16 Jun

Prefab Backyard Homes: Build Smart, Live Better

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.

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:

More people will buy newly-built homes.
Builders will start more houses and condos—especially in cities like Toronto where condo sales are slow.
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.

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!

1 Oct

Boldest Mortgage Reforms in Decades Set to Unlock Homeownership for All Canadian First-Time Homebuyers and Buyers of New Builds

First-Time Homebuyers

Posted by: Michael Greene

These mortgage reforms, touted as the boldest in decades, aim to unlock homeownership for all Canadian first-time homebuyers and buyers of new builds by address housing affordability and ease the path to securing to homeownership. In an effort to making it easier to qualify for a mortgage, significant reforms are being introduced across Canada, specifically targeting first-time homebuyers and buyers of newly constructed properties. These mortgage reforms represent a transformative shift and aim to expand access to mortgage options, increase affordability, and stimulate the housing market.

New Mortgage Reforms is Expanding Eligibility from 25- Year to 30-Year Mortgage Amortization

A major highlight of these mortgage reforms is the expansion of 30-year mortgage amortizations for all first-time homebuyers and those purchasing newly built homes. This measure will provide more flexibility for borrowers who need high loan-to-value mortgage insurance. Under the current rules the first-time buyers and buyers of new builds applying for an insured mortgage have to qualify using 25-year amortization.

To qualify under the new reform, borrowers must meet the following criteria:

The total loan-to-value ratio must be 80% or more.
The borrower must either be:
1. A first-time homebuyer, or
2. Purchasing a newly constructed home.

Definition of a First-Time Homebuyer

Under this reform, a first-time homebuyer is defined as someone who meets at least one of these conditions:

The borrower has never purchased a home before.
In the last four years, the borrower has not lived in a home that they or their spouse/common-law partner owned.
The borrower has recently experienced a breakdown in a marriage or common-law partnership, similar to the rules used in the Canada Revenue Agency’s Home Buyers’ Plan.

Definition of a Newly Constructed Home

A property will be classified as a newly constructed home if it has not been previously occupied for residential purposes. Importantly, newly constructed condominiums with an interim occupancy period will still qualify.

The New Mortgage Reforms will Raise the Insured Mortgage Price Cap From $1 Million to $1.5 Million

In response to the rising cost of homes in Canada, the price cap for insured mortgages will increase from $1 million to $1.5 million. This change applies to borrowers requiring high loan-to-value mortgage insurance and is expected to benefit buyers in competitive housing markets.

To qualify for this new price cap, borrowers must adhere to these conditions:

The loan-to-value ratio must be 80% or higher.
The residential property’s value must be less than $1.5 million.
Down payment requirements are structured as follows:
- 5% on the portion of the purchase price up to $500,000.
- 10% on the portion between $500,000 and $1.5 million.

When Will the Mortgage Reform Measures Take Effect?

These groundbreaking reforms will take effect for mortgage insurance applications submitted to mortgage insurers like CMHC on or after December 15, 2024. Importantly, these measures will only apply to high loan-to-value mortgages on homes occupied by the borrower or a close family member. All other existing eligibility criteria for government-backed mortgage insurance will remain unchanged.

Advocacy for Housing Affordability

As these new measures roll out, organizations such as Mortgage Professionals Canada (MPC) will continue advocating for policies that make homeownership more attainable. By supporting reforms like these, MPC aims to put more money back into Canadians’ pockets, improve housing affordability and accessibility, and maintain high standards within the mortgage industry.

This reform package marks the boldest effort in decades to unlock homeownership for all Canadian first-time homebuyers and buyers of new builds, and is expected to have a lasting impact on Canada’s housing market.

Easing Mortgage Accessibility for Canadian First-Time Homebuyers

With skyrocketing home prices and stringent lending rules, many first-time buyers have been left on the sidelines. However, the latest reforms bring a fresh perspective, designed specifically to unlock opportunities for this demographic. By expanding qualification criteria and reducing the stress test burden, these changes aim to boost accessibility to mortgage financing, especially for those entering the housing market for the first time.

Unlocking Homeownership for Buyers of New Builds

One of the standout features of the recent reforms is the attention given to buyers of new construction homes. Previously, buyers of new builds faced unique challenges in financing, often tied to the unpredictability of construction timelines. Under the new regulations, buyers of new homes will have greater flexibility in mortgage terms and pre-approvals, making it easier to secure financing without the fear of delays or unexpected costs.

Long-Term Impacts of the Bold Mortgage Reforms

These reforms are poised to have long-lasting effects on the Canadian housing market, particularly in urban areas where demand for affordable housing is high. Check out Wowa for in-dept stats. By simplifying mortgage qualification and offering more flexible financing options, the government hopes to stimulate both supply and demand, leading to increased construction of new homes while helping first-time homebuyers overcome financial barriers.

A Path Forward for All Canadian Buyers

Whether you are a first-time homebuyer or looking to purchase a newly built home, these bold mortgage reforms promise to unlock new possibilities. With more accessible mortgage options and a clear focus on affordability, Canada’s housing market is on the verge of becoming more inclusive for all buyers.

Final Thoughts: Seizing the Opportunity for Homeownership

The boldest mortgage reforms in decades have created a golden opportunity for Canadian first-time homebuyers and buyers of new builds to finally achieve their homeownership dreams. These changes not only make mortgages more accessible but also pave the way for more affordable housing options across the country.

If you’ve been waiting for the right moment to buy your first home or secure financing for a new build, now is the time to act. Don’t let this opportunity pass you by!

Ready to Unlock Your Dream Home?

Contact us today to learn how these bold new mortgage reforms can help you take the next step toward homeownership. Whether you’re a first-time buyer or interested in a new build, Mortgage with Mike is here to guide you through the process.

Get in touch with us today and unlock your path to homeownership!