Last week, we shared information that we hope you found useful, on some of the basic aspects of loft living in Toronto, with a particular focus on hard lofts. As mentioned earlier, loft living is not for everyone, especially if you have a growing family with a need to regularly access an array of recreational and other building amenities found in a conventional apartment or condominium building. Or would prefer to live in a space with a more conventional layout. 

Nonetheless, newly built or more recently converted loft buildings have found a convenient solution to this in the form of soft lofts, including two-storey lofts that resemble the open-concept floor plan and some design elements of a hard loft, but without the harsher or more minimalist aspects of hard loft design and architecture.

Soft lofts-The good and the bad

Cozier yet modern, but much less stark, soft lofts offer the trendiness and coolness of loft living, but without the more extreme architectural flourishes, such as exposed utility pipes, ductwork, etc., and with usually better noise insulation—a perennial concern if you live in a hard loft unit carved out of an old factory or industrial building.

A soft loft emulates a hard loft’s positives, such as an open floor plan, towering ceilings, sun-lit rooms with large windows, and other unique elements, such as exposed wood beams, and brick or concrete walls, but since they are usually found in newer buildings, the living space, including the kitchen and other areas, will have more modern finishes, with the building offering many amenities similar to those found in a typical condominium building.

Given the very limited stock of authentic hard lofts in Toronto (there are only so many old factories or commercial buildings that could be repurposed for hard loft residences), there are more soft loft units available in Toronto. These are also more affordable to rent or buy, compared with hard lofts.

Loft sizes can range from anywhere between 500 square feet to 1500 square feet and above depending on the layout and type of loft. Sales prices usually begin at about $500,000, with prices for bigger lofts trending over $1-1.5 million. 

Since they are housed in newer buildings, most soft loft residences are located in the downtown core of Toronto, usually near a subway line, and in trendy neighborhoods, such as Queen West, Roncesvalles, Ronci Village, King West Village, The Beaches, etc.  

Considered an enticing and cooler housing option over the more conventional condo living, below are some key considerations to keep in mind before you decide to buy or rent a soft loft.

Layout: The open floor layout of a soft loft is great if you prefer lots of room and open space. Since soft lofts are newly constructed, they do have walls separating the living area, bedroom, study or workspace, kitchen, or other parts of the unit. However, these may vary from unit to unit.

Noise Level: As they are built from scratch, unlike hard loft buildings, soft loft units have much better noise insulation. This is usually missing in hard loft residences that were built by converting a former industrial space and expectedly lack the typical noise insulation incorporated into conventional housing units.   

Privacy: Again, many soft loft units mimic the layout of a hard loft but forgo the drawbacks, such as a lack of walls or partitions that hamper privacy. Most soft loft units are constructed to circumvent this design aspect.

Energy Efficiency: Soft loft units are usually housed in newer buildings and therefore offer far better energy efficiency, compared with hard loft buildings. It is easier and less expensive to heat or cool your soft loft. 

Remodeling Potential: Most soft loft units available in Toronto have been built recently, incorporating modern and chic interior design. However, if you still prefer to remodel the space, you can very much do so, unlike in a hard loft.

Building Amenities: Given their recent build, most soft loft residences offer an array of building amenities found commonly in conventional apartment or condominium buildings.

If you need more information about how and where to buy a soft loft in the GTA, do get in touch with RE/MAX Royal Team Sachdeva Realty for more information.

Have a good weekend!

When considering residential housing options in the Greater Toronto Area (GTA), you will usually find a lot of information about the more traditional or conventional housing choices, such as condominium apartments, townhouses, and semi-detached or detached homes, among others. If you are an avid urban dweller and prefer to live close to the hustle and bustle of the city centre, you could consider buying or renting a loft.

You would have a narrower pool to pick your choices from of course—loft inventory in Toronto is highly sought-after and very limited—given that there are very few buildings left to accommodate this housing style, as they were not constructed for residential purposes to begin with.

Loft sizes can range from anywhere between 500 square feet to 1200 square feet and above depending on the layout and type of loft. Sales prices usually begin at $500,000, with prices for bigger lofts trending over $1 million. 

A brief history of lofts in Toronto

Residential lofts are distinctive because of their layout. They have an open floor plan, towering 11-12 foot or in some cases even higher ceilings, a suffusion of natural light from large windows, and distinctive style and architectural elements, such as exposed wood beams, brick or concrete walls, utility pipes, ductwork, and in some cases—still-in-use freight elevators.

The limited but varied stock of lofts available in Toronto can be primarily found in the downtown core, often in trendy neighborhoods, such as Liberty Village and Queen West. Residential loft buildings were originally built to serve as warehouses, factories, other business hubs or industrial structures during the last couple of centuries but were later repurposed and converted into residential housing units or lofts. For this reason, each residential loft building has its own unique history and storied heritage. 

Historically, because of their layout and general architectural style, loft living is usually preferred by artists, entrepreneurs, or small business owners with a preference for a more bohemian or unconventional living or workspace. 

Loft types 

The current stock of residential lofts available in Toronto can be broadly characterized as hard or soft lofts. Prospective buyers or renters can also opt for two-storey lofts for a slightly more conventional and family-friendly take on loft living, or the other end of the spectrum—industrial lofts that offer a more bare-bones and minimalist style of loft living.

In today's blog, we will focus on hard lofts—their unique characteristics and drawbacks.

Hard lofts-The good and the bad

Also known as authentic or heritage lofts, these terms are often used interchangeably for hard lofts because they have been created by repurposing industrial buildings or warehouses into residential units that still retain the unique architectural elements of the original structure, such as a lack of outdoor space or balconies, which are commonly found in conventional apartment or condominium buildings.

When businesses housed in these industrial structures relocated elsewhere, developers promptly converted what was considered prime real estate, given its location in the downtown core or near the city centre, for mixed-use housing development—residential units on the upper floors and shops or retail outlets on the ground level—or for solely residential use.

An enticing and cool housing option, below are some key considerations to keep in mind before you decide to buy or rent a hard loft.

• Layout: The open floor layout of a hard loft is great if you prefer lots of room and open space, but keep in mind this means there will be no walls separating the living area, your bedroom, study or workspace, kitchen, or other parts of the unit, except perhaps the bathroom.  
• Noise Level: Since these units were created by carving out space in what used to be a commercial or industrial building, you should not expect your loft to have the noise insulation that is usually a given in housing built solely for residential use.   
• Privacy: If you are someone who socializes a lot or would like to do so in your loft on a regular basis, be prepared for the lack of privacy.
• Energy Efficiency: Given their lofty windows and ceilings, and general building layout, hard lofts are difficult to cool or heat, depending on the weather. Nonetheless, be prepared to shell out considerably more for heating or cooling. 
• Remodeling Potential: With no interior walls or built-in storage space, many loft owners have to either remodel the loft space by erecting artificial walls or storage space or making other interior design modifications to introduce space demarcations.
• Building Amenities: Residential loft buildings usually do not have an array of building amenities found commonly in most residential apartment or condominium buildings.

If you need more information about how and where to buy a hard loft in the GTA, do get in touch with RE/MAX Royal Team Sachdeva Realty for more information.

Have a good weekend!

It continues to be one of the priciest markets for real estate in Canada, but the housing market in the Greater Toronto Area (GTA) is largely reflective of the ongoing housing crisis in Canada. Traditionally, Ontario as a province and the GTA have been a strong magnet for immigrants looking to start a new life in the country. Being a first-time homebuyer is a rite of passage that continues to be an enduring aspect of the immigrant experience.

Even though Canada has seen record levels of immigration in the recent past and is expected to do so in the near future, the lack of adequate housing stock and a difficult economic environment have forced many newcomers to wait out this period of uncertainty and put off their homebuying plans.

But if you are seriously considering purchasing a home this year, we would like to share a list of suggestions for neighborhoods or communities in and around the GTA that you might want to check out for when you do eventually decide to take the plunge.

Where the GTA housing market is at right now

Recent data shared by the Toronto Regional Real Estate Board (TRREB) pointed to an overall slump in sales across housing types and a marked expansion in housing supply, which has offered greater choice to prospective homebuyers. However, buyers, especially first-time homebuyers, continue to remain non-committal in anticipation of a further improvement in borrowing costs and sales prices later in the year.

The average price of a house in the City of Toronto, as of June this year and regardless of housing type, was pegged at $1,173,781. For the rest of the GTA, the price was $1,155,637. Overall, becoming a homeowner in the Greater Toronto Area will currently cost you around $1,162,167, and some more.

Let’s break this down further for current average prices based on housing type, as shared by TRREB. 

• A detached home costs around $1,758,649 in the city of Toronto and $1,388,144 in the rest of the GTA. 
• A semi-detached home is worth around $1,282,973 in the city of Toronto and $985,834 in the rest of the GTA.
• The price tag for a townhouse is $1,008,467 in the city of Toronto and $909,764 in the rest of GTA.
• Even though condo apartment sales have plummeted in the city and surrounding areas, a single unit still costs $763,148 in the city of Toronto and 657,147 in the rest of the GTA.

Homeownership in and around the GTA

The growing unaffordability of homeownership for many Canadians and newcomers alike is reflected in the reported instances of inter-provincial migration in Canada, as many people are choosing to move from the GTA or Ontario to other provinces for better work opportunities and more affordable housing options.

If you have chosen to stay put for a variety of reasons, there are certainly many options that you can still explore for housing. This might mean moving slightly away from the city, but good transit connectivity and a better quality of life (in relative terms of course), could make the suggestions shared below worth considering.

Given current housing price trends and data, outside of the city of Toronto, the regions of Durham, Peel, and Halton continue to be the top choices for homeowners with families. But Peel and Halton are also pricier, compared with Durham, where the following municipalities might be worth considering.

Oshawa, Whitby, Ajax, and Pickering – With excellent highway and transit connectivity (regional transit and GO Transit) to Toronto—driving commute times can range between 30 minutes to over an hour, and between an hour to an hour and a half by transit—these boroughs outside the GTA offer the best of both worlds. Easy access to the city for work or entertainment, coupled with a tranquil and peaceful home life in neighborhoods that enjoy proximity to nature, a range of family-friendly amenities, and more affordable living.

Peterborough, Kawartha Lakes, Hamilton, and St Catharines – Though technically not part of the GTA, these cities have also been getting noticed for the positives they offer. They are fairly accessible and have many more affordable housing options if you are looking to stretch your dollar even further. Driving commute times to Toronto range between an hour and a half to about two hours.

Buoyed by a surge in demand during the pandemic, many families took advantage of the growing remote work culture, including remote education for their children, to move out of high-density urban areas, such as the GTA. The housing markets in these cities are still nowhere near as saturated and expensive as in and around Toronto. If you are amenable to living farther away from Toronto, take the time to visit and check out the housing scene in these cities.

Federal, Provincial, and City Resources/Credits for First-Time Homebuyers

First Home Savings Account

First-Time Home Buyers’ Tax Credit

GST/HST New Housing rebate

Ontario Land Transfer Tax Refund

First-Time Purchaser Rebate (Toronto only)

Local Homeownership Programs Run by Various GTA Municipalities

If you need more information about buying a home in the GTA or farther away, do get in touch with RE/MAX Royal Team Sachdeva Realty for more information.

Have a good weekend!

Initiating the process of buying a home, whether you are a first-time homebuyer or an existing homeowner, and completing the entire process can be a months-long and fairly stressful experience. If you are lucky enough to afford to buy and own a home in Canada’s currently challenging housing market, there is still more to do even after you have finished finalizing the purchase. 

Today, we will share what can be characterized as an essential (but by no means complete checklist of the things you can do in advance of, and during the move, to your new home that can make this process relatively stress-free and smooth.

Before You Move

1. Make a list: Moving out of your current residence and into a new space offers you the perfect opportunity to take stock of your possessions. What is it that you want to take with you? What is it that you want to leave behind or donate? And what needs to be discarded? Check and make a list—what can be packed in advance, what needs to stay out till the very end, etc. Doing this will help you spread out your packing chores over several weeks, if not days, and help take the pressure off.
2. Packing supplies: If you already know the final date for your move, it is advisable to buy packing supplies in advance. You would definitely need moving boxes, packing tape, bubble wrap, box cutters, permanent markers, box labels (you can buy pre-made ones or make your own at home), and a good pair of scissors.
3. Walk through your new living space: If you can, doing a quick tour of your new home while it is still empty, helps you visualize what goes where in advance. Bring along a tape measure to plan for furniture and wall-hanging placements. This will make your mover's job easy too. Don’t forget to check if all the necessary repairs promised by the previous owner have been completed and that all appliances, fixtures, locks, doors, and windows are in good working condition.
4. Check the essentials: You should be familiar with your new home’s key fixtures, such as the location of the circuit breaker, fuse box, water valve, the carbon monoxide detectors and smoke alarms, heating and cooling vents, etc. Make sure the previous owner hands over all the necessary warranties, receipts, and maintenance guides for home appliances, fixtures, etc. 
5. Clean thoroughly: It is easier to give your new living space, especially kitchen appliances, light fixtures, and bathrooms, a thorough refresh before you move in and while the house is still empty. Also make sure the house is dirt, debris, mold, and pest-free.
6. Clean the floors and carpets last: Hire a professional cleaner to do this, especially if you have carpeting in the house. 
7. Budget for the first few months: The expenses involved in buying a new home and moving can quickly add up. You should also plan in advance for any unexpected repairs or expenses that might come up after your move.  

Just Before You Move

1. Schedule any minor repair work: If your new home needs some minor repairs or fixes—plumbing or electrical, or even a fresh coat of paint, make sure you complete these before you move. Will make one thing less for you to do later.
2. Transfer the utilities: You should notify your utility company about your move and if you plan to transfer or cancel the electricity, gas, water, or other services. Do the same for your telephone company and internet provider. 
3. Stock up on ready-to-eat meals: Moving can be physically grueling, so if you’d rather not order takeout every day for the first few nights after you move, stock up your freezer with a few ready-to-eat meals.
4. Pack a suitcase with just the essentials: It may be a while before you finish unpacking so make sure you pack a suitcase with just a few sets of clothes, toiletries, and other essentials to get you through the first couple of days. 
5. Pack for your pets: Make sure you have enough pet food and treats; and your pet’s food bowls and any other essential supplies are handy, for the first few days.
6. Check out your neighborhood: If you drive, do a quick recce to get a sense of what is in and around your neighborhood—the closest grocery stores, gas stations, hospitals, banks, parks, etc.  

After You Move

1. Don’t unload all boxes in one room: If you are using a moving company, have them spread out the boxes, especially heavy furniture, based on the rooms they go into instead of keeping it all in one place. Would also save you the effort of having to haul the boxes yourself later.
2. Update your mailing and billing addresses: Update online or notify the relevant federal, provincial or municipal offices about your change of address. You would need to do the same with your bank, credit card company (if different from your bank), and insurance provider. Let your friends and family know too.
3. Change the locks: To ensure better security, it is advisable to change the house locks as soon as possible after you move. If the house doesn’t have one, install a new security system. 
4. Say hello to your new neighbors: Meet and get to know your new neighbors. Host a housewarming party once you have settled in.

If you have recently bought or sold your home and are planning to move soon, do get in touch with RE/MAX Royal Team Sachdeva Realty for more information on how we can help you by offering a range of services to make the moving out and moving in a breeze.

Have a good weekend!

Hope you are all having a great summer. Even as the available housing inventory has expanded considerably, home sales trends across the Greater Toronto Area (GTA) remain sluggish. For those of you who are currently house hunting or have zeroed in on a few homes that you like, renovation costs associated with moving into a new home can quickly escalate if you do not plan ahead for how you will go about paying for them.

If the house you have purchased is a bit of a fixer upper, and definitely needs renovation before it is livable, it is a good idea to consider renovation mortgage financing to pay for these costs.

What is renovation mortgage financing?

You are a first-time homebuyer; have saved up for a down payment, gotten pre-approved for a mortgage, and have found your dream home. Your almost dream home, that is. It still needs some work—repairs and renovations—to make it your dream home. When you sign up for the mortgage to pay for his dream home, check with your lender if they can also add renovation costs to your mortgage.

This will allow you to budget for renovations ahead of time and at very low interest rates, compared with opting for a line of credit or taking out a loan at a later stage. It will also save you from taking on the additional stress of worrying about financing a major renovation project in addition to the considerable amount you have already spent on the down payment, and associated home purchase closing costs.

How can you get one as a first-time homebuyer?

• Sometimes also referred to as a purchase plus improvement mortgage, you should have the requisite information ready before you request your lender to check your eligibility for the same. Below are some key things to consider.
• Make a detailed list of all the renovations needed in your new home.
• Figure out if all the repairs/renovations you are considering are urgent.
• If some can be put off for a later date (preferably for six months to a year), consider excluding them for now.
• Buying a new home, moving, and closing costs can add up quickly so it is important to be discerning in this case.
• Get advance quotes from licensed contractors for the renovations you want to do immediately.
• Calculate how much will the total renovations cost.
• Present this information to your lender for faster approval.

Renovation mortgage financing for existing homeowners

If you are already a homeowner, your property will require regular upkeep, repairs, and renovations to maintain its market value. For existing homeowners, refinancing your mortgage is a good option if you are unable to access other means of financial credit. If you are approved, a lender can let you borrow up to 80 percent of the appraised value of your home to pay of renovation costs. 

Alternative avenues of financing

Depending on the amount you need to spend for renovations, the options can vary. These can include using a personal line of credit or a home equity line. If the upgrades are to make your home greener, there are several federal grants available under the Canada Greener Homes Affordability Program that you can apply for.

Additional Resources

CMHC Eco Plus premium refund

Environmental incentives by province

ENERGY STAR® rebates and incentives

If you are planning to buy a home or sell your existing home this year and are wondering how to get started with renovating your property, do get in touch with RE/MAX Royal Team Sachdeva Realty for more information.

Have a good weekend!

If you are considering selling your home or one of your homes (if you are lucky to be in that enviable position in Canada’s tough housing market), taking the time to assess your property’s market value is important. That begins with determining which portions of your home (interior or exterior) would benefit from an upgrade, especially in terms of improving its overall longevity, its broader visual appeal, and offering you the best Return On Investment (ROI).

In earlier posts, the RE/MAX Royal Team Sachdeva Realty team has shared useful information relating to various housing upgrades that can help boost the inherent market value of a property. Today, we will focus on the upgrades that are the most effective in boosting the sales prospects of a property.

Most Effective Home Upgrades

Upgrading, repairing, or replacing current fixtures and fittings or sections of your home can significantly enhance its saleability and offer long-term dividends to future homeowners. As well, most prospective buyers or their agents will seek information regarding upgrades made to the house (depending on the age of your property), specifically focussing on key items, such as the roof, heating or cooling systems (including the furnace or hot water tank), home windows, etc.

If you are planning to sell, making the necessary changes before you list your home for sale can be instrumental in securing a better sales price as well as casting a wider net for prospective buyers to pick from.

Below is a summary of the home renovations you should prioritize, if needed, to boost your property’s market value.

Interior Renovations

• Kitchen – The kitchen is one the most used areas in any home. Most buyers will appreciate a kitchen that has new or modern appliances, and cabinetry, countertops, flooring or hardware that is either new or in good condition. Based on your budget, you should begin with replacing the appliances first if needed and then consider making other repairs or renovations.
• Bathroom – A fresh, clean and updated bathroom is always a winner. Based on your budget, you can start small by changing the light fixtures, repainting or replacing the cabinets, installing a new showerhead and bath knobs, and ensuring your bathroom tiles are grout-free. If your bathroom is fairly old, consider spending some more money to re-tile the bathroom, install a new mirror, sinks, or a new bathtub.
• Flooring – If your home has wall-to-wall carpeting, which most older homes do, you should consider replacing it with flooring. If installing a new carpet or flooring is not an expense you want to undertake, consider spending some money on hiring a professional cleaner to refresh the same.
• Re-paint – A fresh coat of paint in neutral colors can go a long way to ramp up your home’s visual appeal, especially if you do not plan to undertake any other renovations.
• Build a Greener Home – Overwhelming scientific data related to climate change clearly emphasizes the need to build more sustainable housing for the future and/or retrofit existing homes to make them more energy-efficient and cost-effective. If you have the budget, consider upgrading your heating and cooling systems or adding solar panels to your roof or yard to cut down energy use and costs. Future homeowners, their children, and the environment will thank you.
• Light Fixtures – A quick and cost-effective way to enhance your home’s visual appeal, consider changing or installing new light fixtures, such as chandeliers, pendant lighting, or ceiling lights.
• Renovate or Refurbish Your Basement – Basement renovations that allow the use of extra square footage or enable homeowners to recoup renovation or housing costs by renting out the unit are an important selling point for prospective homebuyers. If you have one, consider giving it a do-over.  

Exterior Renovations

• Roof and Windows – If the roof of your home is damaged or dated, consider making the investment to replace it. Same goes for the windows of your home. These important upgrades to improve structural safety and home security will be greatly appreciated by potential buyers.
• Re-Paint – A low-cost improvement with a high rate of return, repainting your home, inside-out (including the fence, garage doors, and front door), is a great way to enhance your home’s curb appeal.
• Landscaping – With working from home having become the norm post-pandemic, beautifully landscaped front and backyards, relaxing patios or decks, or having an inviting outdoor swimming pool or hot tub is bound to fetch your home top dollar when you decide to sell. If you haven’t already, consider investing in hiring a professional landscaper to amp up your home’s natural beauty and sales potential.
• Driveway – Usually not a top priority for home sellers or buyers, the driveway of your home might need repaving or replacement if it is more than a few decades old, or the surface has visible cracks or potholes.

If you are looking to sell your home this year and are wondering how to get started with renovating your property to attract more buyers, do get in touch with RE/MAX Royal Team Sachdeva Realty for more information.

Have a good weekend!

In today’s post, we’ll share some tips and suggestions for creating a perfect backyard retreat to make the most of the few warmer months ahead. If you are planning to sell your home this year, giving your backyard a nice do-over can definitely help attract more buyers.

Backyard Basics

Regardless of the size or shape of the backyard, if you focus on improving some of the key elements listed below (you can pick and choose based on your budget), you can quickly create an alluring outdoor space that can lend an extra sparkle to the long summer days and starry nights ahead.

Landscaping

• Build an outdoor deck or stone patio, interspersed with a grass or gravel patch to highlight your outdoor gathering place.
• Experiment with your summer planters—whether potted, hanging, or vertical.
• Repurpose old pottery to create bird feeders and baths.
• Mix up the shape, color, and placement of planters, and plant/flower mixtures.
• Water your lawn and de-weed regularly.
• Add landscaping stones or rocks to your flower beds.
• Build a garden path using stones or wood.
• Create a water spring or install a water fountain.

Furniture

• Buy an outdoor rug to highlight the seating area.
• Get a complete patio set, including a table and chairs for dining if you entertain a lot.
• Spruce up and re-use old or rusted furniture with a fresh coat of paint.
• Add benches, deck chairs, and comfy cushions to mix up the seating furniture.
• Add a hammock, porch, or tree swing.
• For great summer cookouts, install an outdoor kitchen, including an island, grill, storage space, and refrigerator.
• Get a propane heater for cooler summer nights.

Embellishments

• Create a garden arbor or trellis or lattice garden wall. Use climbing plants on the structure to make it stand out.
• A pergola or gazebo is perfect for sheltering from the sun.
• Build a fire pit or a portable fireplace.
• Indulge your creative side by repainting your fence or embellishing it using craft DIY ideas.
• Paint your patio floor and ceiling in bold and warm colors. 

Lighting

• Add string lights to the seating area, fences, or planters.
• Use accent lights or DIY with mason jars to create small lanterns to illuminate your backyard. 

Entertainment

• Build a treehouse or sandbox. Install some portable slides to create a children’s corner in your garden.
• No backyard pool? Use an inexpensive and low-maintenance stock tank pool.
• Install a movie projector to create your personal backyard movie theatre.

If you are looking to buy or sell a home this year and wondering how to get started, do get in touch with RE/MAX Royal Team Sachdeva Realty for more information.




Have a good weekend!

Becoming a homeowner is an expensive and time-consuming process. For first-time home buyers, the process of exploring housing options, getting pre-approved for a mortgage—discussed in our last newsletter—making an offer, and finally closing the sale can be complex, if not confusing. Add to that, the many hidden costs that might arise in the near- or long-term if buyers do not do their homework before the sale is completed.

Many of these costs can be avoided or can be limited if prospective buyers and sellers choose to order a home inspection before buying a home and before listing their property on the market, respectively.

A home inspection, when done by a licensed professional, can be helpful in uncovering many of the potential issues with a home, especially one constructed decades ago. A home inspection report is also different from a home evaluation, which allows homeowners to get a good sense of their property’s market value, thereby helping them determine a fair selling price.

What does a home inspection report uncover?

The core purpose of requesting a home inspection is to uncover any serious structural issues or damage in your home to determine if it needs immediate attention or can be fixed later.

For sellers, a home inspection allows you to find out if any repairs or renovations are needed before you list your property for sale. Some sellers choose to make these repair themselves, enabling them to quote a higher sales price when listing.

For buyers, a home inspection is usually requested during the period between making an offer and closing the sale. This helps them identify potential renovation work that needs to be undertaken before the sale is completed or before the home is ready to move in, as well as negotiate a better sales price with the seller, based on the findings of the report.  

It also helps uncover future repair and maintenance needs, which if done on a timely basis, would go a long way to add value and longevity to the home you choose to buy.

Key components of a home inspection

It is advisable for buyers or sellers to hire a licensed home inspector, rather than an untrained individual. The former will spend considerable time (usually two to three hours), diligently examining every key aspect of your home that goes into preparing the report. The inspector could opt for a thermographic inspection that allows them to quickly identify any health or safety issues with the home, such as water damage or mold growth, roofing or structural problems, and plumbing, electrical, or HVAC defects. 

The current housing stock in Canada, including the Greater Toronto Area (GTA) is predominantly dated, and this means that getting a home inspection prior to selling or buying a home makes perfect sense, and is the practical thing to do. You want to make sure that the house is in good condition to move into. Taking care of all these potential problems in advance will allow you to enjoy your new home once you move in rather than be saddled with surprise repairs and renovations.

Home inspection checklist

• Roofing – An old or worn-out roof or damaged shingles are a potential safety hazard that needs to be fixed if an inspection finds any shortfalls. 
• Structural Issues – A sound foundation, coupled with properly installed doors, windows, and flooring, and a solid exterior are a big plus if you are a seller. So is the insulation in your home, especially crucial during the long and harsh winter months. If the home inspection finds issues here, they need to be fixed in advance. 
• Electrical – The electrical wiring in your home, including lights and fixtures, will be checked during an inspection to make sure there are no potential safety issues. An inspector will make recommendations if it falls short of safety standards.
• Plumbing – A home’s drainage system, including the complex network of pipes that run within the walls of your home, need to be checked to ensure there are no leakages or spillovers. If left unattended, these could lead to serious mold or water damage inside your home, eventually resulting in serious health and safety problems or structural damage.
• HVAC - The home inspector will also evaluate your home’s HVAC system to ensure it is properly installed, including checking the home’s ventilation and airflow, and the system’s heating and cooling capabilities. 

Additional Resources

• Canadian Association of Home & Property Inspectors (CAHPI)
• Ontario Association of Home Inspectors

If you are looking to buy or sell a home and need more information about how to get a pre-sale or pre-purchase home inspection, do get in touch with RE/MAX Royal Team Sachdeva Realty for more information.

Have a good weekend!

Hope you are all enjoying the beginning of what promises to be a beautiful summer. This year, real estate activity in the Greater Toronto Area (GTA) has not kept pace with the steadily warming temperatures. However, the current housing inventory in the region has considerably expanded during the last few months, offering prospective buyers plenty of choices.

If you are a first-time buyer or a re-seller looking to upsize from your current residence, it is advisable to get pre-approved for a mortgage in advance to ensure a hassle-free buying process, as well as plan the near- and long-term expenditures related to buying the property. The long-awaited interest rate cut announced by the Bank of Canada on Wednesday is also expected to make the borrowing environment more conducive for buyers in the coming months.

In today’s edition of the GTA Real Estate Insight, we will share useful information on how to get pre-approved for a housing mortgage and the key things to keep in mind when approaching a lender or bank for the same.

What is a mortgage pre-approval?

Once you have decided to become a homeowner and want to start looking for homes that fit your current needs and budget, it is a good idea to find out how much debt you can afford to take on by way of a housing mortgage and if you will be able to comfortably fork out the requisite monthly payments for the next couple of decades. A mortgage pre-approval, which is free, allows you to do just that.

To begin with, you meet a mortgage broker or lender, who will start by seeking several key pieces of information, such as your current income, employment status, expenses, debt load, etc. along with how much down payment you can make on the purchase. The answers to these questions will help the lender determine if you are capable of making this sizeable financial commitment. The lender will also likely run a credit check to confirm all the information you have provided.

Once this is completed, the lender—whether it a bank, credit union, or mortgage broker working with various banks or lending institutions—will make an in-principal commitment to lend you a certain size mortgage at a particular rate, locked in for a particular period that is usually capped at 25 to 30 years. The terms and conditions of this offer will be viable for three to four months and protect borrowers against any sudden changes or spikes in lending rates.

Why get pre-approved?

Among the many advantages it offers, getting pre-approved for a mortgage:

• Indicates you are serious about buying a home.
• Helps you determine exactly what you can afford to buy.
• It narrows down your search for suitable properties.
• Allows your Realtor to offer more specific and realistic housing options. 
• Instills greater confidence in the seller vis-à-vis your capability to finance the purchase, thereby facilitating the sales process.
• Gives you an edge in case a competitive bidding scenario emerges during the sales process. 

A Word of Caution

Getting pre-approved for a mortgage does not guarantee approval for the final mortgage application, as once you have made an offer, the lender will evaluate the suitability of the property you want to buy to see if it meets pre-established lending requirements. You should also work with a financial advisor or mortgage professional to re-look at how much debt you can realistically and comfortably take on, even if you have been pre-approved for a higher amount. This will allow you to leave enough room to cover the multiple closing costs associated with buying a home and plan for any future financial contingencies.

Additional Resources

• Getting pre-approved for a mortgage
• Mortgage Professionals Canada
• Financial Consumer Agency of Canada
• Mortgage Qualifier Tool
• How much you need for a down payment
• Mortgage Calculator

If you are a first-time home buyer and need more information about how to get pre-approved for a mortgage, do get in touch with RE/MAX Royal Team Sachdeva Realty for more information.

Have a good weekend!

Finally…. The Bank of Canada has dropped borrowing rates by .25%, not a huge amount, but a step in the right direction, with experts predicting that interest rates will continue to drop over the next two years.

Without a doubt many home buyers have held off their decision to buy, waiting for clear signs of declining mortgage rates. As borrowing costs decrease over the next 24 months, more buyers are expected to enter the market, including many first-time buyers. Another benefit of lower borrowing rates and more first-time buyers entering the market is that this will free up much needed rental units which have seen huge rental increases due to a lack of supply.

However, don’t be fooled into thinking the real estate market is dead. Far from it!
May saw 7,013 homes sold through the MLS system, at an average price of $1,165,691. The average sale price for the Toronto Real Estate Board now stands at $1,124,377 as of the end of May. (The average sale price in 2023 was $1,126,331). Prices haven’t changed that significantly! Our inventory of homes for sale in May was 21,760, 83% more than May of 2023! That large inventory has been the critical factor for stability in home prices. In May the average home sold between 96%-107% of asking price within 19 days of the “correct price” advertising. The demand for home ownership is strong!

Unfortunately, as borrowing costs trend lower, demand will pick up and we will see renewed upward pressure on home prices as competition between buyers increases. How can you benefit from all of this information?

• Get off the sidelines! Not everyone can qualify with the current rates, but if you can, get into the market before prices start sweeping upwards.
• The large inventory is a great opportunity for you to have a choice of homes you are interested in buying
• Good buying opportunities exist today in residential as well as investment properties.
• The borrowing rates are starting to trend downwards!
• In May, homes sold between 96%-107% of asking price. A major factor in that difference is the realtor. All doctors, or plumbers or bus drivers are not equal, some are better than others. That’s the same for realtors!

That’s where I come in, not only a knowledgeable, experienced expert able to guide you through a challenging and sometimes confusing process, but your friend in real estate! Call me if you have any questions, I would love to chat!

Have a great June!

Tom Sachdeva

416-519-3311