If buying a home is on your radar – even if it’s more of a someday plan than a right now plan – getting pre-approved early is still one of the smartest moves you can make. Why? Because, like anything in life, the right prep work makes things clearer.

The best time to get serious about buying is before you’re ready to buy. Here’s why.

Pre-Approval Helps You Understand Your Numbers

One of the biggest benefits of pre-approval is how it helps you understand your buying power. As part of the pre-approval process, a lender will walk through your finances and tell you what you can borrow based on your income, debts, credit score, and more. That number is power.

Once you have that clarity, you’re no longer guessing. You know what you’re working with. And that gives you the information you need to be able to plan ahead. That way, you’re not falling in love with homes that are outside of your price range – or missing out on ones that aren’t.

Pre-Approval Helps You Move Quickly When You’re Ready

You don’t have to be ready to buy to be ready to buy.

It happens all the time – someone scrolls through listings just for fun, and then BAM – they fall in love with something they see online. But by the time they scramble to connect with an agent and then get pre-approved with a lender, someone else beats them to it, and they lose the home. And you don’t want that to happen to you.

While you can’t control when the right home shows up – you can be ready for it.

Pre-approval isn’t about jumping the gun or rushing your timeline. It’s about making sure you’re ready when it’s go-time. As Experian explains:

“Waiting too long to get a preapproval, however, could leave you at a disadvantage . . . you could find the perfect home, but another buyer could snatch it up while you’re waiting for the lender to review your preapproval application. . . getting a preapproval just before you begin actively looking at homes may be your best option.”

Instead of rushing to figure out your numbers, trying to get documentation for your home loan together, and watching the house you love slip away while you wait to hear from your lender, you’re already in the game.

It’s like showing up to the starting line with your shoes tied and your warm-up done – while everyone else is still looking for parking.

But pre-approvals do have an expiration date, so be sure to ask your lender how long it’s good for. Bankrate offers this insight:

“Many mortgage preapprovals are valid for 90 days, though some lenders will only authorize a 30- or 60-day preapproval. If your preapproval expires, getting it renewed can be as simple as your lender rechecking your credit and finances to ensure there have been no major changes to your situation since the first time ‘round.”

The thing is, if you’ve been pre-approved – even if you’re just thinking about casually looking – you have a much better sense of how to navigate your home search within your budget. Plus, you’ll be ready if the perfect home comes along. So why not make it happen?

Bottom Line

Getting pre-approved doesn’t mean you have to buy a house today. But it does mean you’ll know what you're working with when the right one shows up. If you want to get pre-approved, connect with a lender to get that process started.

In the meantime, have a conversation with an agent about what's on your mind and what you're looking for.

If the perfect house popped up tomorrow, would you be ready to make a move?

The Metro Vancouver real estate market wrapped up 2024 on a high note, with renewed energy and plenty of buyer activity. Here’s a quick and friendly look at the key trends that shaped the market:

Sales Performance

December 2024 saw 1,765 homes sold—that’s a 31.2% jump from December 2023! While still 14.9% below the 10-year average, this uptick shows growing interest as we head into 2025.

For the whole year, total sales hit 26,561, a slight 1.2% rise from 2023. Even though sales are 20.9% below the decade average, December’s momentum hints at better times ahead.

Price Stability

The benchmark price for all homes in Metro Vancouver was $1,171,500 in December. That’s a 0.5% increase from December 2023 and just a tiny 0.1% drop from November 2024. Detached homes saw a 2% price bump over the year, townhouses were up 3.4%, and apartment prices stayed steady.

Active Listings and Inventory

There were 10,948 homes listed for sale in December, a 24.4% boost from last year and 25.3% above the 10-year average. This gives buyers more choices as the market finds its balance.

Sales-to-Active Listings Ratios

The sales-to-active listings ratio for December 2024 was 16.8% overall. Here’s how it breaks down:

• Detached homes: 12.1%

• Townhouses: 23.6%

• Apartments: 18.7%

When the ratio dips below 12%, prices tend to drop, and when it’s over 20%, prices usually rise.

Looking Ahead

With borrowing costs dropping and buyer confidence growing, 2025 is shaping up to be a lively year for real estate. December’s strong performance suggests more sales and potential price growth in the coming months.

Thinking about buying or selling in 2025? Now’s a great time to start planning and take advantage of the improving market. Stay tuned for more updates and tips to help you navigate the exciting opportunities ahead!

You may have heard that staging your home properly can make a big difference when you sell your house, but what exactly is home staging, and is it worth your time and effort?

Here are a few quick FAQs that can help you decide how much you should prioritize staging as you prep for your move.

What Is Home Staging?
Staging is the process of arranging and decorating your house to highlight its best features and make it as appealing as possible to potential buyers. It can range from simple touch-ups to more extensive setups, depending on your needs and budget.

How Does It Help Me Sell My House?
Studies show good staging does have an impact on your sale. Staging your house well can help you attract more attention from buyers, which ultimately helps it sell faster and maybe for a higher price than an unstaged home (see visual):

What Are My Staging Options?
Now that you see the value, let’s think through your options. The most common is leaning on your agent for their expert advice. They know what buyers like because they’re in showings all the time and hear that feedback first-hand. That expertise is crucial to getting your house market-ready. Basic staging with an agent usually means they give you insight into how you should:

• Declutter and depersonalize by removing photos and personal items

• Arrange your furniture to improve the room’s flow and make it feel bigger

• Add plants, move art, or re-arrange other accessories

Full-service staging is another option if your house needs more hands-on attention. This is when you hire a staging professional or staging company to come in, make recommendations, and do the work for you. Going this route is more involved and that makes it more costly too. That’s because it can include renting furniture and decor to more fully transform a space.

How Do I Know Which One To Pick?
Not sure which one you need? You don’t have to figure that out on your own. Your real estate agent will help determine what level of staging will make the most impact on your house and market.

They can help you decide if professional staging is worth the investment, or if you can knock it out with their advice alone. And just so you know, here are some of the factors an agent will look at to figure that out:

Market Conditions: If the market is slower, going all in on staging can make your home look move-in ready and attractive to buyers who may otherwise be hesitant. If your local market is very active and homes are selling fast, you may be able to get by with doing less.

Your Home’s Condition: If your home is vacant or has a unique layout, using a professional stager who can bring in the right furniture and accessories may help buyers truly visualize its full potential.

Your Budget: Talk to your agent to get an idea of staging costs in your area, as it can be the difference between your house selling and sitting. But if your budget is tight or your home only needs minor updates, your real estate agent can help you think outside of the box by suggesting simple DIY staging tips to help your home look its best.

Bottom Line
Staging your house properly can make it much more attractive to buyers, but it’s not a one-size-fits-all solution, and every home shines differently. If you’re considering staging, talk to your real estate agent—they’re your best resource for determining what your home really needs to stand out and sell for top dollar.

When shopping for a mortgage, it’s easy to get drawn in by the lowest advertised rate. After all, who doesn’t want to save on interest? 

But there’s more to a mortgage than just the rate, and focusing solely on this number can sometimes mean paying more over the life of the loan. 

Here’s why the lowest rate may not always be the best choice—and why working with a mortgage professional can help you find the right fit for your unique financial situation.

1. Understanding mortgage terms

A mortgage’s interest rate is only one aspect of the overall agreement. Different mortgages come with various terms, repayment structures, and penalties. Low rates may sometimes be “teaser” rates that adjust after a set period, or they may require a high-ratio mortgage insurance premium, which adds extra cost. Fixed and variable rates, for example, offer different benefits depending on your financial goals, and a very low variable rate may not suit someone looking for payment stability.

Some mortgages come with steep penalties if you decide to break your term early. For instance, a lender with a lower rate may also impose hefty charges if you need to refinance or sell your property mid-term, which can be a big factor for borrowers who anticipate lifestyle changes within the next few years.

2. Flexibility and prepayment options

Some low-rate mortgages have limited flexibility, which may not be suitable for everyone. Prepayment options, for example, allow you to make extra payments or increase your monthly payments without penalties, helping you pay down your mortgage faster. Mortgages with rigid terms might limit your ability to pay down your principal early, locking you into the agreement.

Mortgages with slightly higher rates sometimes come with the added benefit of generous prepayment terms, meaning that even if you’re paying a bit more in interest, you can save on the total cost by reducing your principal more quickly. Being able to pay off your mortgage early or make lump-sum payments can be a great advantage if your financial situation improves or you receive a financial windfall down the line.

3. Portability options for future plans

Another factor to consider is whether a mortgage is portable. This feature allows you to transfer your mortgage to a new property without paying a penalty. If you’re considering a move in the next few years, a portable mortgage can provide flexibility. Often, the lowest-rate mortgages lack this feature, which could mean penalties or having to requalify when you move.

4. The value of guidance

The best mortgage aligns with your financial goals and lifestyle. While a low rate may sound appealing, a mortgage professional can help you see the full picture and tailor solutions that truly meet your needs –– saving you time, stress, and money.

If you’re ready to explore a mortgage solution that provides the right balance of rate and features for your needs, I’m here to guide you through your options and help you make a confident, informed choice for the long run.

Source - Julie Isaac | Mortgage Agent

Canadian real estate markets are witnessing a cautious yet optimistic resurgence. In September, the Canadian Real Estate Association (CREA) reported a slight uptick in home sales nationwide following the third consecutive interest rate cut by the Bank of Canada. This development suggests potential relief for buyers and sellers who have been navigating a turbulent market landscape.

“The beginning of September saw a burst of new supply for buyers to choose from before things generally quiet down for the winter,” said James Mabey, CREA Chair. “While some buyers may choose to take advantage, others may be inclined to wait as the bulk of future rate cuts from the Bank of Canada are now expected to show up in a matter of months as opposed to years. Whether you’re looking to buy or sell a property this fall or getting ready for what promises to be a big spring market next year, the first step is always to contact a REALTOR® in your area.”

What the numbers say

According to the report, national home sales rose 0.9% last month, reaching their highest level since July 2023. This slight boost in sales was led by the Greater Toronto Area and Hamilton-Burlington, Montreal and Quebec City, as well as Greater Vancouver and Victoria. The improvement comes after a period of volatility where buyers and sellers alike were cautious, waiting for signs of stability.

“Sales gains are now three for three in the months following interest rate cuts, which is a trend even though the increases weren’t headline-grabbing,” said Shaun Cathcart, CREA’s Senior Economist. “That said, with the pace of rate cuts now expected to be much faster than previously thought, it’s possible some buyers may choose to hold off on a purchase for now. This could further boost the rebound expected in 2025 at the expense of the last few months of this year.”

Inventory and new listings

In September, new property listings saw a 4.9% increase from the previous month, with a notable influx of listings during the initial weeks. This upward trend was widespread, encompassing many of the nation’s largest markets.

By the end of September 2024, there were 185,427 properties listed for sale across all Canadian MLS® Systems, marking a 16.8% increase from the same period last year, although this figure still falls short of the historical September average of approximately 200,000 listings.

Despite new listings outpacing sales in September, the national sales-to-new listings ratio softened to 51.3%, a decrease from 52.8% in August. A reversal of this trend may occur if the increase in listings translates into heightened sales in October. Historically, a national sales-to-new listings ratio of 55%, and one ranging from 45% to 65%, typically indicates a balanced market.

As of September 2024, the national housing inventory stood at 4.1 months, slightly down from 4.2 months in August. The long-term average is around 5.1 months, with periods under 3.6 months indicating a seller’s market and those over 6.5 months denoting a buyer’s market.

Prices remain stable

The National Composite MLS® Home Price Index (HPI) ticked up a marginal 0.1% from August to September. Despite these minor fluctuations, the broader view shows that national home prices have largely remained stable since the start of the year.

Fourth consecutive cut brings key lending rate to 3.75% for the first time in two years

For the first time in two years, the Bank of Canada’s overnight lending rate has hit under 4%.

In its scheduled October 2024 announcement, the central bank lowered the target for the overnight lending rate by 50 basis points to reach 3.75%. This marks the fourth consecutive cut to rates in 2024, and the largest decrease since the onset of the pandemic in March 2020. 

In September, Canada’s Consumer Price Index recorded the smallest yearly increase since February 2021, rising 1.6% year over year, hitting under the Bank’s 2% inflation target for the second consecutive month. This was a key factor in the Bank’s decision to lower the lending rate by a larger amount in October. 

“In the past few months, inflation has come down significantly from 2.7% in June to 1.6% in September. Recent indicators suggest it will be around 2% in October. Price pressures are no longer broad-based, and both our measures of core inflation are now under 2.5%. Our surveys also find that business and consumer expectations of inflation have shifted down and are nearing normal. All this suggests we are back to low inflation. This is good news for Canadians,” said Tiff Macklem, Governor of the Bank of Canada, in a press conference with reporters following the announcement. 

“If the economy evolves broadly in line with this forecast, we anticipate cutting our policy rate further to support demand and keep inflation on target. The timing and pace of further interest rate cuts will depend on incoming information and our assessment of its implications for the inflation outlook. We will take our monetary policy decisions one at a time,” he added.

Lower rates could trigger early spring market 

Another cut to the overnight lending rate may be enough to stimulate activity in stagnant housing markets across Canada come spring, especially among buyers who have been sidelined by the higher cost of borrowing over the past two years. 

In its Q3 2024 Home Price Update & Market Forecast, Royal LePage predicted that the aggregate price of a home in Canada will increase 5.5% in the fourth quarter of 2024, compared to the same quarter last year. As lower interest rates boost consumer confidence and borrowing power, home prices are expected to increase as more buyers re-enter the market. Rising demand in the late months of 2024 and into the new year will likely put Canada’s housing market on track for an early spring market. 

“Activity in Canada’s housing market has been sluggish in many regions due to higher borrowing costs, but today’s more aggressive cut to lending rates could cause the tide to turn quickly. For those with variable rate mortgages – who will benefit from the rate drop immediately – or those with fast-approaching loan renewals, today’s announcement is welcome news indeed,” said Phil Soper, president and CEO of Royal LePage. “With every cut to the overnight lending rate, more homebuyers are expected to come off of the sidelines. In turn, rising demand will cause home prices to increase more rapidly, eliminating the advantages of lower borrowing costs. We expect that an early spring market is on the cards – a pull-ahead trend we’ve seen in previous market turnarounds.”

Though the Bank of Canada started to reduce rates in June, many homebuyers have been waiting for a more substantial cut to rates before choosing to reboot their purchase plans. According to a Royal LePage survey, conducted by Leger, 51% of Canadians who put their home buying plans on hold the last two years said they would return to the market when the Bank of Canada reduced its key lending rate. Eighteen percent said they would wait for a cut of 50 to 100 basis points, and 23% said they’d need to see a cut of more than 100 basis points before considering resuming their search.

The Bank of Canada will make its next interest rate announcement on Wednesday, December 11th, the last announcement for 2024.

Read the full October 23rd report here.

Decision aimed at correcting imbalance between insured, uninsured homeowners at time of mortgage renewal

The national banking regulator says it will no longer require borrowers with uninsured mortgages to undergo a stress test when switching providers.

The Office of the Superintendent of Financial Institutions says it will end the policy for lenders to apply the minimum qualifying rate to straight switches when uninsured mortgages are renewed at a different institution under the borrower's current amortization schedule and loan amount.

OSFI says the change comes after feedback from the industry and Canadians "about the imbalance between insured and uninsured mortgagors at the time of mortgage renewal." It also says data shows the risks the requirement had been intended to address "have not significantly materialized."

In March, Canada's Competition Bureau recommended allowing uninsured mortgage borrowers to switch between banks without undergoing a stress test, saying the policy was "not applied evenly."

The stress test requires federally regulated financial institutions to ensure borrowers can still make mortgage payments if they experience financial shocks, such as an increase in mortgage interest rates or an increase in household expenses.

The regulator says it is working with financial institutions to ensure they are prepared for the change, which it intends to formally communicate as part of its next quarterly release on Nov. 21.

30-year mortgage amortization period extended for all first-time homebuyers and all new construction purchasers, plus a $500,000 increase to the insured mortgage cap

Those looking to buy their first home will soon be able to take advantage of a 30-year mortgage and expanded borrowing powers, regardless of the home they buy. 

On September 16th, the Government of Canada revealed that it would be expanding eligibility for 30-year amortizations on insured mortgages to all first-time homebuyers, and to all purchasers of new construction properties. The policy will come into effect on December 15th, 2024. Currently, the maximum amortization period for insured mortgages – mortgages that have less than a 20% down payment and therefore require mortgage insurance – is limited to 25 years.

By lengthening mortgage amortization periods by another five years, the federal government says monthly mortgage payments will be reduced, making housing more affordable for young Canadians. The upgraded policy would also incentivize developers to build more new housing. 

This latest amendment to mortgage rules comes just one month after 30-year amortizations for insured mortgages were announced for first-time homebuyers of new construction homes. The policy officially came into effect on August 1st.

Insured mortgage cap increased to $1.5 million 

In addition to longer amortization periods, the federal government has also increased the limit on insured mortgages. As of December 15th, the insured mortgage cap will be increased from $1 million to $1.5 million. 

“Building on our action to help you afford a downpayment, we are now making the boldest mortgages reforms in decades to unlock homeownership for younger Canadians,” said Chrystia Freeland, Deputy Prime Minister and Minister of Finance, said in a press release. “We are increasing the insured mortgage cap to reflect home prices in more expensive cities, allowing homebuyers more time to pay off their mortgage, and helping homeowners switch lenders to find the lowest interest rate at renewal.”

Under current rules, mortgage insurance is limited to homes purchased under $1 million, meaning anyone searching for a home in the seven-figure price range is automatically required to put down a minimum of 20% of the purchase price as a down payment. This can be limiting to homebuyers in the country’s most expensive real estate markets, Vancouver and Toronto, where average home prices often surpass $1 million. 

“The decision to lengthen insured mortgage amortizations and boost the mortgage insurance cap will give many first-time buyers across the country a much-needed leg up on accessing the property ladder. For many homebuyer hopefuls, the monthly mortgage payment is often the deciding factor between a property that fits in their budget and one that doesn’t. An extra few years to spread out those payments will help many purchasers make the transition from renter to homeowner. Those shopping in Canada’s most expensive markets, where home prices over $1 million are the norm, will also find it a little easier to get into the market,” said Karen Yolevski, COO, Royal LePage Real Estate Services Ltd. 

“The implementation of these new rules will likely follow another cut to interest rates, or two.  The Bank of Canada’s next scheduled announcements are on October 23rd and December 11th. Lower borrowing costs, combined with these extended mortgage powers, may stir first-time buyer demand in the months ahead, setting the stage for a robust spring market in 2025.”

Do you qualify under the new mortgage policies?

In order to take advantage of the increased mortgage cap and 30-year mortgage amortizations, you must be a first-time homebuyer in Canada. Here are the basic requirements:

• The borrower has never purchased a home before.

• In the last four years, the borrower has not occupied a home as a principal residence that either they or their current spouse or common-law partner have owned.

• If the borrower recently experienced the breakdown of a marriage or common-law partnership, the regulations will follow the approach that the Canada Revenue Agency has taken with respect to the Home Buyers’ Plan.

• To be considered a new construction property, the new home must not have been previously occupied for residential purposes.

Thirty-year amortizations were first announced in the 2024 federal budget released earlier this year, alongside other housing measures for Canadians. Read more about all of the proposed housing measures here. 

Source: RoyalLePage

Sales of luxury homes were up in the first eight months of 2024 compared to the same period last year in most major cities

From surging buyer demand to fluctuating interest rates, the Canadian housing market has seen its fair share of ups and downs since the onset of the pandemic. Through it all, home prices in the country’s luxury markets have stayed relatively stable, weathering the ever-evolving market landscape.

According to the 2024 Royal LePage® Carriage Trade® Luxury Market Report, sales of luxury homes were up in the first eight months of the year, compared to the same period in 2023, in almost all major cities in Canada – with the exception of the two most expensive markets, Vancouver and Toronto, as well as Halifax. Meanwhile, prices posted modest gains in some regions and slight declines in others.

“Homes typically trade hands at the high end of the market at a slower pace than we see in the industry overall, as the funnel of potential purchasers narrows as the price of properties climbs. This affords luxury buyers the luxury of acting more deliberately, taking their time in a quest to find exactly the right home,” said Phil Soper, president and chief executive officer, Royal LePage. “While market conditions can vary from one city or province to the next, the dynamics at play in luxury real estate markets from coast to coast remain consistent: buyers in this segment know what they want and they are willing to wait for it.”

While transaction volumes in the high-end property segment are lower relative to the mainstream residential market, luxury markets in the Prairie provinces recorded some of the largest gains in sales activity year over year in the first eight months of 2024, led by Winnipeg, with Edmonton and Calgary close behind. This is reflective of the strong state of their overall markets, especially Alberta, which has proven more resilient than most of the country over the past year. This is due to its continued strong demand from out-of-province buyers. Outside of the Prairies, Quebec City has also recorded strong luxury sales growth this year.

Looking ahead, experts in all major cities across Canada expect to see brisk activity in the fall market.

Luxury buyers feel boost of confidence, fueling sales

According to Royal LePage regional luxury market experts, buyers in this segment are discerning. In some regions, the high cost of construction is driving demand in the resale segment, where buyers are seeking fully-renovated, turn-key properties. In other areas, buyers prefer to build the custom home of their dreams, despite high cost construction costs and extended timelines.

“Luxury buyers typically have the means to be picky. Their home buying decisions are shaped by more than the desire to live in a particular neighbourhood or to enjoy very specific high-end features and amenities. Often, their decision whether to buy or not is driven by their confidence in the health of the overall economy and the direction they see housing prices headed. Our research shows those in the higher end of the housing market have a very positive outlook on the long-term stability and appreciation potential of Canada’s housing stock,” noted Soper.

“Many buyers in the luxury market segment do not require high-leverage mortgages, where the amount borrowed relative to the value of the underlying property is large. In fact, it is common to see expensive homes purchased with very substantial down payments, or even fully in cash. Thus, luxury homebuyers as a rule are not as heavily impacted by high interest rates as the average consumer. It is primarily the positive impact on macroeconomic factors that will encourage new buyers in the luxury segment.”

Here are a few highlights from the 2024 Royal LePage Carriage Trade Luxury Market Report:

• Halifax’s luxury real estate market recorded highest year-over-year median price appreciation in the first eight months of 2024, with gains of 8.6%.

• Luxury property prices in Toronto posted year-over-year increase of 3.9%, while Vancouver and Montreal recorded modest declines of 1.8% and 2.8%, respectively.

• Sales activity in Winnipeg’s luxury market recorded greatest year-over-year increase with 61.9% jump, taking into account low transaction volumes.

• 2023 foreign buyer ban has had no material impact on prices or available inventory in most markets

Source: RoyalLePage

In today’s housing market, many sellers are making a critical mistake: overpricing their houses. This common error can lead to a home sitting on the market for a long time without any offers. And when that happens, the homeowner may have to drop their asking price to try to re-ignite buyer interest.

Data from Realtor.com shows the number of homeowners realizing this mistake and doing a price reduction is climbing. 

If you’re thinking about making a move yourself, here’s what you need to know. The best way to avoid making a costly mistake is to work with a trusted real estate agent to find the right price. Here’s a look at what’s at stake if you don’t.

Not Paying Attention To Current Market Conditions

Understanding current market conditions is key to accurate pricing. You don’t want to set your asking price based on what happened during the pandemic. The market has moderated a lot since then, so it’s far better to align your price with today’s reality.

Real estate agents stay updated on market trends and how they impact the pricing strategy for your house.

Pricing It Based on What You Want To Make (Not What It’s Worth)

Another misstep is pricing it based on what you want to make on the sale, and not necessarily current market value. You may see other homes in your neighborhood selling for top dollar and assume yours can do the same. But you may not be considering differences in size, condition, and features. For example, maybe that other house is waterfront or has a finished basement. To sum it up, Bankrate explains:

“How do you find that sweet spot of pricing for profit but not overpricing? The expertise of your agent can be truly valuable here. A knowledgeable agent will understand fair market value in your area, how much your house is worth and how much you might reasonably expect to get for it in the current market.”

An agent will do a comparative market analysis (CMA) to make sure your house is compared with truly similar properties to get an accurate look at how it should be priced.

Pricing High to Leave Room for Negotiation

Another common, yet misguided strategy is to price your house high on purpose, so you have more room to negotiate down during the sale. But this can backfire. A price that seems too high often deters potential buyers from even considering the home. So rather than leaving room for negotiation, what you’ll actually be doing is turning buyers away. U.S. News Real Estate explains:

“You want to sell your house for top dollar, but be realistic about the value of the property and how buyers will see it. If you’ve overpriced your home, chances are you’ll eventually need to lower the number, but the peak period of activity that a new listing experiences is already gone.”

An agent can help you set a fair price that attracts buyers and encourages more competitive offers.

Bottom Line

Overpricing your home can have serious consequences. A knowledgeable real estate agent brings an objective perspective, in-depth market knowledge, and a strategic approach to pricing.

Connect with a local real estate professional to avoid making a pricing mistake that’ll cost you.

By now you may be aware of some major changes coming to BC’s tenancy’s rules. On July 3, Housing Minister Ravi Kahlon announced on behalf of the BC Government, that its long-awaited online portal which landlords will be forced to use in order to issue a notice to end tenancy under the updated rules is forthcoming. 
 
The following information is critically important to understand for landlords & those purchasing rental property or property with a rental suite.
 
 
The updated rules now state:
 
1) Landlord must issue notices to end tenancy through the online portal which has not yet been launched, but will be launched on July 18th.
 
2) The NOTICE PERIOD TO END TENANCY on the grounds of personal/immediate family use has now been extended from two months to FOUR months. And remember, that’s four full months. In other words, if you were to request vacant possession on July 19th and thereafter, the earliest date possible for vacant possession would be December 1st, 2024. 
 
3) The number of days permitted for a tenant to dispute a notice to end tenancy has been doubled also, from 15 days to 30 days. 
 
For buyers currently purchasing a tenanted property they are planning to move into, you cannot issue a notice to end tenancy until all your Subject Conditions are removed. Plus, you need to ensure that the notice has been issued properly to be deemed received by the tenant. Most property managers will recommend 5 days’ notice to achieve this by registered mail. It is imperative that if you are purchasing a tenanted property, that you really have perhaps just under a week remaining to issue such a notice without risking falling under the new rules. 
 
This is going to cause a number of changes and there will be obvious problems with seeking approvals and rate holds on properties that a buyer may not be able to take possession of for months. We will have to wait and see how institutional lenders react; we expect we will soon see the evolution of some new clauses for real estate contracts.
 
We will keep you informed as we get more information. In the meantime, you can read the government’s statement on the issue at the link below: 

https://news.gov.bc.ca/releases/2024HOUS0115-001044

When you decide to buy your first home, you may come across a number of terms and conditions you’re not familiar with. While you may have a general idea of what an inspection is, maybe you’re not sure why you need one or how it’s different from an appraisal. To keep it simple, here’s an explainer of each one and what they mean for you as a homebuyer.

Home Inspection

Once you’re under contract on a home you’d like to buy, getting an inspection is a key part of the process. An inspection gives you a clear idea of the safety and overall condition of the home – which is important for such a big transaction. As a recent Realtor.com article explains:

“A home inspection is something that protects your financial interest in what will likely be the largest purchase you make in your life—one in which you need as much information as possible.”

If anything is questionable in the inspection process – like the age of the roof, the state of the HVAC system, or just about anything else – you have the option to discuss and negotiate any potential issues or repairs with the seller before the transaction is final. And don’t worry – you don’t have to go through that process alone. Your real estate agent will be your advocate and negotiate with the seller for you.

Home Appraisal

While the inspection tells you about the current state of the house, an appraisal gives you its value. Bankrate explains:

“When buying or selling a home, an appraisal verifies that the sale price of the home is in line with fair market value. This ensures the homebuyer doesn’t pay more than the home is worth, and the mortgage lender doesn’t lend more than it is worth.”

Regardless of what you’re willing to pay for a house, if you’ll be using a mortgage to fund your purchase, the appraisal protects you from overpaying and the bank from lending you more than the home is worth.

And if there’s ever any confusion or discrepancy between the appraisal and the agreed-upon price in your contract, your trusted real estate professional will help you navigate any additional negotiations to try to close the gap.

Bottom Line

The inspection and the appraisal are different but equally important steps when buying a home – and you don’t need to manage them by yourself. Connect with an agent today so you have expert guidance from start to finish.