National Association of Realtors –
    https://cdn.nar.realtor//sites/default/files/documents/2023-03-remodeling-impact-outdoor-features-03-17-2023.pdf 
12. RE/MAX –
    http://download.remax.ca/PR/REMAXHomeStagingGuide.pdf
13. Martha Stewart –
    https://www.marthastewart.com/2126982/how-to-layer-your-lighting
14. Martha Stewart –
    https://www.marthastewart.com/outdated-lighting-trends-8421744

A recent survey found that 25% of Canadian homeowners have a renovation project planned in the coming year.¹ If you’re among them, you know that embarking on home improvements can be both exciting and daunting. According to home services platform HomeStars, the national median renovation budget is around $12,000, so you’re probably investing a significant amount—and you’ll want to ensure your project’s success.²

One of the most critical decisions you’ll make is choosing the right contractor to bring your vision to life. However, many homeowners fall into common pitfalls during this process, leading to stress, financial strain, and subpar results. 

In this guide, we’ll explore seven mistakes to avoid when hiring a contractor to ensure your project runs smoothly from start to finish.

1. SKIPPING THE RESEARCH PHASE

A common mistake homeowners make is rushing into hiring a contractor without proper research. But to ensure the success of your renovation, it’s crucial to take time to meet with multiple candidates and educate yourself on best practices surrounding your project.

If you bypass the interview process, you miss the opportunity to evaluate different approaches, pricing, and expertise. This can result in overpaying or hiring someone whose skills and vision do not align with your needs.

Neglecting to research the processes and steps involved can also leave you vulnerable. Not only does it make it more difficult to ask the right questions, but you also risk hiring unqualified professionals or settling for subpar work.

What To Do Instead:

• Educate Yourself — Read up or watch YouTube videos to gain a better understanding of best practices surrounding your project. 
• Interview Multiple Contractors — Search for and interview at least three contractors who specialize in the type of work you need.
• Ask Specific Questions — Inquire about the processes and materials each candidate will utilize.
• Seek Recommendations — Get referrals from trusted sources like friends, neighbours, and real estate professionals. We’d be happy to share a list of referrals!

2. CHOOSING BASED SOLELY ON PRICE

Once you’ve interviewed candidates and reviewed their proposals, it’s time to choose your favourite. But don’t make the mistake of rushing to the lowest bid.

While it’s natural to want to save money, selecting a contractor based entirely on price can be a costly mistake. Extremely low bids may indicate cut corners, subpar materials, or hidden costs that will surface later.

When evaluating bids, make sure you’re comparing “apples” to “apples” and considering factors like quality, timeline, and scope. Are they fully licensed and insured? How long have they been in business? Do they warranty their work?³

What To Do Instead:

• Consider Overall Value — In addition to price, look at experience, reputation, and quality of work.
• Ask for Detailed Breakdowns — Understand what’s included and what’s not in each bid.
• Be Wary of Low Bids – Bids that are significantly lower than others may be too good to be true.
• Invest in Quality — Remember that quality work comes at a fair price, and investing in a reputable contractor can save you money in the long run by avoiding costly mistakes or repairs.

3. NEGLECTING TO CONFIRM CREDENTIALS & INSURANCE

When you’ve established a good rapport with a contractor, it’s natural to want to believe the best in them. But neglecting to check references and verify licensing and insurance could come back to haunt you.⁴

Hiring an untrained or unlicensed contractor puts you at risk for safety and code violations, not to mention shoddy workmanship. Without proper insurance, you could be left footing the bill for costly repairs, legal issues, or even medical bills if someone gets hurt on the job.⁴ 

Skipping out on a reference check can be equally problematic. It’s your best opportunity to ensure that their promises and your expectations line up with reality.

What To Do Instead:

• Verify Licensing and Insurance — Confirm that the contractor is licensed according to local requirements and verify insurance, including general liability and workers’ compensation coverage.
• Check Reviews — Read online reviews and confirm that the business is in good standing with the Better Business Bureau and other relevant trade groups.
• Call References — When contacting references, ask questions and request to see photos of the contractor’s completed projects.
• Visit Job Sites — If possible, visit a current job site to observe the contractor’s work in progress and interaction with clients.

4. PROCEEDING WITHOUT A WRITTEN AGREEMENT

A handshake deal might seem friendly and straightforward, but it’s a recipe for misunderstandings and potential legal issues. Verbal agreements are difficult to enforce and leave room for miscommunication about project scope, timelines, and costs.⁵

Instead, you should have a signed contract in place before any work begins.⁶ Paperwork can be tedious, but don’t skip the important step of carefully reading over your contract, asking questions, and pushing back on any terms that make you uncomfortable.

Don’t forget to ask for payment receipts and document any change orders or issues that arise throughout the project, as well.

What To Do instead:

• Insist on a Written Contract — Outline all aspects, including scope, materials, timeline, payment schedule, warranty information, and a process for handling change orders.
• Understand and Agree — Don’t sign anything until you fully understand and agree to all terms.
• Keep Documentation — Once you’ve made your final payment, request a receipt marked “Paid in Full” to keep on file for legal and tax purposes.

5. PAYING TOO MUCH UPFRONT

Another common misstep is paying a large sum upfront or the full cost of the project before the work is completed. This can leave you vulnerable if the contractor fails to complete the work or disappears with your money. 

Upfront deposits shouldn’t exceed 10% to 15% of the total project cost.⁷ The remaining payments should be tied to progress milestones outlined in your contract. 

Legal experts caution against paying a greater share of the project cost than the percentage of the work that’s been completed.⁸ If you end up dissatisfied with the outcome, you’ll have much less leverage if you’ve already paid.

What To Do Instead:

• Be Cautious — Avoid contractors who demand large upfront payments or cash-only deals.
• Establish a Payment Schedule — Tie payments to project milestones and stick to them.
• Pay Only Upon Completion — Never pay in full until the project is completed to your satisfaction and all required inspections have been passed.

6. FAILING TO GET NECESSARY PERMITS

Skipping the permit process might seem like a way to save time and money, but it can lead to serious consequences. Without the proper permits, you risk running afoul of local building codes and regulations, which could result in fines, forced removal of work, or even legal action.⁹ 

Additionally, unpermitted work might compromise the safety and structural integrity of your home, potentially leading to hazardous conditions or diminished resale potential. Homeowners may also find themselves without recourse if issues arise later, as insurance companies often exclude coverage for unpermitted renovations.⁹ 

If you’re under the jurisdiction of a condominium or homeowners’ association, don’t forget to check its bylaws, as well. You may need prior approval to make modifications to your home or yard. Ignoring these restrictions can lead to fines or delays—so don’t skip this important step.¹⁰

What To Do Instead:

• Discuss Permits — Talk about permits and association requirements with your contractor before work begins.
• Include Permits in the Contract — Ensure that obtaining necessary permits and approvals is part of your contract.
• Verify Inspections — Make sure all required inspections are completed during the project.
• Keep Records — Keep copies of all permits and inspection reports for your records.

7. IGNORING RED FLAGS AFTER THE PROJECT HAS STARTED

Sometimes a contractor can check all the right boxes—until the work begins. Unfortunately, red flags that are spotted mid-project can be especially challenging to address.

If you’ve already paid a substantial amount or had a portion of your home demolished, you may feel trapped in a bad situation. However, if there are major problems that the contractor is unwilling to address, ignoring them can make things exponentially worse.

Don’t be afraid to seek legal or professional advice if issues persist. Taking immediate, informed, and decisive action is crucial to safeguarding your investment and ensuring the project’s ultimate success.¹¹

What To Do Instead:

• Review Your Contract — Make sure you thoroughly understand your rights and the agreed-upon terms.
• Document Issues — Keep detailed records, including dates, descriptions of problems, photographs of subpar work or materials, and any communications with the contractor.
• Communicate Professionally — Arrange a meeting to discuss your concerns, ensuring you remain calm and professional while clearly expressing your expectations.
• Request a Resolution Plan — Ask for a plan to address the issues, set a timeline for resolution, and put everything in writing to ensure you’re both on the same page.
• Seek Advice — If the contractor is uncooperative or dismissive, consider seeking advice from a legal professional.

BOTTOMLINE

Hiring the right contractor is crucial to the success of your home improvement project. By avoiding these common mistakes, you can significantly increase your chances of a smooth and successful renovation experience. 

Remember, taking the time to thoroughly vet contractors, communicate clearly, and plan carefully will pay off in the long run. Your home is likely your most significant investment, and it deserves the care and attention that comes with making informed, thoughtful decisions about who works on it.

If you’d like help finding a contractor or want to know how planned improvements could impact your home’s resale potential, reach out for a free consultation!

The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. FinanceIt –
   https://www.financeit.io/2024-canadian-homeowner-reno-report/
2. HomeStars –
   https://go.homestars.com/l/209902/2023-09-19/3knlc8/209902/16954201083uIFaZeZ/Reno_Report___2023_final.pdf
3. Canadian Home Builders’ Association –
   https://www.chba.ca/finding-a-renovator/
4. The Globe and Mail –
   https://www.theglobeandmail.com/life/home-and-garden/before-starting-work-check-your-liability/article571895/
5. Forum Law –
   https://www.forumlaw.ca/do-verbal-contracts-hold-up-in-court/
6. Canadian Home Builders’ Association –
   https://www.chba.ca/legal/
7. HGTV Canada –
   https://www.hgtv.ca/kenny-brain-advice-on-hiring-a-general-contractor/
8. The Washington Post –
   https://www.washingtonpost.com/home/2024/07/08/how-to-find-good-honest-contractor/
9. HUB SmartCoverage –
   https://www.hubsmartcoverage.ca/blog/what-do-i-risk-if-i-dont-get-permit-during-renovations/
10. Condo Strategies –
    https://condostrategis.ca/en/blogue/condo-renovation/
11. Angi –
    https://www.angi.com/articles/how-complain-contractors-effectively.htm

With home prices and rates still relatively high, securing a mortgage can feel daunting––even to the most experienced borrowers. But don’t let that deter you: If other homebuyers’ experiences are any indication, odds are you’ll eventually find a home loan that works well for you. 

In fact, research from the Real Estate and Mortgage Institute of Canada (REMIC) found that even after the Bank of Canada pushed rates to a 22-year high, most homeowners still felt satisfied with their mortgages. According to an online survey, only a small fraction regretted the mortgage that they’d chosen because they felt “locked in at ‘a bad rate.’” Fewer than a third said they would have picked another property if they’d known their mortgage rates would climb.¹ 

Now that the Bank of Canada’s policy rate has finally moved lower, this is an ideal time to compare mortgages and get pre-qualified so you can confidently scout for deals. That way, you’ll be ready to jump fast if you spot an opportunity. 

To help you get started, we’ve rounded up four of the most important factors to consider when narrowing your list of potential mortgage options.

1. Your Credit Score

That three-digit number that credit scoring companies like FICO assign not only influences your interest rate, but it also helps determine the type of mortgage you can get.² 

The best-priced mortgages typically go to borrowers with scores of at least 720 or more. But if your credit score is lower, you still have options.³ 

To qualify for an insured mortgage with less than 20% down, you or a co-borrower will likely need at least a 600 credit score, unless you’re a Canadian newcomer. Canada Mortgage and Housing Corporation (CMHC) reduced the minimum required score for a typical CMHC-insured mortgage from 680 to 600, but the private insurers Sagen and Canada Guaranty Mortgage set their own thresholds and may require a higher score.^4,5,6

New Canadians, on the other hand, may qualify for an insured mortgage even if they have little to no Canadian credit history. Many conventional lenders offer special loans called “newcomer mortgages” to immigrants who have landed within the past five years.⁷ 

However, if your score is low because you have a history of missed payments or a high credit utilization ratio (which is the amount of debt you have relative to your credit limit), then you may not qualify for a conventional mortgage and may need to look to alternative lenders.⁸  

Nonbank lenders known as “B lenders” specialize in serving nontraditional borrowers, such as self-employed homebuyers, so their standards are usually more relaxed. You’ll probably still need a minimum score of around 600, though, as well as a down payment of 20% or higher.⁹ 

If your score is well below 600, then your options are more limited. Some home sellers offer owner-financed mortgages. Alternatively, private investors who specialize in subprime loans (known as “C lenders”) may work with you.¹⁰ But if you can afford to wait for a higher score, you may be better off paying down your existing debt instead. The interest you save with a more competitively priced loan could enable you to buy a more desirable home.¹¹ 

2. Your Income and Expenses

The amount of money you make, as well as how much you owe, will also influence your mortgage options. 

Lenders like to see that you still have plenty of income left over after paying your expenses. So when evaluating your creditworthiness and ability to pass a stress test, a mortgage lender will look at your current pay and outstanding debts, like student loans and credit card balances.¹² 

They will also compare your expected income to the total amount of debt you’ll carry once you’ve bought the home. This is called your total debt service (TDS) ratio and lenders consider it a key indicator of whether you can afford a particular mortgage.¹² 

The Financial Consumer Agency of Canada caps the recommended TDS ratio for a mortgage from a federally regulated entity, such as a bank or federal credit union, at 44% of a borrower’s income. However, some nonbank lenders may still work with you if your TDS ratio is higher.¹³ 

In addition to outstanding debts, lenders take into account other expenses unique to a home, such as property taxes, heating costs, and 50% of condo fees, if applicable. To pass Canada’s mortgage stress test (which is necessary for any federally regulated lender), your total housing costs should eat up no more than 39% of your qualifying income. This is called your gross debt service (GDS) ratio, and it’s a key figure to keep in mind when comparing potential homes.¹² 

In general, the lower your TDS and GDS ratios are, the better your odds will be of securing a competitive mortgage. That’s especially true now that Canada’s top bank regulator, the Office of the Superintendent of Financial Institutions (OFSI), has announced more stringent rules for federally regulated lenders that work with “highly indebted” mortgage borrowers.¹⁴ 

Unregulated lenders have more flexibility and so may be more forgiving. However, they could still require you to pass a mortgage stress test.15 

3. Your Expected Down Payment

The size of your down payment will also impact the type of mortgage you can get. 

You don’t have to put down 20% to qualify for a competitively-priced mortgage from a conventional lender. (In fact, interest rates are often lower for insured mortgages than they are for uninsured ones.¹⁶) But you will need a significant amount.¹⁷

The lowest down payment amount you can get away with is usually 5%. However, depending on your income and credit history, a lender may require more to fund the home you want.¹⁷ 

Since conventional mortgages with down payments below 20% automatically require mortgage default insurance, you’ll also want to take into account the added expense. Depending on the size of your down payment, it could cost you as much as 0.6% to 4% of your loan amount.¹⁸

In most cases, mortgage amortization will also be capped at a maximum of 25 years if you opt for an insured mortgage. A shorter amortization schedule, such as a 10 or 15-year mortgage, will save you money on interest. However, your monthly mortgage payment will also be higher.¹⁹ 

With an uninsured mortgage, by contrast, you could extend your mortgage amortization to 30 years, or possibly even longer with some mortgage lenders. That could help make your monthly payments more affordable. But to be approved, you’ll typically need substantial home equity.²⁰ 

If you’re a first-time homebuyer, you’ll have even more options. For example, you may be able to get a 30-year uninsured loan if you buy a brand-new property.²¹ 

Keep in mind, though, that mortgages with smaller down payments not only cost more over time. They may also be harder to get––especially if there’s a major gap between your qualifying income and typical home prices. In that case, you’ll likely need a healthy down payment to help make up the difference. An extra big down payment above 25% to 35% could also help you qualify for mortgages you wouldn’t get otherwise.¹⁷ 

4. Your Lifestyle and Risk Tolerance

In addition to your budget, one of the most important factors to consider when comparing mortgage options is your temperament. The key to finding the right mortgage for you is to look for a loan that will fit comfortably into your daily life. For example, we recommend asking yourself questions such as: Are you a natural risk taker, or do you prefer firm plans and predictability? Can you afford a bigger mortgage payment if interest rates increase, or are your anticipated home expenses already stretching your monthly budget? 

Similarly, consider your ideal payment schedule. If you like the idea of making lots of extra payments and paying off your mortgage early, then you may prefer an open mortgage. However, a closed mortgage will typically offer a lower rate.²²   

Term lengths and mortgage rates are also important factors to consider. But given the economy’s uncertainty, it can be tricky to predict the most optimal mortgage type.  

For example, choosing a shorter-term mortgage, such as a three-year fixed rate mortgage, or opting for a more flexible variable rate one can give you some valuable wiggle room in case interest rates decrease. But if rates unexpectedly pick up, you could be caught off guard by a higher monthly payment. Term lengths can also impact the mortgage rates you’re offered.²³

Five-year fixed rate mortgages, on the other hand, may feel more comfortable to risk-averse borrowers. They are also the most common type of mortgage in Canada and are often a great choice for those who prefer to set-it-and-forget-it. But locking yourself into such a long mortgage could also be risky. With a longer term mortgage, you not only risk overpaying rates go down, you also risk getting stuck with a loan that requires a big multi-year commitment.^{23, 24}  

BOTTOMLINE

Regardless of the loan you choose, it pays to shop around and carefully compare terms. According to a recent survey by Mortgage Professionals Canada, most homebuyers risk leaving money on the table by failing to negotiate and sticking with the first interest rate offer they receive.²⁵ 

Fortunately, we have a vetted list of mortgage professionals who can explain your options, answer your questions, and help you find the best loan to meet your needs. We can also develop a custom plan for securing a great home that fits your budget. Reach out when you’re ready to get started. 

The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. Real Estate and Mortgage Institute of Canada (REMIC) –
   https://www.newswire.ca/news-releases/real-estate-regrets-over-a-third-of-canadians-regret-their-current-mortgage-situation-834450472.html
2. Globe and Mail –
   https://www.theglobeandmail.com/investing/personal-finance/household-finances/article-how-mortgage-shoppers-can-weave-their-way-through-the-credit-score/ 
3. Rates.ca –
   https://rates.ca/resources/does-your-credit-score-affect-your-mortgage-rate 
4. CMHC –
   https://www.cmhc-schl.gc.ca/media-newsroom/notices/2021/cmhc-reviews-underwriting-criteria 
5. Sagen –
   https://www.sagen.ca/ups/product-specific-underwriting-guidelines/ 
6. Canada Guarantee –
   https://www.canadaguaranty.ca/products-at-a-glance/ 
7. Wowa –
   https://wowa.ca/newcomers-mortgage
8. MPA Magazine –
   https://www.mpamag.com/ca/mortgage-industry/guides/whats-the-right-credit-score-to-buy-a-house-in-canada/443717 
9. Nerdwallet –
   https://www.nerdwallet.com/ca/mortgages/understanding-b-lender-mortgages 
10. Ratehub –
    https://www.ratehub.ca/private-mortgage-loans 
11. Ratehub –
    https://rates.ca/resources/does-your-credit-score-affect-your-mortgage-rate
12. Financial Consumer Agency of Canada –
    https://www.canada.ca/en/financial-consumer-agency/services/mortgages/preparing-mortgage.html 
13. Nerdwallet –
    https://www.nerdwallet.com/ca/mortgages/what-are-debt-service-ratios 
14. Office of the Superintendent of Financial Institutions –
    https://www.osfi-bsif.gc.ca/en/news/loan-income-limit 
15. Lowest Rates –
    https://www.lowestrates.ca/resource-centre/mortgage/difference-between-a-lenders-and-private-mortgage-lenders-canada 
16. Globe and Mail –
    https://www.theglobeandmail.com/investing/personal-finance/household-finances/article-insurance-mortgage-save-money/ 
17. MPA Magazine –
    https://www.mpamag.com/ca/mortgage-industry/guides/down-payment-on-a-house-in-canada-what-you-need-to-know/435534 
18. Ratehub –
    https://www.ratehub.ca/cmhc-mortgage-insurance 
19. Financial Consumer Agency of Canada –
    https://www.canada.ca/en/financial-consumer-agency/services/mortgages/mortgage-terms-amortization.html 
20. Global News –
    https://globalnews.ca/news/9815405/mortgage-amortization-risks-costs-interest-rate-canada/ 
21. MPA Magazine –
    https://www.mpamag.com/ca/mortgage-industry/market-updates/first-time-buyers-can-save-thousands-with-cmhcs-30-year-mortgages-says-ratehub/493319 
22. Financial Consumer Agency of Canada –
    https://www.canada.ca/en/financial-consumer-agency/services/mortgages/choose-mortgage.html 
23. MoneySense –
    https://www.moneysense.ca/spend/real-estate/mortgages/3-years-versus-5-year-mortgage-term/ 
24. MPA Magazine –
    https://www.mpamag.com/ca/mortgage-industry/guides/the-types-of-mortgage-in-canada-you-can-choose-from/436516
25. Canadian Mortgage Trends –
    https://www.canadianmortgagetrends.com/2024/06/canadians-leaving-money-on-the-table-by-not-negotiating-their-mortgage-renewal-rates

Whether you’re putting your home on the market in a few weeks or a few years, strategic upgrades can make all the difference. But you don’t have to embark on a major remodel to make a significant improvement.

Even minor updates can have a big impact on your home’s aesthetic, and certain renovations can even boost its future sale price.

From curb appeal to interior updates, here are seven weekend projects that will enhance your home’s current charm and long-term value.

1. Freshen Your Front Door

Is your front door looking a little tired? A new coat of paint can make your home more inviting to today’s guests and tomorrow’s buyers.

But before you grab that paintbrush, think carefully about your choice of hue. According to a recent study, the colour of your front door can boost—or lower—your home’s sale price by thousands of dollars.¹

Cement gray, for instance, was found to decrease purchase offers by an average of $3,365. Going too bold can also deter home shoppers. The safest bets? Classic black or a mid-tone brown are proven winners.¹

Need help choosing the perfect paint or stain for your front door? We’d be happy to offer advice or refer you to a design professional for assistance.

2. Upgrade Your Hardware and Lighting

It’s easy to overlook dated cabinet pulls or dingy light switches in your own home. But those seemingly minor details can leave a bad impression on visitors.

Swapping out old hardware for modern alternatives can easily and affordably elevate your space. New cabinet handles, for example, are relatively inexpensive and require just a few minutes and a screwdriver to install. To maximize the longevity of your update, consider classic shapes and finishes like brass knobs or nickel cup pulls.²

Take a look at your light fixtures, too. Try replacing an out-of-style chandelier with a more contemporary option. Even just updating your lampshades and lightbulbs can create a brighter, more welcoming space.  Additionally, many experts agree that high-quality lighting can show off your property’s best features when it comes time to sell.³

Uncomfortable changing a light fixture yourself? Contact us for a referral to a licensed electrician for help.

3. Update Your Bathroom Fixtures

Bathrooms can show their age quickly, but a few inexpensive updates can take years off in just a few hours. And since many buyers will be more drawn to a home that feels clean and modern, even small changes can make a big difference. 

According to one U.S.-based study, for every dollar you spend on minor cosmetic upgrades—like swapping out the bathroom mirror, upgrading hardware, or refinishing cabinets—you’ll see a $1.71 increase in your home’s value.⁴ 

Bathroom hardware is a great place to start. Consider updating your faucets and showerheads (we recommend lower-flow options to save money and the environment), and don’t forget about towel racks, toilet paper holders, and any other fixtures that look worn or discoloured.⁵  

According to hardware manufacturer Delta, black finishes are currently trending. Spa-like upgrades, like steam showers and luxury hand showers, are also in high demand.⁶

If your existing vanity is in poor condition, installing a new one is a slightly bigger project, but it has a huge impact on the look and feel of the room. Reach out for a list of retailers who carry high-quality but affordable prefabricated options.

4. Give Your Kitchen Cabinets a Makeover

A recent study found that a kitchen renovation can boost a home’s sale price by up to 20%, making it one of the most valuable home improvement projects.⁷ So, it’s no surprise that an updated kitchen is a top priority for Canadian homeowners and potential buyers alike.⁸ 

If your kitchen cabinets are from another era, that’s probably the first place you’ll want to start. Fortunately, you don’t need to commit to the hassle and expense of installing new cabinets if your current ones are in good shape. Instead, consider painting them. 

Not only is it more affordable and eco-friendly than replacement, but Better Homes and Gardens reports that this option typically offers a greater return on investment.⁹ When it comes to choosing the right colour, warm neutrals and shades of green and blue are especially on-trend.¹⁰

Thinking about painting your cabinets yourself? Be sure to plan in advance and block out at least a couple of days for the project. You’ll need to take off all your cabinet doors and hardware and thoroughly cover your kitchen appliances and counters. You’ll also need to wait for the doors to dry before reassembling your kitchen.¹¹ 

If you’re not confident in your painting skills, hiring a professional will still be far less expensive than installing new cabinets. We’re happy to refer you to capable painters in our network.

5. Look at Your Landscaping

First impressions matter, and putting some work into your home’s exterior can make a big difference in how your guests and neighbours view it. Curb appeal can also make or break a potential buyer’s perception of your home—and significantly impact their offer. 

According to a study by the Journal of Real Estate Finance, curb appeal can account for 7% of a home’s sale price.¹² And in some areas of Canada, it’s among the top three renovations offering the highest return on investment.¹³

One of the best ways to improve curb appeal is through landscaping—and it doesn’t have to be elaborate. First and foremost, focus on keeping things neat, tidy, and welcoming. Mow your lawn, refresh any mulch, prune overgrown shrubs, and add pops of colour with flowers. To take things up a notch, add outdoor lighting and plant perennial flowers along the sides of your walkway. 

When you’re ready to get started, reach out for a list of our favourite local garden centres where you can find all the necessary supplies.

6. Refinish Your Wood Floors

For many buyers, wood floors are a huge selling point. Unfortunately, they also tend to get scuffed and worn over time, especially if you have kids or pets. 

The good news? If your wood floors could use a touch-up, it’s well worth the time and cost. According to one U.S.-based study, it’s the project that pays off the most in terms of resale value, with an average 147% return on investment.¹⁴

If you have a few days to devote to your floors, you can rent the necessary equipment from a local hardware store. While you’re there, pick up some basic supplies, like a putty knife, paintbrushes, sandpaper, and stain.¹⁵ And if you want to modernize your space, opt for a lighter wood tone, which is the current trend.¹⁶

Of course, we’re also happy to provide the names of trusted professionals who can tackle the work for you.

7. Clean or Replace Your Grout

Let’s face it: Whether it’s on a kitchen floor or a bathroom wall, grout gets grimy over time, even with regular cleaning. Fortunately, refreshing your grout is a relatively simple and affordable project that can yield impressive results.

According to Apartment Therapy, grout that’s in poor condition is often one of the first things a potential buyer notices when they tour a bathroom.¹⁷ Fresh, clean grout, on the other hand, makes your bathroom sparkle—and that can pay off in a big way in terms of buyer’s perceptions. 

If your grout is simply stained, a focused cleaning session can make a big difference. Try a specialized product or a simple mix of baking soda, water, and hydrogen peroxide.17 If the grout is cracked, crumbling, or stained beyond repair, it’s time to replace it. Luckily, the right tools make that a very doable DIY project, even if it can get messy—and it’s a lot easier and less expensive than retiling.¹⁸

No time to tackle it yourself? Reach out for a recommendation of a pro who can help.

CHOOSING THE PROJECT THAT’S RIGHT FOR YOU

Embarking on home improvements can be exciting, but it’s essential to choose projects that align with your goals, budget, and skill level. Whether you’re preparing to sell your home or simply want to enhance its value, there are projects to suit every homeowner. 

If you’re unsure where to start, don’t hesitate to reach out for personalized advice and recommendations. With the right approach, you can unlock your home’s full potential and enjoy the rewards for years to come.

The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. Zillow –
   https://www.zillow.com/learn/what-color-paint-front-door/ 
2. Martha Stewart –
   https://www.marthastewart.com/kitchen-hardware-trends-8563764
3. Realtor.ca –
   https://www.realtor.ca/blog/lighting-tips-to-help-sell-your-home/5375/1363
4. Zillow –
   https://www.zillow.com/learn/roi-for-bathroom-remodel/
5. Forbes –
   https://www.forbes.com/home-improvement/bathroom/easy-quick-bathroom-updates/ 
6. Delta Canada –
   https://www.deltafaucet.ca/design-innovation/inspiredliving/6-bathroom-trends-for-2024#
7. Royal LePage –
   https://royallepageleadingedge.ca/just-released-royal-lepages-home-renovation-roi-report/
8. Zolo –
   https://www.zolo.ca/blog/what-home-buyers-want
9. Better Homes and Gardens –
   https://www.bhg.com/kitchen/remodeling/planning/kitchen-upgrades-cost-value/ 
10. House Beautiful –
    https://www.housebeautiful.com/room-decorating/colors/g46105350/kitchen-paint-color-trends-2024/
11. HGTV –
    https://www.hgtv.com/design/rooms/kitchens/best-way-to-paint-kitchen-cabinets 
12. Spruce Magazine –
    https://www.sprucemagazine.ca/the-real-deal-on-curb-appeal/
13. HGTV Canada –
    https://www.hgtv.ca/home-renovations-highest-return-on-investment-2021/
14. National Association of Realtors –
    https://www.nar.realtor/magazine/real-estate-news/stub-for-148394
15. Architectural Digest –
    https://www.architecturaldigest.com/story/refinishing-hardwood-floors 
16. Houzz –
    https://www.houzz.com/magazine/5-new-trends-in-flooring-for-2024-stsetivw-vs~173560747
17. Apartment Therapy –
    https://www.apartmenttherapy.com/outdated-bathroom-features-37131219
18. Better Homes and Gardens –
    https://www.bhg.com/how-to-regrout-tile-7554710

May is “Moving Month,” as designated by the Better Business Bureau and Canadian Association of Movers.¹ It also happens to kick off the peak moving season, which generally runs from May through September.² 

According to a survey by Statistics Canada, respondents listed their top motivations for moving as “bigger or better housing” (28.0%) or “a more desirable neighbourhood” (16.8%).³ But no matter the reason, a relocation can feel stressful and overwhelming.

If you’re one of the many Canadians planning to relocate in the coming months, this guide is for you. We’ve outlined six steps to make your move easier. Our hope is to alleviate some of the hassle of relocating—so you can focus on the adventure ahead!

1. CHOOSE A COMMUNITY

When planning a relocation, one of the first things you’ll need to decide is where you want to live. This could be as broad as an area of town, or you might narrow it down to a specific neighbourhood. 

Depending on your priorities, you may want to start with communities that are close to work, friends, family and/or your preferred schools. If you commute, map out the route and check on the availability of public transportation, if you plan to use it. Then, if possible, try out the commute during rush hour to see what it’s like.

Next, it’s crucial to consider housing prices and cost of living so you don’t set your sights on an area that you can’t realistically afford. Don’t forget to look up local crime statistics to ensure the community is safe. Finally, visit any neighborhoods you’re considering to gauge the vibe and observe characteristics, like pedestrian accessibility, retail offerings, and population density. 

Researching the ins and outs of various communities can be a time-consuming and sometimes difficult process, but we’re here to help! Give us a call to discuss your needs and aspirations, and we’d be happy to provide our recommendations of neighbourhoods that may be a good fit for you.

2. FIND YOUR NEW HOME

Once you’ve chosen an area to settle, the next decision you’ll need to make is whether you want to rent or buy a home. Renting can be a good option if you’re new to town, especially if you’re still saving up for a downpayment or you’re not ready to commit to a permanent location. Benefits include flexibility, less maintenance, and lower upfront costs. 

But, if you want to avoid multiple moves—and you’re financially able—there’s no reason to delay the benefits of buying a home. Not only has homeownership been shown to increase your quality of life, but it’s also one of the best ways to protect and grow your wealth.⁴ 

The value of real estate will typically appreciate over time, and owners can build equity as they pay down their mortgage. Homeowners and buyers may also be able to benefit from certain tax incentives.⁵

But, perhaps most importantly, homeownership offers stability, as property owners aren’t subject to the mercy of their landlords each year. According to Rentals.ca, average asking rent prices in Canada rose nearly 30% between February 2021 and February 2024.⁶ In contrast, many homeowners enjoyed a fixed mortgage payment during that same period.

If you decide to purchase a home and you choose us to represent you, you can rest easy knowing that we will be there for you throughout the entire journey, working hard to make the experience as easy as possible. Or, if you’re moving to a new area, we can refer you to a local agent in our network who shares our commitment to client service.

For more information about buying a home and a timeline of the home buying process, reach out to request a free copy of our Home Buyer’s Guide.

3. SELL OR RENT OUT YOUR CURRENT HOME

If you already own a home, you’ll also need to start the process of either selling it or renting it out. We can help you evaluate your options based on current market conditions.

In many cases, our clients choose to sell so that they can use the equity in their current home to make a downpayment on their next one. But selling your home while simultaneously buying a new one can feel daunting to even the most seasoned homeowner. 

Here are some of the most frequent concerns we hear from clients and our tips for addressing them:

• What will I do if I sell my house before I can buy a new one?

Check out furnished apartments, vacation rentals, and month-to-month leases. You may even find that a short-term rental arrangement can offer you an opportunity to get to know your new neighbourhood better.

• What if I get stuck with two mortgages at the same time?

Ask us about conditions that can be included in your contracts. For example, it’s possible to add a condition to your purchase offer that lets you cancel the contract if you haven’t sold your previous home. We can discuss the pros and cons of these types of tactics and what’s realistic given the current market dynamics.

• What if I mess up my timing or burn out from all the stress?

Enlist support as early as possible. It’s our job to guide you and advocate on your behalf, so don’t be afraid to lean on us throughout the process. We’re here to ease your burden and make your move as seamless and stress-free as possible.

In addition to answering your questions, we’ll give you an idea of how much equity you have in your current home so you know how much you can afford to spend on your new one. Part of that process will include a plan to maximize your current home’s sale price. We utilize a proven strategy that’s designed to achieve an efficient sale while boosting your profits.

For a thorough breakdown of the technologies and marketing activities we use to get you the most money for your home sale, ask us for a copy of our Property Marketing Plan.

4. PLAN YOUR DEPARTURE

Preparing for a move can be both exhilarating and exhausting. Fortunately, you don’t have to do everything in a day. You don’t have to do it all alone, either. When you work with us, we’ll be there every step of the way to help you navigate this process with ease. To that end, here are some of our top tips to help you plan for your departure.

If you have children, we typically advise that you start by sharing news about the move in an age-appropriate way. If possible, take them on a tour of your new home and neighbourhood. This can alleviate some of the mystery and apprehension around the move. Don’t forget to contact their current and future schools, as well, to arrange for transfer and enrollment.

Next, you’ll want to start packing. To maintain order and make unpacking easier, we recommend packing one room at a time. Clearly label each box with its contents and the room it belongs to. And remember, there’s no use taking extraneous items with you. Use this opportunity to purge or donate possessions that you no longer need.

If you will be using a moving company, start researching and pricing your options. Make sure you’re working with a reputable service, and try to avoid paying a large deposit before your belongings are delivered. Once you have a moving date scheduled, you should arrange to have your utilities turned off or, if possible, transferred into the new homeowner’s name.

Finally, if you will be leaving friends or family behind, schedule get-togethers before your departure. The last days before moving can be incredibly hectic, so make sure you block off some time in advance for proper goodbyes.

Parting with a home and community you love can be hard, so try to stay focused on the exciting opportunities ahead. Feel free to reach out for referrals to moving companies, packing services, housekeepers, or any other resources that will make your move easier. We’d love to help.

5. PREPARE FOR YOUR ARRIVAL

While it’s tempting to get wrapped up in the departure details, don’t forget to plan ahead for your arrival at your new home. To make your transition go smoothly, you should start preparing well before moving day. Here are a few pro tips to help you get started.

First, think about the utilities that will need to be turned on, especially essentials like water, electricity, and gas. Be sure to notify any relevant parties—banks, credit cards, subscriptions, etc.—about your change of address so you don’t miss any important bills, notices, or deliveries. You’ll also want to notify the postal service and submit a mail forwarding request.

If you plan to remodel, paint, or install new flooring, it’s often easier to have it done before you bring in all of your belongings. You may also want to have the house professionally cleaned before moving in. 

Don’t forget about the items you’ll need (think toothbrush, towels, bedsheets) to make it through the first night in your new home. Designate some boxes with “Open Me First!” labels. (Pro tip: Keep a tool kit front and center for all that reassembling.) 

Finally, create a list of all the restaurants you want to try and places you want to visit around your newly purchased home. Having a to-explore list keeps everyone’s spirits high and gives you starting points to settle into the neighbourhood.

If you’re relocating to our area, we can help! We offer “VIP Relocation Assistance” to all of our clients. Contact us for a list of our favourite restaurants, retailers, cleaning services, contractors, and more!

6. GET SETTLED IN YOUR NEW SPACE

Studies show that moving can lead to feelings of loneliness and depression.⁷ However, there are ways to combat these negative effects. Here are a few strategies to help you and your family get settled in the new space.

If you have children, start by unpacking their rooms first. Seeing familiar items will help ease their transition and establish a “safe zone” where they can hang out away from the chaos of moving day. If possible, let them have a say in how their room is decorated.

Pets can also get overwhelmed by a new, unfamiliar space. Let them adjust to a single room first, which should include their favourite toys, treats, food and water bowl, and a litter box for cats. Once they seem comfortable, you can gradually introduce them to other rooms in the home.

Don’t forget to take care of yourself, too. Try to schedule breaks to get out of the house and investigate your new area. If you travel by foot or bicycle, you’ll gain the mood-boosting advantages of fresh air and exercise. 

You can combat feelings of isolation by making an effort to meet people in your new community. Find a local interest group, take a class, join a place of worship, or volunteer for a cause. Don’t wait for friends to come knocking on your door. Instead, go out and find them.

To that end, make an effort to introduce yourself to your new neighbours, invite them over for coffee or dinner, and offer assistance when they need it. Once you’ve developed friendships and a support system within your new neighbourhood, it will truly start to feel like home.

LET’S GET MOVING

While moving is never easy, these steps offer an action plan to get you started on your new adventure. With a little preparation—and the right team of professionals to assist you—it is possible to have a positive relocation experience.

We specialize in assisting home buyers and sellers with a seamless and “less-stress” relocation. Along with our referral network of moving companies, contractors, cleaning services, interior designers, and other home service providers, we can help take the hassle and headache out of your upcoming move. Give us a call or message us to schedule a free, no-obligation consultation!

The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. Canadian Association of Movers –
   https://www.mover.net/may-is-moving-month
2. United International Removals –
   https://www.unitedremovals.com/canada/best-time-to-move-to-canada/
3. Statistics Canada –
   https://www.statcan.gc.ca/o1/en/plus/3333-canadians-move
4. Canadian Association of Realtors –
   https://www.realtor.ca/blog/health-and-happiness-the-societal-benefits-of-homeownership/20531/1361
5. Turbo Tax –
   https://turbotax.intuit.ca/tips/tax-deductions-canadian-homeowners-need-to-know-about-15718
6. Rentals.ca –
   https://rentals.ca/national-rent-report
7. Psychology Today –
   https://www.psychologytoday.com/us/blog/is-where-you-belong/201607/why-youre-miserable-after-move

From extreme cold to wildfires and floods, the past few years have brought a historic number of devastating climate and weather events to Canada. In 2023 alone, unusually harsh weather and a string of natural disasters caused more than $3.1 billion in insured damages, according to the Insurance Bureau of Canada, making it the fourth most expensive weather year on record.¹ 

These events delivered a huge influx of home insurance claims, and analysts expect the increase in both catastrophes and claims to continue. Adding to the problem, construction labour and supply costs have risen, making it more expensive to repair affected homes. Consequently, homeowners’ insurance rates have surged: In 2024, My Choice Financial reports that premiums are already up 7.66% since last year and are likely to climb further still.^2,3   

In disaster-prone regions, the situation is even more challenging. According to Public Safety Canada, flooding is especially common now, accounting for roughly $2.9 billion a year in residential damages. Yet, a rising number of Canadian homes are located in areas so flood-prone that owners can’t get affordable protection.^4,2

For most homeowners, comprehensive home insurance coverage is crucial for financial security—but massive rate increases can turn a once-affordable home into a financial burden. They can also pose a serious challenge for sellers. Although homebuyers who are willing to risk inadequate coverage may be able to skip optional add-ons, such as flood protection, a standard home insurance policy is still required for most mortgages. In some hard-hit regions, we’re also seeing homes sit longer on the market or decline in value because climate risks are higher.^5,6

But don’t panic! While these broader trends may be out of your control, there’s still plenty you can do to save. Here are our top six strategies to slash insurance premiums while maintaining the protection you need. 

1. SHOP AROUND

Getting multiple quotes is a smart move for many major purchases, including home insurance. We recommend reviewing at least three estimates before you commit to a policy. You can get quotes either by reaching out to insurers directly or by working with an independent insurance broker.⁵ You’ll need to provide detailed information about the property you’re insuring and your claims history.

Make sure you read policies carefully before you choose. Sometimes, a policy can look like a better deal at first glance but turn out to have important coverage gaps. Be sure to consider how much the policy will pay out to repair or replace your home and review caps on personal possession and liability claims. It’s also smart to read reviews from policyholders (Trustpilot is a good place to start) and ratings published by organizations like the Better Business Bureau and J.D. Power. 

For help choosing the right policy, reach out to us for a list of trusted insurance professionals.

2. INCREASE YOUR DEDUCTIBLE

The size of your deductible—which is the amount you pay before your insurance coverage kicks in on a claim—is a major factor in your insurance cost.

A low deductible, such as $500, comes with higher premiums, while a higher deductible, like $2,500 or even $5,000, costs less on a monthly basis. In some cases, you may be able to customize your insurance further by designating a different deductible for add-on coverage.

If you are confident that you have enough in savings to cover that initial outlay if needed, choosing a higher deductible can help you save significantly over the long term. According to Ratehub, raising your deductible from $500 to $5,000, for example, could save you an estimated 15% each year.⁷

3. BUNDLE MULTIPLE TYPES OF INSURANCE

Insurers want to get as much of your business as possible, so most offer significant discounts if you bundle your home and auto insurance, meaning that you package the two policies together. With some insurers, you can get even higher savings by bundling more than home and auto—RV, boat, jewelry, and life insurance are potential options to consider. 

According to Ratehub, insurers typically offer customers who bundle home and auto insurance up to 25% or more in savings on monthly premiums. This approach also has other advantages: It cuts down on your paperwork, and in some cases—like if a storm damages both your home and car—you may be able to pay just one deductible instead of two when you file a claim.⁸ 

However, before you sign on the dotted line, remember strategy #1 and be sure to shop around. In some cases, bundling isn’t the cheaper option, and bundling deals vary between companies. It’s also critical to carefully check that the bundled coverage offers everything you need.

4. ASK ABOUT AVAILABLE DISCOUNTS

Did you know that being a non-smoker might qualify you for a home insurance discount?⁹ Some insurers offer some surprising incentives for policyholders who pose a statistically lower risk of filing a claim. In the case of non-smokers, that’s because of the decreased risk of a home fire.

Some carriers also offer discounts to first-time homebuyers, “mature” homeowners, or affiliated group members, such as college alumni or union workers. Sometimes, you can also save by upgrading your home’s protective systems, paying off your mortgage, or paying your premiums for a full year upfront.⁹ 

Since available discounts vary significantly between insurers, the best strategy is to simply ask a representative for the full list of available discounts so you can see what cost savings might be available to you. 

5. AVOID MAKING SMALL CLAIMS

Worried that your premiums will rise significantly in the future? Try to avoid making a claim unless truly necessary. Many insurers offer discounted rates to policyholders who go a certain number of years without filing a claim, and filing multiple claims often results in big increases. If you file too many, you may even risk nonrenewal of your policy.^10,11

Since the cost of even a small premium increase can add up significantly over time, if you have minor damage to your home—for example, if a few shingles blew off your roof in a windstorm—it may be a wiser long-term financial decision to pay out of pocket instead of filing a claim. 

If the cost of the repair is less than your deductible, it never makes sense to file, and if it’s just slightly above your deductible, it’s also usually best to pay for the repairs yourself. Additionally, always be sure to review your policy before you make a claim. Even claims that are denied can count against you, so it’s not worth filing if the damage is clearly excluded from coverage.¹¹ 

If you find yourself in this situation, feel free to reach out for a list of reasonably-priced professionals who can help with home repairs.

6. BE STRATEGIC ABOUT HOME IMPROVEMENTS

Insurance premiums alone may not be the deciding factor for a home improvement project, but it’s important to know how renovations could impact your rates—for better or worse.

For example, some upgrades and repairs can reduce your premiums by making your home safer or less prone to certain types of damage. These include:¹⁰

• Upgrading your electrical system
• Updating your plumbing
• Installing a monitored security system
• Investing in a sewer backup valve and sump pump
• Replacing the roof

On the other hand, some upgrades can raise premiums significantly, either because they increase the value of your home (and therefore the cost to replace it) or because they pose a hazard. These include:¹²

• Installing a swimming pool or other water features
• Building an extension or expanding your living space
• Upgrading materials, like flooring or countertops
• Adding a fireplace or wood stove

Whether or not your planned renovations are on either of these lists, it’s wise to inform your insurer about changes you make to your home—otherwise, you may risk gaps in coverage. And you’re always welcome to check with us before you begin any home improvement project to find out how it could impact the value and resale potential of your home.

BOTTOMLINE: Protect Your Investment Without Sacrificing Enjoyment of Your Home

Getting the coverage you need for financial security without overpaying can be a tricky balance, especially in today’s environment. But remember, while it’s important to find the best deal you can, home insurance isn’t an area to skimp on. 

For advice on your specific risks and the type of coverage you need, we recommend consulting with a knowledgeable insurance professional. We’re happy to connect you with a trusted adviser in our network. And if you’re considering a home renovation, feel free to reach out for a free consultation on how it might affect your property value (and your premiums). 

The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, insurance, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. Insurance Bureau of Canada –
   https://www.ibc.ca/news-insights/news/severe-weather-in-2023-caused-over-3-1-billion-in-insured-damage 
2. MoneySense –
   https://www.moneysense.ca/spend/insurance/home-insurance/how-climate-change-affects-home-insurance/ 
3. My Choice Financial –
   https://www.newswire.ca/news-releases/home-insurance-rates-increase-7-66-in-canada-in-2024-876966380.html 
4. Public Safety Canada –
   https://www.publicsafety.gc.ca/cnt/rsrcs/pblctns/2023-nrp-pnr/index-en.aspx 
5. Nerdwallet Canada –
   https://www.nerdwallet.com/ca/mortgages/what-is-home-insurance 
6. Waterloo Climate Institute –
   https://uwaterloo.ca/climate-institute/news/homes-sell-82-cent-less-after-catastrophic-floods 
7. Ratehub.ca –
   https://www.ratehub.ca/blog/how-home-insurance-deductibles-work/ 
8. Ratehub.ca –
   https://www.ratehub.ca/insurance/home-and-auto-bundle 
9. LowestRates.ca –
   https://www.lowestrates.ca/resource-centre/home-insurance/12-home-insurance-discounts-can-help-you-save-money
10. MoneySense –
    https://www.moneysense.ca/spend/insurance/how-to-get-lower-home-insurance/ 
11. Rates.ca –
    https://rates.ca/guides/home-insurance/claims
12. CREA –
    https://www.creacafe.ca/can-housing-upgrades-affect-insurance/

When you’ve lived somewhere for many years, it can be tough to say goodbye. But if you (or a loved one) currently have a home that is bigger than necessary or is too high maintenance, it may be time to trade unused square footage for a smaller, more manageable space. 

Take it from the downsizers who’ve been there: Although living small might require some adjustments, it can also be liberating––especially if you’re in a stage of life where past responsibilities have given way to new possibilities and adventures.  

In fact, many downsizers report feeling invigorated by the change, according to American journalist and real estate writer Sheri Koones. “It scares people to think of moving into a smaller space,” said Koones to the Associated Press. “But every single person I interviewed who has made the transition says they are so happy they did.”¹

The key is to find somewhere you can live well and move around comfortably, without feeling overly restricted. If you like the idea of aging in place or are already in your golden years, you may also want to look for signs that a new home can conveniently age with you. 

With that in mind, we recommend focusing your search around three key factors: desired lifestyle, optimal design, and long-term accessibility. Read on for specific tips, then call us for a free consultation. We can help you identify the types of homes that are best suited to living large with less.

Do you have a loved one whose housing needs have changed?
Share this information to help start a conversation about the benefits of downsizing.

DESIRED LIFESTYLE 

The best part of downsizing is the lifestyle you unlock when you trade square footage for convenience. With fewer chores and home maintenance tasks to worry about, you can instead channel your energy into other pursuits. 

For example, instead of spending your afternoons working in the yard or cleaning, you can catch up on the news, read a bestseller, start a new craft project, or pursue other hobbies. You may even be able to travel or spend more time with friends and family. 

Research has found that Canadians over the age of 65 tend to have higher life satisfaction when they have more time available for the things they “like doing.”² But regularly engaging in favourite hobbies and activities can be hard to do when you’ve got a home that needs constant attention or you live far from your community.

As you compare potential homes, keep in mind the type of lifestyle you envision. Do you plan to travel? If so, a home with extra security, such as a condominium or gated community, may give you some welcome peace of mind. Or do you plan to have friends and family stay overnight? In that case, you may want to look for a floor plan with flex space or a property that has access to separate guest suites. 

Alternatively, a senior community that offers catered meals and housekeeping may be a better choice if you or a spouse need extra support. 

Action item: Grab a pen and take some time to envision what your ideal future might look like. Write down the activities and hobbies you hope to add to your life or continue with going forward, as well as the chores and responsibilities you’d love to drop. We can use those answers to help shape your house hunt.

OPTIMAL DESIGN

Even though your new home will be smaller, that doesn’t mean it has to feel cramped. As Koones explains, “The key is to have a home that is efficiently designed, both in terms of energy use and in terms of space.”¹ 

Look for features that can help make a space feel bigger, like high ceilings, large windows, and an open layout. 

Built-in shelving that extends all the way to the ceiling can also make a small room feel more expansive by helping to draw the eye upward. The same goes for highly placed window treatments and striped or mural-style wallpaper.³  

Efficient layouts with flexible, multi-purpose rooms and few, if any, hallways work especially well for small-scale living. You can also limit dead space in a home by steering clear of layouts with awkward corners, unusable nooks, and other space-eating design elements. 

In addition, look for features that support a simpler, lower-maintenance lifestyle, such as easy-care floors, durable countertops, and bare walls with little, if any, crown moulding. 

Don’t write off a home too soon, though, if it feels narrow or congested because of outdated design or poor staging. Cosmetic issues that visually shrink a space are often easy to fix. 

For example, you can instantly make a room feel bigger just by painting it a lighter shade. Adding mirrors and swapping out heavy curtains for sheer ones can also be effective. Plus, utilizing multipurpose furniture with hidden storage is a great way to maximize space. 

Action item: Make a note of your must-keep furniture and other items. Then pull out a measuring tape and write down the dimensions. Once it’s time to visit homes, we’ll have a more accurate sense of what will fit and how much space you’ll need.

To get your creative juices flowing, you may also want to flip through some design magazines that specialize in compact living or catalogues that feature space-saving furniture and accessories. If you give us a list of your favourite features, we can use it to pinpoint homes that are a good match. 

LONG-TERM ACCESSIBILITY

Buying a home that you can age well in can be a great way to boost your health prospects and happiness. According to the National Institute on Ageing, research shows that homeowners who age in place instead of in an institutional environment not only save money over time, they also enjoy greater health and emotional benefits.^4,5

Aging in place is also popular. A survey by Ipsos found that the vast majority of Canadians over the age of 45 would prefer to age in their own homes.⁶

But even though many adults want to age in place, few currently live in a home with the features to make it possible. According to research by Statistics Canada, only half of adults over the age of 55 say their current home is accessible to someone with a physical limitation.⁷  

If you’re already in the second half of your life, then it’s smart to prioritize accessibility now, even if you’re highly mobile. 

Choosing an accessible home will improve your odds of staying put for longer. Plus, you never know when you might need an accessible light switch, handrails in the bathroom, or a seat in the shower, says Koones. “Yes, older people with disabilities need them, but even younger people break a leg skiing, or have situations where they want a barrier-free shower.”¹  

As you consider your options, try to imagine what your needs might be as you get older and be proactive in identifying potential obstacles, recommends the Government of Canada.⁸ 

For example, a single-level home or one with wide enough stairs for a stair lift or access to an elevator may be a more practical choice than a home with lots of narrow stairs. Alternatively, a home with at least one ground-level bedroom and bathroom may also work well for you. 

Consider your needs outside the home, as well: If you frequently visit the doctor, grocery store, or community centre, for example, then you may benefit from choosing a property nearby. 

Action item: Review the checklist below, adapted from the accessibility standards developed by the Canadian Standards Association (CSA) and Accessibility Standards Canada, or download the full booklet from the CSA Group’s website.⁹ Highlight the items that are most important to you. We can reference these guidelines as we consider potential homes and suggest ways to adapt a property to meet your current or future requirements.

BOTTOMLINE

You don’t have to compromise on comfort to downsize successfully. We can help you strategize your next move and identify the best new home for you—whether that’s a smaller home for rent or another one to call your own. We take pride in offering a full-service real estate experience and assisting our clients through all stages of the real estate journey. And we’ll go the extra mile to maximize your current home’s sales price so that you’re set up for financial security.

The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. Associated Press (AP) –
   https://apnews.com/article/lifestyle-f094372b46bae82020c174907eb953c0
2. Statistics Canada –
   https://www150.statcan.gc.ca/n1/pub/75-006-x/2018001/article/54977-eng.htm 
3. Washington Post –
   https://www.washingtonpost.com/home/2023/02/07/make-small-room-appear-larger/ 
4. National Institute on Ageing –
   https://www.niageing.ca/airp 
5. CTV –
   https://www.ctvnews.ca/business/what-do-senior-citizens-need-to-do-to-age-in-place-1.6141831 
6. IPSOS –
   https://www.ipsos.com/en-ca/news-polls/Nearly-All-Canadians-45-Want-Age-Home-But-Only-1-in-10-Afford-Cost-PSW
7. Statistics Canada –
   https://www150.statcan.gc.ca/n1/pub/75-006-x/2023001/article/00010-eng.htm 
8. Government of Canada –
   https://www.canada.ca/en/employment-social-development/corporate/seniors/forum/aging-checklist.html
9. CSA Group –
   https://www.csagroup.org/wp-content/uploads/2430606.pdf

One of the best parts of owning a home is the freedom to make it truly your own with design choices that reflect your personality and lifestyle. Whether you lean toward contemporary design or a farmhouse aesthetic, your home is your canvas.

Even so, it’s always smart to think about the long-term impact those decisions might have on your home’s value. Choosing over-personalized or unpopular materials and finishes could make your home less appealing to future buyers. And selecting out-of-style or overly-trendy elements could cause your home to feel dated quickly.

To help inspire your design choices, we’ve rounded up some of the top trends we’re watching in 2024. Keep in mind, not all of these will work well in every house. If you plan to list or renovate your property, give us a call. We can help you realize your vision and maximize the impact of your investment.

      1. Spa-Like Bathrooms

We could all use a little more relaxation in our lives—so why not bring the spa into your home? In 2024, more homeowners will remodel their bathrooms to turn them into personal oases.^1,2

If you’re undertaking a renovation, consider upgrading fixtures and materials. Handmade tile and custom cabinetry can add a touch of style and luxury. Trade stark whites for warm neutrals to create a more relaxed feel—think light wood tones, creams, and beiges.³ Complete the look with soft ambient lighting from a backlit mirror or pair of decorative sconces.^2,3

If you want to maximize the mind-body benefits of a relaxing bathroom (and have the budget to spare), you might consider installing a steam shower, infrared sauna, or cold plunge tub. Not looking to spend as much? Even minor upgrades like a massaging showerhead or heated towel bar can add some pampering to your morning routine.³

But remember, if you’re modifying your bathroom, it’s always wise to work with experienced and licensed professionals to avoid water damage that could lead to costly repairs. We can refer you to a trusted contractor for help.

      2. Maximalist Decor

In 2024, maximalism is back in vogue, contrasting the neutral aesthetic that dominated design in recent years.⁴ While maximalism can be summed up as “more is more,” there’s nothing sloppy or cluttered about this look. Instead, it’s all about intentional curation.⁵

Hallmarks of maximalist style include rich and saturated colours, bold wallpaper, statement rugs and furniture, and lots of art. And forget matching—maximalist interiors often include plenty of contrasting colours, textures, and patterns selected to complement one another.⁵

If you’re trying to embrace maximalism on a budget, check out thrift stores. They’re often a great place to find unique furniture, colourful rugs, and interesting art or collectibles. Before you invest in rolls of vintage wallpaper, though, it’s important to note—if you plan to sell your home in the near future, the maximalist look won’t appeal to every buyer.

We typically advise sellers to remove clutter and personal items to help buyers imagine their own future lives within the home. Sometimes, that means repainting or redecorating in a more neutral palette. Of course, this shouldn’t stop you from embracing your own style now—just be aware that you may need to walk back your aesthetic prior to selling. We can advise you when the time comes.

      3. Japandi Style

Not quite ready to embrace maximalism? Japandi style, which blends Japanese and Scandinavian influences, offers a more subdued approach that still has plenty of character. The look dates back about 150 years to a time when many Scandinavian designers were travelling to Japan for inspiration.⁶

Japandi style brings together clean lines, simplicity, and a focus on natural elements and light. It emphasizes the beauty in imperfection, or “wabi sabi,” and a deep connection to Mother Earth. And like Scandinavian decor, the look prioritizes comfort and a sense of sanctuary in the home.⁶

Interested in playing with Japandi? Common features include calming colour palettes and organic materials like raw wood and bamboo. Try softening harsh edges with softer textures, like cozy blankets and ceramic pieces.

The look also minimizes clutter, but that doesn’t mean you need to be a minimalist. Instead, Japandi style embraces storage solutions like baskets, folding screens, and sofas with built-in storage to give everything a place.⁷ If you’d like some help implementing Japandi-style organization in your home, contact us for a list of recommended professionals.

      4. Mixed Metals

Mixing metals used to be a “no-no.” But in 2024, it’s definitely a “yes.”

According to designers, mixing the colours and finishes of metal fixtures and hardware can bring visual interest to a room—as long as you go about it the right way.^1,8

The most important rule to keep in mind is to stay away from near matches, like brass and gold—that’s more likely to look accidental than intentional. Instead, go for bold contrast: Think polished nickel and matte black.⁸

Some designers recommend using each metal at least twice in a room to make it look cohesive. Another good rule of thumb is to stick to two types of metals in a small room and two to three in a larger space.⁸

Finally, you might think about playing with undertones (brass is warm, chrome is cool) to change the “temperature” of a room. And don’t be afraid of a little shine—many designers predict that a retro, high-polished look will replace matte finishes in 2024.⁹

Want some help sourcing fixtures and hardware in a variety of finishes? Reach out for a list of our favourite retailers.

      5. Wood Cabinetry And Accents

The all-white kitchen has been ubiquitous in recent years. But in 2024, classic wood cabinetry is back in a big way.¹⁰ In fact, industry professionals surveyed by the National Kitchen & Bath Association predict that wood cabinets will be more popular than white in the next three years.¹¹

Natural wood tones offer a sense of warmth and natural beauty. And today’s cabinets aren’t anything like the heavy, dated versions of the past. Instead, light to medium versions—like white oak and walnut—and warmer undertones are trending.¹²

The addition of wood-grain accents to painted kitchen cabinets—like with a contrasting island or range hood—is another popular option. And wood continues to be a favoured choice for flooring. A recent survey found that 40% of homeowners opted for either hardwood or engineered wood when renovating their kitchen floors.¹³

You can also expect to see more wood in bathrooms in 2024. According to Houzz, last year, wood vanities surpassed white in popularity for the first time in recent years, and designers expect the trend to continue.¹⁴ While white countertops and walls still dominate bathrooms, a wood-grained vanity brings a relaxed, organic element into the space.

Dreaming about new cabinets or hardwood floors? We’d be happy to share a list of recommended trade professionals who can help.

      6. Timeless Renovations

In its latest Kitchen Trends Study, Houzz found that “nearly half of homeowners (47%) opt for a timeless design as a sustainable choice during renovations.” Respondents cited long-term cost-effectiveness and environmental consciousness as their main motivators.¹⁵

In a rapidly changing, technology-driven world, it’s no surprise that homeowners want a nurturing space with lasting appeal—especially if they plan to stay in their homes for years to come.¹⁴

Traditional materials and quality craftsmanship lie at the core of timeless design, which some designers are calling “quiet luxury.”¹⁶ Think of enduring classics, like hardwood floors, hand-crafted tiles, and marble countertops.14 A timeless colour palette will also often include warm neutrals and muted shades of blue and green.¹⁷

If you’re thinking about remodelling, it’s wise to incorporate as many classic elements as you can. These stylistic choices tend to hold up well over time, which can prolong the life of your investment and make it easier to sell your home down the road. If you’d like advice on an upcoming project, contact us for a free consultation.

BEAUTIFY YOUR HOME WHILE BOOSTING ITS VALUE

If you’re thinking about making design changes—whether that’s repainting or a full remodel—it’s important to be informed about how your choices could impact your home’s resale potential. Buyer preferences can vary significantly based on your home’s neighbourhood and price point. Before you begin your project, reach out to discuss your plans and how they could impact the value of your home.

The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. HGTV –
   https://www.hgtv.com/design/decorating/design-101/2024-home-and-garden-design-trends
2. The Spruce –
   https://www.thespruce.com/2024-design-trends-8411457 
3. The Spruce –
   https://www.thespruce.com/2024-bathroom-design-trends-8380169 
4. Calgary Real Estate Board –
   https://www.creb.com/News/CREBNow/2024/January/interior_design_trends_2024/
5. Homes and Gardens –
   https://www.homesandgardens.com/interior-design/maximalist-decor-ideas 
6. The Spruce –
   https://www.thespruce.com/japandi-design-4782478 
7. House Beautiful –
   https://www.housebeautiful.com/room-decorating/a45851530/japandi-interior-design-style/ 
8. The Spruce –
   https://www.thespruce.com/4-rules-designers-say-you-should-follow-or-ignore-when-mixing-metals-in-a-room-5199031 
9. The Spruce –
   https://www.thespruce.com/2024-lighting-trends-8365056 
10. Toronto Sun –
    https://torontosun.com/life/homes/2024-trends-youll-see-everywhere
11. Good Housekeeping –
    https://www.goodhousekeeping.com/home/decorating-ideas/a45576463/wood-kitchen-cabinet-trend-2023/ 
12. Better Homes and Gardens –
    https://www.bhg.com/2024-kitchen-trends-840656
13. Houzz –
    https://www.houzz.com/magazine/10-kitchen-trends-to-watch-in-layouts-features-and-more-stsetivw-vs~165050822 
14. Houzz –
    https://www.houzz.com/magazine/28-home-design-trends-that-will-define-2024-stsetivw-vs~172317389 
15. Houzz –
    https://www.houzz.com/magazine/2023-u-s-houzz-kitchen-trends-study-stsetivw-vs~164970160
16. Better Homes and Gardens –
    https://www.bhg.com/quiet-luxury-home-trend-7554026

Home buyers surprised everyone last spring when they shook off higher borrowing costs and showed up to new home sales in droves. The surge in competition for a still-limited pool of properties helped home prices pop and renewed sellers’ confidence in their ability to get top dollar for a home. But experts caution that the 2024 housing market could unfold quite differently, especially if Canada’s economy experiences another dip later this year.¹

Ever since the Bank of Canada hiked interest rates last summer, home sales have dropped in many areas as buyers and sellers alike struggle to close deals.² Canada’s economy has also softened, prompting some home buyers to move forward more cautiously.³ But with the Bank of Canada now widely expected to cut rates in the spring, competition could reheat quickly.⁴ 

Not every neighbourhood is cooling at the same rate either, making the familiar adage that “all real estate is local” especially relevant.⁵ With a market this fluid, the home buyers and sellers with an edge will be those who proactively leverage a real estate agent’s on-the-ground expertise and stay flexible so that they can quickly adapt to hyper-local changes.

What does that mean for you? Read on to learn more about the current state of the Canadian housing market, the potential opportunities for buyers and sellers, and economists’ predictions for the coming year.

MORTGAGE RATES MAY DROP SOONER THAN EXPECTED

The best news we’ve got incoming for 2024? The extra high mortgage rates that have weighed heavily on Canadian real estate for some time may finally be headed south.

Citing a global economic slowdown and improving inflation, policymakers at the Bank of Canada opted to leave the central bank’s key rate unchanged in December after pushing rates to a 22-year high last summer.⁶ The feds cautioned that another rate hike was still possible in 2024. But now that Canada’s economy is slowing down, market watchers widely predict that the central bank is more likely to cut rates instead—possibly as soon as March.⁷ 

Fixed mortgage rates could slide even more quickly. Market expectations have a big impact on bond yields. So, if traders expect a rate cut from the feds, bond yields are likely to drop even further. “It’s all about expectations,” said Ratehub CEO James Laird to Global News.⁸ 

Already, the bond market has cooled significantly since autumn. As a result, Canadians with great credit may now be able to secure rates closer to 5% than 6%—and possibly even lower.⁹  

If rates fall as expected, that could have an energizing effect on the housing market. As mortgage expert Clay Jarvis told Nerdwallet in 2023: “If fixed rates dip below 5% next year—and we’re not in a full-blown recession—it’s likely Canadians will return to the market fairly enthusiastically. The pent-up demand and FOMO will be too strong for many to resist.”¹⁰

What does it mean for you? If you’re a prospective home buyer, declining mortgage rates could give you the opening you’ve been waiting for to purchase a home with a more affordable monthly payment. And if you buy before the market reheats, you could secure an especially good deal. To find the lowest rate, it pays to compare lenders. Ask us to refer you to a mortgage broker who can negotiate a competitive mortgage rate.

Sellers also have reason to celebrate buyers’ lower interest rates: As the barriers for entry to the housing market decline, sellers could enjoy more or better offers. Reach out to discuss how we can help you maximize your home’s sales potential.

DESPITE LOWER RATES, A WEAKENING ECONOMY COULD CHILL DEMAND

As pent-up demand continues to build, surveys show that Canadians are still deeply interested in real estate. For example, a recent survey by Dye and Durham found that a growing number of Canadians are thinking seriously about buying a home in 2024.¹¹ 

But with interest rates so high, buyers with typical household incomes often need either a substantial amount of cash saved or a lot of home equity to buy at today’s prices. And the softening economy may be shaking buyers’ confidence. According to the Conference Board of Canada, Canadians are feeling more pessimistic about their employment and finances.¹² 

Meanwhile, many home sellers remain stuck in the recent past and are slow to let go of outdated prices. As a result, home buyers and sellers in many regions are locked in a persistent stalemate and the volume of home sales has dropped considerably.⁵ 

According to the Canadian Real Estate Association (CREA), new listings are now outpacing purchases in some of the country’s biggest housing markets as market loosening spreads.¹³ However, the softening is uneven, with some areas still highly competitive.⁵

As rates continue falling, experts predict that demand for housing will increase, helping fuel a tighter market. But a slowdown in Canada’s economy could complicate that scenario. “We now think that most major markets will experience softer sales and prices through the spring months, as weakness has spread significantly,” forecast economists at Desjardins.¹⁴

What does it mean for you? The days of easy home sales with minimal, if any, prep work are long gone––at least until the market rebounds. Instead, home sales are more likely to take some legwork and planning to stand out from the competition. We can help you maximize your home’s appeal to attract serious buyers.

Home buyers, on the other hand, will have a distinct advantage in the coming months––especially if they jump into the market early while competition is limited. Call us for a consultation so we can help you plot your strategy.  

HOME PRICES WILL FACE HEADWINDS, BUT MAY CLIMB WITH LOWER RATES

Home buyers who have faced both persistently high prices and historically high rates may finally get a much-needed break this year.

With Canada’s economy cooling, experts are now actively revising their pricing forecasts. For example, economists at TD predicted in November that home prices would drop 10% in the first quarter of 2024 compared to the third quarter of 2023––twice what they had previously forecast.¹⁵  

As sales dwindle, the home buyers who are still around “are taking advantage of their stronger bargaining position,” said economists from RBC. “They’ve successfully extracted price concessions from sellers.” As a result, the MLS Home Price Index is slipping.¹⁶ 

Analysts still expect home prices to remain higher than they were before the pandemic. However, fewer sales amid rising levels of inventory could dampen prices in some regions.¹⁶ In fact, eagle-eyed home buyers may find the best bargains in previously hot neighbourhoods that had overheated amid frenzied competition.

But with Canada’s historic supply crunch still ever-present, home buyers who wait too long to score a deal could wind up settling for a bigger mortgage in the future. As CIBC’s Tal put it: “A year to two years from now when things will be back to normal—and they will be back to normal, with one million newcomers and non-permanent residents—guess what will happen? The supply will not be there, the demand will be there. The market will be crazy.”¹⁷

What does it mean for you? Homeowners with a property to sell may want to put it on the market sooner than later while there are relatively few homes for sale.  We can help you chart the best course to maximize your profits, starting with a professional assessment of your home’s current market value. Reach out to schedule a free consultation.

Meanwhile, savvy buyers with an eye for opportunity will be thrilled to know that the affordability challenges that have made home buying so difficult are expected to ease significantly. In fact, there could be a brief window when mortgage rates and home prices are both on the decline, giving home buyers who are ready to pounce a rare opportunity.  Contact us if you’re ready to begin your home search.

BUYERS SHOULD HAVE MORE CHOICES, BUT A SUPPLY SHORTAGE WILL PERSIST 

Home buyers who are eager for options should have more homes to choose from this year than they did in 2023. The share of existing homes for sale is already up in many regions as new listings outpace purchases, and more inventory could be added to the market in the coming months.¹³ 

Many sellers out there have been sitting on the sidelines, waiting for rates to fall or for the market to pick up. If a greater share of those sellers decide they can no longer wait, the number of resale homes on offer could quickly increase. 

In addition, a growing number of Canadian mortgage holders are expected to experience some payment shock in the coming year as they renew with rates that are several points above their current rates.¹ If more homeowners then default on their loans or choose to list because they can no longer afford their monthly payments, that could also lead to an uptick in homes for sale. 

But given Canada’s severe housing supply crunch, the chances of a market oversaturation are low. As economists at TD Bank note: “Canada could be short over 300,000 housing units from 2023-2025 as population growth collides with a slower pace of homebuilding.”¹⁸

What does it mean for you? With the market cooling this winter, there’s more supply opening up. In the short term, buyers who can afford to jump quickly should benefit from this winter’s temporary buyer’s market. Contact us to discuss your goals and budget, and we can help you make an informed decision about the right time to buy.

While sellers will continue to benefit from the overall supply shortage, they should be prepared for increased competition. We can help you prep your property for the market and highlight the features most likely to appeal to today’s buyers.

WE’RE HERE TO GUIDE YOU 

While national real estate forecasts can give you a “big picture” outlook, real estate is local. And as local market experts, we know what’s most likely to impact sales and drive home values in your neighbourhood. As a trusted partner in your real estate journey, we’ll keep our ears to the ground so that we can guide you through the market’s twists and turns.

If you’re considering buying or selling a home in 2024, contact us now to schedule a free consultation. Let’s work together and craft an action plan to meet your real estate goals.

The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources: 

1. Financial Post –
   https://financialpost.com/news/economy/canada-mortgage-math-means-crisis-looming
2. Financial Post –
   https://financialpost.com/news/canada-housing-market-sales-prices-fall-further
3. Global News –
   https://globalnews.ca/news/10068567/statistics-canada-jobs-report-oct-2023/
4. Canadian Mortgage Trends –
   https://www.canadianmortgagetrends.com/2023/12/bank-of-canada-preview-rate-hold-expected-as-attention-shifts-to-rate-cuts/
5. Global News –
   https://globalnews.ca/news/10098594/canada-housing-market-home-sellers-fall-2023/
6. Bank of Canada –
   https://www.bankofcanada.ca/2023/12/fad-press-release-2023-12-06/
7. The Globe and Mail –
   https://www.theglobeandmail.com/business/article-bank-of-canada-interest-rate-live-december/ 
8. Global News –
   https://globalnews.ca/news/10142334/bond-yields-canada-mortgage-interest-rates/
9. Canadian Mortgage Trends –
   https://www.canadianmortgagetrends.com/2023/12/mortgage-rates-under-5-theyre-coming-back-as-lenders-slash-fixed-rates/
10. Nerdwallet –
    https://www.nerdwallet.com/ca/personal-finance/financial-trends-that-could-shape-2024
11. Dye and Durham –
    https://dyedurham.ca/new-data-shows-canadians-remain-concerned-about-looming-recession/
12. Conference Board of Canada –
    https://www.conferenceboard.ca/focus-areas/canadian-economics/housing-market-update/
13. CREA –
    https://www.crea.ca/media-hub/news/canadian-home-sales-see-downward-trend-continue-in-october/
14. Desjardins –
    https://www.desjardins.com/en/savings-investment/economic-studies/canada-housing-outlook-nov-2023.html
15. Global News –
    https://globalnews.ca/news/10110607/canada-real-estate-td-housing-price-forecast/
16. RBC –
    https://thoughtleadership.rbc.com/ontario-leads-canadas-housing-market-cooldown/
17. RENX –
    https://renx.ca/interest-rates-are-coming-down-soon-benjamin-tal
18. TD Economics –
    https://stories.td.com/ca/en/article/canada-housing-supply

It’s the most wonderful time of the year. But for many families with festive plans and hectic schedules, it’s also the most wasteful. 

According to one survey, for example, 60% of respondents admitted to throwing away more than usual during the holiday months as they filled up their trash bins with uneaten food, wrapping paper, gift bags, and commercial packaging.¹

The reality is, Canadians routinely toss about 25% more trash during the holidays, according to Zero Waste Canada.² In fact, we throw away so much wrapping paper that the waste, combined with castoff shopping bags, is estimated to weigh as much as 100,000 elephants.^2,3

As our holiday schedules grow busier, many of us also forget to take simple steps at home to shrink our carbon footprints or prepare for a more energy-efficient winter. 

Luckily, it’s not that hard to shift our habits and plan for a more sustainable and environmentally-friendly celebration. Here are five ideas for ringing in the holidays this year without overstressing Mother Nature.

1. PREP YOUR HOME FOR WINTER

Depending on the amount of time and resources you have available, you could cut your carbon emissions significantly this season just by winterizing your home. According to Natural Resources Canada, around 61% of the average home’s energy usage goes to heating.⁴

Investing in a more sustainable way to warm up your surroundings, such as a conventional or cold climate heat pump, could be especially impactful if your current HVAC is underperforming. The Canadian Climate Institute’s Heat Pump Calculator estimates that homeowners can potentially save hundreds of dollars a year by switching from a gas furnace to a more energy-efficient heat pump.⁵ Replacing old appliances or things like chronically leaking windows with newer, more energy-efficient solutions can also save you money over the long term.⁶ Plus, you may qualify for a federal grant or loan to help fund certain upgrades.⁷

You don’t necessarily have to spend a lot upfront, though, to prep your home for winter. Even simple tweaks—such as sealing windows and doors or upgrading to more energy-efficient window coverings—can lower your energy consumption and reduce your carbon footprint.⁸

Incorporating environmentally healthier habits into your routine can also make a meaningful difference. For example, Natural Resources Canada recommends dialling back your thermostat to 17 C when you’re sleeping or away and otherwise leaving it at 20 C.⁴

Consider an EnerGuide home evaluation to help you pinpoint what needs fixing and see if you qualify for a federal grant. An energy advisor registered with Natural Resources Canada will audit your home’s energy efficiency and provide you with a report and score.⁹ 

2. DECORATE SUSTAINABLY

Decking your home’s halls is one of the most jolly seasonal activities of all. There’s something special about gathering ’round with friends and family and relaxing in the comforting glow of a festively decorated space. 

But since so much of the holiday-themed decor that’s sold in stores is notoriously disposable, it can be a challenge to spruce up your home sustainably. Cheaply produced and rarely recyclable, store-bought decorations are often made with plastic, styrofoam, and other environmentally unfriendly materials that can crowd landfills for generations.¹⁰ 

Luckily, you don’t have to trade style for sustainability when making your holiday decor. Thrifting is still in vogue, so consider crafting new and on-trend decorations out of secondhand finds or upcycling items already in your closet. 

For example, you could transform an ill-fitting sweater into a holiday-themed pillow, turn teacups into candles, or turn leftover shipping boxes into creative decorations. Alternatively, natural decor foraged from your yard—such as dried leaves, flowers, pine cones, and branches—can make for especially beautiful wreaths and centrepieces. 

If you do purchase store-bought decor, proactively look for the most environmentally friendly options. LED lights are now ubiquitous in stores and use far less energy than incandescent versions.¹¹ Similarly, if you celebrate with a Christmas tree, think twice about choosing an artificial option. Plastic trees may be reusable, but natural trees are generally thought to have a smaller carbon footprint.²

3. CUT BACK ON HOLIDAY SHOPPING

Shopping online or at the mall may be convenient, but it can be costly for the environment. The greenhouse emissions from shipping and transportation alone add up fast, as do the emissions that are produced when an item is first made. According to the online consignment and thrift store, thredUp, around 4.5 billion pounds of carbon emissions could be saved if every consumer bought just one used item instead of new this year.¹² 

Splurging on brand-new products also makes it more likely that the gently used but still functional items that you’ve got at home will wind up in the trash. 

Rather than buy new, check vintage stores and consignment shops for unique gifts that you and your recipient can both feel good about. According to research by thredUp, most people are open to receiving gently-used presents, especially if they’re socially-conscious members of Gen Z.¹² In fact, research by Value Village found that at least 80% of Gen Z members in Canada and the U.S. have already bought second-hand clothing.¹³ Alternatively, consider regifting items that you haven’t used, upcycling something you own, or try crafting gifts by hand. 

Giving away special experiences, such as concert tickets or community memberships, may also be a more eco-friendly option. So is donating to a favourite charity in a gift recipient’s name or offering gifts of time, such as promising to help a loved one clean out their garage or fill their freezer with home-cooked meals. 

Research shows that gift recipients often value thoughtful gifts with sentimental value, especially if they’re homemade or nostalgic or will provide them with a unique experience.¹⁴

And if you prefer to buy something tangible, look to local businesses that source or manufacture their goods nearby. Craft fairs and community markets are a great place to start. Or, give us a call and we’d be happy to share a list of our favourite local stores, depending on the type of gift and your budget. We make an effort to patronize the independently-owned shops and restaurants around town and would love to share our recommendations.

4. GREEN YOUR HOLIDAY DINNER

Do you hail from a family of passionate carnivores? If so, trading your meat for a vegetarian option may seem like a step too far—especially for a holiday dinner. 

But swapping your meat for beans isn’t the only way to “’green” your holiday meal. For example, you can consciously source your meat from ethical sellers, prioritize local producers for seasonal sides, and serve enough filling vegetables to satisfy a large portion of your appetite.

You can also minimize food waste by planning ahead so that you don’t cook more than necessary. According to MoneySense, the average Canadian family of four tosses roughly 10% of their groceries in the trash, adding up to hundreds of dollars in wasted spending.¹⁵ To avoid buying more than necessary and throwing out good food too soon, check out Good Harvest’s Still Good to Eat Guide.¹⁶ The Natural Resources Defense Council’s dinner party “Guest-Imator” can also help you narrow down how much food you and your guests will actually need.¹⁷ 

Once you’re finished eating, clear the table immediately and either freeze the leftovers you’d like to keep or send guests home with reusable containers. Or, if you have untouched food that’s still whole or in unopened packaging, take it to a local food bank or homeless shelter. We’d be happy to share a list of options in our area.

5. DONATE OR RECYCLE WHAT YOU CAN

Once the festivities are over, the real work on behalf of Mother Nature begins. This is the time when taking a few minutes at the end of your holiday celebration to swiftly collect wrapping paper and ribbons, unwanted packaging, and other discarded items can make a real environmental difference by reducing what you send to landfills. Your goal should be to reuse what you can and compost or recycle what’s left over. 

For example, if you upgrade any electronic gadgets over the holidays, you can conserve resources and limit pollution by donating or properly recycling your old versions. According to researchers at the University of Waterloo, the average Canadian generates about 25.3 kg of e-waste every year, including discarded cell phones, laptops, and appliances.¹⁸ But you can help trim that number by repairing or refurbishing products instead.

It can also help to reimagine new ways to make old traditions more eco-friendly. For instance, if lighting candles is part of your holiday celebration, consider choosing beeswax candles this year instead of the typical paraffin wax, which is a petroleum derivative. Not only are they cleaner burning and less toxic, but the leftover wax is biodegradable and can be composted, unlike traditional candle wax.¹⁹

There are also plenty of earth-friendly ways to dispose of a natural Christmas tree without kicking it to the curb. Trees that are sent to landfills release a potent greenhouse gas called methane.² So, it’s important to properly dispose of a live tree, if you have one, so it can be recycled or composted. If you’re not sure how, reach out for a list of local options.

BOTTOMLINE

We can still celebrate a fun and festive season without draining our community’s resources or sending leftovers to the landfill. And remember, we’re here to lend a helping hand, now or in the new year. This is the perfect time to strategize your next move or set some real estate resolutions with personalized guidance from an expert. Reach out today to schedule a free consultation.

The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1. Eco Watch –
   https://www.ecowatch.com/sustainable-decor-winter-holidays.html
2. CBC –
   https://www.cbc.ca/radio/whatonearth/holidays-recycling-christmas-tree-composting-1.6688865 
3. Global News –
   https://globalnews.ca/news/6229467/we-toss-540k-tonnes-of-wrapping-paper-after-the-holidays-heres-how-to-give-without-the-garbage/ 
4. Natural Resources Canada –
   https://natural-resources.canada.ca/energy-efficiency/spotlight-energy-efficiency/2020/11/05/winter-coming-top-tips-heat-your-home-for-less/23141 
5. Canadian Climate Institute –
   https://heatpumpcalculator.ca/ 
6. Natural Resources Canada –
   https://natural-resources.canada.ca/energy-efficiency/homes/make-small-changes-add/21850
7. Natural Resources Canada –
   https://natural-resources.canada.ca/energy-efficiency/homes/canada-greener-homes-initiative/24831 
8. Canadian Geographic –
   https://canadiangeographic.ca/articles/keeping-the-heat-in-and-the-cold-out-live-net-zero-families-take-on-home-envelope-challenge/ 
9. Natural Resources Canada –
   https://natural-resources.canada.ca/energy-efficiency/energuide/energuide-energy-efficiency-home-evaluations/after-your-energuide-home-evaluation/20572
10. Architectural Digest –
    https://www.architecturaldigest.com/story/best-holiday-and-seasonal-decor-for-the-environment 
11. Statistics Canada –
    https://www.statcan.gc.ca/o1/en/plus/2605-northern-electric-lights-stats-brighten-your-day-and-night 
12. ThredUp –
    https://newsroom.thredup.com/news/thredup-releases-thrift-for-the-holidays-report-revealing-that-new-waves-of-consumers-are-planning-to-gift-secondhand-this-year 
13. BNN Bloomberg –
    https://www.bnnbloomberg.ca/pre-loved-doesn-t-mean-second-best-young-canadians-thrift-holiday-gifts-1.1858787 
14. The Conversation –
    https://theconversation.com/the-4-biggest-gift-giving-mistakes-according-to-a-consumer-psychologist-195169 
15. MoneySense –
    https://www.moneysense.ca/spend/shopping/how-to-keep-food-costs-down-watch-for-food-waste/ 
16. Good Harvest –
    https://www.secondharvest.ca/resources/still-good-to-eat 
17. Natural Resources Defense Council –
    https://savethefood.com/guestimator 
18. University of Waterloo –
    https://uwaterloo.ca/news/media/canadian-e-waste-has-tripled-new-study-finds
19. CanICompostIt.com –
    https://canicompostit.com/candle-wax/