21 Aug

Mortgage Industry Supports Habitat for Humanity: Tackling Housing Affordability

Posted by: Michael Greene

The mortgage industry supports Habitat for Humanity in a powerful new partnership aimed at tackling Canada’s housing affordability crisis. Mortgage Professionals Canada (MPC) has pledged $100,000 and volunteer support to help build 10 homes across the country.

This collaboration unites two organizations committed to improving access to affordable housing. It also gives mortgage brokers a meaningful way to raise their profile while making a real difference in Canadian communities.

Why the Mortgage Industry Supports Habitat for Humanity

According to Maxime Stencer, incoming MPC board chair, the partnership is about more than housing—it’s about community.

“Habitat exemplifies people coming together from all walks of life to help their community,” Stencer explains. “For brokers, it’s not just about giving money—it’s about picking up hammers and saws so the community can see mortgage professionals giving back.”

The search for a partner began during MPC’s restructuring last year. Habitat for Humanity stood out because it operates nationwide, aligns with MPC’s mission, and shares a strong focus on affordable homeownership.

Two Organizations, One Mission

Pedro Barata, President and CEO of Habitat for Humanity Canada, emphasizes that Habitat focuses on homeownership opportunities for Canadians facing significant barriers, especially families who struggle to save for a down payment.

“Habitat Canada is about giving families a chance to build equity, stability, and a brighter future,” Barata says. Unlike many public housing efforts that focus on rentals, Habitat’s approach closes the gap by making ownership possible.

Through volunteer support, donated land, and reduced development costs, Habitat helps families move from renting to owning. This effort doesn’t just create homes—it creates stability for generations.

The Proven Impact of Homeownership

The numbers speak for themselves. A 2025 Deloitte Canada study revealed that Habitat homeowners reported:

79% boost in mental health
73% improvement in physical health
44% rise in employment
Better school performance for children
Greater financial security for families

Families who moved into Habitat homes earned 28% more income compared to renting, generating $168 million for Canada’s GDP between 2006 and 2023.

These results highlight why the mortgage industry supports Habitat for Humanity—because affordable homeownership strengthens both families and the economy.

Building Homes, Building Awareness

This partnership doesn’t stop at construction. By collaborating with MPC, Habitat Canada gains more visibility, spreading awareness about its mission nationwide.

“Mortgage professionals understand firsthand the barriers families face,” says Habitat development officer Shahla Habib. “Their support has been incredible, and it’s helping us bring more affordable housing to communities across Canada.”

The mortgage industry’s involvement ensures Canadians see brokers not only as financial experts but also as community builders—literally and figuratively.

Final Thoughts

The mortgage industry supports Habitat for Humanity because the mission is clear: help families achieve affordable homeownership and strengthen Canadian communities.

Together, Mortgage Professionals Canada and Habitat for Humanity are proving that when industries and non-profits unite, the results go far beyond bricks and mortar—they build futures.

I will be volunteering my time to help support the cause in any way that I can. If you would like to volunteer as well reach out to me Mortgage With Mike or 416-820-1891

20 Aug

Ontario Business Tariff Loan Unvail $1B Loan Program for Businesses

General

Posted by: Michael Greene

A Big Boost for Ontario Businesses

Ontario’s manufacturing sector is getting a much-needed lifeline.

Premier Doug Ford has announced a $1 billion emergency loan program to help companies in the auto, steel, and aluminum industries. These businesses have been hit hard by U.S. tariffs.

This is the first step in the province’s $5 billion Protect Ontario Account, which is designed to save jobs, keep businesses running, and protect supply chains.

Who Can Apply

The program is for businesses directly impacted by U.S. tariffs. To qualify, companies must:

Be located in Ontario
Have at least 10 employees
Earn at least $2 million a year
Have operated for 3+ years with financial statements
Have already used any federal tariff support available

Not eligible: start-ups, non-profits, or companies using funds to buy property or new equipment.

Loan Details

Businesses can apply for loans between $250,000 and $40 million.

The money can be used for:

Paying staff
Rent or lease payments
Utilities
Other key operating costs

Loans must be repaid within six years. The first year can be principal-free. Interest may be charged up to the prime rate.

A new provincial website will handle applications. A third-party financial agent will process them quickly.

Why This Matters

Small and mid-sized companies in auto, steel, and aluminum are taking the hardest hit from U.S. tariffs.

This program aims to:

Save jobs
Prevent closures
Protect supply chains

Some say the $1 billion fund isn’t enough. NDP MPP Jessica Bell has called for a bigger, long-term investment plan.

The Bigger Picture

The U.S. recently increased tariffs on Canadian imports:

Steel and aluminum: up to 50%
Certain auto goods: 35%

Economists warn this could slow the economy and raise unemployment in both countries.

Ontario’s loan program is meant to soften the blow and help industries recover once the trade dispute ends.

Bottom Line:
If your business is affected by U.S. tariffs, this program could help you stay afloat. Check the eligibility rules and apply now.

7 Aug

Greater Toronto Housing Market Heats Up—But Trouble Could Be Brewing Beneath the Surface

Economy

Posted by: Michael Greene

The Greater Toronto housing market roared back to life in July, recording its busiest month in four years. After months of hesitation and economic anxiety, buyers finally jumped back in—but for how long? According to the Toronto Regional Real Estate Board (TRREB), sales jumped 10.9% year-over-year, with 6,100 homes changing hands. It’s a remarkable shift—but experts warn that uncertainty, rising tensions, and dashed expectations could be right around the corner.

Buyers Flood Back—But Not Everyone’s Breathing Easy

Many buyers had spent spring sitting on the sidelines, paralyzed by mixed economic signals and the threat of further financial instability. But come July, that wait-and-see approach flipped—and fast.

“People were holding off,” said Bosley Real Estate broker Davelle Morrison. “But in July, I think people realized this economic limbo might not go away anytime soon. They just had to make their move.”

In other words, many jumped in—not because they were confident, but because they were tired of waiting.

Price Drops Spark Movement—But Relief Could Be Short-Lived

One major driver behind the sales surge? A dip in prices. The average sale price across the Greater Toronto housing market fell 5.5% from last year to $1,051,719, and the benchmark price—a typical home value—also slid 5.4%.

TRREB President Elechia Barry-Sproule called the price adjustment a much-needed break, but she was quick to add: “We still need more relief, especially when it comes to borrowing costs.”

Even with this improvement, the pressure remains high. Affordability is improving slightly, but it’s still tight—and many wonder if this is just a temporary reprieve.

The Spring Slowdown Is Over—But Shadows Linger

Earlier in the year, sales were falling fast:

April: Down 23% year-over-year
May: Down 13%
June: Down 2%

Buyers were spooked by inflation, the uncertain U.S.–Canada trade environment, and rising interest rates. But in July, the floodgates reopened.

“We had clients who paused in March and April, some came back in July, but even now, a lot of people are still uneasy.” said Davelle Morrison, a broker with Bosley Real Estate Ltd.

Inventory Is Rising, But So Are the Stakes

The Greater Toronto housing market also saw a significant increase in inventory:

New listings in July: 17,613 (up 5.7% from July 2024)
Active listings: 30,215 (up 26.2%)

More listings should mean more choice—but with more choice comes more pressure, especially for sellers trying to hit lofty price targets.

TRREB’s Chief Market Analyst, Jason Mercer, noted that while more homes are available, the broader Canadian economy is still treading water. The housing sector may be providing a boost—but it’s not enough to calm the storm just yet.

Bank of Canada Holds Rates, But Anxiety Remains High

The Bank of Canada left its key interest rate untouched at 2.75%—the third pause in a row. While it hinted at future rate cuts, no one’s holding their breath. Inflation is still sticky, and uncertainty around trade and consumer spending looms large.

Governor Tiff Macklem said the economy has shown “some resilience,” but also admitted the fight against inflation is far from over.

The Fall Market Could Be Rocky—Don’t Count on a Repeat

Despite the recent burst of activity, experts say the fall market might struggle to keep the momentum going.

“I’m not expecting fireworks in the fall,” said Morrison. “There are sellers who think they’ll relist and get their spring prices—and I just don’t see that happening.”

Sellers hoping for a bidding war may be disappointed. The market is stabilizing, but not necessarily in a good way.

Where the Sales Happened—and What Types of Homes Moved

The Greater Toronto housing market saw growth across the board in July:

City of Toronto: 2,205 sales (up 11%)
Rest of GTA: 3,895 sales (up 10.9%)
Semi-detached homes: up 25.5%
Detached homes: up 11.3%
Townhouses: up 7.9%
Condos: up 5.8%

Final Thoughts: Is This a Comeback or a Cautionary Tale?

Yes, the Greater Toronto housing market just had its strongest July since 2021. But while the numbers are up, so are the risks. Beneath the surface lies uncertainty, inflation pressure, and cautious consumer sentiment.

Buyers and sellers alike should proceed with care—this market may be warming up, but the temperature can change fast

✅ Ready to Make a Move in the Greater Toronto Housing Market?

Whether you’re buying, selling, or just trying to figure out your next step, now is the time to get expert guidance. The market is shifting—and the right strategy could save you thousands.

📞 Book a free 15-minute consultation
📩 Get custom mortgage advice based on today’s rates
🔍 Explore your buying power before the fall market hits

👉 Click here to get started or call (416-820-1891) — let’s navigate the market together.

16 Jun

Prefab Backyard Homes: Build Smart, Live Better

Prefab

Posted by: Michael Greene

Looking for extra income, space for loved ones, or a creative way to add housing? Prefab backyard homes might be the solution you’ve been waiting for. With faster build times, lower costs, and growing government incentives—this once “alternative” idea is now going mainstream.

Let’s break down why prefab homes and secondary suites are on the rise, how much they cost, what funding is available (some up to $90,000!), and how real Canadians are using them to change the game.

Why Prefab Homes Are Booming

Prefab homes (also known as modular or factory-built homes) are built off-site, then delivered and assembled on your property. They’re fast, efficient, and designed to meet the same building codes as traditional houses.

Top benefits:

Faster builds – Often move-in ready in weeks
Lower costs – Fewer surprises and less waste
Eco-friendly – Smaller carbon footprint
Zoning-friendly – Many cities now allow garden or laneway suites
Government support – Big incentives for homeowners

This isn’t just about trends—it’s about real solutions for housing supply, affordability, and family living.

Funding for Prefab Backyard Homes: What’s Available?

Cities across Canada are offering generous incentives for homeowners who add an Additional Residential Unit (ARU) like a prefab suite or laneway home. The goal? Boost affordable rental options and support multi-generational living.

Example: London, Ontario

$45,000 interest-free loan – repayable over 9 years
$45,000 forgivable loan – if rented below market rate for 10 years

That’s up to $90,000 in support for homeowners—no developer status needed.

Other Municipal Incentives

Toronto – Up to $50,000 forgivable loan
St. Catharines – Up to $80,000 in grants
Peel Region – Up to $30,000 forgivable loan
Ottawa – Offers zoning and planning support

Requirements typically include:

Long-term rentals (not Airbnb-style)
Affordable rent based on CMHC guidelines
Local permit and insurance compliance

Real Story: The Bakers’ Backyard Prefab Success

Mark and Sarah Baker built a 750 sq. ft. prefab suite behind their home. They worked with Axe Living, a modular builder in Ontario. The results?

Unit arrived 80% complete
Move-in ready in under 3 weeks
Built for about $300/sq. ft., including taxes and hookups
Cheaper than traditional construction by 25–30%

With municipal funding, their build became even more affordable.

How to Finance a Prefab Backyard Home

You don’t need to refinance your whole mortgage to fund a secondary suite. Here are smart financing options:

HELOC – Flexible, great for homeowners with equity
CMHC Secondary Suite Refinance Program – Borrow up to 90% of your home’s value
Construction loan – Good for larger or staged builds
Second mortgage – Useful if you want to leave your first mortgage intact

Tip: Work with a mortgage advisor who understands ARUs and prefab housing.

Insurance for Prefab Homes: What to Watch Out For

Not all insurers understand modular homes yet. The Bakers had to switch insurers when theirs declined coverage. Their new policy came with a 40% premium increase.

To avoid surprises:

Call your provider early
Ask specifically about prefab and ARU coverage
Confirm both homes are fully insured

What If You Sell Before the Loan Term Ends?

Good news: in cities like London, the forgivable loan may transfer to a new owner—if they continue to rent the unit affordably. If not, a portion of the loan may need to be repaid.

This flexibility makes prefab homes a great investment even if you plan to sell in a few years.

Prefab Homes for Families

Prefab homes aren’t just about income—they’re a lifeline for families.

Help aging parents live independently
Support loved ones with disabilities
Keep adult children nearby without crowding
Stay close, while respecting privacy

Programs like London’s forgivable loan help make this kind of housing truly attainable.

Ready to Explore Prefab Homes?

If you’ve got the space and the vision, now is the time. Between funding options, faster builds, and flexible zoning, prefab homes are finally getting their moment.

Your next step? Let’s talk.

As a mortgage professional, I help homeowners like you finance modular builds, unlock equity, and take advantage of municipal grants. I’ll walk you through it.

📞 Call today or book a free consultation to explore your options.

11 Jun

Canada’s Job Trouble: Why More People Are Struggling to Find Work

General

Posted by: Michael Greene

Right now in Canada, a lot of people are having job troubles, no jobs available anywhere.

In May 2025, not many new jobs were added — just about 8,800 — which means the number of people working stayed mostly the same. But more people are now without jobs. The unemployment rate went up to 7.0%, which is the highest it’s been since 2016 (not counting the pandemic years).

Who’s Working and Who’s Not?

Women aged 25 to 54: More got jobs in May (+42,000).
Men aged 25 to 54: Fewer had jobs (-31,000), and their job rate is now the lowest since 2018.
Young people and seniors: Job numbers stayed mostly the same.

Where Jobs Were Gained (and Lost)

More jobs were added in:

Stores and shops like grocery or clothing stores
Fun places like movie theatres and sports centres
Banks and real estate
Utilities (like electricity companies)

Jobs were lost in:

Government offices
Restaurants and hotels
Transportation (like trucking or delivery)
Business support (like cleaning or maintenance companies)

Which Provinces Changed the Most?

B.C., Nova Scotia, and New Brunswick got more jobs.
Quebec, Manitoba, and P.E.I. lost jobs.
Ontario didn’t change much, but big cities like Windsor, Oshawa, and Toronto have some of the highest jobless rates in the country.

Wages Are Up — But So Is Job Searching

On average, people are earning $36.14/hour, which is a little more than last year. But people looking for jobs are having a tough time:

It’s taking longer — about 22 weeks (more than 5 months) to find a job.
Almost half of unemployed people haven’t worked in a year — or ever.

What About Students?

Students trying to get summer jobs are really feeling it:

The jobless rate for students (ages 15 to 24) jumped to 20.1%.
For young men, it’s even higher: 22.1%.
Most student jobs are in retail, fast food, or recreation — and many of those jobs are disappearing.

Spotlight on Indigenous Communities

In May, Indigenous employment rates were mostly stable:

First Nations adults off-reserve had a job rate of 68.2%
Métis adults had an increase to 81.1%
Inuit employment in Nunavut stayed about the same at 55.8%

But among Indigenous youth, job rates were lower and in some cases, getting worse — especially in Nunavut.

🔍 What This Means

Even though some people and places are doing okay, the overall picture shows more Canadians are looking for work and not finding it. It’s a sign that the job market is getting tougher — especially for men, students, and certain regions.

If you or someone you know is looking for work or worried about money, it might be time to explore new training, support programs, or even financial options to stay ahead.

12 May

Ontario’s Housing Legislation: Faster Builds, Fewer Delays

Housing

Posted by: Michael Greene

Big changes are coming to the housing market by way of the Ontario’s Housing Legislation. On Monday, the province is introducing sweeping new legislation aimed at fast-tracking construction and tackling the housing crisis head-on. Whether you’re a buyer, builder, or investor, this move is worth watching.

The headline? Ontario’s Housing Legislation—officially called the Protect Ontario by Building Faster and Smarter Act—is giving the province more control over how, where, and how fast housing gets built.

What’s Changing Under Ontario’s Housing Legislation?

Expanded Minister’s Zoning Orders (MZOs): The province is doubling down on its use of MZOs, which allow them to override municipal planning processes and fast-track developments. That means less waiting, more building.
Standardized Development Charges: Development fees (used by cities to fund sewers, roads, and other services) will be standardized and paid at the end of construction, not upfront. This move aims to ease cash flow for builders—but could strain municipal budgets in the short term.
No Extra Studies or Local Rules: Municipalities will no longer be able to require additional studies or construction requirements that go beyond Ontario’s provincial building code. It’s one set of rules across the board.
School Boards Get More Power: School boards can now bypass some municipal approvals to add portables or new school buildings more quickly—great news for growing communities.
“Buy Canadian” Focus: The bill encourages the use of Canadian-made building materials to support local industry and stabilize supply chains.

Why Ontario’s Housing Legislation Matters

For homebuyer, this legislation could accelerate the pace of new housing, especially in high-demand areas. More housing options usually help cool prices and increase inventory—though there are still a lot of moving parts.

For builder or investor, these changes reduce financial pressure up front and potentially make projects more feasible. Less red tape means faster timelines—but you’ll need to keep up with new provincial regulations.

For municipal leader, this is where it gets tricky. Cities rely heavily on development fees to fund local infrastructure. Delaying that revenue could impact roads, water systems, and other vital services unless the province steps in to help.

What the Province Is Saying

Rob Flack, Ontario’s Minister of Municipal Affairs and Housing, called it a bold step to tackle economic uncertainty and accelerate home construction. “We are pulling out all the stops,” he said, noting that the plan responds to feedback from municipal leaders who are also looking for faster housing solutions.

Vaughan’s mayor called the legislation “bold and creative,” while Mississauga’s mayor welcomed it as “much needed support” to cut red tape.

My Take as a Mortgage Agent:

Ontario’s Housing Legislation sends a clear message: the province is willing to take the wheel to hit its housing targets. For buyers, it may mean more supply and slightly more breathing room in the long term. For developers, it’s a boost in momentum. For cities—well, the transition could be rocky, but the goal is clear: build more, faster.

It’s too early to say how everything will unfold, but one thing’s certain—if you’re thinking about buying, building, or investing in Ontario real estate, staying informed will be your biggest asset.

Have questions about how this might impact your mortgage strategy, construction financing, or investment property planning? Reach out—let’s talk about how to stay ahead in a fast-changing market.

30 Jan

Variable Rate Mortgage Holders Celebrate With Rate Announcement

Prime Rate Drop: What Homeowners and Buyers Need to Know

On Wednesday, Canada’s six major banks announced a quarter-percentage-point reduction in their prime rates, dropping from 5.45% to 5.2%. This follows the Bank of Canada’s decision to lower its key interest rate for the sixth time since June, bringing it down to 3%. The central bank stated that inflation is hovering near its 2% target as the economy gains momentum.

This change will likely result in lower variable mortgage rates across Canadian lenders. My calculations show that for a homebuyer who made a 10% down payment on an average Canadian home, priced at $700,0000 as of December 2024, the reduction would translate to roughly $83 less in monthly payments on a five-year variable mortgage.

While fixed mortgage rates are expected to decrease slightly, driven by bond yields dropping to around 2.8% following the central bank’s announcement, investors are concerned that inflation may limit any significant drops in fixed rates.

Homeowners with variable-rate mortgages are likely to feel the impact immediately. Those with adjustable-rate mortgages will see their monthly payments decrease, while those with a fixed payment schedule will have more of their payment applied to the principal rather than interest.

For example, I estimate that a homeowner with a variable mortgage rate of 4.45% over 25 years, currently paying $3,458 per month, would see their rate drop to 4.2%, lowering their payments to $3,371—a savings of $1,044 per year.

Homeowners with a variable-rate mortgage can expect to save around $16 per month for every $100,000 of mortgage debt with each quarter-percentage-point decrease. He also noted that this rate cut arrives at a time of economic uncertainty, though there’s potential for growth in home sales.

“These successive rate cuts are good news for homeowners and those renewing their mortgages,” Tran said. “While the housing market is showing signs of life, it’s not the frenzy some anticipated. Buyers are in a strong position to take their time finding the right property and making conditional offers on financing and inspections.”

Since the peak of borrowing costs in August 2023, homeowners who put a 10% down payment on an average-priced home with a five-year variable mortgage have seen their payments drop by $680, according to research. At the height of rates, a 5.95% variable mortgage on a $660,000 home would have resulted in monthly payments of $3,850. With current rates at 3.95%, that figure has dropped to $3,155.

Phil Soper, president and CEO of Royal LePage, said the Bank of Canada’s latest rate cut could boost borrowing power for homebuyers. “This decrease comes right before the spring housing market, a time when demand typically increases. We should expect an uptick in buying and selling activity in the coming weeks,” Soper noted.

However, be cautioned by the potential U.S. tariffs expected to transpire on February 1st, 2025. A remain concern for both the central bank and consumers, adding an element of uncertainty to the housing market.

In conclusion:

With the latest rate cuts from the Bank of Canada and the major banks following suit, homeowners and buyers are seeing tangible relief in their mortgage payments. While variable-rate mortgage holders stand to benefit the most, even fixed-rate borrowers could see slight reductions. As the spring housing market approaches, this rate drop may help boost real estate activity, giving buyers more flexibility and negotiating power. However, lingering economic uncertainties, such as potential U.S. tariffs, remain in the background, reminding consumers to stay cautious as they navigate the evolving market.

Whether you’re considering refinancing, renewing, or entering the housing market, connect with a Mortgage With Mike today to explore how these changes can benefit you.

26 Jan

Considering a Private Mortgage?

General

Posted by: Michael Greene

What you need to know about an alternative or private mortgage?

Borrowers who are unable to qualify for a traditional bank mortgage may need to consider an alternative or private mortgage for their financing. If this is your case, remember that these mortgages are supposed to be a short-term financing solution. These loans are often easier to qualify for and can be completed in a short period of time, keep in mind though, they do come with higher interest rates and fees. It’s always suggested that you work with an experienced mortgage professional and a knowledgeable lawyer as alternative/private loans come with additional conditions and restrictions.

Be informed about a private mortgage

Before getting an alternative or private mortgage, be aware of the following:

An alternative or private mortgage is a temporary option and should only be kept for one or two years until you fix your finances or credit in order to refinance at the bank.
Private mortgage is often based on the accumulated equity in your home, and not your credit or income.
Most mortgages are interest only, so you are paying to borrow the money and not paying down on the amount you borrowed.
Fees are usually higher than with a traditional mortgage. Additional fees include late payments, laps in insurance or property tax.
Consider a realistic “Exit Strategy” to get out of the alternative or private mortgage. This way you can create a plan you should be working towards and get a lower rate option.
Always work with a Level 2 mortgage agent when considering an alternative/private mortgage.

What could happen if you are unable to “exit” a private mortgage?

What to watch out for with a private mortgage?

Pay attention to the details of your mortgage contract: it could save you money or costs you money. Always ask yourself the following:

What are all the fees associated with getting and closing on your mortgage?
What happens if I miss a payment?
Is my approval based on my equity or my ability to make the interest payment?
What is the costs for being late or missing a payment?
How long after I default on the mortgage does the power-of-sale process start?
Is my exit plan achievable? For example, do you have a plan to increase you income by maturity? Do you have the income to reduce your debts and fix your credit during the loan term? Is you goal realistic and can be achieved before the end of the term? The plan you create is vital to getting out of a private mortgage, it give you the qualifications you need to refinance with a bank.

The mortgage agent you decide to work with should give you a clear explanation of the terms, conditions, and fees associated with your contract. They should also be able to point out all of the risks, why they place you in a particular mortgage, and work with you beyond your mortgage closing to guide your to refinance.

Ask questions when getting a private mortgage?

Here are some key questions you should ask your mortgage agent/broker when getting an alternative or private mortgage

Why are you considering a private mortgage and not a traditional mortgage?
What are the terms? Length of time, interest rate, repayment schedule, direct deposit, collateral, guarantors, etc.
What are the fees associated? Lender, broker, etc.
Am I able to renew for another term at maturity?
What are the renewal fees?
Do I have an experienced layer to close on my mortgage transaction?
What happens if I’m late and/or default on my mortgage payment? Could I loose my home?
How long do I have to consider the mortgage contract and run it by my lawyer?
What if I an unable to exit at the end of the term?
What If I complete renovations on my home? How does this impact my mortgage?
Am I able to get a traditional mortgage at maturity?
Will I need a co-signer in order to refinance?

Getting an alternative/private mortgage should not be taken lightly. Often getting back to a traditional lender involves effort and dedication on your part.

Conclusion

In conclusion, securing an alternative or private mortgage can be a viable solution for borrowers who may not qualify for traditional financing. However, it’s important to understand that these loans come with higher costs, additional fees, and potential risks. They are designed as short-term solutions, and the key to success is having a clear exit strategy and a plan to improve your financial situation so you can refinance with a traditional lender.

Working with a knowledgeable mortgage agent and legal professional can help you navigate this complex process, ensure you’re well-informed, and avoid costly mistakes. Don’t hesitate to ask the necessary questions to fully understand your obligations and options.

If you’re considering an alternative or private mortgage, reach out today for a free consultation. Let’s discuss your options and help you develop a clear plan to secure the best possible outcome for your financial future.

Don’t wait—take the first step toward refinancing success!

4 Nov

Condo in Crisis: What to Do if Your New Purchase Faces Receivership

Pre-Construction

Posted by: Michael Greene

Is Your Condo Project Facing Receivership?

Picture this: You’ve been excitedly waiting for your new condominium to be completed in just a few months. All day, you’ve been imagining how you’ll decorate it, learning about local shops, and planning your housewarming party. Then, suddenly, the builder stops sending updates. You turn on the news and discover that your condo project has gone into receivership.

This exact situation happened to one of my clients, someone I had been working with on other pre-construction purchases. Unfortunately, it’s becoming an all-too-common story as real estate receiverships increase across Canada.

But before you panic, let’s break down what this means for you.

Understanding Receivership: What It Means for Your New Condo

Receivership occurs when a secured creditor appoints a receiver to take control of a property, typically to sell it and recover the funds owed by the developer. A receiver is usually a property expert who steps in to manage the project’s finances and steer it back on track.

Think of receivership as a financial lifeline for a troubled project. If a developer can’t meet its debt obligations, a court appoints a receiver to take control of the situation. Receivership is serious and not every developer qualifies for it, but when granted, the receiver analyzes the project’s finances to determine whether it’s feasible to complete it. If the costs are too high, drastic measures may follow.

Types of Receivership

There are two types of receivers:

Court-appointed receiver: A court officer who must report to the court throughout the process. The receiver’s fees usually take 25% of the collected funds, plus expenses, paid by the judgment debtor.
Privately-appointed receiver: Appointed by a secured creditor, this type focuses on recovering debts.

One Example:

Last year, the Iconic “The One” skyscraper project at Yonge and Bloor in Toronto entered receivership due to $1.6 billion in unpaid debt. A court-appointed receiver took control after the developers defaulted. Today, construction continues, with an expected completion date in March 2025.

What Happens When Your Condo Goes Into Receivership?

When a condo project enters receivership, the future of pre-sale contracts depends on the receiver’s decision. They can either continue or cancel the project:

Continue: If the receiver chooses to proceed, existing agreements remain in effect.
Cancel: If the project isn’t financially viable, the agreements may be terminated. In this case, buyers might claim their deposits and potentially take legal action, but recovering funds can be difficult given the developer’s insolvency.

A receiver, not the developer, has the authority to sell the project to another builder or take control of the assets. They may also seek Debtor-in-Possession (DIP) financing, allowing the developer to remain in control while restructuring to complete the project.

DIP loans, though regulated and costly, give developers the funds and time to finish a project in receivership. These loans are more likely to be approved for developments in high-demand areas, as stopping construction in such locations reflects poorly on local governments.

Protecting Your Financial Interests

When you enter a new construction property agreement and provide a deposit, programs like Tarion in Ontario offer protection. According to Tarion’s website, protection applies if:

The builder goes bankrupt.
The builder fundamentally breaches the purchase agreement.
You have a statutory right to treat the agreement as terminated.

For freehold homes purchased after January 1, 2018, Tarion covers deposits up to $50,000 or 10% of the purchase price (to a maximum of $100,000 for homes over $600,000). Condo buyers enjoy extra protection under the Condominium Act, which mandates that developers hold deposits in trust.

Developers must also provide a Delayed Occupancy Warranty, ensuring your condo is ready for occupancy by a specified date. If the developer misses this deadline due to construction delays or receivership, they must compensate you. A PDF copy of the warranty can be downloaded here for your reference.

Steps to Take When Your Condominium Goes Into Receivership

If your condo goes into receivership, here are steps to safeguard your investment:

Contact the Receiver
Reach out to the court-appointed receiver to get updates on the project. They can inform you about the next steps.
Review Your Purchase Agreement
Carefully examine your contract for any clauses about delays, receivership, or deposit protection. This helps clarify your rights.
Check for Deposit Protection
Verify whether your deposit is covered by programs like Tarion, and file a claim if necessary.
Consult Your Real Estate Lawyer
A lawyer specializing in real estate or condominium law can guide you through your legal options, including deposit recovery or claims against the developer.
Stay Informed
Keep up with updates from the receiver. They may attempt to sell the project to another builder or secure additional financing to complete it.
Prepare for Delays
Be ready for significant delays or, in the worst case, the cancellation of the project.
Understand the Possible Outcomes
If the project continues, expect delays. If it is canceled, you may be eligible for a refund, though recovery amounts will vary based on the developer’s financial state.
Consider Legal Action for Damages
In rare cases, buyers may pursue additional damages beyond their deposits. However, this depends on the developer’s solvency and the available assets.

To Sum It All Up

Receivership is often a temporary measure, aimed at getting the project back on track. While dealing with a property receivership can be overwhelming, staying informed, seeking legal advice, and understanding your rights can help protect your investment. Whether the project moves forward or gets canceled, having a clear plan will ensure you’re ready for whatever comes next.

If your condo project is in receivership or you have questions about real estate investments, reach out to Mortgage With Mike today. Our team is here to help you through every step of the process, protecting your financial interests. Schedule your free, no-obligation 15-minute consultation now!

18 Oct

Federal Housing Measures Support Secondary Suites, Vacant Land Taxes, and More Homes on Public Lands

Easier Refinancing for Secondary Suites

If you’ve ever thought about turning that empty basement or unused garage into a rental suite, this one’s for you. One of the most exciting changes is the recent municipal zoning reform that makes it easier to refinance your mortgage to fund these kinds of projects. This is made possible through Housing Accelerator Fund agreements.

Here’s the deal: you can now access up to 90% of your home’s value, including the value of that future rental suite, through refinancing. This means more cash in hand to get your renovations going!

On top of that, you can now stretch the loan out over 30 years. Longer amortization = lower monthly payments, which is always a win. Oh, and if you’re worried about mortgage insurance limits holding you back, don’t be. The government has bumped the mortgage insurance limit up to $2 million, so homeowners in pricier markets won’t get left behind.

As Deputy Prime Minister Chrystia Freeland said, “We’ve got to use every tool in the box to make housing more affordable for Canadians.” And this is definitely one of those tools!

Tax on Vacant Land to Spur Development

Now, onto the vacant land tax. If you’re sitting on some unused land, the government is about to give you a nudge to do something with it. The idea here is simple: introduce a tax on vacant land to push landowners into developing residential properties, instead of just letting the land sit there.

The feds are working with local governments to figure out how this could work in different areas. So, don’t be surprised if you start hearing more about it from your local city hall.

To take advantage, Canadians can participate in consultations with municipalities and the federal government to help shape the implementation of vacant land taxes, ensuring fair regulations while incentivizing new development in local communities.

Repurposing Federal Properties for Housing

Last but not least, the government is making more federal properties available for housing development. We’re talking about 14 new properties, from places like Ottawa to Cape Breton. These properties will join the Canada Public Land Bank, which already has 70 spots ready to be turned into homes.

Public Services and Procurement Minister Jean-Yves Duclos summed it up nicely: “We’re unlocking public lands for housing at a pace we haven’t seen in generations.” Translation: they’re serious about tackling the housing crisis and creating more affordable housing options across the country.

In conclusion, the federal government’s new housing measures represent a significant step towards addressing Canada’s housing challenges. By making it easier for homeowners to build secondary suites, taxing vacant land to encourage development, and unlocking federal properties for housing, these initiatives aim to increase housing supply, improve affordability, and create stronger communities. For homeowners, these changes provide new opportunities to maximize their property’s potential, generate additional income, and contribute to the solution for Canada’s housing crisis. Together, these measures reflect a proactive approach to making housing more accessible and affordable for Canadians, now and in the future.

As we continue to navigate this unpredictable journey of interest rates, our commitment to your financial success remains steadfast. Whether rates rise or fall, the Bank of Canada rate cut impact on mortgages will influence your decisions. Partnering with a knowledgeable mortgage broker like Mortgage With Mike will empower you to make informed decisions in this evolving landscape. Your mortgage is a fundamental aspect of your financial future, and it’s essential to ensure it’s built on solid ground.

Get in touch with us today to discover how we can assist you on your journey to homeownership.