Smoke from the Tantallon wildfire rises over houses in nearby Bedford, N.S., on May 28.ERIC MARTYN/Reuters
Canada’s unusually early and severe wildfire season is causing delays and complicating the closing of real estate deals, even for homes unaffected by flames.
Wildfires can trigger moratoria on new home-insurance policies and put downward pressure on appraised values, two factors that can hamper homebuyers’ efforts to secure financing.
And while those effects are temporary – and far less serious than those facing people directly affected by a fire – they can result in added costs for both buyers and sellers.
In Halifax, real estate agent Jacqui Rostek Holder said she was shocked to learn that insurers had implemented freezes on new home-insurance policies within radiuses of between 25 kilometres and 50 kilometres from the massive fire that encroached on the city’s northwest in late May and early June.
“Halifax is a pretty dense city overall: 50 kilometres from the evacuation area encompasses most of it, even areas that are much further away,” said Ms. Rostek Holder, who is an associate broker at Royal LePage Atlantic’s Platinum Group.
But pausing the issuance of new policies for properties in the vicinity of a catastrophic event is standard practice for insurers, according to Craig Stewart, vice-president of climate change and federal issues at the Insurance Bureau of Canada.
“Typically the rationale is, an insurer does not want to be taking on new risk in an area that’s under imminent threat,” he said.
The threat could come from an uncontrolled fire, flooding, tornadoes or other natural disasters, Mr. Stewart added.
While none of Ms. Rostek Holder’s clients ran into this issue, she said she heard of a few cases of homebuyers who were temporarily unable to obtain policies for their new homes, which, in turn, caused their lenders to hold off on financing the deal.
Those delays then pushed back other home deals, as some homeowners waited for the sale of their home to close before finalizing their own property purchase, she said.
Most lenders require buyers to show proof they have bought home insurance before lending money for a mortgage.
Ms. Rostek Holder said her clients with deals about to close had already obtained an insurance binder, a document that confirms the insurer’s commitment to a policy. The issue, she said, was for other buyers who hadn’t already done so.
Leanne Myles, a Dartmouth, N.S.-based associate mortgage broker with the Clinton Wilkins Mortgage Team, said she has one client with a deal closing in July who hasn’t yet been able to procure an insurance binder for their new property.
Insurers lift any restrictions on new policies once they’ve determined that the threat has subsided, though when exactly that may be can vary by company, Mr. Stewart said.
One risk is that the delay will push back the closing date, which can require the redrafting of documents and result in added lawyer fees, Ms. Myles said.
But a particular at this time of rising interest rates is that the delay will cause a buyer’s mortgage rate hold to expire, potentially saddling them with higher borrowing costs, she said.
A rate hold is a guarantee that locks in a specific fixed-term mortgage rate for a certain period of time, usually up to 120 days. If a borrower finalizes the mortgage within that time frame, they’re entitled to that rate even if fixed rates on new mortgages rise in the meantime.
With financial markets putting upward pressure on fixed interest rates for new mortgages and renewing mortgages in response to fresh concerns about stubbornly high inflation, losing a rate hold can be costly for buyers. While Ms. Myles said none of her clients ran into this issue, she added it is a risk for borrowers experiencing delays.
“As mortgage brokers, we would fight for that not to happen,” she said. “But we would likely have to fight for it.”
Home appraisals are another potential headache for buyers and sellers, Ms. Myles said. That’s one of the top concerns for one of her clients, who is in the process of both selling their home and buying a new property within an area that was evacuated because of the fire.
While neither home has suffered damages, the worry is that property values in those areas might now be lower, Ms. Myles said.
The consequences of a lower-than-expected appraisal can be especially serious for homebuyers. If the appraised value is below the agreed purchase price, the lender will fund a smaller mortgage. If the deal falls through because the buyer can’t bridge the difference between the mortgage and purchase price, they could lose their deposit and face penalties.
But buyers can protect themselves by making their purchase conditional on obtaining home insurance as well as financing.
Mr. Stewart, in particular, recommends tying the insurance condition to the closing date, rather than a particular interim period. That way, the safeguard holds even if the closing is postponed, he said.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
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