The average sale price in the Calgary housing market has increased by 3.7 percent across all property types between 2023 and 2024, from $571,600 in 2023 to $592,500 in 2024. The number of sales transactions remained steady during the same time period, with a slight increase of 0.1 percent, from 2,171 units sold in 2023 to 2,174 sales in 2024. Meanwhile, the total number of listings saw a healthy increase of 55.7 percent, from 3,190 properties listed for sale in 2023 to 4,966 in 2024. The number of new listings in the region increased by 21.6 percent, from 2,684 in 2023 to 3,264 in 2024. Looking ahead to 2025, the Calgary housing market is expected to transition to a buyer’s market overall, but market conditions will depend on the price point. The mid-to high-price range is expected to be balanced, while demand at the affordable price points will create seller’s market conditions. Average price is expected to rise by five percent in 2025, while the number of sales will likely increase by two percent.

Low housing supply continues to be an issue in the Calgary housing market, with listings within the higher-price point sitting on the market for longer periods. Condominium apartments are expected to see the most sales activity in the region.

First-time buyers will be the primary drivers of market activity next year, targeting detached homes under $700,000 if they qualify, or condos as an entry-level property within the $350,000 price point.

Move-up and move-over buyers are typically purchasing detached homes and attached infills, with budgets ranging from $700,000 – $2 million, depending on area and income.

Meanwhile, retirees are purchasing villas and larger condos, typically with budgets of $800,000 and above.

New construction is at a high in Calgary, with projects focused on apartments and condos, detached homes and attached infills.

Heading into 2025, sellers who are listing properties in the lower price range are confident due to limited supply resulting in quick sales, while higher-end properties are expected to sit on the market longer as inventory grows.

A decreasing interest rate and 30-year amortization will make it easier for first-time homebuyers to purchase a home in Calgary, but a core challenge that persists in the region is the lack of affordable housing supply.

Rental rates are expected to remain stable going into 2025 due to an increase in rental unit availability. This trend may prompt some investors to either scale back or list their properties for sale. Meanwhile, strong in-migration continues as many people choose Calgary as their new home.

Courtesy RE/MAX LLC

The attachment many Canadians have to their family cottage runs deep. These properties often become central to family traditions and legacies, passed down from generation to generation. But with the recent capital gains tax changes, this treasured inheritance could come with a hefty price tag.

 The change and the concern

 Effective June 25, 2024, the capital gains inclusion rate increased from 50 per cent to 66.67 per cent, except for the first $250,000 of net gains per year for individuals and some trusts, which are included in taxable income at 50 per cent.

This change raises significant concerns for families owning cottages or other secondary properties. Property values have soared, and many Canadians face an unpleasant reality: passing down the family cottage might result in a sizeable tax burden for their heirs.

When I work with families concerned about wealth transfer, I’ve seen firsthand how the new rules have impacted planning strategies. One increasingly popular solution is permanent life insurance, particularly joint last-to-die policies, which can offer a tax-efficient way to pay the tax bill.

 Understanding capital gains taxation 

 When someone passes away, their assets, including real estate other than their primary residence, could be subject to capital gains taxes. Capital gains are calculated by subtracting the property’s adjusted cost base (which includes the original purchase price, eligible expenses and capital improvements) from its fair market value at the time of death.

With the new inclusion rate, two-thirds of that gain is now considered taxable income, less the first $250,000 of net gains. For a family cottage purchased or inherited decades ago and now worth millions, this could mean hundreds of thousands of dollars in taxes.

 The role of joint last-to-die life insurance

 For many of my clients with spouses or partners, permanent joint last-to-die life insurance has become the obvious answer to this problem. It’s a relatively affordable solution that allows couples to preserve the value of their assets while avoiding the need to sell properties that hold significant sentimental value.

These policies insure both spouses but pay out only after the second spouse passes away, which is when capital gains taxes on their assets typically become due. The tax-free death benefit from the policy can be used to cover the capital gains taxes, ensuring your client’s heirs aren’t left scrambling to find the funds.

Strategy in practice 

 Let’s look at an example. John and Susan, a couple in their late 60s, had owned a cottage in Muskoka for more than 30 years. It was their dream to pass the cottage down to their two adult children, who grew up spending summers there and now have children of their own who are forming cottage memories. 

The property, originally purchased for $300,000, now has a fair market value of $2 million. When John and Susan learned about the 2024 changes to the capital gains tax rules, they were shocked by the serious tax burden this would create for their children.

• Since the property appreciated by $1.7 million, the estate would be responsible for paying capital gains tax on this unrealized gain upon the second parent’s death. 

• The first $250,000 of the gain would be subject to a 50 per cent inclusion rate. For the remaining $1.45 million, 66.67 per cent would be included in taxable income.

• The total taxable capital gain would be approximately $1.1 million, resulting in an estimated tax bill of over $580,000, assuming Ontario’s highest marginal tax rate of 53.53 per cent.

This staggering amount could force their children into selling the beloved cottage to cover the taxes — something John and Susan are determined to avoid.

Working with their insurance advisor, John and Susan purchased a joint last-to-die life insurance policy with a death benefit of $400,000, intended to cover the bulk of the anticipated tax liability. 

The peace of mind from this type of planning is invaluable. Now, John and Susan can focus on creating more memories at the cottage, knowing it will remain in the family for future generations to enjoy.

 Advise your clients to review their estate plan

 The capital gains inclusion rate increase is a wake-up call for many Canadians. 

Life insurance is not only a way to preserve their legacy, but also a financial tool that can prevent asset liquidation during a difficult time for families. Joint last-to-die permanent life insurance policies are more affordable than individual coverage and couples can typically secure a policy even if only one spouse is insurable. It’s often the best option for long-term estate planning.

By planning proactively, your clients can safeguard their family’s future and ensure that cherished assets like the family cottage are passed on as a legacy — not a liability.

Courtesy Real Estate Magazine

In Alberta, real estate transactions can be complex, especially when dower rights come into play. 

These rights are critical legal protections designed to safeguard the interests of a spouse in a matrimonial home. Understanding dower rights is essential whether you're buying, selling, or mortgaging a property.

What are dower rights?

Dower rights are legal protections granted to the spouse of a registered homeowner in Alberta.

These rights ensure that the spouse who is not listed on the property title, also known as the non-titled spouse, has a say in any major decisions regarding the property.

Under the Dower Act, this means the non-titled spouse must provide formal consent before any disposition of the property occurs. This includes selling the home, refinancing, or taking out a mortgage.

When are dower rights triggered?

To understand whether dower rights apply in a given situation, it is best to proceed with a specific line of questioning:

Is there only one person on title?

• Yes: Dower rights apply.

• No: Dower rights do not apply, regardless of marital status.

Is the person on title married?

• Yes: Dower rights apply. However, this only applies to legally married spouses; common-law partners are excluded from dower protections.

• No: Dower rights do not apply.

Has either spouse, on title and not on title, lived in the property since the time of their marriage?

• Yes: Dower rights apply. Even something as simple as staying overnight in the home can trigger these rights.

• No: Dower rights do not apply.

What to do when dower rights apply

When dower rights are triggered, the spouse not on the title must provide dower consent before any legal disposition of the property can proceed. This applies to the following situations:

• Listing a property for sale: A dower consent is required because many listing contracts include clauses that allow commissions to be secured by caveat against the property title.

• Signing a purchase agreement: Any agreement to sell the property requires spousal consent.

• Obtaining a mortgage: Before a mortgage can be finalized, dower consent must be given.

• Transfer of land: When the property title is being transferred, dower consent is needed.

Dower rights and separation

If you are in the process of separation but are not yet divorced, with a final divorce judgment, dower rights continue to apply until there is a final divorce judgment.

In these cases, it is essential to consult with a family or divorce lawyer familiar with the case. It is best to resolve all issues that may arise regarding dower rights before entering into any real estate contracts.

What is a dower release?

A dower release is a legal document that allows a spouse to relinquish their dower rights.

This document must be signed in front of a lawyer, and the spouse giving up their rights must do so voluntarily, without any pressure or duress. Once a dower release is signed, the property can be sold, mortgaged, or transferred without requiring further consent from the releasing spouse.

However, it's important to remember that a dower release can be revoked. Always check the title for any pending changes to a dower release before proceeding with any transaction.

Conclusion

Dower rights are a vital component of Alberta real estate law, protecting the interests of spouses in matrimonial homes. Understanding when these rights apply and how to navigate them can prevent potential legal pitfalls in real estate transactions.

If you are unsure how dower rights might affect your property dealings, consult with a lawyer to ensure compliance with the Dower Act.

Courtesy CREB

Moving is often an exciting adventure, but it also comes with a long to-do list. From coordinating movers, to picking up the keys, every single task on your to-do list feels important. There’s one task that’s often overlooked, put off to the very last minute, or forgotten completely—updating your address.

It might not be as thrilling as exploring your new neighbourhood or planning your upcoming home improvement projects, but dedicating time to ensuring your address is changed will save you from missing online shopping deliveries, bills, and other major headaches (or even fines!) down the road.

This comprehensive guide will help you navigate the task of updating your address so you can spend more time enjoying your new home!

Getting started

It goes without saying, the first step in changing your address is ensuring you have it written down/recorded correctly. Reference your sale agreement or lease agreement if you’re in doubt, and ensure you have the correct street number, suite number, street direction, and postal code. 

The second step is to set up a mail forward with Canada Post. Mail forwarding acts as a catch-all for anything you have missed in the excitement of your move. Using a mail forwarding service for one year offers peace of mind. Prices start at $92.50, and can be set up in-person or online in as little as 10 minutes. Mail that’s forwarded is tagged with a yellow sticker. As these items are received, initiate a change of address request with the mailer. By the end of year one, you should have caught most of what was initially missed. Set up your mail forward at least 30 days before your moving date.

Who to notify when your address changes

From the government to your grandma, your list of who to notify about your address change might seem long, but this checklist will help you identify who to notify and when.

Service providers

You’ll need to contact your phone company, cable and internet provider, hydro services, insurance provider, and more when you move. Plus, don’t forget things like subscription boxes and streaming services for good measure. Here are some of the service providers you’ll need to notify, and when to do so.

Medical care or providers

Be sure to update any medical care providers of your new address at your next visit or by phone after you move. This can include:

• Doctors and physicians

• Holistic health services providers

• Dentists

• Pharmacies

• Optometrists

• Veterinarians

• Medical insurance programs

Government services

Provinces and territories have laws about how long you have to notify them of an address change when it comes to your driver’s license, vehicle registration, and health card. For example, in Ontario, you’re required to notify them no longer than six days after your address changes for your license and registration, and 30 days for your health card. In Alberta, you have 14 days for your license and registration. Here are the government services you should be notifying of an address change, when to do so, and how to do it. For exact deadlines, make sure to check your provincial/territorial website for details. 

Educational Institutions

Schools, daycares, colleges, scholarship programs, and trade programs all need to be notified of an address change. If you’re moving out of the school district, make sure to make this change as far in advance as possible to allow for registration and transfer times.

Personal contacts

Most people you’re close with will know you’re moving, so they’ll know an address change is happening and likely ask for the address anyway. However, make sure you inform your employer or human resources department of a move within one or two weeks of moving so all relevant files, paystubs, and tax documents can be up to date. This can be done in person, by email, or by phone. 

Other

We’ve already covered most of the main people or places to notify of an address change, but there are some others that don’t quite fall into a specific category.

Changing your address doesn’t have to be a daunting task. With a little planning and organization, you can make the transition to your new home smooth and stress-free. If you feel as though you’re forgetting something, your REALTOR® can answer any questions about organizations you may need to notify!

Courtesy Realtor.ca

Daylight savings time is the perfect opportunity to renew your home for the coming season. From thermostat adjustment to outdoor preparation, use this checklist to keep your house safe, cozy, and efficient all year round.

Change Clocks 

The most obvious task: don’t forget to adjust clocks that don’t change automatically, including those on kitchen appliances, car dashboards, and thermostats. It’s also a good idea to confirm that smart home systems are synced correctly to the new time.

Update Home Lighting 

With earlier sunsets in the fall, consider adding task lighting or dimmable bulbs to brighten your home and create a cozy evening atmosphere. Strategic lighting can help reduce the impact of losing natural light, improving both functionality and ambiance.

Outdoor Lighting Check 

As the days grow shorter, inspect outdoor lights, security lights, and timers to ensure they are properly set for the season. Well-placed lighting not only enhances curb appeal but also improves safety by illuminating walkways and entrances.

Thermostat Adjustments 

Changing daylight means changing routines, making this the perfect time to update your thermostat settings for optimal comfort and efficiency. As cooler weather arrives in the fall, adjusting your heating schedule can help maintain a cozy home while keeping energy bills in check.

Maximize Morning Light 

Brighten your mornings by pulling back curtains, adding mirrors, or incorporating light-colored decor to reflect natural sunlight throughout your home. These simple changes can make mornings feel fresher and boost your mood, especially during darker seasons.

Outdoor Prep

Before daylight hours shorten, complete any remaining outdoor maintenance projects, such as cleaning gutters or storing patio furniture. Take advantage of any good weather to winterize outdoor spaces and avoid last-minute repairs as the season shifts.

Review Home Security 

Use daylight savings as a reminder to replace batteries in smoke and carbon monoxide detectors, even if they aren’t dead. This small task ensures your home’s safety systems stay functional year-round.

Check and Replace Air Filters 

Swap out old air filters to improve air quality and help your HVAC system run efficiently. Clean filters reduce energy consumption and keep your home comfortable when switching from cooling to heating.

Declutter and Deep Clean 

Daylight savings serves as a great reminder to do a seasonal deep clean and declutter. Organize closets, clear out storage spaces, and donate unused items to keep your home feeling refreshed and free of clutter.

Courtesy: Zoocasa

Sales gains for homes priced above $600,000 offset declines at the lower end of the market, resulting in October sales that were similar to last year. The 2,174 sales in October increased over September and stood 24 per cent above long-term trends for the month.

“Housing demand has stayed relatively strong in our market as we move into the fourth quarter, with October sales rising over last month,” said Ann-Marie Lurie, Chief Economist at CREB®. “However, activity would likely have been stronger if more supply choices existed for lower-priced homes. Supply levels in our market are improving relative to the ultra-low levels experienced last year, but much of the gains have been driven by higher-priced units for each property type. This results in conditions far more balanced in the upper end of the market versus the seller's market conditions in the lower to mid-price ranges of each property type.” 

The gains in new listings relative to sales over the past six months have supported inventory gains in the city. As of October, 4,966 units were available, a significant improvement over the near-record low of 3,205 units reported last October. While inventories are starting to reach levels more consistent with long-term trends, the inventory composition has changed as nearly half of all the residential inventory is now priced above $600,000.

Adjustments in supply are helping move the market away from the tight market conditions experienced in the spring. However, conditions remain relatively tight, with 2.3 months of supply and a 67 per cent sales-to-new listings ratio, and the months of supply does vary significantly by price range and property type. For example, detached homes priced below $700,000 are reporting less than two months of supply, while homes priced over $1,000,000 are reporting over three months of supply. This is likely resulting in different price pressures depending on price range and property type.

Overall, the total residential benchmark price was $592,500 in October, over four per cent higher than last October and on a year-to-date basis, averaging over eight per cent higher than last year's levels. The unadjusted benchmark prices did ease slightly over last month due to seasonal factors, as seasonally adjusted prices remained relatively stable in October compared to September. 

Detached
Home sales rose to 1,071 in October, a gain over last month and nearly 10 per cent higher than last year. While new listings were higher than last year, they slowed over last month, causing the sales to new listings ratio to rise to 69 per cent and preventing any further monthly gain in inventory levels. With 2,199 units available, the months of supply remained near two months, a gain over the under two months reported last year at this time, but slightly lower than last month.

The unadjusted detached benchmark price was $753,900 in October, slightly lower than last month but still eight per cent higher than levels reported last October. Additional supply choices in the higher price ranges have taken some of the pressure off home prices. However, the recent monthly pullbacks are more related to seasonal conditions, as seasonally adjusted prices have remained relatively stable over the past three months.

Semi-Detached
Sales in October rose over last month and were over six per cent higher than levels reported last year at this time, contributing to the year-to-date growth of over three per cent. New listings for semi-detached homes have also been on the rise, supporting some steady gains in inventory levels. The shift in supply compared to demand has helped push the market toward more balanced conditions, especially for higher-priced properties. However, with only two months of supply, the overall conditions still favour the seller.

The unadjusted benchmark price was $677,000 in October, similar to last month and over eight per cent higher than last year. Year-to-date prices have averaged an over 11 per cent gain. 

Row

Following a strong start to the year, sales activity has slowed since June. However, the pullback in sales is not due to a shift in demand but related to supply constraints. The declines in sales have been driven by homes priced under $400,000, the same segment of the market which reported a 35 per cent decline in new listings. Year-to-date sales have remained relatively stable compared to last year, as pullbacks in the lower range offset the gains in the upper price ranges. Over 70 per cent of the sales have occurred over $400,000, a significant shift from last year, where the upper end accounted for 47 per cent of all the sales.

Improvements in supply did cause the months of supply to push above two months in October, the first time that has happened since the end of 2021. Supply growth, especially in the upper price ranges, has helped take some pressure off prices. However, with an unadjusted benchmark price of $456,600, prices are still over eight per cent higher than last October and year-to-date, which have averaged an increase of nearly 16 per cent.

Apartment Condominium

While sales in October improved over last month, October marks the fifth consecutive month with a year-over-year decline. However, it is important to note that the 6,782 sales so far this year are only down slightly over last year's record high and nearly double the number of sales we have averaged over the previous decade. Higher lending rates, rising rents, and limited supply choices for lower-priced properties have fuelled demand for apartment condominiums. However, like other property types, sales declines were driven by pullbacks for lower-priced units due to a significant drop in supply. Inventory levels in October did rise over the previous year, with most of the gains occurring in the $300,000 - $500,000 range, supporting more balanced conditions in those price ranges. Meanwhile, conditions remained relatively tight for lower-priced condominiums.

The additional supply choices, especially in the higher ranges of the condominium market, are taking some of the pressure off prices. In October, the unadjusted benchmark price was $341,700, down over last month but still 11 per cent higher than last year's levels. While much of the monthly decline can be attributed to seasonal factors, areas with a relatively high number of newly constructed and completed projects are impacting resale activity, resulting in a slightly higher monthly decline. Nonetheless, on average, year-to-date prices are nearly 17 per cent higher than levels reported last year.

 REGIONAL MARKET FACTS

 Airdrie
While both sales and new listings improved over the levels reported last October, the monthly pullback in new listings was enough to cause the sales-to-new-listings ratio to rise over last month, reaching 67 per cent. While this slowed the growth in monthly inventory levels, the 365 units in inventory is a significant gain over the exceptionally low levels of 213 reported last year at this time. Following three consecutive years of low inventory levels, recent gains are helping shift the market toward more balanced conditions. 

A shift away from the extreme sellers’ market has reduced the pressure on home prices. The unadjusted benchmark price was down over last month in October, but it was still five per cent higher than last October. Some of the monthly decline is related to seasonal factors, as seasonally adjusted data indicates prices remained relatively stable over the past four months.

Cochrane

Sales this month improved over last year, keeping above long-term trends for the town. At the same time, new listings also improved, reporting the highest October total on record. Recent gains in new listings relative to sales have helped support some steady gains in inventory levels. However, with 178 units available in October, inventories are still below long-term trends, keeping the months of supply relatively low at 2.3 months. 

While conditions are not as tight as in the spring, the shift is slowing the pace of price growth. The unadjusted benchmark price in October was slightly lower than last month but still six per cent higher than last year's levels. Overall year-to-date average benchmark prices are over nine per cent higher than last year's levels.

Okotoks

Sales in October improved over last year's levels as recent gains in new listings provided choices for many buyers struggling with supply options. While the sales gain relative to new listings prevented further monthly gains in inventory levels, the 103 units available in October significantly improved over the near-record low of 66 units reported last October. 

With less than two months of supply, conditions continue to favour the seller. The persistent seller market conditions have driven price growth in this market throughout most of the year. While unadjusted prices did ease slightly over last month in October, levels are still over six per cent higher than last October and over eight per cent higher on a year-to-date basis. 

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

There are many professionals you’ll encounter during the purchase and sale of your home, the top of the list typically includes your REALTOR® and a real estate lawyer.

Real estate lawyers are responsible for ensuring the transaction is in your best interest and clear of any legal issues. They help stickhandle everything from leading the title search and registration process, providing title insurance and drawing up mortgage documents, to prepping the deed and statement of adjustments, and ultimately handing you the keys to your new home. 

We spoke with a real estate lawyer to get answers to the most common questions about why and what they do.

When do you need a real estate lawyer?

Both buyers and sellers should work with a real estate lawyer as soon as their casual home search becomes more serious. 

Jeffrey Kahane, a real estate, wills, and estates lawyer with Kahane Law Office in Calgary, Alberta, encourages buyers and sellers to consult a lawyer “as soon as they have any questions or concerns.” 

“We prefer—and don’t charge more—to get called on when people have questions so we can ensure the contract properly protects them,” Kahane says, adding they “typically don’t get called upon until the contract is firm, but we are happy to help at any stage to ensure things run smoothly for our clients.” 

How do you choose a real estate lawyer?

There are a few factors to consider when you’re ready to choose a lawyer. Having a few screening questions in mind could help you decide which lawyer or firm to use:

• How long have they been practicing real estate law in their respective province?

• Will they be working alone or with a team?

• How will they be billing you?

• How long will it take to get things moving? 

• Can they provide references?

Your REALTOR® can provide a list of contacts they trust and have worked with before, to help narrow down your search, but you’re not obligated to use their recommendation.

How much does a real estate lawyer cost? 

Lawyer fees will vary depending on the firm, how they charge (flat rate or hourly), and any disbursements incurred. Disbursements are the costs associated with title searches, any photocopies made, or anything else the lawyer does with a cost attached to it. Lawyer fees are what you pay for the lawyer’s actual time. According to Canadian Lawyer Magazine, Canadians can expect to pay anywhere from $700 to $2,000 (again, depending on your situation) in fees and disbursements during the entire process. Their payment will be required at the end of the closing process.

What do real estate lawyers do for buyers and sellers?

Lawyers can represent both the buyer and the seller, “but both parties have to agree, ensuring there is full disclosure between buyer and seller,” shares Kahane.

Why Buyers Need Lawyers

When it comes to what real estate lawyers do for buyers, Kahane explains they “draft purchase documents and the mortgage, as well as get funds from the lender, ensure there are no debts associated with the property, and facilitate payment for the property.” He adds “it’s also our job to ensure the survey complies with the contract.”

Real estate lawyers are required no matter what kind of property you’re buying. New build, resale, condo, freehold, land, commercial—a real estate lawyer will help ensure you receive a fair, legal contract. 

New builds

When purchasing a new build, your real estate lawyer will review your Agreement and Purchase of Sale, which typically includes Statement of Critical Dates, conditions, rights and obligations, occupancy, termination clauses, early termination conditions, and list of closing adjustments the vendor proposes. Your lawyer will also review clauses and conditions to see what can be negotiated, reviewed, or added for your benefit. They’ll also identify any hidden purchase restrictions, or anything that’s important to note before taking possession of your home. 

Buying land

When buying land, you’ll want to find a lawyer who specializes in property law. They’ll conduct a title search to make sure there aren’t any issues with the land you’re looking at, review your contract to make sure conditions are in your favour, ensure all zoning and land use regulations are compliant with any applicable laws, and will conduct an environmental assessment before purchasing a property to make sure all regulations are met. 

Condos

For condo purchases, real estate lawyers will review the Status of Certificate to make sure the reserve fund is healthy and identify whether any major repairs or renovations will be required in the near future, which could mean big costs coming up for all owners.

Joint tenancy

Your lawyer will also help understand the ins and outs of owning property with another person. There’s joint tenancy with rights of survivorship, which means if one owner dies, their share is passed on to the other owner—in this case, it doesn’t go through the deceased’s estate. There’s also tenancy in common, where each owner decides who will get their portion of the property should they pass away. A real estate lawyer will be able to help navigate how you want to manage your share of the property, if applicable.

Why Sellers Need Lawyers

In terms of supporting sellers, real estate lawyers similarly assist them in the smooth progress of the transaction. Kahane shares their role entails, “drafting sale documents and sending them to the buyers’ lawyer on trust conditions, payout debts on title, real estate commissions, and net funds to the client.” 

Why Lawyers Benefit Both Parties

“Without our involvement, lenders won’t simply hand the funds over to a buyer or seller—they require the security,” Kahane stresses, adding “including a lawyer is also the only way to ensure buyers get the property free of debts and the sellers get their money.” 

What do real estate lawyers do at closing?

While real estate lawyers are great resources throughout the entire buying and selling process, lawyers play an active role in the remittance at closing, ensuring money and asset transfers are done safely and successfully. 

“If there’s a problem on closing, the lawyer can try to resolve it between the parties,” shares Kahane. 

Remember, your REALTOR® is a great asset and can help connect you with a dependable real estate lawyer when you’re ready to sell or purchase a home. As they are an important component in the transaction as a whole, and particularly in the area of closing, relying on your REALTOR® to introduce you to a real estate lawyer can give you peace of mind that you’ll be connected with a reputable professional.

Courtesy Realtor.ca

The attachment many Canadians have to their family cottage runs deep. These properties often become central to family traditions and legacies, passed down from generation to generation. But with the recent capital gains tax changes, this treasured inheritance could come with a hefty price tag.

 The change and the concern

 Effective June 25, 2024, the capital gains inclusion rate increased from 50 per cent to 66.67 per cent, except for the first $250,000 of net gains per year for individuals and some trusts, which are included in taxable income at 50 per cent.

This change raises significant concerns for families owning cottages or other secondary properties. Property values have soared, and many Canadians face an unpleasant reality: passing down the family cottage might result in a sizeable tax burden for their heirs.

When I work with families concerned about wealth transfer, I’ve seen firsthand how the new rules have impacted planning strategies. One increasingly popular solution is permanent life insurance, particularly joint last-to-die policies, which can offer a tax-efficient way to pay the tax bill.

 Understanding capital gains taxation 

 When someone passes away, their assets, including real estate other than their primary residence, could be subject to capital gains taxes. Capital gains are calculated by subtracting the property’s adjusted cost base (which includes the original purchase price, eligible expenses and capital improvements) from its fair market value at the time of death.

With the new inclusion rate, two-thirds of that gain is now considered taxable income, less the first $250,000 of net gains. For a family cottage purchased or inherited decades ago and now worth millions, this could mean hundreds of thousands of dollars in taxes.

 The role of joint last-to-die life insurance

 For many of my clients with spouses or partners, permanent joint last-to-die life insurance has become the obvious answer to this problem. It’s a relatively affordable solution that allows couples to preserve the value of their assets while avoiding the need to sell properties that hold significant sentimental value.

These policies insure both spouses but pay out only after the second spouse passes away, which is when capital gains taxes on their assets typically become due. The tax-free death benefit from the policy can be used to cover the capital gains taxes, ensuring your client’s heirs aren’t left scrambling to find the funds.

 Strategy in practice 

 Let’s look at an example. John and Susan, a couple in their late 60s, had owned a cottage in Muskoka for more than 30 years. It was their dream to pass the cottage down to their two adult children, who grew up spending summers there and now have children of their own who are forming cottage memories. 

The property, originally purchased for $300,000, now has a fair market value of $2 million. When John and Susan learned about the 2024 changes to the capital gains tax rules, they were shocked by the serious tax burden this would create for their children.

• Since the property appreciated by $1.7 million, the estate would be responsible for paying capital gains tax on this unrealized gain upon the second parent’s death. 

• The first $250,000 of the gain would be subject to a 50 per cent inclusion rate. For the remaining $1.45 million, 66.67 per cent would be included in taxable income.

• The total taxable capital gain would be approximately $1.1 million, resulting in an estimated tax bill of over $580,000, assuming Ontario’s highest marginal tax rate of 53.53 per cent.

This staggering amount could force their children into selling the beloved cottage to cover the taxes — something John and Susan are determined to avoid.

Working with their insurance advisor, John and Susan purchased a joint last-to-die life insurance policy with a death benefit of $400,000, intended to cover the bulk of the anticipated tax liability. 

The peace of mind from this type of planning is invaluable. Now, John and Susan can focus on creating more memories at the cottage, knowing it will remain in the family for future generations to enjoy.

 Review your estate plan

 The capital gains inclusion rate increase is a wake-up call for many Canadians. 

Life insurance is not only a way to preserve their legacy, but also a financial tool that can prevent asset liquidation during a difficult time for families. Joint last-to-die permanent life insurance policies are more affordable than individual coverage and couples can typically secure a policy even if only one spouse is insurable. It’s often the best option for long-term estate planning.

By planning proactively, your can safeguard your family’s future and ensure that cherished assets like the family cottage are passed on as a legacy — not a liability.

Courtesy of Real Estate Magazine

The Bank of Canada today reduced its target for the overnight rate to 3¾%, with the Bank Rate at 4% and the deposit rate at 3¾%. The Bank is continuing its policy of balance sheet normalization.

The Bank continues to expect the global economy to expand at a rate of about 3% over the next two years. Growth in the United States is now expected to be stronger than previously forecast while the outlook for China remains subdued. Growth in the euro area has been soft but should recover modestly next year. Inflation in advanced economies has declined in recent months, and is now around central bank targets. Global financial conditions have eased since July, in part because of market expectations of lower policy interest rates. Global oil prices are about $10 lower than assumed in the July Monetary Policy Report (MPR).

In Canada, the economy grew at around 2% in the first half of the year and we expect growth of 1¾% in the second half. Consumption has continued to grow but is declining on a per person basis. Exports have been boosted by the opening of the Trans Mountain Expansion pipeline. The labour market remains soft—the unemployment rate was at 6.5% in September. Population growth has continued to expand the labour force while hiring has been modest. This has particularly affected young people and newcomers to Canada. Wage growth remains elevated relative to productivity growth. Overall, the economy continues to be in excess supply.

GDP growth is forecast to strengthen gradually over the projection horizon, supported by lower interest rates. This forecast largely reflects the net effect of a gradual pick up in consumer spending per person and slower population growth. Residential investment growth is also projected to rise as strong demand for housing lifts sales and spending on renovations. Business investment is expected to strengthen as demand picks up, and exports should remain strong, supported by robust demand from the United States.

Overall, the Bank forecasts GDP growth of 1.2% in 2024, 2.1% in 2025, and 2.3% in 2026. As the economy strengthens, excess supply is gradually absorbed.

CPI inflation has declined significantly from 2.7% in June to 1.6% in September. Inflation in shelter costs remains elevated but has begun to ease. Excess supply elsewhere in the economy has reduced inflation in the prices of many goods and services. The drop in global oil prices has led to lower gasoline prices. These factors have all combined to bring inflation down. The Bank’s preferred measures of core inflation are now below 2½%. With inflationary pressures no longer broad-based, business and consumer inflation expectations have largely normalized.

The Bank expects inflation to remain close to the target over the projection horizon, with the upward and downward pressures on inflation roughly balancing out. The upward pressure from shelter and other services gradually diminishes, and the downward pressure on inflation recedes as excess supply in the economy is absorbed.

With inflation now back around the 2% target, Governing Council decided to reduce the policy rate by 50 basis points to support economic growth and keep inflation close to the middle of the 1% to 3% range. If the economy evolves broadly in line with our latest forecast, we expect to reduce the policy rate further. However, the timing and pace of further reductions in the policy rate will be guided by incoming information and our assessment of its implications for the inflation outlook. We will take decisions one meeting at a time. The Bank is committed to maintaining price stability for Canadians by keeping inflation close to the 2% target.

Information note

The next scheduled date for announcing the overnight rate target is December 11, 2024. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR on January 29, 2025.

Courtesy The Bank of Canada

Buying a home can be a complex financial journey. If you plan to get a mortgage, you’ll hear about the need for a down payment, but your REALTOR® will also mention a deposit.

Are these two terms the same? Let’s clarify the difference between a deposit and a down payment and their impact on your path to homeownership. Whether you’re a first-time buyer or looking to refine your strategy, grasping these concepts will help you make informed decisions and succeed in the housing market. Let’s dive in! 

What is a down payment? 

A down payment is the amount of money a buyer must provide independently of the mortgage loan. Sources for a down payment can include: 

• Savings 

• Investments 

• Gifts from family*

• Borrowed funds** 

Note: If using gifted funds, the lender requires a gift letter. The funds should first be deposited into the buyer's account before being used as a deposit or down payment. Inheritance funds come with different requirements that depend on the lender.

*Note: In some cases, lenders may allow borrowing against personal lines of credit or other properties. 

How much should I save for a down payment? 

In Canada, most lenders require a down payment of 20 per cent of the purchase price. However, insured mortgages allow for down payments as low as 5 per cent. While the minimum down payment is 5 per cent, lenders typically expect an additional 1.5 per cent saved to cover legal fees and other associated costs, including: 

• Appraisal fees 

• Home inspection fees

• Title insurance 

Why do I need to give a deposit when making an offer? 

A deposit is not the same as a down payment and usually doesn’t constitute the entire down payment amount. It serves as a security measure for the seller, ensuring that if the buyer does not complete the purchase, the seller is compensated for their potential loss. In short, your deposit signals to the seller that your offer is serious. 

Does my deposit count toward my down payment? 

Yes, it does. However, the lender will need to track a 90-day history of where the deposit originated in addition to the down payment. For instance, the lender will request 90-day bank statements from the account where the deposit is held. They will need to see a record of the deposit leaving your account (as part of the down payment) and a record of the selling brokerage receiving the deposit. 

How does my deposit contribute to my down payment? 

When your file is conveyed at the law office, the lawyer will request the deposit from the seller’s brokerage. This deposit will then be included in the total purchase funds.

Now that we've clarified the differences between down payments and deposits let’s explore some scenarios, starting with Ideal Camille.

Scenario 1: Ideal Camille

Imagine Ideal Camille, who, with the assistance of her REALTOR®, finds a home listed at $400,000. For a 20 per cent down payment, Camille has saved $80,000 for which she can provide her lender with a 90-day transaction history. She is pre-approved for a mortgage to finance the remainder of the purchase.

To strengthen her offer, Camille and her REALTOR® include a $20,000 deposit. Once the seller accepts the offer, Camille delivers the deposit to the seller’s brokerage and receives a Receipt of Funds, she then provides her lender with confirmation that the deposit has been received by the listing brokerage. This ensures the lender recognizes that $20,000 will be applied to her $80,000 down payment.

Scenario 2: Gift Cliff

Not every transaction is as straightforward as Ideal Camille’s. Take Gift Cliff, who is eager to purchase a $300,000 home. He receives a $15,000 down payment gift from his father, which is only 5 per cent of the purchase price, necessitating an insured mortgage. Excited about the home, Cliff instructs his REALTOR® to include the entire $15,000 as a deposit in his offer.

Once his offer is accepted, the $15,000 deposit is sent to the selling brokerage. Cliff must inform his lender that his down payment will come from this deposit and advise that the deposit was received by the listing brokerage. He also communicates to his lender that the deposit was a gift from his father, prompting the lender to request a gift letter and outline the necessary details for the letter. 

Down payment and deposit pro-tips: 

1. If any portion of your deposit or down payment is a gift or borrowed, consult your mortgage broker regarding the lender's policies on these funds. Some lenders accept gifted funds from anyone, while most require them to be from a direct family member.
   
   

2. Lenders are becoming stricter about tracking the source of funds for down payments. Be prepared to provide at least 90 days of financial history for all funds used for your deposit and down payment.
   
   

3. Avoid transferring large sums in and out of the account, instead holding your down payment during the purchasing process. Any large transfers must have complete records detailing where the money came from, where it’s going, and why. Due to Canada’s strict anti-money laundering policies, it's essential to maintain clear documentation of transactions. The best practice is to keep your down payment in a separate account designated solely for your home purchase. 

Courtesy CREB

Your heating, ventilation, and air conditioning (HVAC) system is the heart of your home. That’s why it’s important to make sure it’s in top working condition throughout the year. 

Luckily, whether you’re an experienced DIYer or just looking for a few tips, there are some easy and inexpensive things you can do in the short, medium, and long term to keep your HVAC system happy and healthy.

The importance of maintaining your system 

“Most of us use our furnace or air conditioner almost every day,” says Ben Sauve, owner of Sauve Heating & Air Conditioning in Prescott, Ontario. “Regular maintenance can extend the life of your HVAC system, improve your indoor air quality, lower your energy bills, and keep your system running smoothly in every season.”

Not maintaining your HVAC system properly could also void your manufacturer’s warranty, warns Nicholas Perreault, Maintenance and Warranty Coordinator with Presidential Ventilation in Mount Uniacke, Nova Scotia.

“Most manufacturer warranties require HVAC systems to be maintained annually,” he explains. “Not maintaining your system properly may void your warranty, and end up costing you more.”

Short-term maintenance tips (weekly, monthly, bi-monthly)

But what does maintaining your HVAC actually involve? In the short term—on a weekly, monthly, or bi-monthly basis— you can maintain your HVAC system by carrying out simple tasks like:

• checking smoke and carbon monoxide detectors monthly;

• check your air filters monthly, and replace as needed;

• keeping indoor vents and registers clear of clutter, and making sure your registers aren’t accidentally pushed closed;

• vacuuming or brushing off registers, vents, and outdoor HVAC units every few weeks to remove dust or debris, and leaving at least two feet (60 centimetres) of clearance around outdoor air conditioning units and heat pumps; and

• monitoring your monthly energy bills to watch for any spikes in consumption that could indicate a problem.

“The most important thing you can do to keep your HVAC system working well is replace the air filter when it gets dusty,” Sauve says. “Dirty filters restrict airflow, which makes your HVAC system work harder and consume more energy.”

When buying a new filter, Perrault recommends getting a high-quality wired mesh filter with a high Minimum Efficiency Reporting Value (MERV) rating. The MERV rating tells you how well the filter traps the tiny particles that can clog your system and impact your air quality.

“The best MERV rating for a residential home generally falls between eight and 13,” he says. “That provides a good balance between air filtration and system efficiency.”

Medium-term maintenance tips (yearly)

Over the medium term—think yearly rather than monthly— several other issues can pop up that will need attention. To avoid unnecessary breakdowns or repairs:

• invest in a programmable thermostat;

• clean your air conditioner’s evaporator coil and drain line yearly before the heat sets in;

• check your heating system once a year for leaks, and seal any gaps around windows, doors, and ductwork; and

• hire an HVAC professional to inspect your entire system once or twice a year to prevent serious problems before they occur.

“After high winds or snowstorms, it’s also a good idea to make sure the outside vents aren’t blocked or damaged,” Sauve adds. “Same goes for your gas meter, propane tanks, and oil tank pipes.”

Maintenance tips for the long term (every two years or so)

Lastly, to help keep your energy bills low and your HVAC system running well over the long run:

• have your furnace gas line inspected by a professional every few years;

• have your ducts inspected and cleaned by a reputable provider (be leary of unsolicited phone calls) every two to three years, and after any large renovations;

• if your HVAC system is 15 to 25 years old (or older), consider upgrading to a more modern system before it breaks down; and

• when it comes time to buy a new system, ask questions about energy efficient options available to you and suitable for your home and lifestyle – like a heat pump.

“Heat pumps are approximately 350% efficient and can save hundreds of dollars per year on your energy costs,” Sauve says. “When installed properly, they heat and cool your home regardless of the outdoor temperature.”

Perrault also recommends setting your thermostat at a temperature that’s comfortable all year round, and then leaving it alone. 

“Temperature swings of more than two degrees make the system work much harder,” he explains. “So the less you play around with the thermostat, the fewer problems you’ll have.”

Warning signs of trouble 

Even the best-maintained system will eventually run into problems. The key is to take care of them as soon as possible.

“Ignoring a problem will only make things worse,” Sauve says. “It can also make other components work harder or become more difficult to repair.”

You can spot most issues just by keeping your eyes and ears open. For instance, common warning signs of potential trouble with your HVAC system include:

• reduced airflow;

• uneven heating and cooling;

• strange noises or smells coming from the system;

• frequent cycling (the system turning itself off and on);

• difficulty keeping your home warm in the winter or cool in the summer; and

• sudden increases in your monthly utility bills.

“If you’re not warm in the winter or cool in the summer, there’s likely something wrong with the HVAC,” Sauve explains. “If you hear different noises or smell new smells, that’s a good indication something’s wrong. If you see black, sooty marks around inside or outside vents, call your HVAC company immediately.”

How to troubleshoot common problems 

Most HVAC issues are better left to a professional. But there are a few things you can try on your own. For example, if your system isn’t working efficiently:

• clean or replace your air filter;

• make sure the vents and registers aren’t obstructed;

• check if the furnace has power. Check the furnace switch and if the breaker/fuse needs to be reset; and

• make sure the thermostat is turned on and set properly, and replace the batteries if needed.

Know when to call a professional 

No matter how handy you are, every homeowner should know when it’s time to call in the professionals.

“Ninety-nine per cent of HVAC issues should be looked at by a certified technician,” Perrault says. “Playing with a complex digital HVAC system could cause even more damage. Contacting the company that installed your system is always a better option than trying to troubleshoot it yourself.”

Sauve says he couldn’t agree more. “If it’s more than cleaning the vents or changing filters or batteries, leave it to the pros,” he notes. “Even if the furnace isn’t giving heat, there are electrical dangers to be wary of. So put safety first, and pick up the phone before you pick up your toolbox.”

Courtesy Realtor.ca

Alberta is calling. At least, that’s the message the province has been trying to send out to the rest of the country for the last two years. The campaign is a push to bring skilled talent to the province from other parts of the country, primarily British Columbia and Ontario. The most recent phase of the campaign offers a refundable tax credit to skilled tradespeople who help build the province’s housing and infrastructure.

And, it seems to be working. Since 2021, the province’s population has grown significantly, both in major cities like Calgary, and in more rural parts as well. This means demand on the real estate market is  increasing, while supply hasn’t changed much.

What’s happening in Alberta now?

The growth in Alberta has been noticeable. Brad Mitchell, CEO of the Alberta Real Estate Association notes “we have the highest migration in any of the provinces.” From April 1, 2023 to April 1, 2024, Alberta’s population grew at a rate of 4.41%, according to the provincial government. Alberta gained about  50,000 new residents in the span of the first few months of 2024.

British Columbia and Ontario have been the strongest sources of migration, although Mitchell adds there was a substantial influx of Ukrainian immigrants following the start of the war in that country, with much of Alberta maintaining strong Ukrainian roots. While the federal government primarily drives international immigration, Alberta has led the interprovincial migration efforts. 

On Episode 51 of the Canadian Real Estate Association’s REAL TIME podcast, Ann-Marie Lurie, a chief economist with the Calgary Real Estate Board, explained the challenges this can bring to the market.

“Our market has been performing very differently than what you’re seeing in some other major markets in the country,” she said. “We’ve seen extremely strong demand, we have limited supply, we’re in seller market conditions, and we’ve had strong price growth. This has been happening all the while, while we have very strong or very high interest rates.”

Real estate can still be significantly more affordable in Alberta compared to other parts of the country, with median house prices half the price tag seen in Toronto or Vancouver. Yet with a limited supply, and higher than usual interest rates (even though interest rates are on the decline lately) making homeowners nervous to sell, it means newcomers to Alberta are now having to pay more than they might have expected. 

What’s next for Alberta?

Mitchell notes across the province there has been high demand on lower-cost housing, particularly under $450,000. Lurie agrees, saying on the podcast “it hasn’t necessarily entirely curbed our demand, but we have seen that shift towards more affordable product. What we could start to see happen is a pickup in some of the higher-end product in our market as rates start to come down.”

While Mitchell notes population growth is a good thing for the economy, and helps diversify and strengthen the province as a whole, it does require planning to adequately address supply challenges. 

For Lurie, that includes addressing land development to keep up with growth. 

“We’ve seen land costs rise significantly, especially when there have been some boundaries placed on new development within the city limits and outside of our city. Those are things that we’re looking at on a policy basis,” she added. 

Ultimately, municipal and provincial governments will need to work together on a plan to continue to bring this growth forward.

A unique market

“I think it’s going to be very important for both buyers, sellers, and REALTORS® to really understand some of the dynamics within our market,” Lurie said, stressing there are some major differences in Alberta from other parts of the country. “Again, what we’re seeing [compared to the rest of the country] is very differing trends in the lower price ranges, and different product types, and as well as by location.”

Mitchell echoes this sentiment, emphasizing that even though prices are climbing, Alberta may continue to be an attractive option for those looking to re-settle from across the country.

Courtesy Realtor.ca