Spring is one of the busiest seasons in the real estate market, with buyers eager to find their dream home before summer.
If you're planning to purchase a home in Spring 2025, now is the time to get your finances in order. Being financially prepared can help you secure a mortgage with favorable terms and make your home-buying journey smoother. Here’s how to get ready:
Your credit score is one of the most important factors in mortgage approval, influencing both your eligibility and the interest rate you’ll receive. A higher score can save you thousands over the life of your mortgage, so it’s worth taking the time to improve it.
Start by checking your credit report for errors, and if you spot any inaccuracies, dispute them immediately.
Pay down outstanding debts to lower your credit utilization ratio, which plays a big role in your score.
Avoid opening new lines of credit in the months leading up to your mortgage application, as this can temporarily lower your score.
By reaching out to me, I can help preserve your credit score as they will pull your credit report once to shop your application. Note: Multiple credit checks in a short period can lower your credit score.
The more you can put down up front, the better. A larger down payment can reduce your monthly mortgage costs, give you access to better loan terms, and, in some cases, eliminate the need for mortgage insurance.
Set a savings goal based on home prices in your target area so you have a clear plan.
Explore first-time homebuyer programs that offer down payment assistance—there are plenty of government and lender-based options.
Make saving a habit by automating deposits into a dedicated home savings account.
Avoid moving your money around to multiple accounts prior to applying for your mortgage. Lenders require a 90-day history of your down payment and a history of moving your money around can make this more difficult to easily verify your down payment.
Lenders use your debt-to-income ratio (DTI), aka GDS/TDS, to assess how comfortably you can handle a mortgage payment on top of your existing obligations. A lower DTI signals financial stability, improves your chances of loan approval and can expand your borrowing power.
Work on paying off high-interest debts or debts with high monthly payments, like credit cards and personal loans, to free up more of your income.
Hold off on making large purchases or taking on new loans, such as car financing, before applying for a mortgage.
If possible, look for ways to increase your income—whether through a raise, side gig, or freelance work—to strengthen your financial standing. Note self employed income or part time non guaranteed hours employment generally require a 2-year history.
A mortgage pre-approval is a game-changer in a competitive market. It gives you a clear budget, shows sellers that you’re a serious buyer, and can even speed up the closing process.
Start gathering essential documents like tax returns, pay stubs, and bank statements—lenders and myself will need these to assess your financial health.
Reach out to me today for information to help you compare mortgage rates and terms, ensuring you get the best deal.
Take time to discuss your mortgage options with me, from fixed to variable rates, different term lengths, or special programs available to you.
The home price isn’t the only expense you’ll need to plan for. Homeownership comes with extra costs that can catch buyers off guard if they’re not prepared.
Closing costs typically range from 1.5% to 4% of the home’s purchase price, covering legal fees, land transfer taxes, and more. This is money you need on top of your down payment
Property taxes, Condo fees and homeowners' insurance can add to your monthly expenses—make sure to factor them into your budget.
Set aside a fund for home maintenance and emergency repairs to avoid financial strain when unexpected expenses arise.
Spring is a competitive time to buy, so being well-informed about the market can give you an edge.
Keep an eye on housing prices in your preferred neighborhoods to understand trends and pricing expectations.
Stay updated on current interest rates, as they directly impact affordability and your monthly payments.
Work with a trusted real estate agent who can help you navigate bidding wars, negotiate offers, and find the right home for your needs.
Interest rates can fluctuate, and even a small increase can affect your monthly payments. If rates are expected to rise, securing a lower rate in advance could save you money over time.
Ask me about rate lock options and how long they’re valid for. Rate holds on average are valid for 120 days before they expire and a new rate hold period is requested
Compare fixed and variable rates to see which aligns best with your financial goals.
Keep an eye on Bank of Canada rate announcements and economic trends that could impact mortgage rates. Note: With recent Bank of Canada announcements variable rates which are tied to Prime are dropping
Taking these steps now will set you up for success. The more financially prepared you are, the smoother the process will be—and the better your chances of landing your dream home at the right price.
Choosing the best mortgage broker in Kitchener-Waterloo (or anywhere, really) comes down to a mix of research, references, and gut feeling. Here's a quick step-by-step guide to help you:
Talk to friends, family, coworkers, or your real estate agent.
Local Facebook groups, Realtors or searching online or Google Maps
Check Credentials & Experience
Make sure they’re licensed in Ontario through FSRA (Financial Services Regulatory Authority of Ontario).
Look for someone with several years of experience in the local market. Having someone that has brokered for more than 10 years will give expertise and knowledge as well as lender relationships and lender status. People that have worked for banks that have transitioned to brokers don’t have the background of placing all types of files as well as underwriting, as the bank underwrote for them.
Compare Rates – But Don’t Obsess Over Them
Brokers often have access to better rates, but the lowest rate doesn’t always mean the best mortgage (watch for prepayment penalties, etc.).
Ask them to explain the fine print.
Read Reviews Online
Look them up on: Google Reviews, Yelp, Better Business Bureau
Pay attention to how they handle negative feedback.
Interview a Few Brokers, Ask things like:
How many lenders do you work with?
How long have you been a broker?
What type of mortgage would you recommend and why?
Someone based in Kitchener-Waterloo will:
Understand local market conditions.
Have connections with local lenders or credit unions as well as realtors and lawyers.
Will be easier to meet in person if needed or has a commercial office for meeting.
I suggest confirming that they are local to the market you are buying or financing in.
How new developments might affect appraisal values or financing
Familiarity with Local Lenders
Some smaller credit unions or regional lenders offer better deals for locals — but only a broker familiar with the area would know or have relationships there.
Example: Access to lenders like Your Neighbourhood Credit Union or Libro Credit Union, which might not be available to brokers outside the area.
Experience With Local Rules and Delays
Some cities have specific timelines or quirks for closing (e.g., title delays, inspection trends, property taxes).
Neighborhood trends (e.g., rising demand in Huron Park vs. established areas like Westmount)
Local property values
Local brokers will anticipate these and keep things moving smoothly.
Look at Their Office Location
Are they based in Kitchener-Waterloo, or just marketing to it?
A physical office in the region is often a good sign and successful broker.
Ask About Local Deals
“Have you done many deals in [your neighborhood]?”
“Which lenders do you find work best in this area?”
“What trends are you seeing in [Forest Heights, Doon, etc.] right now?”
Check Their Network
Do they seem connected to local real estate agents, appraisers, and lawyers?
A well-connected broker can smooth out bumps in the process.
Read Local Reviews
See if clients from Kitchener-Waterloo mention specific neighborhoods or types of properties.
Check if they’ve worked with first-time buyers, investors, or new builds in your area.
Why Choosing a Local Mortgage Broker in Kitchener-Waterloo Matters
Kitchener-Waterloo is a vibrant, fast-growing tech and university hub with a unique mix of small-town charm and urban opportunity. Choosing a mortgage broker with local expertise ensures you get tailored advice that fits this specific market. They understand:
Neighborhood Dynamics: From the historic charm of Downtown Kitchener to the family-friendly suburbs of Laurelwood or Doon.
Local Lenders & Deals: Access to region-specific mortgage products through smaller banks and credit unions.
Market Trends: Awareness of price shifts due to tech expansion, student housing demand, or infrastructure projects like the ION LRT.
Tech + Innovation: Home to Google, OpenText, and hundreds of startups in Canada's “Silicon Valley North.”
Education & Talent: Anchored by the University of Waterloo and Wilfrid Laurier University, attracting global talent and innovation.
Connectivity: Easy access to Toronto via GO Train, with growing transit options thanks to the ION Light Rail.
Green Space: Tons of parks, trails, and nearby conservation areas like Huron Natural Area and Grand River trails.
Affordability: More affordable than Toronto or the GTA, while still offering great schools, amenities, and job opportunities.
Community Vibe: Strong community roots, festivals (like Oktoberfest), and a growing food and arts scene.
Refinancing your mortgage can be a smart financial move for many reasons, and as your trusted mortgage advisor, I’ve seen how much it can benefit homeowners!
Ideally, refinancing is done at the end of your mortgage term to avoid penalties, but the timing can vary depending on your goals. For some, it’s about unlocking the equity in their home to fund renovations or cover big expenses like college tuition. For others, it’s an opportunity to consolidate debt, lower their interest rate, or change up their mortgage product.
Let’s take a closer look at some of the ways refinancing your mortgage can help!
Consolidate Debt: When it comes to renewal season and considering a refinance, this is a great time to review your existing debt and determine whether or not you want to consolidate it onto your mortgage. In most cases, the interest rate on your mortgage is less than you would be charged with credit card companies or other forms of financing you may have. Plus, having all your debt consolidated into a single payment can keep you on track!
Unlock Your Home Equity: Do you have projects around the house you’ve been dying to get started on? Need funds for a large purchase such as a new vehicle or post-secondary education? When you are looking to renew your mortgage, it is a great opportunity to consider refinancing in order to take advantage of the home equity you have built up to help with these larger changes in your life!
Change Your Mortgage Product: Are you unhappy with your existing mortgage product? If you have a variable-rate or adjustable-rate mortgage, you may be considering locking it in at the lower rates. Alternatively, you may want to switch your current fixed-rate mortgage to a variable option with the interest rates expected to continue decreasing into 2025. You can also utilize your refinance to take advantage of a different payment or amortization schedule to help pay off your mortgage faster!
PLUS! Some latest changes by the Government of Canada will make it even easier for you when it comes to your renewal and refinancing options:
Those of you who may have an uninsured mortgage will no longer have to pass the stress test as of November 21st. This means that you have more flexibility when it comes to rates and mortgage products in renewal or refinance cases in cases where you wish to switch lenders without adding additional funds to your mortgage!
Beginning January 15, the federal government will allow default-insured mortgages to be refinanced to build a secondary suite. If you’ve been considering adding a suite to your property, you may be eligible to access up to 90% of your home’s equity for this purpose.
No matter your plans or situation, please don’t hesitate to reach out to me for expert mortgage advice!
Looking for some creative and thoughtful DIY holiday gifting ideas that are easy to make and can add a personal touch to your gifts this season? These affordable, fun, and personalized options can suit anyone in your life – and they’ve never been easier to make!
The season of giving has never been easier with these affordable, fun and personalized gift ideas for all those special folks in your life!
If the cap on insured mortgages increases from $1 million to $1.5 million, this could significantly impact the housing market. Here are some potential effects:
Increased Access to Financing: Buyers looking for higher-priced homes will have more access to insured mortgage options, making it easier to finance larger purchases.
Market Dynamics: This change could stimulate demand in the higher-end market, potentially driving up prices in certain areas.
Encouragement for Buyers: With a higher cap, buyers may feel more confident entering the market, knowing they can secure favorable financing for larger homes.
Potential Risks: While it may help some buyers, it could also increase risks for lenders if higher loan amounts lead to more defaults in economic downturns.
Impact on Affordability: While this change could assist some buyers, it might also contribute to affordability challenges in competitive markets, as higher limits could lead to increased competition and prices.
1.5 million dollars required $300,000 down and under new rules buyers can purchase with $125,0000 down as a minimum. Calculating downpayment is 5% of the first $500,000 and 10% of the remainder. Standard insurance premiums apply and are added to the mortgage based on downpayment. If a first-time buyer, the client is allowed to take a 30-year amortization for an additional .20% insurance premium. That is a home purchase with $175,000 less downpayment!
If first-time buyers are allowed to use 30-year amortizations after December 15, 2024, this could have several significant implications:
A $850,000 house purchase with a minimum down of $60,000 has a payment of $4451.91 on 25 years and $4050.59 on 30 years. The payment difference is $401.32/month and income required to purchase this house is $10,000 less for the 30-year amortization. Allowing families with disruption to income due to maternity leave, a bit more wiggle room in qualifying for a home purchase.
Staying informed about these changes and their implications is essential for both buyers and the market overall! If you have specific questions or need more information, let me know! Call or email me if you wish to discuss how the rules can help you purchase!
In August, a total of 539 homes were sold in the Waterloo Region via the (MLS) System of the Cornerstone Association of REALTORS This represents a decrease of 5.3 per cent compared to the same period last year and a decline of 24.1 per cent compared to the average number of homes sold in the previous ten years for the same month.
“Despite a cooling market, detached homes continue to see strong demand, reflected in a 6.0 percent increase in sales year-over-year,” says, spokesperson for the Waterloo Region market area. “With home prices showing stability in recent months and interest rates decreasing, we saw some home buyers finally come out from the wings to take advantage of the summer slowdown to seek out specific property types, like single-family homes.”
Total residential sales in August included 335 detached homes (up 6.0 per cent from August 2023), and 103 townhouses (down 22.6 per cent). Sales also included 60 condominium units (down 18.9 per cent) and 40 semi-detached homes (down 11.1 per cent).
In August, the average sale price for all residential properties in Waterloo Region was $769,203. This represents a 1.1 per cent increase compared to August 2023 and a 1.7 per cent decrease compared to July 2024.
The average price of a detached home was $889,085. This represents a 0.8 per cent increase from August 2023 and a decrease of 2.7 per cent compared to July 2024.
The average sale price for a townhouse was $611,164. This represents a 7.5 per cent decrease from August 2023 and a decrease of 1.5 per cent compared to July 2024.
The average sale price for an apartment-style condominium was $457,075. This represents a decrease of 5.8 per cent from August 2023 and a decrease of 7.7 per cent compared to July 2024.
The average sale price for a semi was $654,070. This represents a decrease of 2.8 per cent compared to August 2023 and a decrease of 1.9 per cent compared to July 2024.
The average time it took to sell a home in August was 25 days, which is three days longer than the previous month. In August 2023, it took 19 days for a home to sell, and the five-year average is 19 days.
Market is heating up in September due to recent rate reductions, call us to start your shopping and move this fall!!!
