The predictions are in: The Canada Mortgage and Housing Corporation says home prices will hit rock bottom this year, but won't go below pre-pandemic levels.

The Canadian spring housing market, according to CMHC

<p id="">The <a href="https://www.cmhc-schl.gc.ca/en/professionals/housing-markets-data-and-research/market-reports/housing-market/housing-market-outlook">Canada Mortgage and Housing Corporation (CMHC) just released their latest housing market predictions</a>, and guess what? They think home prices will hit rock bottom this year–but, it’s important to note, they don’t think they're not gonna dip below the prices we saw before the pandemic.</p><h2 id="">Highlights from the report</h2><p id="">In their spring <a href="https://assets.cmhc-schl.gc.ca/sites/cmhc/professional/housing-markets-data-and-research/market-reports/housing-market-outlook/2023/housing-market-outlook-spring-2023-en.pdf?rev=5c29bc91-2310-435f-b2c9-b801866d0ede">Housing Market Outlook</a>, CMHC mentioned that things like slower growth and rising mortgage rates are going to keep putting the brakes on the housing market and the economy for a while.</p><p id="">According to the report, CHMC expects "a price decline between 2022 and 2023, but the average price will not revert to pre-pandemic levels," and that the decline should stop sometime in 2023.&nbsp;</p><ul id=""><li>Their latest predictions say the average MLS home price will drop to about $643,325 in 2023, which is almost a 9% decrease from the average price of $703,875 in 2022. But even then, prices will still be nearly 14% higher than they were in 2020.</li><li>With the economy and immigration picking up steam, CMHC also thinks home prices will start climbing again in 2024, hitting an average of $694,196 in 2024 and $746,410 in 2025.</li><li>They've also got this alternative scenario where high inflation and interest rates stick around for longer. If that happens, their average price forecasts are about 5% lower.&nbsp;</li></ul><h2 id="">Regional predictions for the housing market</h2><p id="">First up, the Prairie provinces are gearing up for some good news! CMHC expects these areas to have a better go of it in the housing market than other regions. Even with a bit of a dip in housing starts (new residential construction projects) expected in 2023, the drop won't be as steep as in other places. A few reasons behind this:</p><ol id=""><li>A boost from people moving in from other regions during the forecast period.</li><li>Housing affordability is doing pretty good thanks to the lower home prices.</li><li>A more robust economic outlook in general.</li></ol><p id="">Now, on the flip side, Ontario, British Columbia, and Québec might have a tougher time. They're expecting bigger decreases in housing starts in 2023 compared to other regions. This isn't great news, especially since these provinces are where you'll find the three biggest housing markets– Toronto, Vancouver, and Montréal–which are already squeezed for supply.</p><p id="">As for the Atlantic region, it's kind of in the middle of the pack. CMHC's forecasting that in 2023, growth in the economy and housing will be somewhere between what's expected for the Prairies and what's predicted for Ontario, British Columbia, and Québec.&nbsp;</p><h2 id="">City predictions for the housing market</h2><h3 id="">Toronto</h3><p id="">In 2023, the CMHC is expecting the total number of housing starts to take a bit of a tumble. But don't worry, things should pick up again in 2024 and 2025. The catch here is that higher costs for things like construction financing, labour, and materials might put a damper on construction activity.</p><p id="">The average price for homes on the MLS® in the Greater Toronto Area (GTA) is predicted to drop a bit in 2023. But just like with housing starts, prices should start going up again in the following couple of years. That said, the high price levels in the GTA will make it tricky for people to buy their first home.</p><p id="">As for the rental market, it's going to stay pretty tight, which means rent prices are likely to keep climbing.&nbsp;</p><h3 id="">Calgary</h3><p id="">First up, the rental market. It's gonna get a bit tougher for renters as affordability goes down. This is because vacancies are expected to keep decreasing while rents keep going up. Not the best news for renters, unfortunately.</p><p id="">When it comes to buying a home, we're expecting the average price to stay pretty much the same, and sales activity to dip a bit. So, things might be a bit slower on the home-buying front.</p><p id="">And what about new home construction? Well, it's expected to cool off a bit. Expensive financing is making it harder to get new projects off the ground, and demand for single-family homes is slowing down. So we might see a slight slowdown in the construction of new homes.</p><h3 id="">Regina</h3><p id="">In 2023, the CMHC is anticipating a bit of a cool down in housing activity. Construction starts and sales will likely be on the lower side for the first half of the year, mainly due to the country’s high interest rates.</p><p id="">But it's not all slow and steady. Average house prices are expected to see a modest uptick in 2023, and should climb even higher in 2024 and 2025 as people start showing more interest in single-detached homes again.</p><p id="">But things are looking up for Regina's housing market in 2023 thanks to some strong economic fundamentals like rising employment, high prices for key commodities, major projects, and record international migration. With all of these factors in play, expect more investment, higher commodity prices, and rising wages. This should lead to higher demand for housing.</p><p id="">If these positive market conditions stick around into 2025, there may even be an influx of people moving from Alberta into Saskatchewan, which would boost housing demand even further.</p><h3 id="">Halifax</h3><p id="">In Halifax, the number of homes up for sale is still pretty low, which means prices will likely keep climbing for a while.</p><p id="">As for new home construction, or housing starts, expect a bit of a drop in 2023. This is mainly because home sales are expected to be weaker, and there are some other economic challenges in the mix too. But don't fret, things should pick up again in 2024 and 2025.</p><p id="">Now, for renters, there's a bit of good news and a bit of bad news. On the bright side, a record number of completed housing units should take some pressure off the rental market. But on the downside, rents are still expected to rise over the next few years.</p><p id="">For more information you can <a href="https://assets.cmhc-schl.gc.ca/sites/cmhc/professional/housing-markets-data-and-research/market-reports/housing-market-outlook/2023/housing-market-outlook-spring-2023-en.pdf?rev=5c29bc91-2310-435f-b2c9-b801866d0ede" id="">read the full report here</a>.&nbsp;</p>

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Looking to downsize your home? Here's the deal: it’s not just about moving into a smaller house - it's also about finding the right size for your current needs.

Downsizing your home in Canada: What you need to know

<p id="">Why downsize? Maybe your kids have flown the coop, and you're left with a house that echoes a bit too loudly. Perhaps you're just tired of dusting rooms you don't use or mowing a lawn that could double as a golf course. Maybe you want to <a href="https://kitchener.citynews.ca/2023/03/28/some-young-canadians-are-downsizing-their-homes-to-cut-back-on-their-expenses-6769324/" id="">save on your monthly mortgage costs</a>. Or maybe you're aiming to free up some of that sweet, sweet equity trapped in your home. Whatever the reason, downsizing could be a smart move.</p><h2 id="">Downsizing? More like right-sizing!</h2><p id="">Here's the deal: it’s not just about moving into a smaller house. It's about finding the right size for your current needs. Maybe you're after a cozy condo in downtown Toronto, a quaint cottage in Prince Edward Island, or just a smaller house in your hometown. The key is finding a place that suits your current lifestyle, not the one you had 20 years ago or the one you hope to have in another two decades.</p><h2 id="">The money talk: Dealing with your mortgage</h2><p id="">Alright, let's talk turkey. How does your mortgage figure into all this?</p><h3 id="">If your mortgage is paid off...</h3><p id="">If you're lucky enough to have paid off your mortgage, downsizing can free up a lot of equity. You can use this money to boost your retirement savings, travel the world, start a business, or <a href="https://www.hgtv.ca/helping-kids-buy-property-what-you-need-to-know/" id="">even help your kids with their own down payments</a>.</p><h3 id="">If you’re still paying off your mortgage...</h3><p id="">Things get a bit trickier if you're still paying off your mortgage. If you sell your house for more than you owe, you can use the proceeds to buy your new home. However, if your house sells for less than you owe, you'll need to make up the difference.</p><p id="">One thing to keep in mind is the "<a href="https://www.pine.ca/blog/porting-your-mortgage-how-to-do-it-right" id="">portable mortgage</a>." Some lenders allow you to transfer your mortgage to a new property without penalty. This can be a big money-saver, so be sure to ask your lender about it.</p><h3 id="">Mortgage penalties and fees</h3><p id="">Remember to account for <a href="https://www.pine.ca/blog/what-are-prepayment-penalties" id="">any penalties and fees associated with ending your mortgage early</a>. These are the costs that could sneak up on you if you're not careful, and they can significantly impact the financial benefits of downsizing.</p><p id="">When you sign a mortgage agreement, you're promising to stay with your lender for a certain period, usually between one and five years. If you decide to break that promise—say, to sell your house and pay off your mortgage—you might need to pay a penalty.</p><p id="">There are two main types of mortgage penalties and it <a href="https://www.pine.ca/blog/a-fixed-rate-or-a-variable-rate-mortgage-which-should-you-choose" id="">depends on your interest rate</a>:</p><h4 id="">Fixed-Rate Mortgage Penalties</h4><p id="">If you have a fixed-rate mortgage, the penalty for breaking your mortgage early is usually the greater of three months' interest or the interest rate differential (IRD).</p><p id="">The IRD is the difference between your current mortgage interest rate and the rate your lender can charge today if they were to lend the money for the remaining term of your mortgage. It's calculated based on the amount you owe and the time left on your mortgage term.</p><p id="">It always helps to<a href="https://wowa.ca/calculators/mortgage-penalty-calculator" id=""> calculate ahead of time</a> to see if the penalties are worth it.&nbsp;</p><h4 id="">Variable-Rate Mortgage Penalties</h4><p id="">If you have a variable-rate mortgage, things are a bit simpler. The penalty for breaking your mortgage early is typically just three months' interest.</p><h4 id="">Other Fees</h4><p id="">In addition to these penalties, there may be other fees associated with ending your mortgage early, such as a discharge fee to remove the mortgage charge from your home's title. This fee varies by province and lender, but it typically ranges from $200 to $400.</p><p id="">Before making the decision to downsize, it's crucial to understand these penalties and fees. Talk to your lender or a mortgage broker to get a clear picture of the potential costs. Remember, the goal of downsizing is to free up equity and simplify your life, so you want to make sure the financials make sense.</p><h2 id="">Finding the right home for your new lifestyle</h2><p id="">Downsizing isn't just about selling your current home; it's also about finding your next one. When hunting for your new pad, consider things like:</p><ul id=""><li><strong>Location: </strong>Do you want to be closer to family or amenities? Or maybe you're craving a change of scenery.</li><li><strong>Maintenance:</strong> A smaller home often means less maintenance, but condos can come with monthly fees. Be sure to factor these into your budget.</li><li><strong>Future needs: </strong>Your needs might change as you age. Look for a home that can adapt with you, like one with a bedroom on the main floor or a low-maintenance yard.</li></ul><h2 id="">Navigating the emotional side of downsizing</h2><p id="">Let's face it: downsizing can be emotional. You're not just selling a house; you're selling a home full of memories. Be prepared for this, and give yourself time to process these emotions.</p><p id="">Remember, it's okay to keep sentimental items, but don't let them hold you back. Consider digitizing photos and documents to save space, and remember that experiences and people are more important than things.</p><h2 id="">Downsizing can be a positive move</h2><p id="">Downsizing your home in Canada can seem like a daunting task, but it doesn't have to be. With the right planning and mindset, it can be a freeing and positive move. The key is to understand your motivations, manage your mortgage wisely, find the right new home, and navigate the emotional side of the process.</p><p id="">So go ahead and take that leap! Embrace the change, and you'll soon discover that living with less can actually mean more. More freedom, more peace of mind, and more resources to live the life you truly want.</p><h2 id="">Next steps: Preparing for the move</h2><p id="">Once you've made the decision to downsize, it's time to start preparing for the move. Start early, and don’t rush the process. Here are a few tips:</p><ul id=""><li><strong>Start sorting: </strong>Go through your belongings and decide what to keep, what to donate, and what to throw away. This can be a big job, so take your time and tackle it one room at a time.</li><li><strong>Pack smart: </strong>As you pack, label boxes clearly and create an inventory. This will make unpacking in your new home much easier.</li><li>Hire professionals: Consider hiring professional movers to take some of the stress out of moving day. If you're selling, you might also want to hire a real estate agent who has experience with downsizing.</li><li><strong>Change your address:</strong> Don't forget to update your address with the post office, your bank, your insurance company, and anyone else who needs to know.</li></ul><p id="">With a little preparation, you can make your downsizing journey a smooth and successful one. And remember, this is more than just a move. It's a step towards a simpler, more manageable lifestyle.&nbsp;</p><p id="">So if you’re thinking about downsizing, or where to even start, <a href="http://apply.pine.ca" id="">connect with one of Pine’s mortgage agents</a> and they’ll be happy to help lay out your options.&nbsp;</p>

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Are you a first-time home buyer in Saskatchewan? Discover essential tips on incentives, financing options, and the buying process to help you make informed decisions.

What a first-time home buyer in Sasktachewan should know

<p id="">If you're considering taking the leap into homeownership, Saskatchewan is an excellent place to start. Known for its welcoming communities and breathtaking landscapes, this province also has a real estate market that's truly geared towards first-time buyers.</p><p id="">But the benefits don't end there. Saskatchewan presents a wide array of incentives and perks specifically designed for first-time home buyers. These can make the home buying process not only more affordable but also more accessible.</p><p id="">So if you’re looking to get your foot in the real estate door, here are some things to consider as a first-time home buyer in Saskatchewan.</p><h2 id="">First-time home buyer incentives in Saskatchewan</h2><h3 id="">Saskatchewan’s First-Time Home Buyer Tax Credit</h3><p id="">Have you heard about the<a href="https://www.saskatchewan.ca/residents/taxes-and-investments/tax-credits/first-time-home-buyers-tax-credit#:~:text=The%20First%2DTime%20Homebuyers'%20Tax,from%20the%20Canada%20Revenue%20Agency." id=""> First-Time Homebuyers’ Tax Credit </a>in Saskatchewan? It's a non-refundable tax credit of up to $1,050. Essentially, the provincial income portion of the tax credit is 10.5% of the home purchase price, up to $10,000, which equals a provincial tax credit of up to $1,050. Then the federal income portion offers a tax credit of 15% of up to $5,000 of the home purchase price, giving you a federal tax credit of up to $750.</p><p id="">Here's the best part: both new and existing/resale homes qualify! But, there's a catch: you need to move in within a year of purchasing the home to be eligible.</p><h3 id="">Saskatchewan First Home Plan – Graduation Retention Program</h3><p id="">If you're a graduate who lives in Saskatchewan, you might not know this but you might be eligible for rebates of up to $20,000 on your tuition fees.</p><p id="">But, it gets even better. On top of that, with<a href="https://www.saskatchewan.ca/government/news-and-media/2016/may/26/first-home-plan" id=""> Saskatchewan's First Home Plan</a>, graduates can use up to $10,000 of their Graduate Retention Program tax credits as a down payment towards their first home. So not only can you get some financial relief on your education expenses, but you can also use those credits to help make your dream of homeownership a reality.</p><h3 id="">Canada’s First-Time Home Buyer Incentive</h3><p id="">The <a href="https://www.cmhc-schl.gc.ca/en/consumers/home-buying/first-time-home-buyer-incentive" id="">First-Time Home Buyer Incentive </a>is a federal program that can give you a shared-equity mortgage of 5% or 10% of the purchase price of your home. This will help lower your monthly mortgage payments and make it easier for you to qualify for a mortgage.</p><p id="">To be eligible, you need to:</p><ul id=""><li id="">Be a Canadian citizen, permanent resident, or non-permanent resident authorized to work in Canada</li><li id="">Have a total household income of $120,000 or less&nbsp; (or&nbsp; a total household income of $150,000 if the home you’re buying is in Toronto, Vancouver, or Victoria)</li><li id="">Be a first-time home buyer (or the person you’re buying with is)</li><li id="">Have a minimum down payment of 5% of the purchase price</li><li id="">Purchase a home that will be your primary residence</li><li id="">Have a maximum mortgage amount that does not exceed four times your total household income</li></ul><h3 id="">GST/HST New Housing Rebate</h3><p id="">The GST/HST New Housing Rebate can give you a rebate on the GST/HST paid on a new home purchase. The amount of the rebate depends on the purchase price of your home, and it can be up to $6,300.</p><p id="">To be eligible, you need to:</p><ul id=""><li id="">Purchase a new or substantially renovated home</li><li id="">Use the home as your primary residence</li><li id="">Have a total purchase price of $450,000 or less</li><li id="">Have paid the GST/HST on the purchase of the home</li></ul><h2 id="">Other things to think about as a first-time home buyer in Saskatchewan</h2><h3 id="">The amount of a down payment you’ll need in Saskatchewan</h3><p id="">When buying a house in Saskatchewan, the size of your <a href="https://www.pine.ca/blog/how-much-down-payment-mortgage-canada" id="">down payment can vary based on the total price of the home.</a> Here's a simple breakdown:</p><ul id=""><li id="">For homes costing up to $500,000, the minimum down payment is 5%.</li><li id="">For homes costing between $500,000 and $999,999, the minimum down payment is 5% of the first $500,000, plus 10% of any amount over $500,000.</li><li id="">For homes costing $1 million or more, the minimum down payment is 20%.</li></ul><p id="">Remember, these are the minimum requirements. If you can afford to make a larger down payment, you'll reduce the amount you need to borrow, which could save you a significant amount in interest over the life of your mortgage.&nbsp;</p><p id="">Of course, there are a number of ways to save the minimum payment needed, like sticking to a monthly budget or taking advantage of <a href="https://www.pine.ca/blog/canada-new-tax-free-first-home-savings-account" id="">Canada’s Tax-Free First Home Savings Account (TFHSA).&nbsp;</a></p><h3 id="">Don't forget about closing costs&nbsp;</h3><p id="">When budgeting for your new home, remember to account for <a href="https://www.pine.ca/blog/your-complete-guide-to-closing-costs-in-canada" id="">closing costs</a>. These are fees that must be paid at the end of the real estate transaction, and they can include things like legal fees, land transfer taxes, and home inspection fees. Generally, you should budget between 1.5% and 4% of the purchase price of your home for closing costs.</p><h3 id="">Factor in property taxes</h3><p id="">In Saskatchewan, <a href="https://www.pine.ca/blog/understanding-your-property-tax" id="">property taxes</a> are all about location, location, location! Each municipality is in charge of assessing and collecting taxes for properties within their borders. The amount you'll need to cough up depends on two things: the assessed value of your home (basically, how much it's worth according to the city) and the tax rate that your local municipality sets. It's super important to get a handle on how these property taxes will fit into your monthly budget. So, don't forget to factor this in when you're working out your overall game plan for buying your first home.</p><h2 id="">The bottom line</h2><p id="">From understanding the importance of a down payment and property taxes to taking advantage of the plethora of incentives available, you're now armed with the knowledge to make your first home buying experience a great one. Remember, buying a home is a journey, not a sprint. Take your time, do your research, and soon enough, you'll be turning the key in the door of a place you can call your own.</p><p id="">But if you’re already ready to get your home buying journey started, <a href="http://apply.pine.ca" id="">connect with one of Pine’s experienced mortgage agents </a>to help you find the financing that makes the most sense for you and your future.&nbsp;</p>

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