Snelgrove

Crime rates: 26% lower than Brampton average
Real estate prices: 12% higher than Brampton average
School rating: 73.3/100
Overall Livability Score: 87/100

Snelgrove lies on the border of Brampton and Caledon. The neighbourhood has a variety of grocery stores and plazas that are highly accessible. There are numerous parks here such as the Conservation Drive Park and Heart Lake Conservation Park that are perfect for children to play outdoors. Snelgrove is also near Highway 410 which makes it convenient for families to travel outside the town. While the real estate prices are higher, there are mainly two-storey detached homes that are spacious and surrounded by nature.

Northgate

Crime rates: 13% higher than Brampton average
Real estate prices: 25% lower than Brampton average
School rating: 67.8/100
Overall Livability Score: 85/100

Northgate is located in east central Brampton and is considered an older neighbourhood in the city. However, it has a diverse combination of stores, services, and amenities that make it easy to run errands. The average real estate price here is cheaper than the Brampton average because it consists of housing such as detached, semi-detached, and townhouses. This allows families to choose whichever housing option they feel is the perfect fit for them in terms of size and budget. Northgate also contains 10 outdoor parks and recreation centres that are all ideal for families with children.

Westgate

Crime rates: 1% higher than Brampton average
Real estate prices: 12% lower than Brampton average
School rating: 68.3/100
Overall Livability Score: 85/100

The average price of a single detached house in Westgate is $1.06 million, 13% lower than the GTA average. Single detached homes make up most of the housing in Westgate with some townhouses as well. This neighbourhood is quiet and family-friendly with lots of nature and open spaces. There is also the Bramalea City Centre shopping mall that is under 10 minutes away by car and is one of the largest shopping malls in Canada with over 300 outlets.

Heart Lake East

Crime rates: Equal to Brampton average
Real estate prices: 11% lower than Brampton average
School rating: 65.8/100
Overall Livability Score: 85/100

Although the school rating is lower than the previous neighbourhoods, Heart Lake East consists of 7 public schools and 6 Catholic schools that give families a variety of options to choose from. The highest ranked school is St Agnes Separate School with an 87% proficiency. Heart Lake East is also near the Heart Lake Town Centre and the Trinity Common Mall. The 9 parks in this neighbourhood provide families with children an open area with lots of green space.

Brampton West

Crime rates: 100% lower than Brampton average
Real estate prices: 20% lower than Brampton average
School rating: 58/100
Overall Livability Score: 84/100

Brampton West is right next to downtown Brampton, making it accessible to many businesses and ancient buildings. There is also a nearby GO train that can take residents to Downtown Toronto in about 40 minutes. A single detached home is typically priced at $945,000, 23% lower than the average price in GTA. The diverse population makes Brampton West have a high livability score with a mix of restaurants and shops.

Madoc

Crime rates: 18% higher than Brampton average
Real estate prices: 28% lower than Brampton average
School rating: 57/100
Overall Livability Score: 84/100

Madoc is an older neighbourhood that is west of Highway 410, allowing residents to reach Downtown Toronto in 35 minutes by car. The housing contains older detached and semi-detached homes compared to other parts of Brampton, but it still has a mix with townhouses and apartments as well. Restaurants in Madoc are also known to be very diverse with ethnic cuisine. The area has 12 parks scattered throughout, including one that can accommodate ice-skating.

Fletcher’s Meadow

Crime rates: 11% higher than Brampton average
Real estate prices: 3% lower than Brampton average
School rating: 64.3/100
Overall Livability Score: 84/100

This neighbourhood is north-west of Brampton with a 40,000 population. Rose Theatre is a popular venue for shows that are scheduled throughout the year. Outside the Rose Theatre is Garden Square where there are daily shows including concerts and movie nights. Housing styles available include detached, semi-detached, and townhouses. The average school rating may not be the highest, but Ray Lawson is the highest ranked school in the neighbourhood with an 83% proficiency.

Southgate

Crime rates: 23% higher than Brampton average
Real estate prices: 33% lower than Brampton average
School rating: 66.6/100
Overall Livability Score: 83/100

Southgate is in southeast Brampton and is one of the older neighbourhoods. However, it is a convenient location due to its closeness to Bramalea GO and Bramalea City Centre. There is a large variety of housing options here that are all below the average price of homes in the GTA. Single detached homes are $965,000 and semi detached homes are $850,000. The downside to this neighbourhood is that the streets become extremely busy during rush hour with a lot of traffic.

Brampton East

Crime rates: 14% higher than Brampton average
Real estate prices: 15% lower than Brampton average
School rating: 58.6/100
Overall Livability Score: 83/100

The main advantage of Brampton East is that it is a quiet neighbourhood while also close to several amenities. It has single detached homes that are $1 million with decent sized lots. Housing styles include a mix of detached, semi-detached, townhouses, low-rise, and high-rise apartments. The West Humber River Valley is a recreation trail that is a popular destination for residents to enjoy some time in nature. Meadowland Park and Peel Village Park are also open green spaces that have sports fields and playgrounds for children.

Northwest Sandalwood Parkway

Crime rates: 5% lower than Brampton average
Real estate prices: 4% lower than Brampton average
School rating: 67.2/100
Overall Livability Score: 83/100

This neighbourhood is relatively newer with higher real estate prices compared to Brampton East and is located near Snelgrove. A single detached home is priced at $1.13 million, 7% lower than the average price in the GTA. Although this is a newer community and it is still evolving, there are restaurants that feature diverse cuisines. This neighbourhood is perfect for families who prefer newer homes, but also a quiet area with well established neighbouring regions such as Snelgrove and Fletcher’s Meadow.

The post Best 10 Neighbourhoods in Brampton for Families first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

After more than two years living in a pandemic world, we all got used to spending more time at home, many times surrounded by our family, so how can we make this day special? Especially when sharing tight living quarters.

There are, of course, financial and ecological perks to shrinking the square footage of your home, but what do you do when you can’t shrink the number of occupants?

Juggling multiple schedules, maintaining well-treaded, multi-use spaces, and organizing become top-tier tasks for families. Having well-delimited areas became essential during the pandemic. A home office to work quietly and an entertainment room where you can have fun with your family can make spending so much time together easier. So that is why we prepared a few tips to complete this daunting task quickly and without additional stress.

Everything has a home. This tried-and-true tip has been mentioned time and time again, but it is especially important in a smaller space. Make sure that every item in your home serves its purpose and has a place to live where it can be tucked away when it’s not in use. Channel your inner HGTV guru and hit up Home Depot, Home Sense, Ikea or Home Outfitters and find some cute — and practical — storage units that will work in your space, and don’t be afraid to make labels!

The hardest part about this tip — and I think we all know it well — is to actually follow through and put things away when we’re done using them. When living in a small space, especially with other people, things hanging out on surfaces will instantly make your home look more cramped and more cluttered. Tucking them away into their respective drawers or cupboards after use will have the place looking more put-together and reduce some of those stress levels, making clean ups more efficient.

When eyeing up your space, it’s important to ask yourself if all of the items in your home serve a purpose and if not, ditch the clutter and consider downsizing. Listen to Marie Kondo and her art of Tidying Up. If the item does not bring you joy or serve any real purpose in your space, it may be time to part ways with it. 

Use space wisely. Families living in smaller spaces may have to break away from the intended design of the space and get a bit creative. What I mean is who says that the master suite has to be for the adults? Why not put the kids in there? They can share the space, plus it can double as a playroom and keep their toys from spilling out into the rest of the living space.

You can also think of how you can use curtains and bookshelves as room dividers to better create designated spaces to serve specific purposes. Don’t have a closet, for instance? Use a cube shelf from Ikea as a divider and use a few free-standing rolling racks behind to create a makeshift wardrobe. Those cube shelves work wonderfully because you can store items on both sides.

One way to create the illusion of more space is to paint your walls white. Not only is this currently in fashion but it allows the light to add extra square footage to your space, well at least make it look like that. Colour has a tendency to overwhelm a space, so when creating your decor palette, stick to about four colours that can be used throughout the home with one contrasting “pop” colour. The nice thing about colouring your home with decor is that it can easily be replaced when you want to redesign or create a new atmosphere.

Do your kids love to make crafts? Real Simple offers this tip and I couldn’t help myself but include it in this list: throw out the glitter. Glitter is notorious for being the most impossible crafting supply to be cleaned up. Now, imagine what happens when you let this abomination loose in a small space? You’ve seen those glitter bombs? But picture it in your home, where your clothes live and your food! Glitter NEVER really goes away. It hides — lurks in the shadows, in the corners of your cupboard, only resurfacing its sparkly face in the most inopportune moments.

This tip ties in with Real Simple’s point of ditching the sentimental mentality. When living in a small space, you will really have to make some decisions on which meaningful items you keep and which you part with.

For instance, not every single piece of your child’s art collection can earn its spot on the fridge simultaneously. But, what you could do is bring in the tech. Take a digital photograph of your children’s masterpieces and put them on a rotating digital picture frame. That way you don’t have to keep all of the hard copies, but rather select a few of their favourites to store for when they’re older. Plus, they’ll have a digital copy of everything they’ve done on a USB fob when they turn 18 and move out!

Getting outside is one of the best ways to “add more space” to a small home. And now seems to be a good time to get out there as COVID-19 restrictions are being eased up in many provinces. Take advantage of the neighbourhood around you and enjoy quality time with your family as you take a nightly stroll, plan a tobogganing day with hot chocolate or a quick play at the park. Don’t forget to keep yourself and your loved ones safe!

Living in a small space with lots of people and children can be loud, busy and crowded, but by escaping into the wilderness, or even into our own communities, we can take more of that personal time and space while still enjoying the company of our loved ones.

Parents raising their children in smaller residences are becoming a more common occurrence as the housing market is still hard to break into in Canada’s big cities like Toronto, Vancouver and Montreal and Calgary. But with some creativity, planning, organization and absolutely no glitter, you and yours can make it work.

From everyone at RMA, we hope you have a fantastic and fun Family Day with your loved ones.

The post How to live small with a big family in 2023 first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

Besides the stress test, Credit can disqualify you from a mortgage

In a more case-by-case scenario, a common factor for mortgage rejection is poor or no credit history. A credit score is a number on a scale of 350-900, where 350 is bad and 900 is stellar, which explains a person’s ability to pay off their debts or their debt utilization rate (let’s say you have $10 000 of credit available but have only used $1000. You have a 10% credit utilization ate – the lower the rate, the better the credit score). In addition to your history of paying off debt and credit utilization rate, the score looks at how long you have had a credit account, new inquiries for credit, and other factors.

Quite frequently, first-time homebuyers run into issues with their credit score. This could have been a mismanaged credit card or high student loan debts, which would have resulted in a terrible credit score. Another issue is if the person has never had credit. This would result in no credit history that the lender could rely on.

There is hope, however. Even with a bad or missing credit history, individuals can still get approved if they have a guarantor or co-signer. This is someone legally liable for your loan payments if you default. For many first-time homebuyers, a co-signor or guarantor is a family member.

Self-employment is another common way people find themselves unable to approve their mortgage applications. Due to the instability of their income, A lenders find self-employed people a greater risk. Thus, the bank may require a higher taxable income or a larger down payment to approve someone self-employed.

Lastly, life is full of twists and turns, and many people make financial mistakes; this can result in bankruptcy. People who have declared bankruptcy in the past few years won’t get approved by any major bank and will have to seek help from a B or private lender.

The alternatives

While A lenders consist of the major banks (RBC, TD, CIBC and Scotiabank) and the major credit unions (Meridian, Vancity and more), there are many more organizations willing to lend money. However, just because an A lender has declined you doesn’t mean your only option is to take a stroll to a dark alleyway and find a loan shark that charges a 50% interest rate. That’s where B and C Lenders come in: alternative lenders have a lower barrier to entry in exchange for a higher interest rate. They also commonly charge a processing fee of 1-2% of the mortgage and a brokerage fee, usually 0.5% of the mortgage.

It should be noted that using a B or C lender often is not a permanent fix. The mortgage terms tend to be shorter, up to 5 years. Many borrowers use an alternative lender to rebuild their credit and then switch to a mortgage with an A lender later on.

B Lenders

Contrary to what one might think, there are dozens of banks in Canada. Many of these smaller banks, such as Equitable Banks or B2B Bank, allow clients to miss one or more of the components that the big banks look for in a client. For example, they may approve someone even though they have a poor credit history if the applicant has a stable job and no recent bankruptcies. B lenders also more heavily consider the property being purchased in offsetting default risk.

B lenders can also be found at the Big Banks. With Canada’s housing industry roaring over the past couple of years, the major banks have diversified, and their mortgage departments often feature B level lending arrangements.

There is no need to fear B lenders. B lenders are still reliable organizations, commonly listed on the stock exchange, and have many clients worldwide. While banks dominate the mortgage market at approximately 71% of the market and credit unions at 15% of the market, the other 15% or so of the market are B or C lenders. The Canadian Mortgage and Housing Company also approve them as a mortgage lender.

C Lenders (Private lenders)

After both A and B lenders have turned you down, private lenders are usually the last resort. These lenders are often wealthy individuals or a group of individuals who lend out their own money for a better return, such as Mortgage Investment Entities (which can also be B lenders). However, as private lenders take on an even riskier clientele than their B-lending counterparts, they also charge a higher interest rate. As a result, you can expect interest rates anywhere between 10-to-18% and even more.

The barriers to entry for these mortgages are lower than that of B lenders. Instead of approving a mortgage only on credit scores and occupations, a private lender weighs more emphasis on the property type and value. If you are refinancing a home, they also consider the amount of equity you already have. This is not to say that other lenders don’t consider the property itself, but private lenders care more about it. It is the type of property that lenders seek to buy, and their high-interest rates that reduce the risk that C Lenders hold.

Lastly, because you may not be dealing with a massive and trustworthy corporation in the private lending landscape, it is best to have a lawyer thoroughly look over any documentation.

How to get a subprime mortgage: B and C Lenders

The term “subprime mortgage” should not give you a flashback to the 2008 recession. Subprime mortgages are realistically a part of everyday life and refer to any loan granted to those with a poor credit score. The mortgages provided by B and C lenders are usually subprime mortgages.

So if you’ve decided to get one, where should you start? Unlike A lenders, B and C lenders do not have a brick-and-mortar stores at the corners of every major intersection. And while you could scour the websites of every B-lender bank looking for the best rate, it may be more efficient to contact a mortgage specialist.

Mortgage brokerages or freelance mortgage specialists help homebuyers navigate the alternative lending market. They have access to multiple lenders and their mortgage rates, and they can even negotiate a lower rate for you. With their expertise, they can also find the most suitable lender for your situation. However, they take a percentage of your total mortgage as a commission, which can motivate them to approve you for a mortgage you shouldn’t be approved for.

Online mortgage brokers are now also a popular method to scour the B-and-C lender landscapes. These brokers cut margins by operating online and passing the savings onto their customers. Using technology, they can find out who the best lender is for you.

If a major bank has denied your dream mortgage, there’s still hope. Though it may cost a bit more in terms of interest, you can use B and C lenders as a temporary stepping stone you get your credit back on its feet. B and C lenders can help you get one step further to do what you thought was previously impossible.

The post The Ultimate Guide to B and C Lenders: Mortgages beyond the Big Banks first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

This article explains:

• How real estate agents are paid
• The benefits of hiring an agent to buy your first home
• Scenarios where purchasing without a realtor may be less risky

How real estate agents make their commissions during the selling & buying process

The home buying process generally involves a real estate agent representing the seller and another representing the buyer. If your offer on a home is accepted, these two agents work together to negotiate the fine details and close the deal.

The buying agent then negotiates with the selling agent to split the commission paid by the home’s seller. Thus, effectively, the seller pays both the selling and buying agent.

If you purchase without an agent, you could convince the seller’s agent to reduce their fee. This could save you some money overall, but it’s not guaranteed. But is such a discount worth more than the value a realtor brings to your side of the deal?

The home buying and selling process is highly complicated. Buying without an agent means doing your research, booking your showings, and finding other professionals, such as a home inspector or real estate lawyer. This could amount to another job on top of your regular nine-to-five.

The benefits to purchasing your first home with an agent

Home showings

You’ll need to book an appointment with listing agents and plan a daily home showing schedule without an agent. But the benefit to a realtor is that they prepare this for you. All you do is sit back and relax as they take you from showing to showing and bring you through the process of each home.

During a showing, a buying agent can also point out ageing fixtures that may need repair or red flags, such as signs of rot, leaks, or foundational damage. You can then see a property’s problems before putting down an offer and paying a home inspector hundreds of dollars to do an inspection.

Knowledge of the local market

An agent’s value derives significantly from their knowledge of the real estate market. Veteran agents have decades of experience watching the rise and fall of their local real estate market. Realtors further keep up-to-date with the local economy and know what to expect in the weeks and months to come.

Although you should do your research, you likely can’t replicate the understanding of an experienced agent overnight.

If you’re buying in an area you’re not familiar with; the challenge is even more significant. At least with your neighbourhood, you know where the prime locations and best schools are. But if you’re moving to a less familiar area, the whole thing could be a stab in the dark. In such a case, think of an agent as a guiding light.

Your realtor can further help sort the tools available to you as a first-time homebuyer and educate you on using them most effectively. They can also break down complex concepts such as future capital gains taxes and the principal residence exemption.

Negotiating a final offer

When you find a home you like, the next step is to place an offer. Without an agent, you’ll be responsible for the negotiations a buying agent would usually handle. Negotiating effectively requires you to research the market thoroughly, have a sense of comparable houses in the neighbourhood, and understand the pros and cons of the home.

It doesn’t stop at price. Once you get the purchase agreement, you may want to add or take out clauses. Again, if you aren’t working with an agent, it’s even more critical to have a real estate lawyer at this stage to look out for what could negatively impact you without your understanding. You may also want to discuss repairs or minor renovation requests that the seller could complete before signing the final papers.

Although a real estate lawyer can help with parts of the negotiation process, remember that the other side likely has the help of both a lawyer and a selling agent to advocate for their interests.

Tapping into their network

Finally, an agent over their career has accumulated a network of other real estate professionals. Your realtor can likely refer you to a quality real estate lawyer and home inspector who are both critical to the home purchase process.

When buying without an agent is okay

As a first-time homebuyer, having an experienced realtor is invaluable. But not every transaction requires a realtor. For example, the following are scenarios where you may not need a real estate agent:

• Purchase from a family member: If you’re looking to purchase your parents’ home or the home of another trusted family member, then negotiations, the need to book showings, and knowledge of the local market may not be critical. However, a real estate agent can still provide valuable advice on first-time homebuyer tools or alternative ways to purchase the home.
• You have experience in the real estate purchase process: It should go without saying that there’s no point in hiring another agent if you’re a realtor yourself. But if you’ve also purchased properties in the past or had a similar experience, it may justify buying a home without a realtor since you already understand the process. This experience, alternatively, may also help you understand why having a realtor is so important.
• Friend or family with experience open to helping you: It may be an uncle or aunt or  parent who is or was a real estate agent. This individual may be available to help you for free or at a low cost. In such a scenario, you could book your own showings and tap their experience to help with the closing.

The post Why first-time homebuyers should enlist the help of a realtor first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

Home insurance isn’t mandated by law like car insurance. However, your home is likely the largest single purchase of your life. It’s vital to ensure you’re covered in events such as a flood or fire. Additionally, a home insurance policy is commonly mandated by mortgage lenders as a condition to your mortgage.

In this article, we explain the basics of home insurance to new homeowners. The article explains what home insurance generally covers and doesn’t cover and the types of insurance policies you can purchase.

What Can New Homeowners Expect to Home Insurance Cover?

Damage to Your Home and Others’ Homes and Property

New homeowners commonly think of home insurance in cases where there’s a flood or fire. In events where your home suffers severe damage or destruction, home insurance generally provides the cost of rebuilding your home up to the policy limit.

Further, if a fire starting from your home also causes damage to your neighbour’s house or a detached part of your home, such as a garden suite or shed, your home insurance policy may also cover these costs.

Not all forms of damage are covered, however. And it’s up to you to choose what is and isn’t part of your policy. Some events to look out for in your policy include:

• Flood: often not available for purchase in areas that commonly see flooding
• Windstorms: structural damage may be covered, but water and hail damage may not be
• Sewer backup: damage from backed-up sewers, drains, toilets, and showers
• Earthquake

Further, “predictable events” are not covered. I.e., if you don’t drain your pipes in the winter and they burst, your insurance won’t cover this. Damage that’s a result of not maintaining your house is also not covered. For example, if you don’t regularly replace your roof, and this results in water damage to your home, your insurance won’t cover repair costs.

Damage or Loss of Personal Possessions

If your home burns down, it’s not only about rebuilding your home but also replacing its contents. Home insurance policies cover damage or loss of your personal property, including incidents such as burglaries.

There’s a long list of what and when a home insurance policy won’t cover personal property. Typically, home insurance policies don’t cover:

• Loss or damage of items when they’re outside of your house or inside your vehicle
• Expensive jewelry or fine art. This commonly requires a separate insurance policy or must be added to your policy after the insurance company appraises the jewelry or fine art.
• Equipment breakdown, such as a laundry machine or HVAC system — even if it’s not unforeseen and unrelated to general wear and tear
• Equipment or stock related to a business. This requires a business insurance policy. Additionally, home insurance doesn’t generally cover any business-related damages or losses, even if you run your business from your home.

As your years of homeownership go by, you’ll accumulate more things in your home. It’s important to keep an inventory of what you own and regularly renew your insurance policy. The worst-case scenario occurs when the property inside your home is destroyed, damaged, or stolen, and you discover that your insurance doesn’t cover this loss.

Additional Living Expenses if Your Home Becomes Uninhabitable

Suppose something happens to your home. It could be a fire, weather damage, or another unpredictable event. Your house may become uninhabitable, and you and your family may need accommodations such as a hotel or short-term rental until the situation is fixed.

As a new homeowner, you can rest assured that your homeowner’s insurance covers these associated costs to the policy’s limit. Home insurance policies may also cover lost rental income if you used your property fully or partially for rental.

Damage of Injury When Someone Visits your Property

As a homeowner, you may be personally liable for injuries that happen on your property. For example, if a guest trips or slips as they reach your front door, which causes the guest an injury, they could sue you for damages. This is a common instance that home insurance is set to protect new and veteran homeowners alike.

To further draw the line between business insurance and home insurance, most home insurance policies won’t cover personal liability damages if the person visiting your home is a client. To ensure that you’re covered if your business client visits your home, you need a general liability business insurance policy.

What Types of Home Insurance Policies are Available?

Home insurance policies vary depending on what you need. Some new homeowners may need a home insurance policy with more or less coverage. Some new homeowners may want protection against earthquakes or floods, which many policies don’t cover. There are generally four types of policies you can expect when you speak with an insurance agent or broker:

• Comprehensive: A policy that provides the most coverage and protects your home from all risks unless expressly excluded by your policy.
• Standard: A policy that provides less coverage than a comprehensive policy and only covers instances and risks mentioned in the policy.
• Broad: A policy that sits between Comprehensive and Standard. Generally, it provides a Comprehensive policy (covers all risks unless excluded) for your home but a Standard policy (only covers what’s mentioned) for the contents inside your home.
• No-frills: The policy that provides the least coverage. A no-frills policy may not offer enough coverage to satisfy requirements by mortgage lenders.

Regardless of your policy, it’s important to regularly revisit your policy as your home’s contents and your home itself change. You want to notify your insurance company whenever:

• Your home is damaged, vandalized, or robbed
• You make renovations to your property — especially if you’re getting a pool
• You start a business from home
• A guest is hurt while visiting your home

Homeownership comes with many risks, but the right insurance policy can help mitigate much of these issues. It’s essential to understand your policy’s coverage to avoid surprises once you need to make a claim.

The post What New Homeowners Should Know About Home Insurance first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

Now with COVID-19 keeping us in our homes, there’s a new exodus, of not only Canadians but people across the world, reconsidering whether living in the city is the right decision. A popular New York Times article noted that between March 15 and April 28 of this year, moves from New York to Connecticut increased 74% from a year ago. Further, moves from New York to New Jersey saw a 38% increase, and from New York to Long Island saw a 48% increase.

So, what is causing these moves to the suburbs? This article reviews how and why COVID-19 is causing more people to move out of the city core. The post also provides insight into the non-COVID-19-related trend towards moving from the city to the suburbs, especially with millennial homebuyers. Lastly, we note some things to consider before actually looking for a home in the suburbs.

How COVID-19 is Pushing People to Reconsider

Many city homeowners and renters have wanted to move to the suburbs for some time. COVID-19 may have pushed this idea forward. After several months of cooping inside the confines of a small apartment or home, many desire more space and greenery. A larger home is also becoming attractive as people work from home and dream of a home office beyond a nook in their kitchen. However, the only way to afford a larger home is to move to the suburbs, where sizable homes are more affordable.

COVID-19 has also instilled fear into people. There’s the fear of crowded parks when you walk your dog or the elevator buttons that you need to press on your way back home. Instead, a suburban home can provide a better ability to distance from neighbours. This is especially important as we don’t know when COVID-19 will end.

A significant downside to suburban living is the longer commute. Office buildings tend to concentrate in downtown cores. TD’s 2019 Spring Homebuying survey found that 45% of respondents found the ability to live close to work was a key purchasing factor. But COVID-19 has also changed how we work. Companies such as Shopify have permanently moved to a work-from-home model, and the demand to social distance has catapulted most organizations into a firmer acceptance of working from home. So, the need for someone to live close to their office is becoming less relevant, making homes in the suburb (with the opportunity to design your own home office) more appealing.

Millennials Making the Move to the Suburbs

TD’s homebuying survey also found that of the 8 out of 10 millennials who aspire to own a home, two-thirds were willing to forego living in the city to meet their home-ownership aspirations. For millennials homebuyers, affordability is on the top of their mind. They also care for the size of their home, the neighbourhood, and the amount of outdoor space. This is why a home in the suburbs may better attract millennials.

As a result of this trend towards suburban living, both city planners and large corporations are taking note. Developers are looking to create city centres that provide millennials with the same benefits as the downtown core, with high-end dining, nightlife, event venues, and more. Multinational corporations are also opening second offices in close-by suburbs in addition to an office in the downtown core. A suburb office can offer less pricey real estate to the company and more convenience to some employees. In Vaughan, Ontario, many of the big accounting firms such as PwC and KPMG have opened a second headquarters, just a 40-minute drive from their downtown office.

What to Consider Before Moving to the Suburbs

Moving from the city to the suburbs is no small task. There are several items to consider before making the move. This includes leaving friends and family and additional costs.

If you decide to move to the suburbs, remember that visiting a friend or family member who also lives in the city is no longer a short walk or subways ride away. The ability to socialize with others ultimately becomes harder, as most places in the suburbs require at least 10 minute or more of driving. This inability to socialize is why some believe suburbs make people miserable. Now, meeting with a friend may involve driving 40 minutes downtown, finding parking, and finally walking to your destination.

Although buying a home in the suburbs is cheaper than in the city, it comes with additional costs. A larger home means more maintenance costs. Suddenly, there’s a lawn to mow, a pool to drain, and snow to shovel. Utility costs also increase as you need heating and air conditioning for a larger space.

Suburbs are less densely packed, so you can’t assume that its transit system is just as fast and reliable as the city’s. So, moving out of the city may mean having to buy or lease a car… maybe even two cars. Oh yeah, and there are also car insurance and car maintenance costs that come with that. If you need to work at an office, it likely means a further commute, which also increases your day-to-day expenses.

Moving from the city to the suburbs can mean more space at a lower cost. Especially with COVID-19 forcing us to stay at home, many people are getting closer to making the move. Moving to the suburbs is also how many millennials are hoping to purchase a home, as city prices are unaffordable. Just remember that moving out of the city may mean leaving friends and family and new expenses.

The post Why Canadians are Moving from the City to the Suburbs first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

In this article, we discuss the myth behind a COVID-19 recession resulting in the 2008-level real estate prices. We also provide some reason why now continues to be a good time to invest in real estate. Lastly, this article reflects on somethings to keep in mind for purchasing your first (or second or third) investment property. 

The Myth that Any Recession can Burst the Real Estate Bubble 

It’s often conventional wisdom that housing prices will decline during a recession, but this isn’t the always case. The 2008 financial crisis originated from subprime mortgages and the U.S. property market, among other factors, caused the decline in housing prices and subsequently the greater financial disaster. 

Subprime mortgages are not the reason for the possible recession that Canada could face. Now, the cause is the COVID-19, so it’s not likely that real estate prices will be affected as much as they were in 2008. Many experts across Canada believe that real estate prices may decline 5-10% at most due to COVID-19. Even though, until now, this hasn’t affected the market: monthly numbers from real estate boards across the country have continued to show a steady average price of the homes sold. 

COVID-19 is leaving many unemployed, reducing immigration to Canada, and providing us with economic uncertainty. However, the pressure exerted on the housing market by these factors is limited. Other COVID-19-related events, such as the slowdown of new housing constructions, are exerting upward pressure on real estate prices due to reduced supply. Further, if Canada can reopen its economy successfully and safely, the recession could have a smaller impact. 

Why You Should Consider Investing in Real Estate Anyways

The stock market’s prices have been jumping up and down due to on-going news about the Coronavirus. If you’re looking for a bit more stability in these unprecedented times, then residential real estate may be a good bet. 

As an income stream, real estate is relatively secure during a recession. Tenants will generally continue paying rent as they still have a legal obligation to do it. In contrast, a company whose stock you purchased may cut their dividends or the stock may see a sharp decline in value. 

Interest rates in Canada are still low, as the Bank of Canada attempts to stimulate the economy. This may reduce your cost of borrowing to purchase a home. If you can lock in a good mortgage rate for an investment property at this time, it’ll result in a better return on investment and cash flow down the road. 

A Few Best Practices for First-Time Real Estate Investors 

Just because now is a good time to invest, doesn’t mean you should jump right into any property you can get your hands on. If you purchase an overpriced property when you aren’t doing well financially, it could hurt you more than it could help you. 

Calculate your Cash Flow

In the world of real estate investing, cash flow is king. Cash flow is what you’re spending (cost of monthly mortgage payments and repaying other debts associated with the investment property) versus what you’re taking in (usually rental income). If you have a positive cash flow, you’re on a good track. Before buying an investment property, it’s important to run the numbers…. And, then, run them again to make sure you didn’t miss anything. When calculating your cash flow, make sure to ask yourself these questions:

● How much will your monthly mortgage payments be? 

● How much will renovations cost? 

● How much can you rent out the property for? 

● What happens if you can’t find a tenant to pay the price you’re looking for? 

Assess your Financial Position

It would be best if you also looked at your financial circumstance. Just because you have a good job today, doesn’t mean you’ll have one tomorrow. Especially not in the era of COVID-19. Would this investment still make sense if you were laid off or furloughed? Similarly, if you’re a business owner, could you manage the investment property’s mortgage if we face a second lockdown? Although residential real estate tends to be a safe investment, it’s essential to judge your financial position before committing to a purchase. 

High-Quality Properties in a High-Quality City

Finding the property with the lowest per-square-foot cost is usually not the best way to go. To find an investment property that will provide consistency in economic uncertainty requires buying in a high-demand area, even if it’s more expensive. This can better guarantee renter demand. 

Further, fixer-uppers are often of great value. You can renovate the property and get an even larger return on investment, however, there are some fixer-uppers you want to avoid. Properties with water damage or structural problems are often ones to avoid, especially as a first-time real estate investor. Even some veteran real estate investors stay away from these properties. 

We’re unsure if COVID-19 will bring a full-blown recession that’s as devastating as the one in 2008. However, it’s highly unlikely we’ll see the same kind of decline in home prices. Nevertheless, it may still be a good time to invest in residential property. Investment properties can provide a consistent income in times of uncertainty. But if you are a first-time investor, make sure you figure out your cash flow, assess your financial situation, and choose a high-quality property before making such a financial commitment.  

The post Tips to First-Time Real Estate Investors Navigating an Economic Recession first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

In this article, we explain these tools and look at how they can help you buy a home. The tools include the Home Buyers’ Plan, the new First-Time Homebuyers’ Incentive, and the various tax rebates and credits available to first-time homebuyers.

Home Buyers’ Plan: Borrowing from your RRSP

The Home Buyers’ Plan lets any first-time homebuyer buying or building a home to borrow up to $35,000 from their Registered Retirement Savings Plan (RRSP). This amount used to be $25,000 until March 19, 2019, when it was raised to $35,000. If you’re purchasing your home with someone else, like a significant other, each person can use the Home Buyers’ Plan for a total of $70,000.

Although it mentions “first-time” homebuyers, if you’ve previously participated in the plan, you may be able to do it again if your borrowing balance is 0 as of January 1st of the year. Just remember that every year that the money isn’t in your RRSP is another year that it’s not growing. Without the help of this appreciation, it could impact what you have ready for retirement.

Although withdrawing this money is tax-free, it has to be repaid within 15 years to remain so. The repayment period starts the second year after the year that the money is withdrawn. So funds withdrawn in 2019 have 2021 as the first year of repayment. The tax consequences of not paying back the loan within the allotted time could result in a hefty income tax.

Unlike mortgages and other loans, there are no consequences for paying back the money early.

First-Time Homebuyer Incentive: Sharing Equity with the Government

The First-Time Homebuyer Incentive (FTHBI) started on September 2nd, 2019 as part of the government’s national housing strategy. It’s expected to help Canadians fitting into a specific criterion reduce monthly mortgage payments by $286.

The government does this through a shared-equity mortgage program, where they provide a first-time homebuyer with 10% of the purchase price of a new home, or 5% of a resale home. This capital comes interest-free because it is not a loan. The government is actually purchasing part of the equity.

When the property is sold or after 25 years, the homebuyer must pay back either 10% or 5% of the home’s current market value. Thus, if the home declined in value, the homeowner pays back less than what they got. If the home’s value appreciated, they must pay back more.

For example, a homebuyer purchases a $100,000 new home and receives $10,000 (10%) from the FTHBI. If the home appreciates to $400,000 after 25 years or when they sell, they’ll have to pay back $40,000—10% of the market value after 25 years or at the time of the sale. One big benefit is that this amount can be paid back at any time, meaning you could pay it back when the property market is weaker to maximize the benefit.

As great as it sounds, there are severe limitations to this tool. To qualify for FTHBI, homebuyers must have a combined household income of $120,000 or less. The price of the mortgage plus the incentive amount also cannot exceed more than four times the buyers’ household income. This effectively limits the maximum purchase price of a qualified home to around $500,000. This likely rules out Vancouver or Toronto purchases, as even most condos in these cities have surpassed this maximum purchase price.

Another drawback of the program is that homebuyers using the plan with less than a 20% downpayment still need mortgage default insurance. If you have 10% of the purchase price ready and hope to get another 10% from FTHBI, this won’t help you wiggle your way out of default insurance. The FTHBI is almost like a second mortgage on your home—not part of your down payment.

Tax Rebates and Credits

In addition to tools that can help you get the money you need for a down payment or to reduce monthly mortgage payments, multiple tax rebates and credits can help avoid some of the costs of purchasing your first home.

First-Time Home Buyers’ Tax Credit

The First-Time Home Buyers’ Tax Credit came into effect in 2009. It provides a $5,000 non-refundable tax credit if you and the home you’re buying fit a certain criterion. The credit works out to a maximum of $750 back in your pocket.

To qualify, you and your spouse/common-law partner need to buy a qualifying home and must also have not lived in another home owned by you or your partner in the past four years. You and your partner also get a combined total of $5,000 tax credits. This means that regardless of whether it’s a solo or joint purchase, the maximum tax credit is $5,000.

HST/GST Rebate

The HST/GST housing rebate allows a homeowner to recover the GST or federal portion of HST from the purchase of their home or from any renovations that they made to it. To qualify, this home must be your primary place of residence, among other conditions. Depending on your province, the PST or provincial portion of the HST may also be recoverable.

Land Transfer Tax Rebate

If you’re a first-time homebuyer purchasing a home in British Columbia, Ontario, or Prince Edward Island, you could also recover some or all of the land transfer tax paid on your purchase. The recoverable amount depends on the specific province. The City of Toronto also provides a rebate on the city’s land transfer tax, in addition to the provincial one. The qualifications for each rebate differ depending on the province and whether you’re purchasing in the City of Toronto.

As a first-time homebuyer, many tools can help you purchase your first home. You can borrow from your RRSP through the Home Buyers’ Plan, split the equity of your home with the government via First-Time Homebuyer Incentive, or recover some money through various tax credits and rebates. Make sure to speak to an accountant and your realtor to make the best use of these tools.

The post The Tools Available to Canadians Purchasing Their First Home first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

In this article, we explain both why and how to invest in Canada’s flourishing real estate markets. We look at the appreciating values and rising rental incomes of Canadian properties and also what to look out for when making your investment. 

Why Canadian real estate? 

There are pros and cons of investing in Canada, of course, and then there are also pros and cons of investing in particular provinces and cities. But generally, Canadian real estate has continually appreciated in property value and rental earnings over the past years. According to the MLS® Home Price Index (HPI), home prices across Canada appreciated 38.34% over the past five years. Additionally, hotter cities grew even more in average price, with Toronto rising 56.60% and Vancouver rising 54.18% over the past five years.  Markets such as Montreal and Halifax have also been popular more recently.

While appreciation is great, rental income is also an important part of your real estate investment. According to rentals.ca, the national average rent has gone up over the past year, despite having various ups and downs. The average Canadian rent in October 2018 was $1,839 while the average rent in August 2019 was $1,914. What’s more, rent prices are expected to rise throughout 2019 and likely into the following year due to higher interest rates, more immigration, more renters as opposed to homeowners, among other reasons. 

However, there are a few downsides in investing in Canada. In many provinces, landlord-tenant laws favour the tenant. In Ontario, for example, there is a standard lease agreement that all landlords and tenants must use. Among other conditions, the lease agreement prevents landlords from evicting tenants unless they use the unit themselves.  Of course, having some provisions are necessary to balance the playing field for both landlords and tenants. 

How to make money investing in Canadian real estate 

With residential real estate, the increase in property value and rental income are the two main ways to produce a profit. As mentioned before, Canadian real estate excels in both categories. But there are also other costs to worry about aside from the price of the property. Interest payments, transaction fees, taxes, and more can eat into how much you make. 

Property value

Canadian properties have gone up a lot over the past few years and will most likely continue to appreciate in the long term. But it’s a mistake to assume that property values will consistently go up. The real estate market experiences highs and lows, and investors who can’t stomach volatility or who may need to sell quickly in a down market may end up losing money. Looking at the HPI® index, prices in the Metro Vancouver Area peaked in May 2017 and haven’t returned to such a level since. Thus, speak with a real estate profession to see whether it’s a good time to buy or if you should wait for the market to go down. Although a realtor isn’t some sort of oracle, they can provide some insight about whether prices may go higher or lower in your area. If you get into an investment when the market is low, it’ll be easier to make money. 

Rental income 

In many Canadian real estate markets, you can expect at least $1,000 of rental income a month for just an apartment. When you look into Toronto and Vancouver, this easily reaches over $2,000 a month. Although vacancy rates are low in many cities, there are a few things to keep in mind to make sure that your rental is the top choice among tenants. Aside from a low price, tenants value a property with a good location and a reputable builder. 

As the saying goes, location, location, location. A property at the centre of the Toronto financial district will ultimately fetch more rental applications and a higher rental price than a spot in the suburbs—of course, it’ll be more expensive to purchase too. But also keep in mind locations that may be noisier, such as those close to a railroad, or areas that have higher crime rates. This can turn off tenants and make your property less desirable.

The builder of your property is especially important if you’re renting out a condominium. Finding a condo from a reputable builder is important. As real estate development has become so profitable in many Canadian cities, new real estate developers with little experience have continually built massive condo complexes. Because new developers lack a reputation in the market, it could be a risk to purchase a unit from them. The building could end up poorly constructed or have poor management, which will deter tenants. A realtor can guide you on how a builder’s past projects have gone.

Keep down fees

There are a lot of fees associated with real estate investing that you can’t forget about. If you do, they’ll eat into your profits. A major one is the closing costs associated with purchasing the property (and later selling the property). This includes realtor commissions, lawyer fees, cost for inspections, and more. These closing fees can total a few thousand dollars.

Then there are taxes. You’re taxed on both the appreciation of your property and any rental income you earn. When you decide to sell your property, you’ll be charged a capital gains tax on the difference between your purchase and the selling price. You’ll also be charged property tax which varies city to city. Expenses, such as interest payments on your mortgage or other monies borrowed, can reduce these taxes. 

Canada has many great real estate markets to invest in—from the Metro Vancouver area across to Halifax. The appreciation of property value combined with rental income can make you a healthy profit. But make sure to watch out for all the fees. 

The post How and Why You Should Invest in the Canadian Real Estate Market first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

The smell of sharpened pencils lingers in the air. The soundtrack: the fresh crack of new textbook spines. That’s right, it’s that magical time of renewal. It’s fall time; the leaves are changing and the heat of summer is fading, but our sunburns are still pretty well intact after the long weekend.

But now, our attention is being pulled—nay, dragged—back into the classroom. It’s school time.

For many, this means big changes are a’comin’. In fact, more than 2,000,000 Canadians are expected to be heading back to university, based on 2015-16 findings from StatCan. That’s a population twice the size of Edmonton, and many of those students will be relocating to attend the school of their choice.

But where will they live?

There are two choices, really. Students can opt-in to #dormlife—if there is room, of course—or they can decide to try to stand up on their own two feet (maybe with the help of a few friends) and rent a place of their own.

There are definitely pros and cons to each of these choices.

Pros of living in a dorm:

• You meet a lot of people really quickly
• You are constantly involved with on-campus activities
• Your lifestyle is all-inclusive; rent, utilities, (often times) food, furniture
• You don’t need to worry about a commute or transportation
• You have a turn-key situation with little to no stress involved, like having to find the right place

Cons of living in a dorm:

• You will most likely have to live with a roommate—often times, you won’t get to pick who it is
• You will likely be living in tight quarters
• You may have to share a bedroom
• Your all-inclusive meal plans may cost you more than you would normally spend on groceries
• You may not appreciate, or want to abide by all of the dorm rules set out by the school

Pros of finding an off-campus rental

• You get to find a place that you love
• You can choose to live alone or have roommates (that you pick) to split the costs
• You can often find cheaper living accommodations — if you look in the right place
• You can have that whole independent, I’m really an adult lifestyle
• You can furnish a place and decorate it to make it feel like home
• You will be able to buy the groceries you need and create the meals you love
• You don’t have strict rules about how you live in your home
• You can definitely have your own room
• You can diversify your social calendar by living away from the university-lifestyle bubble

Cons of finding and off-campus rental

• If you are in a university town, good rentals may go quickly to returning students or students who never left their rental unit over the summer
• It may be tricky to find an affordable place to live on your own
• You may find strict landlords pushing 12-month lease agreements and you know you’re only there for about eight months (September-April)
• You may find some landlords are less inclined to rent to students due to “party animals who ruined it” before you
• You may find you are spending extra cash on things like transportation, cleaning supplies, furniture and other household needs
• You will most likely have to fork out money for utilities

But, once you weigh out the pros and cons of all the situations—and add in your own concerns, as well—you will be better equipped to make a decision that is best for you.

Now it’s time to make your search.

Off-campus rental units can be tricky to find. Especially if you’re not too familiar with the area. Luckily, many Canadian cities such as Toronto, Vancouver, Montreal and many cities in B.C., have real estate agents that can help you find just the right place to kick up your feet and study your coursework in your new home away from home.

In 2017, the Star reported that Toronto had a 3.4 per cent vacancy rent, meaning finding a sweet suite was going to be a daunting task. But if a potential renter chooses to work with a real-estate professional, not only are they saving time by skipping their own research time, they will be protected in the same way homebuyers and sellers are.

Plus, it’s good practice for when you are readying yourself to purchase your first home.

Websites such as rentfaster.ca are excellent sources connecting landlords and tenants. Realtor.ca is also a great source for trusted rental units. In fact, at any given time, the website boasts and average of 310,000 residential, commercial and rental properties online. Plus, they can connect you with a trusted realtor.

When picking a real estate agent to represent you in the hunt for the perfect rental—whether short term, or long term—be sure you are clear with your expectations, your needs and your budget. Be sure to pick a reputable agent with great reviews. You can find some excellent agents online right here, too, at rankmyagent.com that will be happy to help connect you with the perfect haven to destress after a tough midterm season.

All in all, whether you choose to live on campus, or find the perfect place off campus close to downtown or a cool neighbourhood café, we’re just jazzed that you’re back in class—or embarking on this new life adventure.

We hope you take university, college, tech school, or whatever you find yourself in, by the horns and enjoy the ride. ‘Cause, when it’s all said and done and you’re preparing to walk the stage to collect your really expensive certificate, diploma or degree, we hope you can look back on it fondly. I know I do!

Have fun this year. Study hard, do the work, meet the people, but most importantly, enjoy it.

Happy learning.

The post Pros and cons of student life, on campus or off first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.