Owning a home and managing your mortgage

Owning a home and managing your mortgage

ByStan S.

Use our tools and resources to ensure you’re getting the most out of home ownership.

Tips and resources to help you manage your mortgage like a pro

The following considerations can help you to save money when financing a home. They can provide for greater economic stability in the event of financial challenges down the road. Examples of this would be lower income levels, increased monthly expenses and/or higher interest rates.

Mortgage fraud

The promise of “easy money in real estate” can be hard to resist. Consumers who knowingly misrepresent information could find themselves becoming accomplices to mortgage fraud.

Mortgage fraud is the deliberate misrepresentation of information to obtain mortgage financing that would not have been granted if the truth had been known.

Mortgage fraud includes:

  • misstating your work position, your income or the length of time you’ve held your job
  • stating you’re a full-time salaried employee if you are not
  • misrepresenting the amount or source of your down payment
  • claiming a rented property is owner-occupied
  • not disclosing other mortgages or debts
  • omitting information to inflate the value of the property
  • adding purchasers’ names on the mortgage application who will do not intend to take responsibility for the mortgage
  • acting as or using a “straw buyer” – a person whose good credit is used to get a mortgage for someone else

Borrowers who misrepresent information and straw buyers who allow a property to be purchased in their name are committing mortgage fraud and will be liable for any financial shortfall in the event of default. They may also be held criminally responsible for their misrepresentation.

Protect yourself

Never deliberately misrepresent information when applying for a mortgage. In addition:

  • Don’t add your name to another person’s mortgage unless you plan to make payments on it.
  • Don’t sign papers until you understand them. If necessary, seek legal advice or have them translated.
  • If you make a deposit on a home, don’t give it directly to the seller. Make sure it is held “in trust” by the seller’s realty company or a lawyer/notary.
  • Before you buy a property, get its sales history through the land titles office or consider having it inspected and appraised. Check with a lawyer to see if anyone other than the seller has a financial interest in it or if there are any outstanding liens or tax arrears.
  • Always know who you are doing business with. Deal with licensed or accredited mortgage and real estate professionals.
  • Get independent advice from a lawyer/notary. Talk to them about title insurance or alternative methods of protection.

Be wary of anyone who approaches you with an offer to make “easy money” in real estate. If a deal sounds too good to be true, it probably is.

Report fraud

If you suspect that you’ve been the victim of mortgage fraud, contact your local police department. Or contact the Canadian Anti-Fraud Centre.

Toll-free phone: 1-888-495-8501

Mortgage planning tips

Whether you are buying a home or refinancing an existing home, it is important to make informed housing finance decisions that will help make homeownership viable and affordable over the long term.

By planning your mortgage out in advance, you’ll save money and be better prepared to deal with any financial setbacks.

Borrow less than you’re allowed

Mortgage professionals use 2 rules to decide how much they’ll lend you:

  • Your housing costs shouldn’t be more than 32% of your gross income. Housing costs include mortgage principal and interest, taxes, heating expenses and half of your condo fees.
    Find out the home-related costs you can afford each month. Calculate your gross debt service ratio.
  • Your total debt (for housing, cars and credit cards) shouldn’t be more than 40% of your gross income.
    Find out the maximum debt load you can carry each month. Calculate your total debt service ratio.

But borrowing this maximum amount can be risky. If your income drops, your expenses increase or interest rates rise, you may have trouble making your payments. Take on a smaller mortgage so that your housing costs stay within your means.

Estimate the maximum mortgage you can afford with our mortgage affordability calculator.

Figure out how much you’ll pay and how often you’ll make payments with our mortgage payment calculator.

Compare your income and expenses to see how a mortgage will fit into your budget with our household budget calculator.

Think about how higher interest rates would affect your payments

An increase in the interest rate will increase your future monthly payments. For example, if interest rates rise from 5% to 7%, renewing a $250,000 mortgage will cost an extra $300 per month.

Pay off your mortgage faster

Try to pay more each month:

  • Increase your regular payment amount. Pay $675 rather than $652, for example.
  • Make lump sum payments to your mortgage principal. An extra $1,000 here and there can make a big difference.
  • Make accelerated payments. Instead of making 2 payments per month (24 per year), make payments every two weeks (26 per year).
  • Speak to your mortgage professional about other options.

By paying more now, you’ll save money in the long run and you’ll build a financial cushion.

Seek help right away if you can’t make your payments

Your lender can help you deal with financial setbacks. Don’t wait. Let them know if you’re having financial issues.

Plan and manage your mortgage

Take the time to plan and review your mortgage options, terms and conditions and prepare yourself for managing your mortgage.

Whether you are buying a home or refinancing an existing home, it is important to make informed housing finance decisions. Take the time to plan and review your mortgage options, terms and conditions and prepare yourself for managing your mortgage.

Mortgage Planning Tips
Use these tips to help you to save money and provide for greater economic stability in the event of financial challenges down the road.

Homebuying Calculators
Easy to use mortgage tools to help you establish your financial situation, determine how much house you can afford and the maximum price that you should be considering.

Your Credit Report
Here are some simple steps you can take to maintain a good credit score and history and improve your chances of being approved for a mortgage.

Your Home Value
Determining a property’s value is an essential step in the mortgage application process. You can help by providing precise and accurate information about your property to your Mortgage Professional.

Mortgage Fraud
Find out how to protect yourself when purchasing or refinancing a home.

Dealing-with-Mortgage-Payment-Difficulties

Learn how you can work with your lender to find the best solution for your mortgage payment problems. 

Related CMHC Information

Related Links

Your credit report

A good credit report and credit score are important factors in determining whether or not you will be approved for a mortgage. Here are some simple steps you can take to maintain a good credit history and improve your chances of being approved.

Build a good credit history and you’ll improve your chances of being approved for a mortgage.

What is a credit score?

Your credit score is one of the factors lenders use when they consider you for a mortgage. It’s a number that signals your financial health at a specific time. It also gives information about your financial past, and how consistently you pay off your bills and debts.

Check your credit score

Find your credit score through one of Canada’s credit-reporting agencies:

For a fee, they will provide you with an online copy of your credit score as well as a credit report. Your credit report is a detailed summary of your credit history, employment history and personal financial information. They can also send you a free copy of your credit report by mail.

If you find errors in your report, contact the credit-reporting agency and the organization responsible for the mistake right away.

Build your credit score

Begin building a credit history as early as possible. To start, apply for a credit card, then use it responsibly.

Improve your credit score

Show potential lenders that you can manage credit well:

  • Pay your bills in full and on time. If you can’t pay the full amount, pay at least the required minimum shown on your monthly statement.
  • Pay off your loans, credit cards and lines of credit as quickly as possible.
  • Stay within the limits on your credit cards. Keep your balances as low as possible.
  • Don’t apply for more credit cards or loans than you can comfortably manage.

For more information, download the Financial Consumer Agency of Canada’s workshop on understanding your credit report and score.

Your home value

Whether you are purchasing a home or looking to refinance, determining a property’s value is an essential step in the mortgage application process.

Property value is key to determining the amount of the mortgage you’ll be offered.

How home value is measured

A home’s value is based on its features. These include square footage, location, age, quality and number of bedrooms and bathrooms.

A property’s value isn’t fixed. It’s a snapshot of what it’s worth in the current market in relation to what similar properties are selling for. Renovations will affect a home’s value. So will changes to the neighbourhood and in the housing market.

What you need to do

When you apply for a mortgage, your lender will ask you questions about the property. You’ll also need to give details about any renovation costs you plan to add to your mortgage.

Collect the information you’ll need in order to answer accurately by using our .

Professional home appraisal

The Appraisal Institute of Canada could help you or your lender during that process. Their guide (PDF) outlines all the steps to follow in order to perform a detailed assessment of your home.

Get the amount you need

If your home appraisal doesn’t support the mortgage amount you want, talk to your lender and real estate agent. They can help you explore your options.

Share this page

Similar Posts

  • | | | |

    Does Canadas Declining Birth Rate Mean More Housing Availability?

    ByRose Ho

    With the Canadian real estate market currently facing historically low sales activity, dropping property values, and growing inventory, many people have deluded themselves (and even some others) into believing that this is how things will be from now on and for many years to come. They want to think that we will somehow witness a total reversal of decades of home price increases until we start seeing houses worth 20% of what they cost today. Some pseudo-economists have even gone so far as to point at Canada’s declining birth rate, which is slated to stop keeping pace with our increasing death rate in 2030, as proof that our housing supply surplus will be even greater than it is currently. But this is a foolish, inaccurate, and short-sighted way of thinking. So today, we will be busting the myth that Canada’s declining birth rate will mean more housing availability and affordability. The Truth About Supply and Population First of all, Canada’s property values have been increasing steadily for decades, despite short-term dips and spikes. The real estate market is cyclical, and we have seen market highs tempered by market lows and vice versa. In the long run, however, homes are absolutely essential and prove their resilient value over long periods of time. The temporary jump in Canadian housing prices in 2022 may have resulted in a harsh correction in 2025, but we can still expect the market to readjust itself later and resume its steady decades-long climb based on how prices have increased for nearly 50 years. Secondly, Canada’s population and economic growth have always relied heavily on immigration, which is still healthy and robust—to the point that we have needed to lower our previously too-ambitious immigration targets to achieve sustainable growth. Our old 2023-2025 immigration plan brought in around half a million people annually, which caused a lot of stress to the housing market and infrastructure, as cities and provinces were unprepared for such a high rate of population growth. In fact, Canada hit a population milestone of 40 million people in 2023! A serious adjustment was required, which is why the new 2025-2027 immigration plan reduced the population inflow by more than 20%. But this does not mean our population will shrink! Any nation in the world requires its population to grow by at least 1% each year in order to maintain its GDP growth. Therefore, Canada plans to welcome just under 1% of its population as permanent residents and around 5% as temporary residents for the next three years, instead of the previous immigration rate of 1.25% permanent residents and 7.5% temporary residents. The country will adjust its immigration targets regularly, which is why Canada’s birth and death rates are not significant factors for the housing market. Population and Immigration Projections According to Statistics Canada Total Population in 2025 41.5 million Total Population in 2027 42.26 million Permanent Resident Admissions Target (1% of population) ~422,600 Temporary Resident Admissions Target (5% of population) ~2,100,000 As we can see, constant and necessary immigration is why housing will remain valuable and demand will continue to outpace supply in the long term, even as we currently see sliding housing prices and ballooning inventory in the short term. Where the Market is Heading? With today’s situation, we can foresee that 2025’s lack of housing presales will mean virtually zero construction will occur in 2026 and 2027, meaning no new inventory will be added in 2028. This is poised to spark a new cycle in the market, as low supply and high demand will drive prices back up again. In addition, the overall future of housing in Canada is deliberately heading towards rentals rather than ownership. Both the government and developers are focusing their efforts toward building purpose-built rental housing, which means condo development is expected to fall by the wayside. This means future homeowners will have fewer options when looking for starter homes as they compete for a smaller selection of resale homes or more expensive low-rise pre-construction homes. Therefore, first-time home buyers have a small window of opportunity to break into the housing market while conditions are currently favourable. In a few short years, there will be fewer housing options and higher prices, making it harder for Canadians to switch from renting to buying. Seize your opportunity now with the expert guidance of GTA-Homes! Our agents are ready to walk you through the homebuying process and help you realize your dreams of homeownership. The post Does Canada’s Declining Birth Rate Mean More Housing Availability? appeared first on Realinsights.

    Share this page

  • 5 Mortgage Myths That Could Be Holding You Back

    ByTeam Breaking Bank

    There’s no shortage of mortgage advice out there. From online forums to coffee shop conversations, everyone seems to have an opinion. Some of it’s helpful. A lot of it? Not so much. The truth is, the mortgage world has changed—especially in Canada. Rules, products, and opportunities evolve, but a lot of the advice being passed around hasn’t kept up. So let’s slow it down and clear up five of the most common myths heard from homeowners and buyers alike—because sometimes, knowing what’s not true can be just as powerful as knowing what is. Myth #1: You Need 20% Down to Buy a Home This one stops a lot of buyers before they even get started. Yes, putting 20% down eliminates the need for mortgage default insurance, but it’s not a requirement—especially for first-time buyers. In Canada, if the home is under $500,000, you can get in with just 5% down. For homes between $500,000 and $1,499,999, the minimum down payment is tiered: 5% on the first $500K, and 10% on the remainder. The result? You don’t need to hit that 20% mark to make homeownership a reality. And while you will pay mortgage insurance with less than 20% down, it’s often a worthwhile trade-off if it means entering the market sooner or keeping cash on hand for emergencies, renovations, or investments. Myth #2: Your Bank Is the Best Place to Get a Mortgage It might feel easier to “just go with your bank,” especially if that’s who you’ve always dealt with. But here’s the thing: your bank can only offer their rates, terms, and products. That’s it. A mortgage broker isn’t tied to one institution. They work with multiple lenders—including banks, credit unions, and independent mortgage companies—to find the product that fits your specific goals and circumstances. That matters a lot if you’re self-employed, have less-than-perfect credit, or just want a better deal. More options = more negotiating power, better structure, and a greater chance of finding a mortgage that actually aligns with your life. Myth #3: The Lowest Rate Is Always the Best Deal We’ve all seen the ads. “Lowest mortgage rate in Canada!” Sounds great—until you read the fine print. Some of the lowest-rate mortgages out there come with significant limitations: strict penalties if you break the term early, zero prepayment privileges, or clauses that make it difficult to move or refinance. And in real life, those things matter. What if you need to break your mortgage to access equity? Or sell unexpectedly? Or refinance to consolidate debt? The best mortgage isn’t just about the rate—it’s about flexibility, protection, and long-term cost. A slightly higher rate on a mortgage that fits your life could save you far more in the end than a “no-frills” option with hidden landmines. Myth #4: You Have to Wait Until Your Term Is Up to Refinance Many people think they’re locked in until their term ends. That’s not true. You can refinance a mortgage before the term is over. Yes, there may be a penalty—but in some cases, it’s more than worth it. For example, if you’re carrying high-interest debt, funding a major renovation, or need to tap into your home equity for a business or investment, the potential savings or returns may easily outweigh the cost of breaking the mortgage. The key is running the numbers. A good mortgage advisor will help you calculate whether it makes sense now—or if it’s better to wait. Myth #5: Renewing with Your Current Lender Is the Easiest—and Smartest—Move When your mortgage comes up for renewal, it’s tempting to take the path of least resistance. Your current lender sends a renewal notice, and all you have to do is sign. But here’s what many people don’t realize: lenders often reserve their best rates and promotions for new customers, not existing ones. In fact, renewing without shopping around could mean paying more than you need to—sometimes for the next five years. Renewal time is a golden opportunity to review your situation, compare options, and even adjust your mortgage strategy. You’ve got leverage, and you should use it. The Bottom Line There’s a lot of noise out there. And while mortgage advice might be well-intentioned, it’s not always accurate—or right for your situation. Getting clarity means asking better questions, exploring your options, and working with someone who looks beyond just rate. Whether you’re buying your first home, refinancing to unlock equity, or preparing for renewal, having the right information (and the right support) can make a huge difference in your financial future. Because in the mortgage world, the right strategy is worth more than the right guess.

    Share this page

  • No GST for First-Time Home Buyers on New Homes

    BySharon Jung

    The Government of Canada has just announced a new GST relief program to make homeownership more accessible for first-time buyers. Effective May 27, 2025, this First-Time Home Buyer’s GST Rebate offers significant savings on newly built homes valued up to $1.5 million. The current real estate market is already seeing lower average sale prices, and this rebate has lowered the entry barrier even further for young Canadians. Eligible buyers will have the Goods and Services Tax (GST) eliminated for new homes valued up to $1 million and a linear reduction for new homes between $1 million and $1.5 million. For example, a new home valued at $1.25 million will receive a 50% GST rebate for up to $25,000. The full rebate will save buyers up to $50,000 upon purchase, and it is projected to result in a total of $3.9 billion in tax savings for Canadians over the next five years. FTHB GST Rebate Eligibility This rebate will have similar eligibility criteria and conditions as the existing GST/HST New Housing Rebate, where it is required to either: Buy a new home from a developer Build or contract the build of a new home on owned or leased land Buy shares of a co-operative housing corporation The amendments to the new rebate will ensure accessibility and affordability for first-time buyers while emphasizing the advantage of paying no GST for new homes up to $1 million. In order to qualify for this rebate, the Agreement of Purchase and Sale for the home must be signed with the developer between May 27, 2025, and December 31, 2030, meaning that the home’s construction must begin before 2031 and be substantially completed before 2036. In order to qualify for this GST rebate, you must be a first-time buyer who: Is at least 18 years of age Is a Canadian citizen or a permanent resident of Canada Has not lived in a home (in or out of Canada) that you have owned or your spouse or common-law partner has owned in the last 4 years Other limitations to the rebate state that an individual buyer must not claim the FTHB GST Rebate more than once in their lifetime, and they cannot claim the rebate if their spouse or common-law partner has already claimed it. The rebate also will not apply to homes purchased through an assignment sale if the original purchase agreement was signed before May 27, 2025. In addition, if the purchase agreement is originally signed before this date and is cancelled or altered to appear new, the rebate may be denied entirely. The Rebate’s Impact on the Housing Market Aimed at reducing upfront costs for first-time buyers in 2025, this policy is expected to increase homeownership rates across Canada—particularly among younger Canadians and new families who have been priced out of the market in recent years. By making newly built homes more affordable, the rebate also encourages demand for new construction, which could help stimulate development as well. By incentivizing both buyers and builders to increase housing supply, this measure could play a significant role in easing the pressure of Canada’s predicted housing shortage over the coming decade. Looking to take advantage of this rebate? Connect with GTA-Homes today to learn more about first-time home buyer incentives! Our award-winning agents are here to guide you through every step of the process and to help you find your perfect home. Or if you still have homebuying fear or uncertainty, join us for our First-Time Home Buyer Seminar, where you can learn more about the current market, receive the recipe for buying success, and ask all your purchasing questions in a one-on-one meeting with one of our professional agents. The post No GST for First-Time Home Buyers on New Homes appeared first on Realinsights.

    Share this page

  • Condominium basics

    ByStan S.

    Condominium basics Understanding condominium ownership, lifestyle and successful condominium living. Condominium living can be an appealing housing option. It’s often affordable and someone else handles much of the maintenance and repairs, such as shovelling snow and replacing the roof. Many condominiums have enhanced security features over those found in single-family houses and offer a wide…

    Share this page
  • | | | | | | |

    Term vs Permanent Life Insurance: Which One Makes Sense for You Right Now?

    ByBreaking Bank Wealth

    Life insurance is one of those financial products people know they need but often avoid discussing. The choice between term and permanent coverage can feel more complicated than it needs to be, especially when you’re trying to make the right decision for your stage of life. This article walks through three real-life scenarios to help you see how these policies work in the real world. No sales pitch. Just clarity, with the goal of helping you protect what matters most. What’s the Difference? Term life insurance is designed to cover you for a specific period, such as 10, 20, or 30 years. It’s typically used to protect against time-limited risks like a mortgage or the cost of raising children. Premiums are lower and fixed for the length of the term. Permanent life insurance lasts for your entire life and comes with a built-in cash value component that grows over time. You pay more up front, but the policy can serve multiple purposes: coverage, savings, and estate planning. Both types of coverage have their place. Here’s how they play out in real financial lives. Scenario 1: The New Homeowners Sam and Dani are both 31 and recently bought their first home in Kitchener. With a 25-year mortgage and a baby on the way, they’re feeling the weight of financial responsibility for the first time. They want to make sure that if either of them passes away unexpectedly, the surviving partner could manage the mortgage and continue building the life they’ve started. They choose 25-year term life insurance policies that align with the length of their mortgage. The cost is manageable, which is especially important given the added expenses of homeownership and upcoming childcare. More importantly, the coverage gives them peace of mind. If something happens, the mortgage would be paid off and the household could stay afloat. For Sam and Dani, permanent insurance isn’t on the radar yet. Their focus is on affordability and covering major risks during a very specific time in their life. Term insurance checks all the boxes without adding extra financial strain. Scenario 2: The Business Owner Planning Ahead Jordan is 45 and runs a successful HVAC company with a team of 14 employees. He’s worked hard to build the business and wants to make sure it survives if something happens to him. At the same time, he’s starting to think about how to create tax-efficient wealth that he can pass on to his children. Jordan decides to take a layered approach. He keeps a 20-year term life policy in place to protect the income his family relies on. This also provides liquidity to cover outstanding business debts and operating expenses in case of his death. But he’s also thinking long term. Working with his accountant, Jordan adds a corporate-owned permanent life insurance policy. The cash value inside the policy grows tax-deferred and gives him options. He could borrow against it in retirement or use it as a tool to pass wealth to the next generation more efficiently. This combination gives Jordan both flexibility and control. The term policy handles today’s risk. The permanent policy quietly builds value in the background, ready to support a future need. Scenario 3: The Retiree Focused on Legacy Nora is 68 and enjoying her retirement in Victoria. Her home is fully paid off, and she lives comfortably on her CPP, OAS, and a small investment portfolio. She doesn’t have any dependents, but she wants to make sure her final expenses are covered and that she can leave a small legacy to her niece, who helped care for her during a health scare last year. With those goals in mind, Nora applies for a small permanent life insurance policy. The premiums are locked in for life, and the policy guarantees a payout whenever she passes. There’s no expiry date and no need to revisit her coverage every few years. She likes the certainty and appreciates the simplicity. For Nora, a term policy wouldn’t offer the same peace of mind. It could expire before she needs it or cost much more to renew later. Permanent coverage allows her to set the policy in place and know the funds will be available when her estate needs them. How to Choose Wisely Your decision should reflect your current priorities. If you’re in the early stages of building a family or paying off debt, term insurance gives you solid protection at a price that works with your budget. If you’re thinking about legacy, tax efficiency, or lifelong coverage, permanent insurance may be the better fit. Many Canadians start with term coverage and move to permanent later. Most term policies include a conversion option, allowing you to switch to permanent coverage without new medical underwriting. This is a valuable feature if your health changes as you age. Final Word There’s no single right answer when it comes to life insurance. The right choice is the one that supports your goals, fits your finances, and protects the people and plans you care about. Whether you’re starting a family, building a business, or preparing your estate, life insurance should align with where you are and where you’re going.

    Share this page
  • | | | | |

    What to Do if You Overpaid for a Property

    ByRose Ho

    With a housing market that has changed drastically in the last few years, many Canadians who purchased homes in 2021 and 2022 found themselves having to close on devalued properties in 2024 and 2025. So, many have asked, “What can you do if you’ve overpaid for a property?”  Before we answer this question, let us first understand how and why buyers overpay for properties. Common Traps Of Overpaying It can be easy to overpay for real estate if you are unfamiliar with the market, have an inexperienced agent, or make critical mistakes in the buying process. Here are some of the most common reasons why someone may end up purchasing a property above market value: Lack of market context: If you purchase without researching the comparable prices of homes in the area or knowing which way the market is heading, you may not recognize when a home is unreasonably priced. Emotional decision-making: Some buyers choose to go with their “gut feeling,” or allow the fear of missing out in a hot market or the excitement of a bidding war push them to make a quick buying decision instead of a well-considered purchase. Confusion about the proper process: Mistakes like skipping the home inspection or disregarding your budget parameters or closing costs can lead to higher costs in the future. The most effective way to avoid these errors is to get professional guidance right at the start. It is of utmost importance to find an experienced and trustworthy realtor, like our award-winning, full-time agents at GTA-Homes, who can help you navigate the current market and make a decision that will serve your long-term goals. They also provide their clients with a Competitive Market Analysis (CMA) to help them compare the pricing of similar homes in the neighbourhood they are looking for. Why Are People Overpaying Now? A trend that has become more common in the last year or two is a direct result of a post-pandemic market spike, buyers riding a wave of emotions, and, most unfortunately, risk-taking speculation. For example, when a woefully unprepared buyer closes on an overpriced property, they may have had to drum up more funds to complete the transaction. This is because the presale price may have been something like $1.5 million when they signed the purchase and sale agreement in 2021, as prices were climbing precipitously. Then, the economy changed. Inflation shot up, and interest rates were increased to combat the effects. Subsequently, the property value dropped to $1.3 million in 2024 when it finished construction, and it became time to close. To make matters worse, some buyers did not factor the closing costs into their budget. Don’t forget that closing costs for pre-construction can add 8% to 10% to the purchase price. Mortgage lenders would no longer cover the $200,000 difference in the price, therefore the buyer would have to cough up the extra $200,000 by doing something drastic and unplanned, like selling another property (in a depressed market, no less), renting out the new unit instead of moving in, or borrowing funds from other sources (at a higher interest rate, too). Therefore, immediately after closing on a too-costly property, a buyer will likely have some new financial considerations, which may lead them to tighten their budget and follow the movements of the housing market carefully. What should these over-payers do? What Not To Do: Panic and Sell Immediately Buyers may be tempted to sell their new homes immediately and at a steep loss, out of fear that prices will continue to drop and they will only lose more money over time. However, they should keep in mind that these adverse events are temporary. The market will recover later, and if you sell now, you will not be able to recoup your losses in the future. What To Do: Hold As Long As You Can You may need to scrutinize your current finances and create a new budget. You can increase your cash flow by renting out your home, exploring secondary jobs, and cutting unnecessary costs or high-interest borrowing. You may also look for opportunities to refinance under better terms, consult financial advisors who can help you find creative solutions, and prepare other options. The good news is that Canadian real estate is resilient and offers long-term rewards for those who buy and hold for many years. In 5 years from now, 10 years from now, and 20 years from now, your real estate investment will have increased in value. This projection is more certain, based on the current low pre-construction sales, which will directly translate into less construction activity and fewer new homes being delivered. This means a critical strain on supply in the face of upcoming demand and ongoing immigration. Lower supply means higher rent prices and property values. Projected New Home Completions (Based on Sales Activity) Year New Homes 2025 38,768 2026 18,812 2027 18,221 2028 9,440 2029 2,000 Ride out the wave and remember that the market will always go through cycles where buyers will have the upper hand, then sellers, then buyers again. All you need to have is patience, and your property value will grow. To avoid overpaying altogether, connect with the real estate experts at GTA-Homes. Our top-performing team of professional agents are dedicated to long-term client success, whether you’re buying, selling, or investing in real estate. Countless homeowners have relied on our market expertise and educational

    Share this page