Buying your first home? Congrats! But before you pop the champagne, let’s make sure you don’t fall into these common pitfalls.

Mistake #1: Skipping the Mortgage Pre-Approval You fall in love with a home—only to realize it’s way out of your price range. Ouch. Always get pre-approved before you start house hunting.

Mistake #2: Not Budgeting for Closing Costs Your down payment isn’t the only expense. Legal fees, land transfer taxes, and home inspections add up fast! Plan for 1.5-4% of the purchase price in extra costs.

Mistake #3: Ignoring First-Time Buyer Incentives The government wants to help you buy a home! From tax credits to down payment assistance, take advantage of every program available.

Mistake #4: Letting Emotions Take Over It’s easy to get attached, but don’t let a pretty kitchen distract you from serious issues like bad plumbing or foundation cracks. Stay objective!

Mistake #5: Not Working with the Right Experts A great REALTOR® and Mortgage Agent make all the difference. They’ll guide you, negotiate for you, and help you avoid costly mistakes.

Final Thoughts: Home buying doesn’t have to be overwhelming. By avoiding these mistakes, staying informed, and working with the right professionals, you’ll be holding the keys to your dream home in no time!

At Magnolia Group Realty, we believe every homebuyer deserves expert guidance, from finding the perfect property to securing the right mortgage. With our team of experienced REALTORS® and mortgage expert Charlotte Ferguson, we’re here to make your journey smooth, stress-free, and even fun! Let’s turn your homeownership dreams into reality—reach out today!

Think getting a great mortgage rate is all about having a perfect credit score? Think again! While credit is important, lenders look at a lot more than just a number. Here’s what REALLY influences your mortgage rate and how you can get the best one.

1. Your Debt-to-Income Ratio Lenders love to see that you’re financially stable. Keep your total debt (including credit cards and car loans) low in comparison to your income. This makes you a less risky borrower.

2. Your Down Payment Size A larger down payment means a smaller loan, which often translates to better rates. Aim for at least 20% to avoid mortgage insurance fees.

3. The Type of Mortgage You Choose Fixed-rate? Variable? Open? Closed? The type of mortgage you select impacts your rate. Fixed rates offer security, while variable rates might save you money if rates drop.

4. Shopping Around Don’t settle for the first mortgage offer you get. Work with a Mortgage Agent who can compare rates from multiple lenders and find you the best deal.

Bottom Line: There’s no one-size-fits-all mortgage. Your best bet? Work with a pro to tailor a mortgage solution that fits your financial goals.

Final Thoughts: Home buying doesn’t have to be overwhelming. By avoiding these mistakes, staying informed, and working with the right professionals, you’ll be holding the keys to your dream home in no time!

At Magnolia Group Realty, we believe every homebuyer deserves expert guidance, from finding the perfect property to securing the right mortgage. With our team of experienced REALTORS® and mortgage expert Charlotte Ferguson, we’re here to make your journey smooth, stress-free, and even fun! Let’s turn your homeownership dreams into reality—reach out today!

Searching for your dream home should feel like an exciting adventure, not a stress-inducing nightmare. If you're feeling overwhelmed by bidding wars, mortgage rates, and decision fatigue, you’re not alone! Let’s break down the biggest house-hunting headaches—and how to fix them.

Problem #1: The Budget Blowout You set a budget, but somehow every house you love is just out of reach. Solution: Get pre-approved for a mortgage before you even start scrolling listings. Knowing your max price (including taxes and closing costs) will save you heartache down the road.

Problem #2: The Market Moves Too Fast By the time you book a showing, your dream home is already sold. Solution: Work with a REALTOR® who has their finger on the pulse of new listings and off-market opportunities. Also, be ready with a strong, pre-approved mortgage and a clear idea of what you want—so you can act fast!

Problem #3: Decision Paralysis Should you go for the cute fixer-upper or the move-in-ready condo?
Solution: Make a needs vs. wants list. If the house meets all your must-haves, it’s a contender. Trust your gut, but also lean on your real estate and mortgage professionals to ensure it’s the right investment for you.

Final Thoughts: Home buying doesn’t have to be overwhelming. By avoiding these mistakes, staying informed, and working with the right professionals, you’ll be holding the keys to your dream home in no time!

At Magnolia Group Realty, we believe every homebuyer deserves expert guidance, from finding the perfect property to securing the right mortgage. With our team of experienced REALTORS® and mortgage expert Charlotte Ferguson, we’re here to make your journey smooth, stress-free, and even fun! Let’s turn your homeownership dreams into reality—reach out today!

Waterloo Region & Wellington County Real Estate Market: What Buyers & Sellers Need to Know in 2025

The real estate landscape in Waterloo Region and Wellington County continues to evolve, making it essential for buyers and sellers to stay informed. Whether you're looking to buy a home in Kitchener, sell in Guelph, or invest in Cambridge, understanding the market trends can give you a competitive edge.

Why Waterloo Region & Wellington County Are in High Demand

These areas have become prime locations for real estate due to their strong job markets, excellent schools, and growing infrastructure. Cities like Kitchener, Waterloo, and Cambridge attract tech professionals, while Guelph and Fergus offer charming small-town vibes with access to big-city amenities.

• Strong Economy & Job Growth: The tech sector in Waterloo Region continues to thrive, with companies like Google and Shopify expanding their presence.

• Educational Hub: The University of Waterloo, Wilfrid Laurier University, and Conestoga College attract students and faculty, fueling rental demand.

• Commuter-Friendly Location: Easy access to the 401, GO Transit, and planned transit expansions make these areas attractive to those commuting to Toronto.

Market Trends for 2025

1. Home Prices & Inventory:

   • Demand remains strong, but more listings are hitting the market, leading to a balanced environment.

   • Wellington County offers more affordable options compared to Waterloo Region, making it appealing for first-time buyers.

2. Interest Rates & Affordability:

   • Mortgage rates are stabilizing, encouraging more buyers to enter the market.

   • Buyers should get pre-approved early to lock in favorable rates.

3. Top Neighborhoods to Watch:

   • Waterloo: Uptown Waterloo and Vista Hills continue to see high demand.

   • Kitchener: Huron Park and Doon South are attracting families and professionals.

   • Cambridge: Galt and Hespeler are experiencing rapid growth.

   • Guelph: South Guelph remains a hot spot for young professionals and families.

   • Fergus & Elora: A great option for those seeking a mix of nature and affordability.

Tips for Buyers & Sellers in Waterloo Region & Wellington County

For Buyers:

• Get pre-approved to strengthen your offer in competitive markets.

• Consider up-and-coming neighborhoods for better long-term value.

• Work with an experienced REALTOR® to navigate the fast-moving market.

For Sellers:

• Price your home competitively based on recent market data.

• Invest in professional staging and high-quality marketing.

• Utilize digital marketing and social media to reach a wider audience.

Looking to Buy or Sell? We Can Help!

At Magnolia Group Realty, we specialize in helping clients navigate the real estate markets in Waterloo Region and Wellington County. Whether you're looking for your dream home or ready to sell, we're here to guide you every step of the way.

Contact us today to get started on your real estate journey!

Buying Your First Home? Here’s Your Ultimate 2025 Guide

Buying your first home is an exciting milestone, but it can also feel overwhelming. With the right strategy and expert guidance, you can navigate the process smoothly and confidently. Here’s everything you need to know about buying your first home in 2025:

Step 1: Get Pre-Approved for a Mortgage

Before you start searching, meet with a mortgage professional to determine your budget and secure a pre-approval. This step helps you understand your purchasing power and shows sellers you’re a serious buyer.

Step 2: Define Your Needs & Wants

Make a list of must-have features (e.g., number of bedrooms, location, proximity to work) and nice-to-haves (e.g., finished basement, large backyard). This will help you focus your search.

Step 3: Work with a REALTOR®

A great REALTOR® will guide you through the process, help you find the right properties, and negotiate the best deal. Having professional representation is invaluable.

Step 4: Search for Homes & Attend Showings

Use MLS® listings, attend open houses, and schedule private showings to find homes that match your criteria.

Step 5: Make an Offer & Negotiate

Once you find the perfect home, your REALTOR® will help you submit a strong offer and negotiate terms, including price, conditions, and closing date.

Step 6: Secure Financing & Home Inspection

After your offer is accepted, finalize your mortgage approval and arrange a home inspection to ensure the property is in good condition.

Step 7: Close the Deal & Move In!

On closing day, your lawyer will finalize the paperwork, transfer funds, and hand you the keys. Congratulations—you’re now a homeowner!

Pro Tips for First-Time Buyers:

• Save for Closing Costs – Budget for legal fees, land transfer taxes, and moving expenses.

• Consider Government Incentives – First-time buyer programs may help reduce costs.

• Think Long-Term – Choose a home that suits your needs for the next 5–10 years.

Buying your first home is a big step, but you don’t have to do it alone. At Magnolia Group Realty, we’re here to help you every step of the way. Contact us today to start your journey to homeownership!

Beyond the Listing: How We Market Your Home for Maximum Exposure

Selling a home is more than just putting up a “For Sale” sign and listing it on MLS®. At Magnolia Group Realty, we go the extra mile to ensure your home gets maximum exposure, attracts serious buyers, and sells for top dollar. Here’s how we do it:

1. Professional Photography & Videography

First impressions are everything! We use professional, high-resolution photography and cinematic video tours to showcase your home in the best light. Buyers are more likely to engage with listings that feature stunning visuals.

2. Social Media & Digital Marketing

We don’t just rely on MLS®—we leverage social media platforms like Instagram, Facebook, and YouTube to reach thousands of potential buyers. Our targeted ad campaigns ensure your listing reaches the right audience, whether they’re local or relocating.

3. Home Staging & Presentation

A well-staged home can sell faster and for more money. We work with top stagers to create inviting spaces that appeal to today’s buyers, helping them envision themselves living in your home.

4. Open Houses & Private Showings

We host strategic open houses, ensuring maximum foot traffic. For serious buyers, we arrange private, exclusive showings to give them an up-close look at your property.

5. Print & Traditional Marketing

In addition to digital strategies, we use high-quality brochures, direct mail, and local print advertising to reach buyers who prefer traditional marketing methods.

6. Negotiation & Closing Expertise

Getting an offer is just the beginning. We negotiate on your behalf to ensure you get the best possible price and terms while guiding you through a smooth closing process.

Your home deserves more than just a listing—it deserves a marketing strategy designed to sell. Ready to make a move? Contact us today!

Spring Market 2025: What Buyers and Sellers Need to Know

The real estate market is always evolving, and as we step into the spring of 2025, both buyers and sellers need to be prepared for the trends shaping the industry. Spring is historically one of the busiest seasons in real estate, and this year is no exception. Whether you’re looking to buy or sell, here’s what you need to know to navigate the market successfully.

For Sellers: Make Your Home Stand Out

1. First Impressions Matter – Spring buyers are eager and ready to move. Ensure your home has great curb appeal by sprucing up landscaping, refreshing exterior paint, and decluttering entryways.

2. Stage for Success – Homes that are staged sell faster and often for a higher price. Consider hiring a professional stager or using strategic furniture placement to highlight your home’s best features.

3. Price It Right – With changing interest rates and market conditions, accurate pricing is key. Work with an experienced REALTOR® to analyze comparable sales and market trends.

4. High-Quality Marketing Matters – Professional photos, virtual tours, and video marketing can make a significant difference in attracting buyers.

For Buyers: Be Prepared to Act Fast

1. Get Pre-Approved – Before you start house hunting, meet with a mortgage professional to get pre-approved. This strengthens your position in competitive situations.

2. Know What You Want – Define your must-haves vs. nice-to-haves. This will help you act quickly when the right home comes on the market.

3. Stay Flexible – The best homes move fast. Being available for last-minute showings and making strong offers can put you ahead of the competition.

4. Work with a Skilled REALTOR® – Having an experienced agent on your side helps you negotiate effectively and navigate the complexities of buying in a fast-moving market.

Market Trends to Watch

• Interest Rates: Mortgage rates are always a hot topic. If they remain stable or decrease slightly, expect strong buyer demand.

• Inventory Levels: More homes are expected to hit the market this spring, providing more options for buyers.

• Home Prices: Pricing will continue to vary by location, but overall, steady growth is expected.

Whether you’re buying or selling, the spring market presents incredible opportunities. If you’re thinking about making a move, reach out to us at Magnolia Group Realty—we’re here to guide you every step of the way!

Feb 18, 2025
c/o https://www.stagingstudio.com/

As home stagers, it is important to stay up-to-date on interior design trends. Of course, most of your staging inventory, especially case goods, should be neutral and as timeless as possible, but you will add in more trendy items into things like art and accessories.

Many stagers are now offering design services like short-term rental styling and this is where you can really lean more into design trends. Successful Airbnbs typically marry the local aesthetic with up-to-date design trends.

Since the furnishings in a vacation rental will get much more use than your staging furniture, Airbnbs will also likely need to refresh more often. That bachelor party that got a little too rowdy might knock a piece of art off the wall, and the guest that brought a misbehaved dog might leave spots on the rug. This inevitable turnover offers an opportunity to keep the Airbnb trendy.

These are the trends we are seeing and expecting to see more of in 2025.

Disclaimer: Some photos are AI-generated so they don’t capture the idea perfectly. But you get the point!

The Rise of Moody Reds and Vintage Library Vibes

Photos by Canva AI.

Deep, rich hues are making a comeback, and color drenching dark cherry red is leading the charge.

For a recent Airbnb design project for a tiny cabin, we were inspired by the Farrow & Ball color Brinjal. It is absolutely gorgeous and so trendy right now! But, short-term rentals are all about making the highest return on investment, so we opted for a less expensive dupe: Sherwin-Williams® Deep Maroon.

This bold color brings warmth and sophistication to the cabin, and guests have been loving the vintage library vibes. It has been booked every weekend since it first went on Airbnb a few months ago!

Book your stay at the western North Carolina vacation cabin here. The private hot tub is a perfect place to spot a baby bear stealing fruit from the peach tree!

And this is how we incorporated cherry-colored elements into a recent staging project. Notice only the chairs and pillows are the bold color. You don't want to go overboard with purchasing colors, but a few pops here and there can be a huge asset to your inventory.

Photo and staging by Staging Studio.

We got the chairs above from New Pacific Direct. (Note: Our coaching group members get New Pacific Direct's lowest pricing tier! Those chairs are only $189!)

Cherries Are the New Bows

Last year, our trends blog predicted that bows would be everywhere. And wow! Are they ever.

You will still see a lot of bows for much of the year, but cherries are quickly replacing them as the "it" motif. While you might expect them to first show up in kitchens, look for cherries in bedrooms too.

As a stager, you might incorporate a cherry-print pillow or some art. If you’re designing a short-term rental, use that as an opportunity to make a cherry bedroom! Airbnbs can be way more taste-specific and follow trends, so why not dive deep into that American-farmhouse style for one of your projects this year?

If you do, be sure to tag us in your photos @stagingstudio on Instagram. We would love to feature your design.

Photos by Canva AI.

Staging Tip: Pair dark cherry red with muted tones like brown or matte black to ground the design and avoid overwhelming the space.

Tassels, Texture, and Maximalism

Photo by Canva AI.

Tassels, layered textiles, and ornate details reminiscent of the Rococo period are trending. From grand couches and furniture to intricately detailed lampshades, designers are embracing playful, feminine maximalism. Think of it as replacing the Grand Millennial style with French Maximalism.

Photos by Maverick Studio Photography. Staging by Staging Studio.

Consider mixing vintage finds, like estate-sale tassel lamps or textured rugs, with modern pieces to achieve a curated, yet contemporary, look in your home staging and design projects.

Bench Seat Sofas and Canopy Beds

Furniture trends are shifting towards timeless comfort and elegance.

Bench seat sofas, known for their seamless, cushion-free design, are gaining popularity for their clean lines and modern feel. As is usual for newer styles, these bench-seat sofas are currently more expensive than multi-cushion dupes. It is important to balance the impact of those extra lines on the sofa with the added inventory expense. Will it make that much difference? Will people, other than designers, even notice?

Notice the picture below. We love the look of this Four Hands sofa we have in our inventory, but remember that when you pay more for your inventory, your margins either get slimmer or you have to charge more. Will your market bear the higher price?

Photo and staging by Staging Studio.

Meanwhile, canopy and four-poster beds are making a resurgence, offering a sense of grandeur and intimacy.

Canopy and poster beds are difficult to use in staging as they require more time to set up and they can be more visually imposing – NOT the effect you want! But for Airbnbs, canopy beds could be the perfect thing to add romance and interest to a room.

Photo and staging by Staging Studio.

Color and Pattern Drenching

Color drenching trended in 2024 and it isn’t going anywhere in 2025. Drenching is when walls, trim, and sometimes ceilings are painted in a single hue. It provides a cohesive, immersive experience that can make a room feel larger and more intentional.

Photo and design by Staging Studio.

Not only is color drenching still in, but pattern drenching is on the list too. In most cases, pattern drenching may be too taste-specific for staging, but consider it for making a statement in design and short-term rental projects.

Playful Maximalism

Fun is on trend! Think contrast trim, mix-and-match bold patterns, eclectic prints, and more color.

Photo by Canva AI.

At Las Vegas Market, we saw many neutral aesthetic games used as decor, like dice, tic-tac-toe, and stacking blocks. We bought some on Amazon and they’ve been a hit at our stages!

Photos and staging by Staging Studio.

Clustered Coffee Tables

Clustered and nested coffee tables are dominating luxury living room layouts, adding movement, scale, and visual interest.

Photo and staging by Staging Studio.

Nested coffee tables have been trending, but start thinking about it as a cluster of tables. The photo below (AI, so not perfect) is close to this idea. Take this and add another smaller table to join the bunch!

Photo by Canva AI

This trend aligns with playful maximalism, where design elements don't just serve a function, but also contribute to the room's overall artistry.

Other 2025 Design Trends to Watch

A few other trends we’re seeing are terracotta (did it ever really go away?), round stools (these are perfect for stagers because they’re easy to store in the warehouse!), and extra long lumbar pillows. Shag rugs are making a return, and the boucle trend isn't going anywhere this year.

These 2025 design trends encourage boldness, personality, and a mix of textures, colors, and eras. By integrating dark cherry red accents, incorporating maximalist elements, and balancing vintage with modern, you can create striking, memorable spaces that capture the imaginations of buyers and travelers.2025 Interior Design and Home Staging Trends

CMHC projects home sales, prices will rebound in 2025 – but more severe tariffs than expected could complicate the picture

By Fergal McAlinden
05 Feb. 2025

Falling mortgage rates and new mortgage rule changes are expected to help spark a rebound in home prices and sales in the coming years, although the recovery could be an uneven one – and housing starts are set to continue slowing between now and 2027.

That’s according to Canada Mortgage and Housing Corporation (CMHC), whose housing market outlook for the year ahead highlighted the “significant uncertainty” to the Canadian economy of threatened US tariffs but said improving affordability would boost homebuyer prospects in its medium scenario for a potential trade war.

That projection assumes US tariffs of 25% on 10% of Canadian goods and retaliatory measures by Canada, with lower immigration in the coming years also likely to contribute to “modest” economic growth this year before improving in 2026 and 2027.

But a tariff dispute of that intensity wouldn’t crater Canada’s housing market, CMHC suggested. “Despite the economic headwinds… we expect housing market activity in Canada to improve,” the agency’s top economists wrote. “The combination of lower mortgage rates and changes to mortgage rules introduced in 2024 should unlock pent-up demand from homebuyers previously priced out of the market.

“However, some of these homebuyers may face longer loan terms, higher interest costs over the duration of the loan and larger downpayments as prices continue to rise.”

The federal government tweaked mortgage rules last year to allow expanded access to 30-year amortizations for first-time buyers and Canadians purchasing newbuilds, while it also hiked the insured mortgage cap to $1.5 million in a bid to improve purchasing power.

Millennials are likely to remain a key driver of housing demand in 2025, CMHC said, with a decline in remote work and stepping up of companies’ return-to-office efforts potentially seeing that buyer cohort prioritize being closer to jobs and boosting sales in large urban markets.

Affordability challenges show no signs of easing in major cities

However, the affordability picture isn’t positive across the board. CMHC’s report said Alberta and Quebec would see sales reach “historically high levels” with prices potentially surging – but Ontario and British Columbia sales could stay below 10-year averages because of current eyewatering home prices and the outsized impact there of lower immigration.

The condo market’s struggles also show little sign of easing. Activity in that sector is projected to continue lagging – particularly in regions more dependent on investor activity. “Investors who bought pre-construction units to rent out are increasingly selling as costs rise faster than rental incomes,” CMHC said.

“We expect listings to continue to increase, driven by record new condominium apartment completions in 2025 and softening rental markets.”

Millions of new units are required by 2030 to restore affordability across Canada’s housing market, but housing starts are projected to slow further in the years ahead, according to CMHC.

While starts are set to remain above their 10-year average, that slump in condo construction is expected to weigh heavily against the construction outlook as investor interest wanes and families turn toward more “family-friendly” properties.

Tariff threat continues to loom large over Canada’s economy

CMHC’s medium expectation for a trade war would see the housing market stave off threats of a crash – but its worst- and best-case scenarios don’t exactly suggest a housing meltdown is imminent, either.

Higher tariffs on Canadian exports could see job losses and a 2025 recession, the agency said, while a trade war could result in a short-term jump in inflation but a lower Bank of Canada policy rate to boost the economy.

While a recession would delay a housing market recovery, it would also see pent-up demand swell, according to CMHC. Fewer homes may be built, but the economy would be likely to rebound by the end of 2026 as population growth spurs further sales.

In the opposite scenario, in which the US would impose milder and short-lived tariffs, higher incomes and stronger consumer confidence could boost spending. In that case, “stronger declines in borrowing costs make homeownership more attainable,” CMHC’s report said.

“More homes are built thanks to better financing and business conditions. Stronger job and income growth combined with lower mortgage rates make homeownership more accessible. Higher demand pushes home prices up more quickly.”

The depth and severity of potential US tariffs remains to be seen, with US president Donald Trump and Canada’s prime minister Justin Trudeau striking a deal on Monday to stave off a trade war for at least 30 days.

Ontario premier says Canadian officials doing 'everything they can' to convince US to drop Canada tariffs

By Fergal McAlinden

03 Feb. 2025

Mexican president Claudia Sheinbaum said Donald Trump has agreed to pause 25% tariffs on her country for a month, while Canadian prime minister Justin Trudeau is scheduled to speak with the US president for the second time today at 3:00 p.m. ET.  

Sheinbaum said she had had a “good conversation” with Trump on Monday morning, resulting in a delay to the massive levies announced by the White House that were scheduled to come into effect tomorrow (February 4). 

Trump had accused Sheinbaum’s government of entering an “intolerable alliance” with Mexican crime gangs, triggering a sharp rebuke from Mexico’s president – but she said today she has reached a number of agreements with Trump including the dispatchment of 10,000 Mexican national guard members to the border to clamp down on drug trafficking.  

The news has sparked speculation that Trudeau will call for a similar delay to Trump’s tariffs on Canada, which are also set to take effect tomorrow. On Saturday, Trump announced 25% levies on all Canadian imports to the US except energy, which was charged at 10%.  

Trudeau responded with countermeasures on US products entering Canada, introducing 25% tariffs on billions of dollars’ worth of American imports to the country.  

The trade spat has roiled markets and raised fears of a recession, with National Bank of Canada arguing the crisis could call for an emergency oversized rate cut by the Bank of Canada in the weeks ahead.  

Trudeau spoke with Trump this morning, and Ontario premier Doug Ford said he hopes the US president will follow his reversal on Mexico with a similar decision on Canadian tariffs.  

“We’re their number one customer. We’re their number one export destination,” Ford said on Monday, indicating Canadian officials were doing “everything they can” to reach an agreement with the US.  

“We’re working governor to premier, premier to senator and congresspeople, and all premiers are doing it. They’re reaching out to their counterparts,” he said. “And we’re doing our job. And I know the prime minister is doing his job by contacting President Trump today and later this afternoon.  

“That decision President Trump has made is so, so misguided. He underestimates the power and the will and the fortitude of Canadians. We’re their closest trading partner and ally.”  

Canada enters a new reality this week after huge US levies on Canadian imports

By Fergal McAlinden

03 Feb. 2025

It’s been the single biggest imponderable looming over the Canadian economy in early 2025 – and US tariffs became a reality on Saturday when Donald Trump introduced massive charges on Canadian goods crossing the border southwards.

That action, which includes 25% levies on all Canadian imports excluding energy – which was tariffed at 10% – has cast huge uncertainty over Canada’s economic outlook and sparked fears of a potential hammer blow to the loonie.

Its effect on Canada’s housing market remains to be seen. Last week, Bank of Montreal (BMO) chief economist Doug Porter (pictured top) told Canadian Mortgage Professional that the Bank of Canada would likely slash interest rates further if US tariffs began to weigh down heavily on the Canadian economy, meaning potential borrowing costs could end up even lower than first anticipated for the year ahead.

But the severity of Trump’s measures – and Canada’s response, which included retaliatory tariffs on billions of dollars’ worth of American goods – leaves plenty in doubt about whether the housing market will suffer from wider economic strain.

Intensity of potential trade war remains a key unknown

Speaking days before Trump confirmed the tariffs would go ahead, Porter suggested a “light trade war” could boost the Canadian housing market, but emphasized it would probably be damaged by anything more intense.

“Even though the Bank is a bit mixed [on being prepared to cut rates], I think at the end of the day it means lower interest rates than would otherwise be the case,” Porter told Canadian Mortgage Professional. “And of course, the housing market is the most interest rate-sensitive sector of the economy. In general, I don’t think a trade war would have much direct impact.

“What I would be worried about is if the Canadian economy were really wounded badly by a trade war, then that could actually work its way back into the housing market and clip demand as well. The threat to the housing market would be the indirect effect of a weaker economy.”

After the tariffs were announced, Porter said the trade war would likely reduce Canada’s GDP growth by around two percentage points and could slide the economy into a “modest recession” if those measures remained in place for a year.

The Bank of Canada is also likely to slash its policy rate by a quarter-point at every meeting until October, he said, bringing it down from its current level to 1.5%.

US tariffs and countermeasures are likely to see the cost of materials for home construction jump on both sides of the border. But Porter said that wouldn’t necessarily harm Canada’s housing outlook significantly.

“Some building materials could face tariffs, when you think of things like plumbing supplies. But a lot of things can be produced here too or already are produced here,” he said. “The costliest part of building a house is land and labour – less so some of the supplies. So I don’t think it will have too negative an effect on the housing market.”

How is the housing market poised after the BoC’s actions to date?

US president Donald Trump first announced the tariff plans in November, a bolt out of the blue that roiled markets and sent the Canadian dollar plunging.

The reasons Trump has given for those proposed measures have varied. Initially, he claimed Canada’s border security was too lax, while last week he said Canada and Mexico “have never been good” to the US on trade matters.

His claims have been refuted by observers including former Canadian prime minister Stephen Harper, who said he had a “real problem” with some of Trump’s pronouncements on Canada.

Those threats have been mentioned in each of the Bank of Canada’s last two interest rate announcements, a 50-basis-point cut in December and a quarter-point snip last week.

The Bank’s statement after reaching its decision on Wednesday noted the resilience of the Canadian economy could come under strain with the imposition of “broad-based and significant” US tariffs.

That rate reduction alone will do little to spur activity in Canada’s housing market, Porter said, although he sounded a positive overall note on its 2025 prospects despite the prospect of lower immigration this year than first planned.

“We’ve now had two percentage points of total easing by the Bank of Canada [since last June],” he said. “That’s a very aggressive move by the Bank in a short period of time, and a clear positive for the housing market. Heading into this, the housing market looked as if it was getting back on its feet. I wouldn’t say it was strong, but it was relatively well-balanced.

“It has had the very strong population growth support knocked out from underneath it – but I think interest rates are a more important story for the housing market. I’d still be mildly constructive on the housing market this year, even with the threat of a trade war.”

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!

• Get a Better Rate: As interest rates have continued to decrease with the Bank of Canada updates these past few months, now is a great time to consider refinancing for a better rate and lower overall mortgage payments!  Experts anticipate the Bank of Canada will move to have the overnight rate down to 4.0% at year-end and potentially down to 2.75% for 2025.

• 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 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 a DLC Mortgage Expert! Our own Charlotte Ferguson is a licensed Mortgage Agent, Level 2, and is happy to help!  https://yourmagnoliagroup.ca/MortgageAgent