As we approach the end of 2024 and head into 2025, some significant changes are on the horizon for the Canadian mortgage market. Whether you’re a first-time homebuyer, a current homeowner, or considering refinancing, these updates may impact your decisions and financial plans.

Here’s a breakdown of the most important changes you need to know:

1. Changes to Stress Test Rules for Mortgage Transfers

Regulators are adjusting the mortgage stress test. Starting November 21st, 2024, borrowers will not be forced to qualify at their actual rate plus 2% when transferring their current mortgage to a new lender. This change will give borrowers more flexibility to find the best mortgage at renewal vs being stuck at a potentially higher rate because they fail to qualify with a new lender.

2. Decreased Down Payment Requirements

The minimum down payment for homes priced above $1 million is also changing. From December 15th 2024, prospective buyers can now put down less than 20%  for homes valued between $1 million and $1.5 million. The new minimum down payment will be 5% of the first $500,000 in purchase price and then 10% for the portion between $500,000 up to $1.5M.

3. Expanded eligibility for 30-year amortizations

Also beginning on December 15th, 2024, there will be an increase in the maximum amortization for all first-time homebuyers and all buyers of new builds (newly constructed homes) with less than 20% down payment from 25 years to 30 years. This will enhance borrowing power and lower payments giving buyers more options.

4. Better Access to Funds to Complete a Rental Unit

Ever considered adding a basement rental unit or a Garden/Laneway Suite? Starting on January 15th 2025, new rules are coming out to assist these types of projects. Increases to the maximum property value, the amount of the mortgage and best rates (insured) being some of the highlights of this program.

Stay Informed and Be Prepared

Navigating the ever-changing mortgage landscape can be challenging, but we’re committed to keeping you informed. Please feel free to contact me or schedule a consultation if you’re unsure if any of these changes may be applicable to you. We’re always happy to help!

In honor of my dog Maeve’s fourth birthday today, I present the best home features for pets!

Creating a pet-friendly home involves considering the comfort, safety, and well-being of your furry friends. Here are some features to consider:

• Durable Flooring: Choose scratch-resistant and easy-to-clean flooring like hardwood, laminate, or more durable tile options. Avoid carpets if possible, or choose pet-friendly carpeting that’s stain-resistant.
• Pet-Friendly Fabrics: Choose furniture and upholstery made from pet-friendly fabrics like leather or microfiber that are durable and easy to clean. This helps in case of accidents or shedding.
• Pet-Safe Plants: Select indoor plants that are non-toxic to pets, such as spider plants, Boston ferns, or palms. Keep toxic plants out of reach or opt for artificial plants.
• Designated Pet Areas: Create designated spaces for your pets, such as a cozy corner with a bed or a built-in nook under the stairs. This gives them a sense of security and their own space.
• Easy Access to Outdoors: Install a pet door or create a pet-friendly exit to the yard, allowing your pets to go outside and play freely.
• Secure Fencing: Ensure your yard has a secure fence to prevent your pets from wandering off and to keep them safe from potential dangers.
• Built-in Feeding Stations: Incorporate built-in feeding stations or cabinets to store pet food and supplies, keeping them organized and out of reach from curious pets.
• Wash Station or Mudroom: Include a designated area near the entrance for cleaning muddy paws or bathing your pets, with easy-to-clean surfaces and storage for grooming supplies.
• Integrated Pet Technology: Consider installing smart pet feeders, water fountains, or cameras to monitor your pets remotely and ensure they are comfortable and well-fed when you’re away.

By incorporating these features into your home design, you can create a safe, comfortable, and enjoyable environment for both you and your pets. 😊

You may not be sure which Payment Frequency is ideal to make your mortgage payments

Should you pay your mortgage every week? Every two weeks? What about accelerated payments?

Typically the different frequencies offered by most lenders are:

→ Monthly (12 payments per year)

→ Semi-monthly (24 payments per year)

→ Non-accelerated bi-weekly (26 payments per year)

→ Accelerated bi-weekly (more on that below)

→ Non-accelerated weekly (52 payments per year)

→ Accelerated weekly (same as accelerated bi-weekly, but, well, weekly )

You may find that smaller, more frequent payments that match when you are paid from your employer more manageable, if so, then bi-weekly may be the best option.

If you prefer less frequent payments, monthly may be the best option for you.

Depending on your lender, you may have additional options as well, such as semi-monthly payments, which would be the regular monthly payment split into two payments.

You can also opt for accelerated options. This can help you pay off your mortgage faster, which could decrease your overall interest paid. In an accelerated payment plan, you are making one extra monthly payment each year by splitting it up into 26 pieces with each piece added to your regular bi-weekly payment.

Within the non-accelerated options, there can also be small savings by selecting a specific frequency. I’d be happy to run any scenarios you are considering to see if there are any opportunities to save money by going a certain route.

And don’t worry if you change your mind down the road, most lenders allow for changes to payment frequency at any time.

As always, reach out if you have any mortgage-related questions!

In the last decade, climate change and energy efficiency have become top of mind for many Canadians. From wanting to do our part by recycling to making our home as energy efficient as possible, there are so many benefits to being environmentally and energy conscious.

If you are looking to cut costs or simply want to reduce your eco-footprint, here are some great ways to cut your energy costs:

• Get a Smart Thermostat: A pretty easy installation, a smart thermostat can help you better manage your in-home temperature. Whether you opt to install a basic programmable thermostat or try Google’s Nest, which learns from you and works to predict which temperatures you prefer and when, getting a read on your in-home temperature can help you better manage your energy usage.
• Look for Drafty Spots: When it comes to heating your home, it can quickly become a wasted effort and results in extra costs if you have drafts in your home. In addition to windows and doors, you should also seal any folding attic stairs, add a fireplace plug to seal the damper and install a dryer vent seal to reduce drafts in your laundry room.
• Swap to LEDs: Most of us are already using LED bulbs throughout our home. If you aren’t yet, now is the time to make the switch! LED bulbs use 15% less energy than an equivalent incandescent, which can save you a ton of money each month especially in larger homes.
• Turn Down Your Water Heater: While sometimes nothing beats a good scalding shower, you don’t want to be burned with a high energy bill. Did you know if you knock down that temperature gauge by just 10 degrees, you can save 3% to 5% on your bills each month!?
• Examine Your Appliances: Since 1992, ENERGY STAR® has been backing energy efficient appliances and products, helping consumers make the right choices. Some of the least green appliances in your home are your dishwasher, washing machine, dryer and refrigerator and, if you don’t currently have Energy Star certified versions of these machines, swapping to them is a surefire way to reduce your monthly expenses.
• Can’t afford new appliances? Here are some other tips and tricks to help make them more efficient in the meantime:
  • Dishwasher: Use a citric acid-based cleaner in an empty cycle to rid your dishwasher of excess soap and calcium buildup that may be causing your machine to work harder.

    Washing Machine: Maximize energy by stuffing your machine to the brim whenever possible as washing machines typically use the same amount of energy regardless of load size.

    Dryer: For starters, ensure you are always cleaning out your lint filter to increase air circulation. In addition, keep an eye on the outside exhaust and clean when needed to reduce drying time and save energy.

  • Refrigerator: While most of us are more concerned with the food inside our fridges than the parts, it is important to check your condenser coils. Over time, dirt, food particles and dust can collect and reduce the efficiency. Another tip is to set your refrigerator to 2-3 degrees Celsius.

• Close The Blinds: When the temperature starts heating up, it is important to close the blinds and drapes to prevent the sun from beating in and warming up your home. The excessive heat makes your air conditioner work overtime causing your energy bills to skyrocket.

In addition to the cost savings and environmental benefits of improving your energy efficiency, CMHC also has a rebate available! The CMHC Eco Plus refund can provide a 25% partial premium refund if you’re CMHC insured and buying or building an energy-efficient home!