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 landscape of American real estate is undergoing a monumental transformation. A recent $418 million settlement with the National Association of Realtors (NAR) is reshaping the horizon, creating a future where the once-standard real estate commission rates are no longer a given. At ComFree, we’ve been ahead of the curve, championing a commission-free model that’s perfectly poised in this new era to benefit both buyers and sellers. In this pivotal moment, we’re unpacking how ComFree’s innovative approach aligns with the evolving industry and what this significant settlement means for the real estate market.
The ComFree model is a game-changer, setting a standard for fairness and transparency in real estate transactions. By removing traditional commission fees, we empower our clients, granting them freedom and flexibility that was previously unheard of in the property market. Here’s how our commission-free strategy benefits everyone involved:
The NAR settlement is not just a legal resolution; it’s a catalyst for lasting change. For decades, fixed commission rates were an unchallenged standard. This settlement throws the old playbook out the window, advocating for reduced commission rates and suggesting a future with fewer real estate agents, each competing more vigorously on service and price.
At ComFree, we see this settlement not as a disruption, but as an affirmation of our commission-free ethos. We’ve been pioneers in a service model that enhances value for our clients without the need for commissions. This new legal landscape aligns with our vision and validates our belief that the real estate industry was ripe for innovation.
This landmark settlement could signal the beginning of the end for traditional real estate commissions. As the industry evolves, ComFree remains at the forefront, continuing to offer our clients unparalleled service without the burden of commission fees. We’re not just responding to change; we’re leading it.
Join the real estate revolution with ComFree. Experience the freedom and savings of our commission-free model and discover how we’re capitalizing on industry changes to benefit you. For an in-depth look at how the NAR settlement is reshaping the real estate market, check out the full article here.
Courtesy of Whatever Else Marketing
The National Association of Realtors (NAR) has agreed to a nationwide legal settlement regarding claims that the real estate industry worked together to keep real estate agent fees high. This agreement, totaling $418 million, will bring significant changes to how people buy and sell homes in the United States.
The legal settlement will allow home buyers to negotiate commission fees more freely with their real estate agents, potentially leading to fewer buyers using agents and lower commission rates. NAR has agreed to remove rules that required sellers to disclose upfront fees for buyers’ agents, which consumer advocates say have kept commissions in the U.S. higher than in other countries.
The changes in the agreement will take effect in mid-July and will give buyers more control over negotiating fees with their agents. The settlement money will be distributed to recent home sellers across the country.
As a result of this settlement, home buyers may be more cost-conscious when choosing a real estate agent, and may opt to save money by not using an agent or paying a smaller fee for limited services. The agreement comes after legal threats and uncertainty in the real estate industry, with NAR facing significant antitrust liability.
The legal settlement will help resolve legal challenges for the industry and will impact how real estate agents work with clients moving forward. The traditional commission structure in the real estate industry may change, potentially leading to a decline in NAR membership.
Overall, these changes could make it easier for buyers to choose lower-cost options in the future, though the immediate impact on consumers may be minimal. The settlement marks a significant shift in the real estate industry and aims to provide more flexibility and transparency for buyers and sellers.
Courtesy of Whatever Else Marketing
At ComFree, your partners in real estate, we believe in empowering you with knowledge and information. Real Estate buyers and sellers both know the importance of insurance. Title insurance is no different.
Title insurance is a distinctive policy crafted to defend homeowners and lenders from potential loss or damage due to discrepancies in the property’s title. Unlike conventional insurance policies, title insurance prioritizes protecting stakeholders against incidents that transpired in the past, predominantly related to the property and its preceding proprietors.
In real estate lingo, a title symbolizes lawful proof of possession. Upon procuring a property, the title is relayed to you, authenticating your legal ownership. This is where title insurance can become pivotal, fortifying your proprietary rights against any disputes.
– Claims from others professing a stake in your property.
– Mistakes or oversights in deeds.
– Erroneous record examinations.
– Deceptive or falsified property documents.
– Encumbrances on the property.
– Overlaps (for instance, a neighboring structure infiltrating your land).
– Rights of passage across your property.
Title insurance is crucial for both homebuyers and lenders and is generally available in two versions:
– Lender’s Policy: This is obligatory when obtaining a mortgage, protecting the lender’s stake in the property against any title discrepancies.
– Owner’s Policy: Procured at the property transaction closure, it shields the homeowner, remaining in effect as long as there’s an interest in the property by the owner or their heirs.
Title insurance premiums payment is contingent on local regulations and traditions.
Generally:
– Homebuyers manage the lender’s title insurance costs as they are securing the loan.
– Owner’s policy costs might vary, sometimes covered by the seller to expedite the sale process.
1. Executing a title search to probe the property’s lineage by a title agent or lawyer.
2. Releasing a Preliminary Report for client scrutiny and endorsement.
3. Following the acknowledgment of all closure documents and payment compliance, the official title insurance policy is formulated.
This is all handled by ComFree’s legal partner, Edmonton Law Office LLP.
– Extensive Protection:It provides broader protection, covering risks such as fraud, forgery, and encroachments.
– Mental Peace: It guarantees prompt resolution of any covered title defects, offering peace of mind.
– Single Payment Convenience:The premium is paid once at the closure, simplifying the financial aspect of transactions.
The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA.
* Only when the buyer comes direct, otherwise the seller may choose to negotiate a commission with the buyer’s agent.
