Over one million homeowners set to renew their mortgages in 2025 are expected to face substantially higher interest rates, with approximately 85 percent of these fixed-rate loans originating when the Bank of Canada’s rate was 1 percent or lower, according to a recent report from the Canada Mortgage and Housing Corporation (CMHC).

The report highlights that a significant number of fixed-rate mortgages—1.2 million in 2025 and 980,000 in 2026—will soon be up for renewal. For many, these rates will be notably higher than at the start of their loan term, as at least 1.05 million of these mortgages were signed during an era of exceptionally low rates. Currently, the Bank of Canada's rate stands at 3.75 percent.

Economist predict that this renewal wave could increase home listings as financially strained homeowners may choose to sell their properties.

"In late 2024 and early 2025, we expect a noticeable rise in resale listings, outpacing demand growth," said Michael Davenport, an economist at Oxford Economics. "As rates decline and mortgage regulations ease, we’ll likely see a strong boost in housing demand by mid-2025."

In the private lending sector, higher defaults and foreclosures have already led to more distressed property sales, as private loans often have higher interest rates and fewer regulatory protections. The CMHC report reveals that alternative lenders saw an increase in risk in the second quarter of 2024, with the 60-day delinquency rate for single-family homes reaching 5 percent, up from 1.7 percent in late 2022, and foreclosures rising from 1.3 to 3.5 percent over the same period.

For those facing renewals, however, there is some relief. Since June, the Bank of Canada has cut interest rates, currently at 3.75 percent after a series of four reductions from a peak of 5 percent. Another rate cut is anticipated by year’s end, potentially easing mortgage payments for many in 2025.

Without this rapid rate-cutting response, Davenport noted, there could have been a sharper rise in defaults, which might have tipped the economy into a deeper recession.

Source: Toronto Star

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Disclaimer:
The information provided in this blog is for general informational purposes only and should not be considered legal, financial, tax, or investment advice. While we strive to ensure accuracy, real estate laws, market conditions, and regulations change frequently. Readers are encouraged to conduct their own research and consult with qualified professionals such as real estate attorneys, financial advisors, mortgage brokers, or tax experts before making any decisions related to buying, selling, or investing in real estate. We do not assume any liability for actions taken based on the information provided in this blog.

Moving into a new home is an exciting fresh start, but the first 90 days are crucial in creating a comfortable, functional, and welcoming space that feels like yours. This guide helps new homeowners transition smoothly, with essential steps and thoughtful touches that make the process enjoyable and stress-free.

1. Creating a Cozy and Personalized Space

• Unpack with Purpose: Focus on setting up key areas first, like the bedroom and kitchen, to make the space feel livable right away.

• Prioritize Comfort: Layering rugs, adding personal decor, and incorporating soft lighting can instantly create a warm atmosphere. Set up spaces that encourage relaxation and socializing—think cozy living rooms and inviting dining areas.

• Bring in Personality: Decorate with items that have personal meaning, like family photos, favorite books, or local art. These small touches bring warmth and a sense of "home."

2. Connecting with the Community

• Meet Your Neighbors: Take the opportunity to introduce yourself to neighbors—whether by hosting a small open house or simply saying hello during a walk. This can lead to meaningful relationships and a support network.

• Attend Local Events: Look up community gatherings, farmers' markets, and local festivals. Not only are these fun, but they also help you learn more about the culture of your new neighborhood.

• Join Community Groups: Many neighborhoods have social media groups or neighborhood watch pages. Joining these can keep you informed about events, local tips, and ways to contribute.

3. Setting Up Essential Services and Utilities

• Get Utilities in Order: Research your local providers for electricity, water, internet, and trash collection. Setting up utilities efficiently helps you get settled faster.

• Consider Smart Home Upgrades: Small investments in energy-efficient or smart home features, like a programmable thermostat or security system, can help streamline your home’s functionality and increase comfort.

• Find Reliable Service Providers: New homeowners often need contractors, landscapers, plumbers, or handypersons. Ask for recommendations from neighbors or check online reviews to find trusted professionals nearby.

4. Exploring Local Amenities and Shops

• Scout Out Essentials: Locate the closest grocery stores, pharmacies, and emergency services, so you know where to go when needed.

• Discover Hidden Gems: Take some time to explore the local coffee shops, restaurants, and specialty stores. Supporting these places helps you become part of the local economy and may uncover unique finds.

• Outdoor Spots and Recreational Areas: Identify parks, trails, and recreational centers nearby. These spaces are perfect for unwinding and provide a great excuse to explore more of the area.

5. Organizing for a Smooth Transition

• Create a Moving Checklist: Ensure that essential tasks, such as updating your address, unpacking systematically, and setting up auto-billing, don’t get overlooked.

• Set Up a Maintenance Schedule: Schedule regular check-ups for your HVAC, plumbing, and other systems to prevent issues and keep your home running smoothly.

• Invest in a Home Toolkit: Having basic tools on hand, like a hammer, screwdriver, and measuring tape, can make handling small fixes much easier.

The first 90 days in a new home is about more than unpacking; build your routine, make connections, and turn your space into a true sanctuary. Taking these steps not only makes settling in smooth but also lays the groundwork for a fulfilling and connected life in your new community.

Your Trusted Partner in Real Estate

Are you thinking of Selling or Buying your dream home? Connect with our expert team and learn how we make every real estate decision a confident one.

Disclaimer:
The information provided in this blog is for general informational purposes only and should not be considered legal, financial, tax, or investment advice. While we strive to ensure accuracy, real estate laws, market conditions, and regulations change frequently. Readers are encouraged to conduct their own research and consult with qualified professionals such as real estate attorneys, financial advisors, mortgage brokers, or tax experts before making any decisions related to buying, selling, or investing in real estate. We do not assume any liability for actions taken based on the information provided in this blog.