Written by: Buffini & Co As mortgage rates lower, the real estate market typically becomes more competitive. Working with a qualified professional real estate agent helps you get into the home of your dreams. Buying a home? A buyer's agent will...

• Connect you with a lender.
• Take the time to listen and understand your priorities.
• Scout and recommend properties.
• Arrange and attend property inspections after your offer is accepted.

Selling a home? A listing agent will...

• Conduct a Comparative Market Analysis.
• Advise you how to prepare your home for listing.
• Competitively price your home to sell.
• Create a comprehensive home marketing plan.

Whether you're buying or selling, a professional real estate agent will...

• Negotiate the best deal to get the price and terms you want.
• Provide complete transaction management.
• Keep you informed every step of the way.
• Have a robust database of referrals to other service professionals.

Homework for the Holidays

The holidays can be hectic, but you may find you have pockets of time where you can talk with family and friends about buying or selling a home. Spring is anticipated to be a competitive time - you don't want to get left behind! Getting Ready to Buy?

• Check your credit scores.
• Review your finances and set a budget.
• Research the process of getting preapproved.

Getting Ready to Sell?

• Decide when you would like to sell your home (time of year, personal schedules etc.)
• Start a list of small repairs you can do yourself.
• Start decluttering.

For Both Buyers and Sellers

• Create a wishlist of "must-haves" and "nice to have" for your next home.
• Start researching areas where you might want to live.

Written by: Zak Khan of REW From mortgage assistance to forgivable loans and more, a rental suite is a good idea. Imagine if you could make your mortgage pay for itself. With a rental suite, this isn't as far-fetched as it sounds. The income generated from a secondary suite can be substantial enough to offset a large portion of your monthly mortgage payments. This makes owning a home more financially manageable, especially in high-cost areas—take all of British Columbia, for example. The Mortgage-Helper With an additional source of income streaming into your bank account each month, you may even find yourself in a position to accelerate your mortgage payments. So, you could pay off your mortgage sooner than expected, freeing yourself from the shackles of home loan debt. Plus, you'll be saving on interest over the life of your loan. Handling Your Debt When you decide to rent out a suite in your property, your debt-to-income ratio becomes more favourable. How? Lenders consider the income you receive from your tenant when calculating this ratio, effectively increasing your income. This could make you eligible for better lending rates or allow you to borrow more if you choose to invest in another property. If you're thinking this all sounds too good to be true, it's important to remember that adding an accessory dwelling unit and becoming a landlord isn't all roses and revenue. To Renovate or Not to Renovate Creating a rental suite may involve renovations and that means upfront cost. But think of it as a long-term investment. Over time, the rental income can cover not only your mortgage payments but also the cost of the renovation. And if you ever decide to sell your property, a legal secondary suite could increase the value of your home. It reaps benefits now and in the future. To sweeten the deal even further, in 2024 BC launched the Secondary Suite Incentive Program. If you meet all of the conditions, you can get a forgivable loan of up to 50% the cost of renovations or additions related to adding a secondary suite to your property, with a maximum payment of $40,000. Plus, the cost to add a suite to your property must be at least $20,000. For the full list of details, visit the BC Secondary Suite Incentive Program website and see if you qualify. But some basics to know before you apply include:

• The suite must be on the same property as your principal residence that you own in an approved area of British Columbia.
• All registered homeowners must be Canadian citizens or permanent residents.
• Your home’s assessed value must be less than $2,150,000.
• The combined gross annual income of all registered homeowners on title of the principal residence must be less than $209,420.
• You must have received a building permit on or after April 1, 2023.
• You must rent out the completed suite to full-time tenants at below market rates in your area for at least five years.

The suite you add can be a laneway house, garden suite, basement unit or another type of suite, but it must contain a kitchen and full bathroom and be independently accessible. This is currently a pilot program. In the first year there’s $40 million total available, enough for 1,000 applications if all of them qualify for the maximum amount. Remember, you still need to follow all building codes and regulations for secondary suites in your area. If you already built your suite after April 1, 2023 but didn’t apply for the loan yet, you can start submitting your documents now. The Not-So-Fine Print While the financial advantages of having a rental suite are compelling, it’s vital to know that landlords have responsibilities too. From ensuring the suite is legal and meets building codes, to maintaining the property and addressing tenant concerns, the role comes with its share of commitments. Keep in mind, too, that you have tax obligations on rental income and will have to report it. Plus, while you can get tax breaks for some expenses related to improvements you make when adding a rental suite—like maintenance, repairs and other items—be careful when listing these to avoid an audit. When in doubt, ask an accountant. It's essential to understand landlord-tenant laws in BC and to treat this endeavour like the mini-business that it is. But don't let this put you off—with careful planning, becoming a landlord can be a rewarding and profitable venture. By renting out a suite in your home, you’re helping your own financial situation and contributing to the supply of rental accommodation. While property prices continue to rise, homeowners in BC can find stability in the revenue a rental suite generates. So if you've been thinking about how to soften the blow of a hefty mortgage, perhaps it's time to consider the idea of becoming a landlord. A rental suite could turn your home into a source of income and pave the way to greater financial stability. Remember, no two property journeys are alike. It's all about finding the right fit for you and perhaps your future tenant. At the end of the day, a rental suite can turn your home into a powerful financial tool. It can help offset mortgage payments, improve your debt-to-income ratio, accelerate your mortgage payments and even provide some tax relief. But more than that, a rental suite can transform your life and the lives of others.

Written by: Dr. Sherry Cooper & Associates October Inflation Rose to 2.0% as Gasoline Prices Declines Were More Muted   The Consumer Price Index (CPI) rose 2.0% year-over-year in October, up from a 1.6% increase in September. Gasoline prices fell to a lesser extent in October (-4.0%) compared with September (-10.7%). The all-items CPI, excluding gasoline, rose 2.2% in October, the same growth rate as in August and September The smaller decline is partly attributed to a base-year effect, as prices fell 6.4% month over month in October 2023, stemming from lower refining margins and weaker global oil consumption. On a monthly basis, prices for gasoline were up 0.7% in October, following a 7.1% decline in September. Slower rise in shelter prices Shelter price growth continued to ease in October, rising 4.8% year over year, compared with a 5.0% increase in September. Slower price growth in the mortgage interest cost index in October (+14.7%) compared with September (+16.7%) applied downward pressure on the shelter component. Mortgage interest costs have been decelerating year-over-year since September 2023, following a peak in August 2023 (+30.9%). Similarly, rent prices grew at a slower pace in October, increasing 7.3% on a year-over-year basis, following an 8.2% gain in September. Nova Scotia (+5.2%) and Manitoba (+6.5%) decelerated the most. Although slowing, rent prices continue to increase and remain elevated. Compared with October 2021, rent prices increased 21.6%. The central bank’s two preferred core inflation measures also quickened, averaging 2.55% yearly pace, faster than expectations and up from 2.35% a month earlier. According to Bloomberg calculations, a three-month moving average of those measures rose to an annualized pace of 2.8% from 2.1% in September. After the release, overnight swaps traders trimmed their bets for a second consecutive large rate cut to about one in three, from a little less than a coin flip previously. Bottom Line The first acceleration of headline inflation in five months may bolster a case for the Bank of Canada to reduce borrowing costs gradually. After officials stepped up the pace of easing in October with a half-point cut, the next and this year’s final rate decision is on Dec. 11. Still, Tuesday’s inflation print didn’t eliminate bets for another jumbo rate cut. That’s because the central bank had already expected a bump along the road, with consumer prices hovering around 2%, as policymakers keep cutting rates to boost economic growth. When Governor Tiff Macklem and his officials delivered their outsize rate cut last month, they said they wanted to see a pickup in growth and demand. Preliminary industry-based data point to 1% annualized GDP growth in the third quarter, below the central bank’s 1.5% estimate. Final expenditure-based gross domestic product data is due at the end of this month. The November employment report, released on December 6, is another critical data point for the central bank. The unemployment rate has been steady at 6.5% for the past two months. A meaningful rise in the jobless rate could encourage the Governing Council to go another 50 bps lower at their next meeting. That and GDP figures (released o November 29) will be watched closely to game the Bank of Canada’s next move. A 25 bps cut in the overnight policy rate is in the bag. A 50-bps cut is less likely. Either way, the overnight policy rate, now at 3.75%, will be cut to roughly 2.5% by the middle of next year. This will continue to spur housing activity and could augur for a robust spring housing season.

Written by: Buffini & Co Change happens throughout our lives, whether through our own choices or other factors such as unforeseen expenses, job changes, family circumstances, or health needs.

1. Diamond
2. Divorce
3. Diploma
4. Death
5. Diapers

Top Tips for Adapting to Change Change, even when it's welcome, can be challenging. Be sure to give yourself grace and time to adapt.

• Start with acceptance
• Learn positive mindset techniques
• Focus on the endgame
• Take your time adjusting to the new circumstances
• Lean into your family, friends and community for support

Written by: Dr. Sherry Cooper & Associates The Consumer Price Index (CPI) rose 1.6% year over year in September, the slowest pace since February 2021 and down from a 2.0% gain in August 2024. The main contributor to headline deceleration was lower year-over-year gasoline prices in September (-10.7%) compared with August (-5.1%). The all-items CPI, excluding gasoline, rose 2.2% in September, matching the increase in August for this measure. Although the rate at which prices increase has slowed, price levels remain elevated. Compared with September 2021, the CPI rose 12.7% in September. Canadians continue to feel the impact of higher price levels for day-to-day basics such as rent (+21.0%) and food purchased from stores (+20.7%), which increased during that same 3-year period. The CPI fell 0.4% in September after a 0.2% decline in August. Lower gasoline prices led to both the monthly and yearly movement in September. On a seasonally adjusted monthly basis, the CPI remained unchanged at 0.0%. The central bank’s two core inflation measures remain sticky. Both measures were unchanged in September (see chart below). According to Bloomberg calculations, a three-month moving average of those measures fell to an annualized pace of 2.1% from 2.3% in August. According to Bloomberg News, “After the release, traders in overnight swaps upped their bets that the Bank of Canada will opt for a larger rate cut at next week’s decision, putting the odds of a half-percentage-point reduction at about 75%. Previously, the odds were around 50%.” The Canadian dollar weakened further on the news relative to the greenback. The loonie has fallen for ten days, the longest streak since 2017. Canadian debt rallied across the yield curve, outperforming US Treasuries and pushing the two-year Canada benchmark yield to 3.03% and the 5-year bond yield to 2.92% by mid-day. Tuesday’s data marks the first time since February 2021 that inflation is below the central bank’s 2% target and is the ninth straight month of headline rates running within its target range. With inflationary pressures continuing to ebb and policymakers focusing more on preserving economic growth, the data give the central bank options to reduce rates quicker after cutting borrowing costs at 25 basis points at the past three meetings. Bottom Line While the September employment data were stronger than expected, Q3 GDP growth is slated to be roughly 1.8%, well below the Bank of Canada’s 2.8% forecast. Today’s inflation report is the last important data point before the Bank meets again on October 23. Late last month, BoC Governor Tiff Macklem warned that growth may be below policymakers’ previous expectations in Q3. Excluding shelter costs, the consumer price index rose 0.4% from a year ago compared to 0.5% in August. Mortgage interest costs and rent remained the most significant contributors to the annual inflation rate change. However, rent prices increased at a slower pace in September, rising 8.2% versus 8.9% in August. Tuition fees, priced annually in September, also grew slower, increasing 1.8% compared with 2.5% last year. Regionally, inflation is now at or below 2% in every province, with prices rising slower in September than in August in all ten provinces. The central bank will release new economic forecasts in the Monetary Policy Report next week. Macklem has said,  “decisive monetary policy action and the unblocking of supply chains” means “uncertainty about costs and inflation are much lower today than two years ago”.

Written by: Buffini & Co Want to Buy? A Buyer's Agent:

• Only represents the buyer.
• Shows sellers you are serious about buying.
• Helps find homes to tour.
• Is an expert on the local area - taxes, schools, etc.
• Identifies problems and finds solutions.
• Recommends other trusted professionals.

  Want to Sell? A Listing Agent:

• Researches comparable listed properties.
• Provides a master marketing strategy.
• Recommends needed improvements or repairs.
• Coordinates showings between seller and agents.
• Negotiates the terms to help you get the highest price.
• Ensures closing goes smoothly and on time.

When you choose to work with a professional real estate agent, you get the highest level of care, expertise and value to help you navigate the complex act of buying or selling a home. Getting Ready to Buy or Sell? Buyers Start Here:

• Work with a buyer's agent to help you navigate the transaction.
• Determine how much you can afford.
• Review your credit score and make corrections if needed.
• Lower your debt-to-income ratio.
• Meet with a mortgage lender and get pre-approved.

  Sellers Start Here:

• Meet with a listing agent to come up with a plan.
• Start decluttering.
• Make any necessary repairs inside and outside your home.
• Compile all necessary paperwork (mortgage statements, home maintenance documents, etc.)

Written By: Dr. Sherry Cooper & Associates More Good News on the Canadian Inflation Front The Consumer Price Index (CPI) rose 2.0% year over year in August, the slowest pace since February 2021, and down from a 2.5% gain in July 2024. Core inflation measures averaged 2.35% y/y and excluding mortgage interest, headline inflation was a mere 1.2%–well below the Bank’s target inflation level of 2.0%. This opens the door for a possible acceleration in Bank of Canada easing. Governor Macklem has suggested that a 50 bp rate cut is possible if inflation falls too fast as unemployment rises. The deceleration in headline inflation in August was due, in part, to lower gasoline prices, a combination of lower prices and a base-year effect. The decline in August 2024 was mainly due to lower crude oil prices amid economic concerns in the United States and slowing demand in China. Excluding gasoline, the CPI rose 2.2% in August, down from 2.5% in July. Mortgage interest costs and rent remained the most significant contributors to the increase in the CPI in August. The mortgage interest cost index continued to rise at a slower pace year over year in August (+18.8%) for the 12th consecutive month after peaking in August 2023 (+30.9%). The CPI fell 0.2% m/m in August after increasing 0.4% in July. Lower prices for air transportation, gasoline, clothing and footwear, and travel tours led to a monthly decline. The CPI rose 0.1% in August on a seasonally adjusted monthly basis. The central bank’s two core inflation measures decreased, averaging a 2.35% yearly pace from 2.55% a month earlier, matching expectations. According to Bloomberg calculations, a three-month moving average of those measures fell to an annualized pace of 2.4% from 2.8% in July. August marked the eighth month of headline rates within the central bank’s target range. Bottom Line The inflation print is the first of two CPI reports before the Bank of Canada’s next rate decision on Oct. 23. After the data were released, overnight swaps traders upped their bets on a larger-than-normal reduction at that decision, putting the odds of a 50-basis point cut at just over a coin flip. Prices declined in five of eight subsectors every month, which could trigger worries about deflation among central bank officials if it becomes a trend. Macklem has recently said the bank cares as much about undershooting the 2% inflation target as it overshooting it. Markets now suggest a 47% chance of a 50 bps BoC cut on October 23 and a 57% probability of a 25 bps cut. Next week’s GDP data and the October 15 CPI report loom large in the 25 versus 50 bps debate. Further rate cuts will no doubt spur a housing recovery, though we suspect a shallow one initially due to affordability issues in Ontario and B.C. However, three new mortgage rule changes (effective December 15) could speed things along. The changes will allow all buyers to get a longer 30-year mortgage for a new build, first-time buyers to get a similar term for all properties (both new and old), and buyers to get an insured loan on a home priced up to $1.5 million (versus $1.0 million currently). The latter change will allow smaller down payments and lower borrowing costs than an uninsured loan. The 5-year extended term will lower monthly mortgage payments by about 9%.

Written by: Erin Best of REW When the time comes to make an offer on a property, two terms are often used interchangeably in the purchase process: deposit and down payment. While they both involve money changing hands, they serve different purposes. Understanding the differences between these terms is important. The Deposit A deposit is the sum of money provided by the buyer upon making an offer on a property. This deposit demonstrates the buyer's commitment to the purchase and serves as a show of good faith. Typically, the deposit is held in the buyer’s real estate agent’s brokerage trust account, or whichever trust account the buyer and seller agree to in the terms of an offer. Your deposit money should be readily available in an accessible account prior to you viewing properties. Having a deposit accompany your offer or as part of your offer, cements your offer's credibility as a serious contender. Your deposit can accompany your offer as guaranteed funds, and it’s usually in the form as a cashier’s cheque. Best practice from BC Financial Services Authority? Steer clear of making your certified cheque out to cash. Why? Well, imagine the unfortunate scenario where that cheque goes missing or falls into the wrong hands. Not only could this pose a security risk, but it could also lead to additional fees imposed by financial institutions to cancel the cheque and reissue a new one. This process can be anything but seamless, often entailing unnecessary hassle and precious time wasted. So, do yourself a favour and ensure your certified cheque is made out to the intended recipient, safeguarding both your funds and your peace of mind throughout the transaction journey. One primary function of the deposit is to protect the seller in case the buyer defaults on the contract. If the buyer fails to fulfill their obligations outlined in the purchase agreement, such as backing out of the deal without valid reasons, the seller may be entitled to keep the deposit as compensation for the time and effort lost during the transaction process. Moreover, deposits can act as a deterrent against frivolous offers. When buyers submit an offer accompanied by a substantial deposit, it signals to the seller that they are serious about the purchase, which can strengthen the offer's credibility. Down Payments On the other hand, a down payment refers to the initial payment made by the buyer toward the total purchase price of the property. Unlike the deposit, which is primarily a gesture of good faith, the down payment constitutes a significant portion of the total amount due and is often a requirement by lenders for financing approval. It offsets the total principal loan amount and reduces your monthly payments. Your down payment must be available when you meet with your lawyer or notary to sign the purchase documents with them. There are a few ways that your down payment becomes available to you for closing:  

• If you had a home to sell prior to buying your new home, then the equity you built up during that period becomes your down payment. Now, if you haven’t closed on that sale yet and you need to close on your new home, your lender can issue bridge financing. Bridge financing is a short-term financial solution for securing a down payment on your next home while leveraging the equity in your current property. If your plan entails selling your existing home after purchasing a new one, a bridge loan may be indispensable until the proceeds from the sale are realized.

 

• Once you've sold your old home and the money is ready, you can use it for the down payment on your new home. You can either withdraw the funds from your account as guaranteed money (like your deposit) or have your lawyer keep the money safe in their trust account until you're ready to buy your new place.

 

• The third way to ensure your down payment is ready for closing is to have it available in your account ready to withdraw, the same as you did your deposit. Be prepared to withdraw it as guaranteed funds in the form of a certified cheque and ensure it’s made out to the intended recipient.

The size of the down payment can vary depending on several factors, including the type of mortgage, the buyer's creditworthiness, and the lender's policies. Generally, down payments range from 5% to 20%. The minimum downpayment is 5% on a mortgage and any down payment above 20% waives the need for mortgage insurance through either CMHC or Genworth. Check with a trusted mortgage advisor and your buyer agent for all the ins and outs of lending requirements and other details for your purchase.

Written by: Buffini & Co There comes a time for many of us to either downsize or upsize. And it's always good to know your options.

• 37% of Canadians would like to downsize.
• 25% of Canadians would like to upsize.

Home too big? Has your home and yard become a lot to maintain. Do you have a big home repair on the horizon? Would you rather spend your time and money instead on things like visiting family and friends, taking that dream trip or pursuing a new hobby? Looking to downsize?  

• ADUs (accessory dwelling units)
• Condo or townhouse
• Age 55+ developments
• Shared living options

Or not big enough? Has your family outgrown your current space? Maybe you need room for a home office or gym. Or the kids need a room of their own. Looking to upsize?  

• Larger condo or townhouse
• New home construction
• Existing homes for sale
• Home addition

Ready to Take the Next Step?  

• Take to people already living in the community you are considering. It will help you get a true sense of the culture and vibe there.
• Research online sources for more information and reviews. Check out official town/city websites as well as various social media pages.
• Create a list of your "need to haves," "nice to have" and "dealbreakers." This will help you compare communities to see which ones will most likey be the best fit.