The cost of building a custom home in Ontario ranges from $500 to $1,000 per square foot, depending on factors like location, design, and materials. In cities like Toronto or Vancouver, a typical custom home could cost between $750,000 and $1.5 million, while in smaller markets like Halifax, it may range from $320,000 to $640,000. Costs are influenced by land value, property characteristics, architectural style, and amenities. Additional expenses include zoning and building permits (around $20,000 in Toronto) and potential unforeseen challenges. Hiring an experienced homebuilder with good communication and organization is essential to avoid costly delays and mistakes.
The Bank of Canada has just reduced its key overnight rate by an additional 25 basis points (0.25 percentage points), bringing it down to 3%.
This latest reduction marks the sixth consecutive rate cut in 2024, following a series of five earlier reductions. However, today’s move is less aggressive than the two previous 50-basis-point cuts, aligning with expectations for a more gradual pace in future rate reductions. While inflation has fallen below the Bank’s target, ongoing concerns over a potential trade war with the U.S. are prompting a more cautious approach from policymakers.
Rate cuts like these are typically used to boost economic activity. (For more on how the overnight rate impacts mortgages, check out our explanation.)
Want to explore how these new rates could affect you? Connect with our partner Legacy Mortgage Group, or browse the housing market on ComFree.
Canadian mortgage borrowers are facing economic uncertainty due to political changes, potential U.S. tariffs, and falling interest rates. Experts suggest that whether to choose a fixed- or variable-rate mortgage depends on market conditions. Variable rates may be appealing if rates continue to fall, but fixed ratesoffer more stability and are currently more competitive. For those unsure about future rate changes, shorter-term mortgages (around three years) provide flexibility. Borrowers should also consider their risk tolerance—variable rates are better for those who can handle fluctuations, while fixed rates offer predictability. Additionally, switching between mortgage types can involve penalties, so understanding the rules is crucial. Ultimately, the best mortgage choice depends on personal financial goals, stability, and market conditions.
In 2024, Canada’s real estate market showed mixed trends. The luxury sector remained robust, with sales of high-end homes in cities like Toronto and Vancouver remaining steady or even increasing. Price growth is expected in major cities like Vancouver, Toronto, and Montreal in 2025. On the rental side, after years of rising rents, there was a slight cooling, with national rents falling by 3.2% in December, though smaller cities experienced rent hikes. National home sales were down in December but showed improvement over the earlier months of the year, leading the Canadian Real Estate Association to predict a stronger spring market. In Toronto, condos saw significant discounts, with 80% selling below asking price during the holiday season, giving buyers an advantage in a market with high inventory.
Canmore, a popular Alberta tourist destination, is facing a housing affordability crisis despite its scenic views and proximity to Calgary. To address this, the Town Council formed a Livability Task Force in 2023, focusing on three main goals: phasing out the Tourist Home Designation, exploring tax incentives for long-term occupancy, and promoting the development of purpose-built rental housing. These measures aim to improve both the livability and affordability of the area.
Canada’s real estate market is expected to rebound in 2025, with activity likely to pick up as early as March. Factors driving this recovery include stabilizing interest rates, the return of sidelined buyers, and a potential increase in property inventory. Professionals predict a more traditional spring surge in sales after a quiet 2024, where sales remained low despite more listings. Increased buyer interest is also expected to encourage more sellers to list their properties.
Here are 10 homes for sale under $500,000, ranging from a modern, move-in ready three-bedroom home in Edmonton to a beautifully renovated two-story house with three large bedrooms and a generous backyard in Arnprior, near Ottawa.
The Bank of Canada’s recent announcement to maintain the key overnight interest rate at five percent, marks the fourth consecutive hold. This decision aligns with many economists’ predictions and reflects a cautious approach towards managing inflation and economic growth.
Continued High-Interest Environment: The steady rate suggests a continued high-interest environment for variable-rate loans and mortgages, impacting borrowing costs for Canadians.
Inflation Concerns: With the inflation rate still a concern, the Bank of Canada’s cautious stance indicates that rate decreases may not be imminent, affecting affordability and borrowing decisions.
Economic Predictions: Economists anticipate potential rate cuts in mid-2024, which could influence future mortgage rates and real estate market dynamics.
Navigating the Market with ComFree Realty: In this fluctuating economic climate, ComFree Realty offers guidance to both buyers and sellers, helping navigate financial decisions in the real estate market.
Visit ComFree Realty for more insights and personalized advice.
The Bank of Canada’s decision to maintain the interest rate at 5% has several implications for Canadian homeowners, especially those with variable-rate mortgages. Firstly, there won’t be an immediate increase in mortgage payments due to a rise in interest rates, offering some stability in the short term. However, homeowners should remain mindful of the continued high-interest environment, as rates are still significantly higher compared to the ultra-low rates of the past.
This steady rate reflects the Bank’s cautious approach towards managing the economy and inflation. It suggests that significant rate decreases may not happen soon, affecting the affordability and financial planning of homeowners. Those looking to refinance or renew their mortgages should carefully consider these economic conditions.
Overall, Canadian homeowners need to plan for a sustained period of higher interest rates, and those contemplating entering the housing market should assess how these rates will impact their borrowing costs and overall affordability.
Read the full story here
The Bank of Canada’s recent announcement to maintain the key overnight interest rate at five percent, marks the fourth consecutive hold. This decision aligns with many economists’ predictions and reflects a cautious approach towards managing inflation and economic growth.
Continued High-Interest Environment: The steady rate suggests a continued high-interest environment for variable-rate loans and mortgages, impacting borrowing costs for Canadians.
Inflation Concerns: With the inflation rate still a concern, the Bank of Canada’s cautious stance indicates that rate decreases may not be imminent, affecting affordability and borrowing decisions.
Economic Predictions: Economists anticipate potential rate cuts in mid-2024, which could influence future mortgage rates and real estate market dynamics.
Navigating the Market with ComFree Realty: In this fluctuating economic climate, ComFree Realty offers guidance to both buyers and sellers, helping navigate financial decisions in the real estate market.
Visit ComFree Realty for more insights and personalized advice.
The Bank of Canada’s decision to maintain the interest rate at 5% has several implications for Canadian homeowners, especially those with variable-rate mortgages. Firstly, there won’t be an immediate increase in mortgage payments due to a rise in interest rates, offering some stability in the short term. However, homeowners should remain mindful of the continued high-interest environment, as rates are still significantly higher compared to the ultra-low rates of the past.
This steady rate reflects the Bank’s cautious approach towards managing the economy and inflation. It suggests that significant rate decreases may not happen soon, affecting the affordability and financial planning of homeowners. Those looking to refinance or renew their mortgages should carefully consider these economic conditions.
Overall, Canadian homeowners need to plan for a sustained period of higher interest rates, and those contemplating entering the housing market should assess how these rates will impact their borrowing costs and overall affordability.
Read the full story here
Recent research by Dye & Durham Ltd. reveals a significant shift in Canadian housing market sentiments. As we step into 2024, more potential homebuyers are ready to make their move without waiting for further price drops or interest rate cuts. This change reflects a growing trend of individuals tired of trying to time the market and indicates renewed optimism in the housing sector.
Growing Buyer Confidence: Fewer Canadians are postponing home purchases, signaling a boost in buyer confidence. This shift is evident from the decreasing percentage of those waiting for lower prices or interest rates.
Rising Seller Activity: Homeowners are also more inclined to list their properties, with an uptick in selling plans observed in the fourth quarter of 2023.
Inflation and Interest Rate Perspectives: While there’s a general anticipation of inflation cooling and interest rates stabilizing, most people remain cautious, not expecting significant decreases in mortgage rates or a more affordable housing market soon.
Financial Concerns: Many Canadians express concern over their personal finances, preparing for increased costs in essentials and a possible recession.
Navigating Market Changes: At ComFree Realty, we understand these market dynamics and are here to guide buyers and sellers through this evolving landscape. Whether you’re planning to buy or sell, our team offers expert advice and support.
Feel free to live chat with our team, or reach out to our friends at Rocket Mortgage to get immediate answers to any questions you may have regarding interest rates, mortgage rates or homeowner essentials you need to know.
Visit ComFree Realty for more insights on the current market trends.
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