21 Aug

Mortgage Industry Supports Habitat for Humanity: Tackling Housing Affordability

Affordable Housing

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.

14 Aug

Air Canada Flight Attendants Dispute: What You Need to Know

Economy

Posted by: Michael Greene

The Air Canada flight attendants dispute is quickly escalating, and it could affect thousands of travelers this week. Negotiations between Air Canada and the Canadian Union of Public Employees (CUPE) — representing about 10,000 flight attendants — have reached a breaking point.

Here’s a simple breakdown of what’s happening, what it means for your travel plans, and what you can do right now to stay ahead.

Why Is There a Dispute?

CUPE has been in talks with Air Canada over issues such as pay, scheduling, and working conditions. Overnight, the union issued a 72-hour strike notice, meaning a work stoppage could start as early as Saturday at 1:00 a.m. ET.

In response, Air Canada announced a lockout for the same time and has started preparing for a controlled wind-down of its flight schedule.

When Will Flights Be Affected?

Air Canada plans to begin cancelling flights as early as Thursday, with more cancellations on Friday, leading to a full shutdown on Saturday if no agreement is reached.

The airline says this phased approach helps:

  • Avoid leaving passengers stranded

  • Give travelers time to make alternate arrangements

  • Provide more certainty instead of last-minute chaos

What Are Your Options if Your Flight Is Cancelled?

If your travel is affected by the Air Canada flight attendants dispute, here are your main options:

  1. Refunds – Air Canada has confirmed that all cancelled flights will be refunded in full.

  2. Free Rebooking – If your trip is between August 15–18, you can rebook without fees for any date between August 21 and September 12.

  3. Travel Credits – Non-refundable fares can be turned into credits for future flights.

  4. Alternate Flights – Air Canada is working with partner airlines, but space will be limited due to peak travel season.

Know Your Passenger Rights

Under Canada’s Air Passenger Protection Regulations, labour disruptions like strikes are considered outside the airline’s control. That means you’re entitled to a refund or rebooking, but not necessarily compensation for extra expenses such as hotels or meals.

If you have travel insurance or used a credit card with trip protection, check your policy—some plans cover strike-related delays or cancellations.

What to Do Right Now

  • Check Your Flight Status – Use the Air Canada app, website, or your booking confirmation email for updates.

  • Act Quickly – If you’re travelling in the next few days, decide now whether to rebook or request a refund.

  • Keep Receipts – If you incur extra expenses, save documentation for potential insurance claims.

  • Stay Updated – This situation is developing daily, so check the news before heading to the airport.

Bottom Line:
The Air Canada flight attendants dispute could cause major travel disruptions this weekend. If you have an upcoming flight, act now to secure your best options—whether that’s a refund, rebooking, or alternate travel plans.

18 Jul

Pandemic Purchases Now Underwater for Some Canadian Homeowners

Homeownership

Posted by: Michael Greene

Let’s be candid: If you bought a home during the pandemic rush, especially in one of Canada’s “boomtowns,” you might be feeling the pressure today. A growing number of homeowners are finding themselves in a tough spot — owing more on their mortgage than what their home is currently worth.

What happened?

When COVID-19 hit, a lot changed — including how Canadians viewed their living space. With record-low interest rates, remote work becoming the norm, and a desire for more space, people made big moves. Literally.

From the Greater Toronto Area to suburban pockets in Ontario, B.C., and Alberta, buyers jumped into the market, hoping to lock in a low rate and ride the price wave. And for a while, that worked.

But now that wave has pulled back.

According to the Canada Mortgage and Housing Corporation (CMHC), the pandemic-driven housing boom saw home prices in many regions spike by over 50% between 2020 and early 2022. Now, in 2024–2025, some of those same markets have seen values dip anywhere from 10% to 20% depending on location and property type.

The result?

A growing number of homeowners are “underwater” — meaning their mortgage balance is higher than their home’s current market value. That makes selling difficult and refinancing even tougher.

Recent data from Equifax Canada shows that mortgage delinquencies are starting to rise, particularly among newer homeowners and in provinces that saw the sharpest price increases and subsequent declines.

In some Ontario suburbs, like Durham Region, Barrie, and Niagara, values are down significantly from their peak. And if you put less than 20% down — or took on a variable-rate mortgage — the numbers might not be in your favour right now.

What’s causing this imbalance?

It’s a combination of:

  • Higher interest rates: The Bank of Canada has pushed its key rate from 0.25% in 2021 to 5% by mid-2025. That’s cooled demand — fast.

  • Increased inventory: Builders responded to the pandemic demand by ramping up construction. Now some of those homes are sitting on the market longer.

  • Price correction: After the frenzy of 2021, many markets are simply rebalancing. This isn’t a crash — it’s a recalibration.

What does this mean if you’re looking to sell?

If you’re underwater, selling might not cover your mortgage. That means you’d have to make up the shortfall out-of-pocket — a tough pill to swallow, especially in a time of higher cost of living.

So, should you panic?

No. Let’s keep things in perspective.

While some buyers are underwater on paper, that doesn’t necessarily mean disaster. If you plan to stay in your home and ride this out, time is on your side. Canada’s population is growing (thanks to strong immigration), and long-term housing demand remains solid — especially in cities like Toronto, Ottawa, Calgary, and Halifax.

But if you need to sell or refinance soon, it’s important to get the right advice. There are options — including second mortgages, equity take-outs, or alternative lending strategies — but you need to approach it smartly.

Bottom line?
The pandemic housing frenzy left some scars. But if you’re feeling stuck, don’t stress in silence. Reach out. Let’s talk strategy, not panic. You’ve got options — even if things feel tight right now.

— Mortgage With Mike

13 Jun

The Government’s Plan To Use The GST Rebate To Help More People Buy

Pre-Construction

Posted by: Michael Greene

The Canadian government wants to help people buy new homes by giving a GST rebate, which means buyers get some tax money back.

But, there’s a big question: How much will it cost?

The government says $3.9 billion over five years, but another group thinks it’ll be about $2 billion. That’s a big difference!

What Are Canada’s Big Challenges in 2025?

Before we look at homes, let’s see what’s going on in Canada this year:

  • Trade wars: The U.S. has put new tariffs on Canadian goods, like lumber and aluminum, making it harder for Canadian companies and builders.

  • Slow population growth: Canada is taking in fewer new people, so fewer new workers and home buyers according to monitory policy report from the Bank of Canada

  • Rising unemployment: Canada’s job trouble continues as more people are without jobs—around 7% in May, the highest it’s been in nearly 9 years

  • Interest rates changing: The Bank of Canada is cutting rates to help, but people still owe a lot and get less spending room. 

In short, Canadians are feeling worried about spending money. Jobs and housing prices haven’t been great lately .

How the GST Rebate Might Help

By giving money back to new home buyers, the government hopes:

  1. More people will buy newly-built homes.

  2. Builders will start more houses and condos—especially in cities like Toronto where condo sales are slow.

  3. This could create jobs for builders and more homes for families.

But Let’s Talk About the Problems

Building things isn’t easy right now. Here’s why:

  • High costs: It costs a lot to borrow money and buy materials.

  • Fewer skilled workers: Many experienced builders are retiring.

  • Paperwork delays: Building permits take a long time.

  • Trade issues: The tariffs make things more expensive

Plus, if people think they’ll get a rebate, builders might raise their prices for materials and labour. That means houses might not get cheaper—just cost more. That could make it harder for everyone.

When Would the Rebate Start?

If the parliament agrees, here’s the idea:

  • Applies to new homes bought from May 27, 2025, to 2031.

  • Construction has to start by 2031 and finish by 2036.

  • It’s packaged with a tax cut that starts July 1, 2025.

✅ Why It Matters

Right now, Canada’s economy is having a tough time—with trade tensions, fewer jobs, and slow population growth. The GST rebate might help by encouraging more homebuilding and giving buyers a break.

🗣️ What Is Being Said

The government believes the GST rebate can help people afford homes and restart construction. But experts warn that unless more houses are built fast, costs won’t come down. We might even see prices go up if builders just raise their prices.

💭 My Opinion

I think the rebate could be a smart start to help Canadians buy homes in 2025—but only if it’s matched with bigger efforts to simplify building permits, train workers, and reduce trade costs. Without that support, it could end up just making houses more expensive—and that’s the last thing people need.

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

Latest News

Posted by: Michael Greene

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.

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:

  1. Contact the Receiver
    Reach out to the court-appointed receiver to get updates on the project. They can inform you about the next steps.
  2. Review Your Purchase Agreement
    Carefully examine your contract for any clauses about delays, receivership, or deposit protection. This helps clarify your rights.
  3. Check for Deposit Protection
    Verify whether your deposit is covered by programs like Tarion, and file a claim if necessary.
  4. 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.
  5. 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.
  6. Prepare for Delays
    Be ready for significant delays or, in the worst case, the cancellation of the project.
  7. 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.
  8. 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!

3 Nov

Boost Your Income and Property Value with The Secondary Suite Refinance Program

Refinancing

Posted by: Michael Greene

Ontario’s New Secondary Suite Refinance Program is designed to expand the availability of affordable housing by offering financial aid to homeowners interested in adding secondary suites. These suites, commonly referred to as accessory dwelling units (ADUs), can be a great asset to your property, providing extra income while helping address the housing shortage.

Program Highlights

The Secondary Suite Refinance Program provides several important benefits to qualifying homeowners:

  • Up to $40,000 in forgivable loans, covering 50% of the costs to build new secondary suites.
  • Homeowners can now refinance up to 90% of their home’s value, including the potential value of the secondary suite they plan to build. This allows them to borrow a larger sum of money by tapping into the increased value of their property.
  • The refinanced mortgage can be amortized over a period of up to 30 years, making monthly payments more manageable for homeowners. This longer amortization period spreads the loan out over a longer time, reducing financial strain.
  • To ensure that homeowners across all regions can take advantage of the new regulations, the government has increased the mortgage insurance limit to $2 million. This applies to those who are refinancing specifically to build a secondary suite, providing flexibility for homeowners in higher-priced housing markets.
  • Supports the creation of basement apartments, laneway houses, and garden suites.
  • Encourages affordable rentals by requiring units to be rented below market rates.
  • Promotes accessible housing by providing support for building suites that cater to seniors and people with disabilities.

Who Can Apply

To be eligible for the Secondary Suite Incentive Program, homeowners must meet the following conditions:

  • Must be the registered owner and occupy the property as their main residence.
  • Have a combined annual income of less than $209,420 for all property owners.
  • The property’s assessed value must be below the homeowner grant threshold (set at $2.15 million in 2024).
  • Acquire all necessary building permits from local authorities before starting construction.
  • Rent out the unit at a rate below the market average for a minimum of five years to receive loan forgiveness.

How to Apply

Follow these steps to successfully apply for the Secondary Suite Incentive Program:

  1. Assess Your Property: Evaluate the potential for adding a secondary suite and consult local zoning regulations to ensure compliance.
  2. Secure Funding: Explore financing options to ensure you can cover your portion of the construction costs.
  3. Obtain Permits: Submit the necessary permit applications to your local municipality, ensuring your plans meet all zoning and building code requirements.
  4. Submit Your Application: Complete the program’s application form, providing all required documents, including income proof, property ownership details, and building permits.
  5. Build the Suite: Once your application is approved, begin construction. Ensure all work is inspected and meets required standards.
  6. Rent the Unit: Upon completion, rent the suite at the below-market rate for at least five years to qualify for loan forgiveness.

What is a secondary suite?

A secondary suite is a self-contained living space located within a single-family home or on the same property. It typically includes its own separate entrance, kitchen, bathroom, and living areas, making it independent from the main household. These suites are often referred to as basement apartments, in-law suites, or granny flats.

Secondary suites can be created by converting existing spaces, such as basements, garages, or attics, or by building a new structure like a coach house or laneway home on the property. They provide additional housing units within a residential area and can be rented out to generate extra income or used to accommodate family members, such as elderly parents or adult children.

In many cities, the construction of secondary suites is regulated by local bylaws, which specify requirements such as minimum size, zoning, and safety standards. These units are increasingly popular as a solution to housing shortages and as a way for homeowners to make more efficient use of their properties.

Secondary Suite

Primary unit and secondary unit examples.

Why Build a Secondary Suite?

There are several benefits to adding a secondary suite to your property:

  • Extra Income: Generate rental income to help with your mortgage or other expenses.
  • Boost Property Value: Increase your home’s value by adding a rentable unit.
  • Contribute to Affordable Housing: Help provide affordable housing options within your community.
  • Housing Flexibility: Use the unit to accommodate family members, like elderly parents or adult children, while maintaining privacy.

Questions to ask when Considering Building a Rental Suite?

Is there demand for rental housing in your neighborhood?

Have you researched how much it will cost to build your suite?

Have you spoken to your lender about financing options?

Can you afford to build a suite, even if there are delays or additional costs?

Can you meet all zoning requirements?

Can you meet all building code requirements?

Do you want to be a landlord and rent the suite out long-term?

Can you afford the mortgage or loan payments if the suite is not rented for a few months?

Conclusion

The Secondary Suite Incentive Program in Ontario provides a valuable opportunity for homeowners to improve their financial situation while making a positive impact on the community. By understanding the program’s requirements and following the application steps, you can successfully develop a secondary suite that benefits both your family and the wider community.

 

Thinking of taking on a project like this?

Partnering with a knowledgeable mortgage broker like Mortgage With Mike will empower you to make informed decisions. 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.