250-262-7496dan@remaxaction.ca

Dan Petersen

Committed to going the extra mile and ensuring that all of your needs are successfully met in a professional and honest manner. For Service and Commitment, let me help guide you with your next purchase or sale.

 

Search Homes Now!

RSS

Have You Ever Dreamed Of A Vacation Home?

Canadians spent $6B on US vacation homes from 2022 to 2023. 🏡 Now might be your time to buy one too—perfect for relaxing, working remotely, or family gatherings. Real estate is a great investment and lifestyle choice!

Questions? Reach out if you're ready to find your dream vacation home!

Dan Petersen⁠
Re/Max Action Realty LTD.⁠
(250) 262-7496⁠
dan@remaxaction.ca

Watch Video

Read

Dreaming of Your Own Piece of Paradise?

Have you ever been on vacation somewhere and thought, “This is my idea of paradise. I wish I never had to leave.” But then you reluctantly pack up and go back home, leaving that dream behind.  What if there was a way you could make that dream a reality and own a vacation home or second home in that spot?

It may be easier than you think! Here are some suggestions on how to start that thought process. And of course, I am always here to help you as well, to find your next dream home, whether it’s nearby or in a far-off location.   

Dan Petersen⁠
Re/Max Action Realty LTD.⁠
(250) 262-7496⁠
dan@remaxaction.ca

Read

Bank of Canada Reduces Policy Rate by 25 Basis Points! 📉

📌 For Homeowners: The Bank of Canada has reduced the target for the overnight rate to 4¾%. This means lower interest rates, making it an ideal time to consider refinancing your mortgage. Lower rates can significantly reduce your monthly payments and overall interest costs.

📌 For Aspiring Homeowners: Now is the perfect time to get pre-approved for a mortgage! With the rate reduction, you'll find more affordable borrowing options, making your dream home within reach. Let's get you connected with a mortgage broker to start the pre-approval process.

📌 For Investors: The easing of monetary policy can stimulate economic growth, making real estate investments more attractive. Lower borrowing costs enhance your ability to finance new investment properties and improve your portfolio's profitability.

Whether you're looking to refinance, get pre-approved, or expand your real estate investments, I'm here to help! Let me refer you to a trusted mortgage broker for your pre-approval or refinancing needs. Once you're pre-approved, I'd love to assist you in achieving your real estate goals.

🏡 Ready to Make a Move? Let's Talk! 📞 Contact Me Today! 

Dan Petersen⁠
Re/Max Action Realty LTD.⁠
(250) 262-7496
dan@remaxaction.ca

Real Full Report

Read

Downsizing for Retirement: Simplify Your Life and Maximize Your Golden Years

Downsizing for retirement is all about cutting back and simplifying your life. Think less house to clean, fewer bills to pay, and more cash in your pocket from selling your bigger place. Downsizing offers significant financial benefits and lifestyle advantages so that you can focus on what will make you happy in your golden years.

Reduced Living Expenses

Transitioning from a larger family home to a smaller residence is a strategic financial decision that can free up cash flow and reduce the monthly financial pressures that come with maintaining a larger property. Transitioning to a smaller home can lead to substantial savings on utility bills, as reduced square footage decreases the cost of heating, cooling, and electricity. It can also result in lower property taxes and homeowners’ insurance rates, directly impacting annual expenses. The smaller the home, the less maintenance and repair it requires, saving money and reducing the physical and time demands on retirees.

Mortgage and Debt Freedom

Selling a larger home to move into a smaller one can often result in the outright purchase of the new property, especially if the previous home has accumulated substantial equity over the years. This move can eradicate monthly mortgage payments, freeing up significant amounts of income that were previously tied up. Downsizing also offers a strategic advantage in managing and reducing other forms of debt. The additional capital gained from selling a larger property can be wisely used to pay off existing debts, such as credit cards, car loans, or lines of credit. This debt reduction strategy decreases monthly outgoings and minimizes interest payments, contributing further to financial freedom.

Unlocked Equity

For many retirees, their home is their largest asset, and the equity built up over the years represents a substantial portion of their retirement savings. Downsizing allows homeowners to convert this dormant equity into liquid assets. The equity unlocked from downsizing can dramatically reduce financial stress by providing a cushion that supports a comfortable lifestyle. For retirees facing the prospect of a fixed income, this additional capital can ease worries about the adequacy of their retirement savings, covering living expenses, healthcare costs, or unexpected financial needs. This financial breathing room allows retirees to enjoy their golden years without the looming anxiety of financial constraints.

Strategic Investment Opportunities

The equity unlocked from selling a larger home presents a chance to diversify and strengthen one’s financial portfolio for the retirement years ahead. The lump sum from downsizing can be strategically allocated into stocks, bonds, mutual funds, and other investment vehicles, depending on one’s risk tolerance and time horizon. For those reluctant to give up their stake in real estate, Real Estate Investment Trusts (REITs) offer an attractive alternative. Investing in REITs allows retirees to remain involved in property markets without the direct responsibilities of ownership. Investing in Tax-Free Savings Accounts (TFSAs) or using the funds to max out Registered Retirement Savings Plan (RRSP) contributions can significantly reduce tax liabilities. Consulting with a financial advisor can help retirees navigate these decisions, ensuring that the transition not only secures their financial future but also enriches their retirement years.

Location Flexibility

Many retirees prioritize being close to healthcare facilities, shopping centers, and recreational amenities. Downsizing often makes it financially feasible to move to areas that offer convenient access to these essential services. Urban or suburban communities specifically designed for retirees can provide everything from medical services to leisure and cultural activities within easy reach. The decision to downsize also opens up possibilities to relocate to areas with a more affordable cost of living. Moving from high-cost urban areas to smaller towns or cities can significantly stretch retirement savings.

Simplified Living

Moving to a smaller home or a more manageable living space means there’s less to take care of on a day-to-day basis. The demands of cleaning, repairs, and general upkeep are minimized, freeing up physical energy and time that can be redirected toward more rewarding activities. For retirees, this reduction in maintenance tasks is a gateway to a stress-free lifestyle that prioritizes well-being and enjoyment over chores and responsibilities. A simplified living space also means a home more suited to their mobility needs. Downsizing often involves selecting homes with practical layouts, fewer stairs, and accessible features that can accommodate changing physical needs over time. This foresight ensures comfort and prolongs independence, making daily life more enjoyable and less encumbered by physical constraints.

More Time for the Things That Matter

With the burdens of a large home lifted, retirees find themselves with a wealth of time to explore new hobbies or rekindle old ones. Whether it’s gardening in a more manageable space, joining community clubs, taking up photography, or exploring the great outdoors, downsizing creates the space and opportunity for retirees to engage in activities that enhance their physical, mental, and emotional well-being. It also means more opportunities for social engagement and building meaningful relationships. Downsizing often brings retirees closer to community centers, clubs, and groups that share similar interests, facilitating social interactions and friendships and countering the isolation that some retirees face.

Downsizing helps create a retirement that is as rewarding and fulfilling as the years that led to it.   With fewer household burdens and financial worries, retirees can be more spontaneous, taking trips, exploring new interests, and enjoying the moments that make retirement truly rewarding. Contact me to start your downsizing journey.

Dan Petersen⁠
Re/Max Action Realty LTD.⁠
(250) 262-7496
dan@remaxaction.ca

Read

Build Generational Wealth with Real Estate! 

Owning a home is a hallmark of the Canadian Dream as well as one of the best ways to build wealth.

Many younger generations, however, feel this is a dream out of reach. But what if there was a way you could help those in your family get on the ladder to homeownership?

By tapping into your equity and offering them a gift, loan, lease or trust to buy their own home can help them start creating their own generational wealth and a brighter future.

Dan Petersen⁠
Re/Max Action Realty LTD.⁠
(250) 262-7496
dan@remaxaction.ca

Read

Financing Options: What Every Move-Up Home Buyer Should Know

Whenever the Canadian real estate market topic comes up in conversation, it typically surrounds how first-time homebuyers are struggling to get their feet in the door. Whether the challenges of putting together a down payment or qualifying for a mortgage, aspiring homeowners have many hurdles to overcome.

But while these labours of Hercules are undoubtedly real, move-up buyers also have an uphill battle to overcome as they are contending with comparable issues, from higher borrowing costs to more expensive residential properties in their communities or a faraway distance.

Wait a minute. What is a move-up buyer anyway? This person currently owns a home and intends to sell this property to acquire a new one that is typically larger. The reasons for this decision will vary, but some common factors of moving up include needing more space for a growing family, upgrading to a better neighbourhood, taking advantage of favourable market conditions, and searching for a differently designed home.

At a time of tightening lending standards and above-trend mortgage costs, move-up buyers will need to determine how to finance this transition, which could happen at a snail’s pace or the speed of light. Let’s dig a bit deeper to consider your financing or borrowing options.

What Every Move-Up Home Buyer Should Know About Financing Options

Here are four financing options that every move-up homebuyer should know:

Using Your Home Equity Wisely

Did you buy your home before the coronavirus pandemic? Did you acquire one in the early days of COVID when rock-bottom interest rates fueled a buying frenzy? Whatever the case may be, you might have accumulated a tremendous amount of tax-free equity over the years. It might be enough to fund your next home purchase or the down payment on your next single-family house in Victoria, townhome in Halifax, or two-bedroom plus den condo in downtown Toronto.

Of course, the question becomes: Should you touch your home equity? The reality of the situation is that you can employ the gains from the sale of your home, but you should do so wisely or conservatively. Rather than use up 100 percent of your home equity, perhaps you can dedicate a certain percentage of the proceeds to your move-up acquisition.

Like buying a home will be the most significant financial decision of your lifetime, so is the decision to sell your home, since you might access hundreds of thousands of dollars in equity.

Line of Credit or Bridge Loan

Because you own your home, tapping into credit is a little easier. It will vary on a case-by-case basis, but generally, homeowners will be given favourable terms for a larger amount of capital.

As a result, you could be tempted to fund your move-up purchase with a line of credit. Or, if you need time between selling your current property and buying your next one, you may consider using a bridge loan. While it is imperative to speak with a mortgage broker about your financing options, making the necessary calculations, from interest rates to extra charges, is vital.

Both credit instruments can be useful and affordable mechanisms at your disposal. A line of credit can be an easier way to fund your purchase if it is only a small mortgage or purchase. A bridge loan can be a helpful tool in this transition period of listing your property and buying a new one without enduring immense financial pressure.

Are Second Mortgages Reasonable Options?

Typically, homeowners will use second mortgages to help consolidate debt when they have lost a job, suffer from a health ailment, or endure credit challenges. Private lenders usually offer them, and they come with higher interest rates (in this climate, it can be in the double digits!).

That said, conventional mortgage lenders might be willing to offer second mortgages with customizable terms and conditions. Many families use these financial products to help their kids buy a house or pay for their children’s post-secondary tuition.

At the same time, financial institutions will often push through a home equity line of credit (HELOC), as borrowers can receive up to 65 percent of the value of their home.

Ultimately, it is about weighing your financing options and determining what is best for you, your family, and your wallet. Communicating with both your real estate agent and the bank is crucial.

Cash-Out Refinance

A cash-out refinancing option consists of obtaining a new mortgage for your home, whether from a current lender or a new source. You will then pay the first loan in its entirety by using the second one, which will help you lock in a new interest rate and loan term.

This might seem enticing, but there are a few things you need to know:

  • Users will pay fees and penalties to ensure the long-term savings exceed the upfront costs.
  • Borrowers must meet requirements (length of homeownership, credit score, home equity, etc.).
  • Clients must have a lower debt-to-income ratio.
  • The minimum equity requirement is usually as much as 20 percent in equity.


Other Money-Related Tidbits of Information

In addition to your financing options, it is essential to think about other factors related to your move-up homebuying experience:

Refrain from going overboard and over budget on your next purchase.
Sit down and calculate your finances, from what you earn to your liabilities to your retirement savings.
Determine whether to buy or sell first (there is no right or wrong answer to this quandary).
Take your time and do your research on what is available in the real estate market.
Work with the right people to make the best decision possible.

Takin’ Your Time

The last few years have been a chaotic time in Canada’s housing market. The roller coaster ride of mortgage rates, the buying frenzy, the dramatic rise in home valuations, the modest correction, and everything else that occurred in the Canadian economy. As we learned, being impatient can often burn buyers and sellers. Therefore, you do not need to put the pedal to the metal. Instead, be patient and precise so you can be confident you made the right choices throughout the move-up homebuying process.

Source

Read

The Price of Waiting

Good news for Canadian homeowners! Rates are dipping and inventory is on the rise, making it the perfect time to make your move. With a 10.5% increase in home listings since last year and more to come, finding your dream home just got easier. Seize the opportunity today!

Dan Petersen⁠
Re/Max Action Realty LTD.⁠
(250) 262-7496⁠
dan@remaxaction.ca

Watch Video

Read

Ready to make your dream home a reality in Fort St. John, BC?

Connect with me for a mortgage referral and let's get you pre-approved!

Here's why it's crucial:

Gain a competitive edge: Pre-approval shows sellers you're serious and ready to make an offer, giving you an advantage in this competitive market.

Know your budget: Understanding your loan options helps you set a realistic budget, ensuring you find a home that fits your financial goals.

Let's make your homebuying journey smooth and stress-free!

Dan Petersen⁠
Re/Max Action Realty LTD.⁠
(250) 262-7496⁠
dan@remaxaction.ca

Read

April 2024 | Bank of Canada Rate Announcement

Big News Alert! 

The Bank of Canada decided to keep its overnight rate steady at 5%, sticking to its plan of quantitative tightening. But what does this mean for you? Let's break it down:

Global Economy: Things are looking up! The world economy is expected to keep growing at a steady pace, with the US leading the charge and the euro area on the path to recovery.

Inflation: Good news! Prices in most advanced economies are expected to stabilize, which should ease the pressure on your wallet over time.

Canada's Economy: We hit a speed bump last year, but we're getting back on track. Economic growth is expected to pick up, fuelled by strong population growth and increased spending by both households and governments.

Job Market: It's a mixed bag. While employment is growing, it's not keeping up with the number of people entering the workforce. But hey, at least there are some signs that wage pressures are calming down.

Your Money: Inflation has been high lately, but there's hope on the horizon. The Bank of Canada is keeping an eye on prices and aims to bring them back to a more stable level over the next year or so.

So, what's the bottom line? The Bank of Canada is holding steady for now, keeping an eye on inflation and the overall health of the economy. Stay tuned for more updates as the year progresses!

Got questions about how the Bank of Canada's decisions impact you? Wondering about mortgage rates and what's best for your financial future?

Whether you need answers or want a referral to an outstanding mortgage broker, reach out to me and let's navigate the world of finance together!

Dan Petersen⁠
Re/Max Action Realty LTD.⁠
(250) 262-7496⁠
dan@remaxaction.ca

Read

How Climate Change is Affecting Real Estate

Are Canadian homeowners and prospective buyers beginning to take climate change more seriously in the real estate market?

A recent survey for Rates.ca and BNN Bloomberg found that 60 percent of young homeowners were thinking about the possible effects of climate change on the area where they were purchasing their residential property. By comparison, this rate was 31 percent for those 35 and 54 and a little more than one-quarter (27 percent) for those over 55.

However, climate change concerns are not resulting in much action by Canadians. The study learned that only 12 percent have applied for extra insurance to cover them in the event of extreme weather events exacerbated by climate change.

“We are living with the effects of climate change, and the results of the survey show that a growing number of Canadian homeowners are both aware of the risk and are taking steps to mitigate risk in where they choose to live or through additional insurance endorsements,” said John Shmuel, managing editor of Rates.ca, in a statement.

Indeed, many U.S. and Canadian insurance companies have warned about the growing costs of insuring homes in areas prone to devastating climate change-related weather events, be it floods or forest fires.

Meanwhile, additional studies have been sounding the alarm about climate-related risks, including property valuations. In fact, according to a recent report by the Centre on Climate Adaptation, climate change could reduce the value of homes in Canada by as much as 15 percent by 2050. At the same time, this has been seen in recent years.

A recent University of Waterloo study discovered that in the eight years before 2022, devastating flooding in Canadian communities resulted in a more than eight percent drop in the final sale of home prices. The extreme weather also resulted in a more than 44 percent decline in the number of homes listed for sale, and residential properties were on the market for nearly 20 percent more days before being sold.

“Canadian homeowners are paying closer attention to flood and wildfire risk when purchasing a home,” stated Blair Feltmate, head of Intact Centre on Climate Adaption at the University of Waterloo, in a press release. “With the impact of [extreme weather] featuring almost nightly on newscasts, homeowners are also increasingly aware of how flooding in communities can affect a home’s value.”

Industry observers present the case that the effects of climate change could be factored into a property’s value in the coming years and become the new norm. They say this would help consumers see the connection between climate risks and real estate prices.

But how would this work exactly? For example, potential buyers need to understand which areas are at a higher risk of floods or wildfires, areas that have poor air quality due to excessive air pollution, and areas that are warming faster than others, and similar facts could become associated with the decision-making process when it comes to evaluating and buying real estate.

Extreme weather events result in significant damage to buildings and infrastructure and might require repairs that could be expensive. Some weather-driven events, such as forest fires, can potentially destroy entire neighbourhoods. This not only results in displacement but also increases the burden of homebuilding for homeowners. Other issues can also be problematic, such as mould growth, foundation damage, and structural issues that could occur due to flooding and storms. Areas that are more vulnerable to rising sea levels and storms can also face challenges in terms of real estate prices and sales.

This does not mean the Canadian real estate market should expect the worst. Many major urban centres rank in the top ten of top North American cities that have engaged in sustainability, according to the Commercial Board of Real Estate (CBRE). These include Winnipeg, Toronto, Ottawa, and Montreal.

“The cities that take the lead on sustainability today will have a competitive edge as the economy shifts to a low carbon, more sustainable future,”
 said Robert Bernard, Chief Sustainability Officer at CBRE. “With over 50% of the world’s population living in cities, cities will be critical in driving sustainability and helping communities adapt to climate risks.”

According to housing market experts, climate change mitigation and adaptation measures should be better integrated into housing strategies, and governments should consider investing more in the modernization of green structures and other climate-friendly initiatives. Climate risk assessments should become part of real estate listings and be considered as important as other factors.

Source

Read

The Hottest Renovation Trends for 2024

Looking to Refresh Your Space in 2024? Here are the Hottest Renovation Trends! Whether it’s for family milestones, house functionality, or the need for extra space, renovations are on the rise!

Need expert advice or looking to make a move? Let’s chat!

9220 75 Street, Fort St. John, BC 
4 Bed | 1 Bath | Mobile | 1,230 Sqft | MLS® Num: R2861628
Learn More

Dan Petersen⁠
Re/Max Action Realty LTD.⁠
(250) 262-7496⁠
dan@remaxaction.ca

Watch Video

Read

Canada's job gains double expectations, but unemployment rate ticks up higher
Exciting News for Canada's Job Market!

Despite the unemployment rate ticking up, job gains have surpassed expectations, with 41,000 new jobs added in February.

As a Realtor, this signals positive momentum for the housing market! More jobs mean more potential homebuyers entering the market.

While employment growth may be trailing population growth, the surge in full-time work indicates stability and confidence in the workforce.

With job gains spread across various sectors, including accommodation and food services and professional services, the economy shows resilience and diversity.

As we navigate these economic shifts, rest assured that the real estate market remains a solid investment option.

Let's continue to monitor these trends and seize opportunities together!

Have questions? Thinking of buying or selling? I’m here to help you make the best financial decisions. Reach out today!

Dan Petersen⁠
Re/Max Action Realty LTD.⁠
(250) 262-7496⁠
dan@remaxaction.ca
Read

March 2024 | Bank of Canada Rate Announcement

Exciting update from the Bank of Canada! Today, they've decided to maintain the policy rate at 5%, signalling a commitment to restoring price stability for Canadians.

Despite global economic growth slowing down, Canada's economy showed resilience, growing more than expected in Q4, albeit at a modest pace.

With employment growth trailing population growth, there are signs of easing wage pressures.

CPI inflation eased to 2.9% in January, but underlying pressures persist.

The Bank remains focused on balancing demand and supply, inflation expectations, and corporate pricing behaviour.

Now is the time to take action in the real estate market. Whether you're looking to sell, buy, or invest, take advantage of the opportunity presented! I'm here to guide you and help you make informed decisions.

Reach out today and let's discuss how you can leverage this moment for your real estate goals!

Dan Petersen⁠
Re/Max Action Realty LTD.⁠
(250) 262-7496⁠
dan@remaxaction.ca

Read Full Report

Read

What's Going On With The Stress Test?

At a time when mortgage rates are hovering between five and six per cent and home prices remain above their pre-pandemic levels, discussions surrounding the mortgage stress test have been prevalent across the Canadian real estate market.

The mortgage stress test is a federal government mandate requiring that borrowers prove they can afford higher payments if mortgage rates rise in the future. Typically, the stress test is the current mortgage rate plus two per cent. At the height of the current tightening efforts by the Bank of Canada (BoC), the stress test was north of eight per cent.

The purpose behind the rule is to prevent borrowers from taking on more than they can afford and to stop lenders from lending money to financially stressed or would-be fiscally challenged clients.

But now that the post-crisis real estate market is an environment where interest rates are at their highest levels since before the Global Financial Crisis, critics have wondered if the stress test is excessive, with some urging Ottawa to ease or suspend the measure.

For now, it appears that everything will remain the same, according to the country’s chief banking regulator.

What’s Going on With the Mortgage Stress Test?

According to the Office of the Superintendent of Financial Institutions (OSFI), the qualifying rate for uninsured residential mortgages will continue to be higher than 5.25 per cent, or the mortgage contract rate plus two per cent. Peter Routledge, the OSFI chief, stated in a December 2023 report that the stress test has resulted in a more robust and resilient mortgage financing system as it helps both borrowers and lenders better manage risk.

The federal government reiterated the OSFI’s stance shortly after its confirmation.

Others agreed, including Fitch Ratings.

The credit ratings agency supported the OSFI’s decision, calling it a positive for the Canadian real estate market, the nation’s banking system, and the broader economic landscape.

Underlying Risks in a Stable Mortgage Market

Despite everything that has transpired since the start of the coronavirus pandemic, both the Canadian real estate market and the mortgage industry have remained solid and cushioned the blows from the crisis-era fallout. In other words, delinquencies and forced sales have been largely absent in Canada.

However, the Canada Mortgage and Housing Corporation (CMHC) recently warned that approximately 2.2 million mortgages will have to be renewed in 2024 and 2025. This would represent nearly half (45 per cent) of all outstanding mortgages, totalling roughly $675 billion.

Even if the central bank engages in lowering its benchmark policy rate and the bond market responds, it might not be swift enough to prevent borrowers from paying higher rates.

In fact, the CMHC projected that as households renew in the coming years, the higher mortgage rates will equal about $15 billion in additional payments for households each year.

Ultimately, this could result in consequences for the economy since the funds will be reallocated from other sectors, the CMHC says.

Mortgage Rates in 2024

Financial markets are bracing for rate cuts this year. Investors think they could happen as early as March, while economists believe the likelihood is sometime in the middle of the year. This will lead to lower bond yields and, as a result, lower mortgage rates, with experts saying the conventional five-year fixed mortgage could slide to around 4 per cent. But whether this will help or hinder the Canadian real estate market and the national economy remains to be seen.

Whether you're a homeowner, prospective buyer, or industry enthusiast, connect with me to discuss more about the latest developments shaping the Canadian real estate landscape.

Read

A Top Reason People Want To Move
Every year many Canadians make the decision to move. A primary reason? The yearning to be closer to family. This desire is often driven by life's significant milestones such as growing families, weddings, new jobs and retirements.

If living closer to family isn’t possible right now, there are ways that you can strengthen those bonds.

Here are some of those ideas as well as an interesting stat to ponder — living near loved ones may help you live 50% longer.

If this gets you thinking that maybe it’s the right time to consider a move, feel free to reach out to me and we can chat about possible options. I’m always here to answer any questions you or your family may have related to real estate.

Dan Petersen⁠
Re/Max Action Realty LTD.⁠
(250) 262-7496⁠
dan@remaxaction.ca
Read

The Number 1 Reason Canadians Will Move in 2024

Ready to make a move? Despite low inventory and high mortgage rates, families across Canada are still finding their dream homes.

What's the top reason for moving? Watch and find out! Now's the time to prepare for your next chapter. Reach out – I'm here for you every step of the way.

Dan Petersen⁠
Re/Max Action Realty LTD.⁠
(250) 262-7496⁠
dan@remaxaction.ca

Watch Video

Read

Sellers Are Coming

Exciting news ahead for homebuyers, sellers, and investors; it's time to seize the moment! Here are three reasons why the influx of sellers turning 65 over the next 2 years is a positive thing:

Increased Inventory: We'll see a boost in housing inventory, providing buyers with more options to find their dream home.

Diverse Buyer Pool: As cash-flush retirees enter the market, they'll not only be selling homes but also looking to downsize, upgrade, or invest. This diversity in buyer preferences will create a dynamic marketplace catering to a range of needs and desires.

Market Stimulus: The surge of retirement-age sellers will inject vitality into the real estate market, driving both supply and demand. This activity stimulates economic growth, fosters community development, and strengthens the overall health of our local housing market.

Together, let's navigate this dynamic landscape and turn your real estate goals into reality. Reach out today to embark on your journey with confidence!

Dan Petersen⁠
Re/Max Action Realty LTD.⁠
(250) 262-7496⁠
dan@remaxaction.ca

Read

Real Estate Terms: RE/MAX Home Buyer’s Glossary

Home Buyer’s Glossary: Real Estate Terms You Should Know

Amortization
The length of time allotted to paying off a loan – in home-buying terms, the mortgage. Most maximum amortization periods in Canada are 25 years.

Assessed Value
The dollar value assigned to a property by a public tax assessor for taxation. This valuation forms the basis for determining property taxes owed by the owner.

Balanced Market
In a balanced market, there is an equal balance of buyers and sellers, which means sellers often accept reasonable offers, homes sell within a good amount of time, and prices remain stable.

Bridge Financing
A short-term loan designed to “bridge” the gap for homebuyers who have purchased their new home before selling their existing home. This type of financing is common in a seller’s market, allowing homebuyers to purchase without having to sell first.

Buyer’s Agent
The buyer’s agent represents the homebuyers and their interests in the transaction. On the other side of the transaction, the listing agent represents the seller and their interests.

Buyer’s Market
In a buyer’s market, there are more homes on the market than there are buyers, giving the limited number of buyers more choice and greater negotiating power. Homes may stay on the market longer, and prices can be stable or dropping.

Closing
This is the last step of the real estate transaction, once all the offer conditions outlined in the Agreement of Purchase and Sale have been met and ownership of the property is transferred to the buyer. Once the closing period has passed, the keys are exchanged on the closing date outlined in the offer.

Closing Costs
The costs associated with “closing” the purchase deal. These costs can include legal and administrative fees related to the home purchase. Closing costs are additional to the purchase price of the home.

Condominium Ownership
A form of ownership whereby you own your unit and are interested in common elements such as the lobby, elevators, halls, parking garage and building exterior. The condominium association is responsible for building and common elements maintenance and collects a monthly condo fee from each owner based on their proportionate share of the building. Condos often have guidelines regarding noise, use of common areas and allowable renovations within the units.

Contingency
A condition or clause in a real estate contract that specifies certain events must occur or certain conditions must be met before the contract is legally binding.

Curb Appeal
The visual attractiveness of a property when viewed from the street or sidewalk. It’s often the first impression potential buyers have of a home and can significantly impact their perception of its value.

Debt-to-Income Ratio (DTI)
A financial metric used by lenders to evaluate a borrower’s ability to manage monthly payments and repay borrowed money. It is calculated by dividing an individual’s total monthly debt payments by their gross monthly income, often expressed as a percentage. A lower DTI suggests that the borrower has a good balance between debt and income, making them a less risky loan candidate.

Deposit
An up-front payment is made by the buyer to the seller at the time the offer is accepted. The deposit shows the seller that the buyer is serious about the purchase. This amount will be held in trust by the agent or lawyer until the deal closes, at which point it is applied to the purchase price.

Down Payment
The down payment is the amount of money paid upfront for a home to secure a mortgage. The minimum down payment in Canada is five percent of the home’s total purchase price. Down payments of less than 20 percent of a home’s purchase price require mortgage loan insurance. The mortgage loan amount is the selling price minus the deposit and down payment.

Dual Agency
Dual agency is when one real estate agent (or real estate brokerage) represents both the homebuyer and the seller in a real estate transaction. There are limitations and requirements around dual agency, which differ by province.

Equity
The difference between a home’s market value and the amount owing on the mortgage. This is the portion of the house that has been paid for and is officially “owned.”

Fixed-Rate Mortgage
A fixed-rate mortgage guarantees your interest rate for a pre-determined amount of time, typically five years. When the term expires, you can stay with the same lender or switch to a different one.

Freehold Ownership
A form of ownership whereby you own the property and assume responsibility for everything inside and outside the home.

Foreclosure
The legal process through which a lender takes control of a property due to the owner’s failure to make mortgage payments. Initiated after a series of missed payments, foreclosure ultimately results in the sale of the property, usually at a public auction, to recoup the lender’s losses.

Gross Debt Service
The percentage of your total monthly income that goes toward housing costs. Canada Mortgage and Housing Corp. recommends your GDS remains at or below 39%. Check out CMHC’s Gross Debt Service calculator.

High-Ratio Mortgage
A high-ratio mortgage is a mortgage where the borrower has less than 20% of the home’s purchase price to make as the down payment. A high-ratio mortgage with a down payment between 5% and 19% of the purchase price requires mortgage loan insurance. In Canada, 5 percent is the minimum amount required for the down payment.

Home Appraisal
A qualified professional provides a market value assessment of a home based on several factors such as property size, location, age of the house, etc. This is used to satisfy mortgage requirements, giving mortgage financing companies confirmation of the mortgaged property’s value.

Home Buyers’ Amount
This is a $5,000 non-refundable federal income tax credit on a qualifying home, providing up to $750 in tax relief to assist first-time buyers with purchase-related costs.

Home Buyers’ Plan
federal program that allows first-time homebuyers to withdraw up to $35,000 interest-free from their Registered Retirement Savings Plan (RRSP) to help purchase or build a qualifying home. The borrowed amount must be repaid within 15 years to avoid paying a penalty.

Home Inspection
The home inspection is performed to identify any existing or potential underlying problems in a home. This protects the buyer from risk and gives the buyer leverage when negotiating a reduced selling price.

Home Warranty
A warranty that protects the homeowners against future problems with the home for a determined period of time. New home builders are required to offer warranty protection to homebuyers, such as Tarion in Ontario. Home warranty requirements and providers differ by province. Home warranty programs also exist for resale homes.

Land Survey
A land survey will identify the property lines. This is not required to purchase a home, but it is recommended and may be required by the mortgage lender to clarify where the owner has jurisdiction over the property. This is important if issues arise between neighbours or the municipality, should the owner wish to make changes in the future, such as installing a pool, fence or other renovations involving property lines.

Land Transfer Tax

This is the tax payable by the buyer to the province in which the transaction occurred upon transferring land. The amount varies depending on the municipality, land size, and other factors. Most provinces have Land Transfer Tax, though it may have a slightly different name (such as property purchases tax). If you are a first-time homebuyer, you may be eligible to receive a rebate, typically processed at the same time as the land registration, to offset the costs.

Low-Ball Offer
An offer on a home that is significantly below its market value or the asking price set by the seller. In a buyer’s market where supply exceeds demand, you might have more leeway to make a lower offer. When demand exceeds supply in a seller’s market, making a low-ball offer is generally not advisable as sellers have the upper hand.

Multiple Listing Service (MLS)
A database where real estate agents list properties available for sale or rent. It is a centralized platform allowing agents to share comprehensive information about listings, including photos, features, and prices. The MLS is often considered the most accurate and up-to-date source for real estate listings, and it provides the data for many consumer-facing real estate websites.

Mortgage Loan Insurance
If your down payment is less than 20 percent of the home’s purchase price, mortgage loan insurance is required. It protects the lender in case of payment default. Premiums are calculated as a percentage of the down payment, changing at the 5%, 10% and 15% thresholds.

Mortgage Pre-approval
A mortgage pre-approval helps buyers understand how much they can borrow before going through the mortgage application process. It allows you to make an immediate offer when you find a home since you know how much you’ll be approved for that lender and locks in the current interest rate for a period of time, insulating you against near-term rate increases.

Offer
An offer is a legal agreement to purchase a home. An offer can be conditional on several factors, the most common being financing and a home inspection. If the conditions are not met, the buyer can cancel their offer.

Porting
Transferring your mortgage (and the existing interest rate and terms) from one property to another.

Refinancing
Replacing an existing loan with a new one, typically to secure more favourable terms such as a lower interest rate. Homeowners often refinance their mortgage to reduce monthly payments, shorten the loan term, or access equity for home improvements or debt consolidation.

Seller’s Market
In a seller’s market, there are more buyers than there are homes for sale. With fewer homes on the market and more buyers, homes sell quickly in a seller’s market. Prices of homes are likely to increase, and there are more likely to be multiple offers on a home. Multiple offers give the seller negotiating power; conditional offers may be rejected.

Title Insurance
Title insurance is not mandatory in Canada, but it is highly recommended to protect both the buyer and the mortgage lender against losses related to the property title or ownership, such as unknown title defects, existing liens against the property’s title, encroachment issues, title fraud, errors in surveys and public records, and title-related issues that could prevent you from selling, leasing or obtaining a mortgage. Your lawyer can advise you on this.

Underwriting
The process by which financial institutions like banks and insurers assess the risk associated with a loan, insurance policy, or investment. Underwriters evaluate a borrower’s creditworthiness, the property’s value, and other factors to determine loan eligibility and terms. This risk determines whether the loan should be approved, and if so, at what interest rate and down payment requirements.

Variable Rate Mortgage
A variable rate mortgage fluctuates with the prime rate. Your monthly payments remain the same, but the proportion of your payment going toward principal versus interest can change.

Virtual Deals
The home-buying process completed using technology in place of face-to-face contact. Some common technology tools include 360 home tours and video showings, video conference calls, e-documents, e-signatures, and e-transfers.

Mastering real estate terminology and understanding the nuances of real estate terminology in Canada are critical steps for anyone buying, selling, or investing in property. Whether you’re navigating mortgage rates set by the Bank of Canada or simply trying to interpret the language of a property listing, a solid grasp of the terms used can empower you to make smarter decisions and provide you with the tools you need to navigate the Canadian real estate landscape with confidence.

Source

Read

Home Renovations

Now that the winter is here and we’re all inside more of the time than usual, you may be feeling that your home is a bit cramped. If so, you’re not alone. One in four people say they’ve outgrown their home.

This month I’m sharing some information on why and how people decide to renovate their homes. It could be an easy fix, like reconfiguring existing rooms or a much bigger project, such as building an accessory dwelling unit (ADU) or adding a second story. I’ve also included typical costs for these projects as well as the ROI. (Of course, costs will vary based on scope of project and location).

If you need a professional to help you with any home renovations, feel free to reach out and I’ll connect you to one in my trusted network.

Dan Petersen⁠
Re/Max Action Realty LTD.⁠
(250) 262-7496⁠
dan@remaxaction.ca⁠

Read