Gardening 101: Your Spring Gardening Checklist

General Cedric Pelletier 2 Apr

 

If you want to maximize returns on your gardening efforts, we’ve got 3 strategies to take you from garden simp to master plant manipulator.

Strategy 1: Better late than early

Seeds do best when they have an uninterrupted growth phase.
So rather than having your plants stall out in a frost, wait 2 weeks (you can do it!) after your initial instinct to plant. It may seem like it’s too late, but the plants will put it into overdrive and make it work. If you’re in doubt and want to test this theory out, plant half the seeds early, and half the seeds 2 weeks later, and see which does better by the end of the growing season. If you’re new to gardening, you might not have a clue if your tomatoes should go in March 1 or July 1, and that’s totally okay too. The Farmer’s Almanac comes to your rescue with their 2025 updated guideline of when to plant based on your postal code. Click here for details.

Strategy 2: Layout matters

Think measure once, cut twice – but for your garden. First up, arrange the tallest plants on the north side of your garden, and the shortest plants on the south side. This will make sure both your little gem lettuces and the jolly green giant snap peas both get enough sunlight. Second, do your research on how much space each plant needs to thrive so you can plan enough real estate for everyone. This website will help you with both these action items for 71 different vegetables. And don’t be afraid to actually measure ou t your garden. Putting string dividers in there will help you achieve the perfect layout.

Strategy 3: Weed prevention

Prevention is the best way to avoid destroying your back weeding all spring and summer. This is a bit boujee, but if you don’t have raised garden beds it might just be for you. Putting down a layer of cardboard, then adding a 5-10cms of mulch on top, makes sure the weeds stay underneath while the worms and other goodies stay on top, working hard for your soil and plants. If cardboarding your garden isn’t in the cards, just make sure that there is no open soil. If you can see it, so can a weed! Covering the dirt with a layer of mulch (doesn’t have to be fancy mulch, it can just be lawn clippings, sawdust, and the fall leaves you never bothered to rake up and put out on the curb) will prevent most weeds from having the opportunity to grow in the first place.

Hopefully these tips make you the CEO of your own garden in 2025. If you try something new based on what you read here, send me a pic or a note. I’d love to know what’s working for you and share your advice on my socials!

Written by my DLC marketing team

Why Scotiabank thinks the Bank of Canada is done cutting rates

General Cedric Pelletier 28 Mar

While most of Canada’s Big 6 banks expect the Bank of Canada to deliver at least one more interest rate cut this year, Scotiabank is standing firm in its view that the central bank is already done.

Bank of Canada rate outlook

While most of Canada’s Big 6 banks expect at least one more rate cut from the Bank of Canada this year, Scotiabank believes the central bank is already finished.

In its latest forecast, Scotia sees the BoC’s overnight rate holding at 2.75% through 2026—well above the 2.00% predicted by BMO and National Bank, and the 2.25% forecasted by RBC, CIBC and TD.

The reason? Uncertainty—lots of it.

In a recent report, Scotiabank’s economist Jean-François Perrault and his team argue that the Bank of Canada is likely to stay on hold for the foreseeable future due to escalating global risks, particularly from south of the border.

Tariff threats and inflation risks

Scotiabank’s economists point to escalating global uncertainties, particularly from U.S. trade policies, as a key factor influencing the BoC’s stance.

President Donald Trump has announced a 25% tariff on imported automobiles and parts, set to take effect on April 2, aiming to bolster domestic manufacturing. This move is expected to generate $100 billion annually but has raised concerns about increased costs and decreased sales for automakers reliant on global supply chains.

The unpredictability of U.S. trade actions is already impacting business sentiment, increasing uncertainty, and elevating inflation expectations. Scotiabank cautions that the BoC may need to consider raising rates—not cutting—if tariff-induced inflation pressures persist. Governor Tiff Macklem has previously emphasized that the Bank would not allow a tariff shock to become an inflation shock.

“Inflation expectations are already on the rise in Canada…” the report notes. “The balance of risks suggests the odds of lower rates may dominate… but there is a non-zero chance that Governor Macklem may need to raise interest rates if inflation outcomes merit it.”

Soft growth, but a cautious central bank

Scotiabank forecasts modest Canadian GDP growth of 1.7% in 2025 and 1.5% in 2026—soft but not recessionary.

It argues that recent rate cuts have already provided enough stimulus, and that uncertainty around global trade and inflation leaves little room for further easing.

While the odds of lower rates may dominate, Scotiabank warns there’s a real chance the Bank could be forced to raise interest rates if inflation outcomes merit it—even if growth continues to soften.

Other economists share a similar view

Oxford Economics also sees limited room for more easing. While it says one or two additional cuts are possible if tariff tensions ease, it doesn’t expect the policy rate to fall below 2.25%—the bottom of the BoC’s estimated neutral range.

“The BoC is likely done cutting interest rates as it tries to balance the negative hit to economic activity from the trade war against higher prices,” said Oxford economist Michael Davenport.

BMO Economics has also pointed to the Bank’s heightened sensitivity to inflation risks. In a recent note, the team emphasized that monetary policy can’t offset the price pressures caused by tariffs, and that the Bank remains focused on achieving its 2% inflation target.

Despite slower economic growth, BMO noted that the BoC may hesitate to deliver further easing unless conditions deteriorate more than expected.

BoC policy rate forecasts from the Big 6 banks

Current Policy Rate: Policy Rate:
Q2 ’25		 Policy Rate:
Q3 ’25		 Policy Rate:
Q4 ’25		 Policy Rate:
Q4 ’26
BMO_Logo transparent 2.75% 2.25% (-25bps) 2.00% (-25bps) 2.00% 2.00%
2.75% 2.25% 2.25% 2.25% 2.25%
National_Bank_of_Canada-Logo_transparent2 2.75% 2.50% 2.25% 2.00%
(-25bps)		 2.50%
(-25bps)
RBC logo 2.75% 2.50% 2.25% 2.25%
2.75% 2.75% 2.75% 2.75% 2.75%
2.75% 2.25% 2.25% 2.25% 2.25%

Written by the CMT Team

The Bank of Canada lowers its benchmark interest rate to 2.75%

General Cedric Pelletier 12 Mar

The Bank of Canada lowers its benchmark interest rate to 2.75%

In the face of significant geopolitical tensions, the Bank of Canada announced today that it has lowered its policy interest rate by 25 basis points. This marks the seventh reduction since June of 2024.

Below, we summarize the Bank’s commentary.

Canadian Economic Performance and Housing

  • Canada’s economy grew by 2.6% in the fourth quarter of 2024 following upwardly revised growth of 2.2% in the third quarter
  • This “growth path” is stronger than was expected when the Bank last reported in January 2025
  • Past cuts to interest rates have boosted economic activity, particularly consumption and housing
  • However, economic growth in the first quarter of 2025 will likely slow as the intensifying trade conflict weighs on sentiment and activity
  • Recent surveys suggest a sharp drop in consumer confidence and a slowdown in business spending as companies postpone or cancel investments
  • The negative impact of slowing domestic demand has been partially offset by a surge in exports in advance of tariffs being imposed
  • The Canadian dollar is broadly unchanged against the US dollar but weaker against other currencies

Canadian Inflation and Outlook

  • Inflation remains close to the Bank’s 2% target
  • The temporary suspension of the GST/HST lowered some consumer prices, but January’s Consumer Price Index was “slightly firmer” than expected at 1.9%
  • Inflation is expected to increase to about 2.5% in March with the end of the tax break
  • The Bank’s preferred measures of core inflation remain above 2%, mainly because of the persistence of shelter price inflation
  • Short-term inflation expectations have risen in light of fears about the impact of tariffs on prices

Canadian Labour Market

  • Employment growth strengthened in November through January and the unemployment rate declined to 6.6%
  • In February, job growth stalled
  • While past interest rate cuts have boosted demand for labour in recent months, there are warning signs that heightened trade tensions could disrupt the recovery in the jobs market
  • Meanwhile, wage growth has shown signs of moderation

Global Economic Performance, Bond Yields and the Canadian Dollar

  • After a period of solid growth, the US economy looks to have slowed in recent months, but US inflation remains slightly above target
  • Economic growth in the euro zone was modest in late 2024
  • China’s economy has posted strong gains, supported by government policies
  • Equity prices have fallen and bond yields have eased on market expectations of weaker North American growth
  • Oil prices have been volatile and are trading below the assumptions in the Bank’s January Monetary Policy Report

Rationale for a rate cut

While the Bank offered that economic growth came in stronger than it expected, the pervasive uncertainty created by continuously changing US tariff threats is restraining consumers’ spending intentions and businesses’ plans to hire and invest. Against this background, and with inflation close to the 2% target, the Bank decided to reduce its policy rate by 25 basis points.

Outlook

The Bank notes that the Canadian economy entered 2025 “in a solid position,” with inflation close to its 2% target and “robust” GDP growth. However, heightened trade tensions and tariffs imposed by the United States will likely slow the pace of economic activity and increase inflationary pressures in Canada. The economic outlook continues to be subject to more-than-usual uncertainty because of the rapidly evolving policy landscape.

Written by my FN marketing Team.

Trump Did It–Trade War Starts Today

General Cedric Pelletier 4 Mar

Trump has imposed tariffs of 25% on goods coming from Mexico and Canada, 10% on Canadian energy, and an additional  10% on goods from China. He justified these actions by claiming they would force Mexico and Canada to address issues related to undocumented migration and drug trafficking. However, while precursor chemicals for fentanyl come from China and undocumented migrants enter through the southern border with Mexico, Canada accounts for only about 1% of both issues.

The Wall Street Journal, typically considered a conservative publication, criticized Trump, labelling this as the “dumbest trade war in history.” The Journal stated, “Mr. Trump sometimes sounds as if the US shouldn’t import anything at all, that America can be a perfectly closed economy making everything at home. This is called autarky, and it isn’t the world we live in or one that we should want to live in, as Mr. Trump may soon find out.”

This misguided tariff policy will cause untold damage to the global economy, including the US. Americans will suffer the impact of higher prices and shortages of key products imported from Canada and Mexico. The various North American free trade agreements aimed to improve manufacturing efficiencies and meld the three economies to maximize productivity and the free flow of essential inputs into production. Canada is the number one supplier of steel and aluminum and there are no readily available substitutes for these crucial inputs. A plethora of products and construction activity use steel and aluminum. Aluminum is produced in Quebec where hydroelectricity is plentiful and cheap. US farmers depend on Canadian potash and auto parts, and Canada is the number one exporter of oil and gas to the US.

Consider the US auto industry, which operates as a North American entity due to the highly integrated supply chains across the three countries. In 2024, Canada supplied nearly 13% of US auto parts imports, while Mexico accounted for almost 42%. Industry experts note that a vehicle produced on the continent typically crosses borders multiple times as companies source components and add value most cost-effectively.

This integration benefits everyone involved. According to the Office of the US Trade Representative, the industry contributed more than $809 billion to the US economy in 2023, representing about 11.2% of total US manufacturing output and supporting 9.7 million direct and indirect US jobs. In 2022, the US exported $75.4 billion in vehicles and parts to Canada and Mexico. According to the American Automotive Policy Council, this figure rose 14% in 2023, reaching $86.2 billion.

Without this trade, American car makers would struggle to compete. Regional integration has become an industry-wide manufacturing strategy in Japan, Korea, and Europe. It leverages high-skilled and low-cost labour markets to source components, software, and assembly.

As a result, US industrial capacity in automobiles has grown alongside an increase in imported motor vehicles, engines, and parts. From 1995 to 2019, imports of these items rose by 169%, while US industrial capacity in the same categories increased by 71%. Thousands of well-paying auto jobs in states like Texas, Ohio, Illinois, and Michigan owe their competitiveness to this ecosystem, which relies heavily on suppliers in Mexico and Canada.

Tariffs will also cause mayhem in the cross-border trade of farm goods. In fiscal 2024, Mexican food exports comprised about 23% of US agricultural imports, while Canada supplied some 20%. Many top US growers have moved to Mexico because limits on legal immigration have made it hard to find workers in the US. Mexico now supplies 90% of avocados sold in the US.

Yesterday, the President’s tariff announcement led to an immediate sell-off in stock markets worldwide. Bonds, seen as a safer haven, rallied sharply, taking longer-term interest rates down sharply in anticipation of a meaningful slowdown in economic activity. The Canadian dollar sold off sharply, though it clawed back some of its losses overnight. WTI oil prices dropped 2% yesterday and continued to decline today.

Bottom Line

This is a lose-lose situation and President Trump underestimates the negative fallout of his actions at home and abroad. Retaliation will be swift. Americans will balk at the disruption of supply chains (think waiting for months for a new car) and the increase in the price of many products.

Legendary investor, Warren Buffet, called the tariffs an “act of war.”

Before the tariffs were imposed, we expected roughly 2% growth this year. Assuming the tariffs remain in place for a year, the Canadian economy will plunge into recession. We will likely see a few quarters of negative growth before growth gradually resumes.

Despite the inflation risk, the Bank of Canada will respond aggressively to minimize the meltdown in labour markets and the economy in general. When the Governing Council meets again on March 12, we expect another 25 bps cut in the overnight policy rate, bringing it down to 2.75%. Over the next year, we expect the Bank to continue to ease credit conditions, and a 2.0% overnight rate is likely.

The Canadian 5-year yield, a bellwether for setting fixed mortgage rates, has fallen to 2.51%, its lowest level in nearly three years. Lower interest rates are favorable for housing markets, although the inevitable rise in unemployment and drop in spending will mitigate this effect.
Dr. Sherry Cooper
Chief Economist, Dominion Lending Centres

Spring Forward: Preparing Your Finances for the Home-Buying Season

General Cedric Pelletier 3 Mar

Spring is one of the busiest seasons in the real estate market, with buyers eager to find their dream home before summer.

If you’re planning to purchase a home in Spring 2025, now is the time to get your finances in order.
Being financially prepared can help you secure a mortgage with favorable terms and make your home-buying journey smoother. Here’s how to get ready:

1. Check and Strengthen Your Credit Score

Your credit score is one of the most important factors in mortgage approval, influencing both your eligibility and the interest rate you’ll receive. A higher score can save you thousands over the life of your mortgage, so it’s worth taking the time to improve it.

  • Start by checking your credit report for errors, and if you spot any inaccuracies, dispute them immediately.
  • Pay down outstanding debts to lower your credit utilization ratio, which plays a big role in your score.
  • Avoid opening new lines of credit in the months leading up to your mortgage application, as this can temporarily lower your score.
  • By reaching out to me, I can help preserve your credit score as they will pull your credit report once to shop your application. Note: Multiple credit checks in a short period can lower your credit score.

2. Build a Strong Down Payment

The more you can put down up front, the better. A larger down payment can reduce your monthly mortgage costs, give you access to better loan terms, and, in some cases, eliminate the need for mortgage insurance.

  • Set a savings goal based on home prices in your target area so you have a clear plan.
  • Explore first-time homebuyer programs that offer down payment assistance—there are plenty of government and lender-based options.
  • Make saving a habit by automating deposits into a dedicated home savings account.
  • Avoid moving your money around to multiple accounts prior to applying for your mortgage. Lenders require a 90-day history of your down payment and a history of moving your money around can make this more difficult to easily verify your down payment.

3. Reduce Your Debt-to-Income Ratio (DTI)

Lenders use your debt-to-income ratio (DTI), aka GDS/TDS, to assess how comfortably you can handle a mortgage payment on top of your existing obligations. A lower DTI signals financial stability, improves your chances of loan approval and can expand your borrowing power.

  • Work on paying off high-interest debts or debts with high monthly payments, like credit cards and personal loans, to free up more of your income.
  • Hold off on making large purchases or taking on new loans, such as car financing, before applying for a mortgage.
  • If possible, look for ways to increase your income—whether through a raise, side gig, or freelance work—to strengthen your financial standing. Note self employed income or part time non guaranteed hours employment generally require a 2-year history.

4. Get Pre-Approved for a Mortgage

A mortgage pre-approval is a game-changer in a competitive market. It gives you a clear budget, shows sellers that you’re a serious buyer, and can even speed up the closing process.

  • Start gathering essential documents like tax returns, pay stubs, and bank statements—lenders and myself will need these to assess your financial health.
  • Reach out to me today for information to help you compare mortgage rates and terms, ensuring you get the best deal.
  • Take time to discuss your mortgage options with me, from fixed to variable rates, different term lengths, or special programs available to you.
  • Download my mobile mortgage app.

5. Budget for Additional Costs

The home price isn’t the only expense you’ll need to plan for. Homeownership comes with extra costs that can catch buyers off guard if they’re not prepared.

  • Closing costs typically range from 1.5% to 4% of the home’s purchase price, covering legal fees, land transfer taxes, and more. This is money you need on top of your down payment
  • Property taxes, Condo fees and homeowners’ insurance can add to your monthly expenses—make sure to factor them into your budget.
  • Set aside a fund for home maintenance and emergency repairs to avoid financial strain when unexpected expenses arise.

6. Research the Housing Market

Spring is a competitive time to buy, so being well-informed about the market can give you an edge.

  • Keep an eye on housing prices in your preferred neighborhoods to understand trends and pricing expectations.
  • Stay updated on current interest rates, as they directly impact affordability and your monthly payments.
  • Work with a trusted real estate agent who can help you navigate bidding wars, negotiate offers, and find the right home for your needs.

7. Consider Locking in an Interest Rate

Interest rates can fluctuate, and even a small increase can affect your monthly payments. If rates are expected to rise, securing a lower rate in advance could save you money over time.

  • Ask me about rate lock options and how long they’re valid for. Rate holds on average are valid for 120 days before they expire and a new rate hold period is requested
  • Compare fixed and variable rates to see which aligns best with your financial goals.
  • Keep an eye on Bank of Canada rate announcements and economic trends that could impact mortgage rates. Note: With recent Bank of Canada announcements variable rates which are tied to Prime are dropping.

Taking these steps now will set you up for success. The more financially prepared you are, the smoother the process will be—and the better your chances of landing your dream home at the right price.

Written by my DLC Marketing team

Canadian New Listings Surged in January as Tariff Uncertainty Weighed on Sales

General Cedric Pelletier 18 Feb

Global Tariff Uncertainty Is Not Good For the Canadian Housing Market
Canadian MLS® Systems posted a double-digit jump in new supply in January 2025 when compared to December 2024. At the same time, sales activity fell off at the end of the month, likely reflecting uncertainty over the potential for a trade war with the United States.

Although sales were down 3.3% month-over-month in January, this was mostly the result of sales trailing off in the last week of the month.

Meanwhile, the number of newly listed homes increased with an 11% jump compared to the final month of 2024. Aside from some of the wild swings seen during the pandemic, this was the largest seasonally adjusted monthly increase in new supply on record going back to the late 1980s.

“The standout trends to begin the year were a big jump in new supply at an uncommon time of year, as well as a weakening in sales which only showed up around the last week of January,” said Shaun Cathcart, CREA’s Senior Economist. “The timing of that change in demand leaves little doubt as to the cause – uncertainty around tariffs. Together with higher supply, this means markets that had been steadily tightening up since last fall are now suddenly in a softer pricing situation again, particularly in British Columbia and Ontario.”
New Listings

With sales down amid a surge in new supply, the national sales-to-new listings ratio fell to 49.3% compared to readings in the mid-to-high 50s in the fourth quarter of last year. The long-term average for the national sales-to-new listings ratio is 55%, with readings between 45% and 65% generally consistent with balanced housing market conditions.

There were close to 136,000 properties listed for sale on all Canadian MLS® Systems at the end of January 2025, up 12.7% from a year earlier but still below the long-term average for that time of the year of around 160,000 listings.

“While we continue to anticipate a more active spring for the housing sector, the threat of a trade war with our largest trading partner is a major dark cloud on the horizon,” said James Mabey, CREA Chair. “While uncertainty about the economy and jobs will no doubt keep some prospective buyers on the sidelines, a softer pricing environment alongside lower interest rates will be an opportunity for others.”

There were 4.2 months of inventory on a national basis at the end of January 2025, up from readings in the high threes in October, November, and December. The long-term average is five months of inventory. Based on one standard deviation above and below that long-term average, a seller’s market would be below 3.6 months and a buyer’s market would be above 6.5 months.
Home Prices

The National Composite MLS® HPI has barely budged in the last year, owing to ongoing softness in B.C. and Ontario. This has offset rising prices on the Prairies, in Quebec, and across the East Coast.

The National Composite MLS® Home Price Index (HPI) changed slightly (-0.08%) from December 2024 to January 2025.

The non-seasonally adjusted National Composite MLS® HPI was unchanged (+0.07%) compared to January 2024. That said, it was technically the first year-over-year increase since last March.
Bottom Line

The Bank of Canada’s aggressive rate cuts and regulatory changes aimed at making housing more affordable were offset last month by the increasing uncertainty surrounding a potential trade war with the United States. Tiff Macklem clearly recognizes from this report that significant uncertainty is detrimental to both the Canadian housing market and the broader economy. Our economy teeters on a precarious line between modest growth and recession. Before the tariff threats emerged, it seemed the housing market was poised for a strong rebound as we approached the spring selling season.

Unfortunately, the situation has only deteriorated, particularly as President Trump has repeatedly suggested that Canada could become the 51st state, further angering Canadians. While the first round effect of tariffs leads to higher prices as importers attempt to pass off the higher costs to consumers, second-round effects slow economic activity owing to layoffs and business and household belt tightening.

The Bank of Canada will no doubt come to the rescue slashing interest rates further. This is particularly important for Canada where interest-rate sensitivity is far higher than in the US.
Dr. Sherry Cooper
Chief Economist, Dominion Lending Centres

10 Smart Spring-Cleaning Tips to Revitalize Your Home

General Cedric Pelletier 3 Feb

As the days grow longer and the sun shines brighter, it’s the perfect time to refresh your home with a thorough Spring clean! A clean, organized space can help you feel more energized and ready to embrace the season ahead.

Here are some tips to make your Spring cleaning both efficient and enjoyable:

  1. Create a Playlist: Make cleaning fun by curating a playlist of your favorite upbeat songs. Music not only makes the time fly but can also turn your cleaning routine into an enjoyable activity. Dance while you dust and sing while you sweep—your home will thank you!
  2. Clean One Room at a Time: A clean home doesn’t happen overnight, so avoid feeling overwhelmed by tackling one room at a time. Start small, such as with bathrooms or closets, and work your way up to larger spaces like the kitchen or living room. Alternatively, dedicate one or two rooms per weekend, and by the time May rolls around, your home will sparkle!
  3. Declutter as You Go: Spring cleaning isn’t just about scrubbing and polishing—it’s also the ideal time to declutter. Sort through closets, cupboards, and drawers, and separate items into “keep,” “donate,” and “discard” piles. Haven’t used that appliance or worn that sweater in over a year? It’s time to let it go. Clearing out the clutter not only makes cleaning easier but also creates a more organized and calming space.
  4. Go Green: Keep your cleaning eco-friendly by opting for natural solutions. Vinegar and baking soda are versatile and effective for a variety of tasks, from cleaning countertops to unclogging drains. A steam cleaner can also be a fantastic tool for deep-cleaning floors, appliances, and even outdoor spaces without the need for harsh chemicals. Choose sustainable products to keep your home fresh and the environment happy.
  5. Work From Top to Bottom: When cleaning, always start high and work your way down. Dust light fixtures, ceiling fans, and shelves first to avoid re-cleaning surfaces below. This method ensures maximum efficiency and minimizes extra work!
  6. Don’t Forget Hidden Spaces: Pay attention to often-overlooked areas like baseboards, window tracks, and behind large furniture. Use a vacuum attachment to get into tight corners, and wipe down walls and doorframes for a truly comprehensive clean.
  7. Freshen Up the Fridge & Freezer: Spring is the perfect time to clean out your fridge and freezer. Empty the contents, toss expired items, and clean the interior surfaces with a mixture of water and mild soap or vinegar. If defrosting is needed, plan ahead to minimize food waste. Restocking a fresh, clean fridge feels fantastic and can even inspire healthier eating habits!
  8. Revitalize Air Quality: Spring allergens can wreak havoc on your sinuses, but replacing your HV AC and furnace filters can help. Upgrade to a higher-quality filter for added protection against allergens, chemicals, and odors. Consider adding an air purifier for an extra boost to your home’s air quality.
  9. Wash Fabrics & Upholstery: Take time to wash or vacuum curtains, upholstery, and throw pillows, as they can harbor dust and allergens. Rotate or clean your mattress, and swap out heavy winter bedding for lighter, seasonal options. Fresh linens make a big difference in creating a rejuvenated space.
  10. Tidy Outdoor Areas: Spring cleaning isn’t limited to the indoors! Sweep porches, patios, and decks, and clean outdoor furniture. If you have a garden, take this opportunity to prepare for planting by clearing debris and cleaning tools. A fresh outdoor space is the perfect complement to your revitalized home.

Embrace these tips, and your Spring clean will leave your home feeling fresh, organized, and ready for the new season!

Written by my DLC Marketing team

How to Prioritize Financial Goals While Planning to Buy a Home

General Cedric Pelletier 9 Jan

If you’ve made the decision to buy a home, you’ll probably be taking a closer look at your finances to figure out how to reach your homeownership goals. Whether it’s your first home or a new space to meet your family’s needs, saving towards a new home is no easy task. On top of that, you may have other financial goals you’d like to achieve as well like saving for retirement, a well-deserved vacation, or building an emergency fund.

The good news is that you don’t need to sacrifice one financial goal in exchange for another. By assessing your financial situation, prioritizing your goals, and putting a plan in place, you can work towards achieving each goal.

Evaluate Your Finances

Before setting any financial goals, take some time to thoroughly assess your finances. Look at your income and expenses to get an accurate sense of how much money you’re working with when it comes to saving towards your goals. Creating a budget is a useful tool to stay on top of your finances and there are many free resources online to help you get started.

Quick Tip:

Don’t overlook small spending habits that may impact your finances. Making your lunch a few times a week instead of buying takeout or bringing a coffee from home can be an easy way to save!

Spending Habit Chnage: MorningMorning Latte
$6 per latte x twice a week
Save $624 per year		 Spending Habit Chnage: LunchTakeout Lunch
$15 x twice a week
Save $1,560 per year

In addition to the practical benefits of evaluating your finances, it also serves as an emotional check-in. Is your spending aligned with your values, what you want for your future? Approaching your finances from a holistic perspective can help as you move on to the next step.

Prioritize Your Savings Goals

Buying a home may be at the forefront of your mind but your other financial goals are important too! Consider how a home purchase fits into your overall financial plan by making a list of your financial goals. Categorize your goals based on their importance to you and how long it would take to reach the goal. Here are some common financial goals and how they may be categorized.

Short-term goals Medium-term goals Long-term goals
Less than 3 years

  • Emergency fund
  • Vacation
  • Pay off credit card debt
 3 to 10 years

  • Down payment for a home
  • Purchase a car
  • Pay for wedding
 More than 10 years

  • Retirement
  • Pay for child’s education
  • Pay off mortgage

How you prioritize your financial goals is personal and will look different for each person. For example, if buying a home is a top goal on your list, you may be willing to forego a family vacation for a year or two to help build your down payment.

Create A Plan

Once you’ve created a list of your financial goals and where they rank in terms of importance, determine how much you’d need to reach your goal and how long you have to reach it.

Goal #1 Down Payment
Amount $75,000
Timeline 4 years
Monthly savings amount needed $1,562.50
Goal #2 Pay off credit card debt
Amount $4,000
Timeline 2 years
Monthly savings amount needed $166.67
Goal #3 Save for Retirement
Amount $100,000
Timeline 30 years
Monthly savings amount needed $277.78

To save for all these goals, one would need to set aside a little over $2,000 a month. If you’ve already established a budget and have an idea of your income and expenses each month, you’ll be able to determine if this is a realistic amount for you to save. If not, you may need to re-evaluate and see where you can be flexible.

Use Your Resources

Ever heard the saying ‘work smarter, not harder’? The saying can apply to your financial endeavours! Sometimes reaching your financial goals is about more than just saving more and spending less, it’s also about using your resources to your advantage.

If you have a goal of saving for retirement, inquire if your employer offers retirement savings matching programs where a portion of your salary is deducted from your paycheque with your employer matching a percentage of the deduction.

First-time Canadian homebuyers can also take advantage of accounts like a Registered Retirement Savings Plan, or an RRSP, and save for their retirement as well as a down payment for a home or to help pay for their education.

Expect the Unexpected

As much as we’d like to plan our future, life can take some unexpected turns. In terms of your finances, it’s always a good approach to plan for what you can while still being flexible. Some changes may positively impact your income like a career change or a significant raise, whereas others may be more challenging, like losing a job. Don’t be afraid to adjust your budget to fit your life.

Make Your Financial Goals a Reality

As you work towards buying a home and reaching your other financial goals, be sure to keep sight of what is important to you! By prioritizing your financial goals and staying informed with your finances, you’re making strides to a happier and healthier financial future.

Written by our Partner Marketing Team at MCAP

The Benefit of Rate Holds.

General Cedric Pelletier 8 Jan

Being on the path to purchasing your first home is one of the most exciting and most rewarding moments in life!

To help make the mortgage process smoother, one of the things you can do is to get pre-approved for your mortgage. Getting pre-approved doesn’t commit you to a single lender, but it does guarantee the rate offered to you will be locked in from 90 to 120 days which helps if interest rates rise while you are still shopping!

Rate holds for mortgages offer several benefits including:

  1. Protection Against Rate Increases: A rate hold guarantees that you will receive a specified interest rate for a set period, typically up to 120 days. This protects you from potential rate hikes during this period. Plus, if the rate should drop, you can still take advantage of the lower option!
  2. Financial Planning: Knowing the exact rate you will pay allows for better financial planning and budgeting. It provides clarity regarding what you can expect for your monthly mortgage payments. This makes it easier to target the right price range of home so that you can ensure future financial stability.
  3. Time for Decision Making: A rate hold provides peace of mind allowing you the necessary time to shop around for the right home. During this time, you can also compare different mortgage options without the pressure of changing interest rates. This is particularly useful when you’re considering different lenders or mortgage products.
  4. Stress Reduction: It reduces the stress of rate fluctuations and uncertainties in the housing market. After the past few years of turmoil, knowing that you have a secured mortgage rate can take a lot of the pressure off shopping. Instead of feeling like you need to find a new home before the rates change again, you can take the appropriate time. Plus, if your rate hold expires, it is easy to submit for a new one!
  5. Securing a Competitive Rate: While we are not anticipating interest rate increases in the coming years, securing a rate hold while you shop can save you money over the long term by locking in a favorable interest rate should anything pivotal happen in the market.

Overall, rate holds provide peace of mind, financial security, and the opportunity to make informed decisions when entering into a mortgage agreement. They are particularly valuable in fluctuating interest rate environments or when you anticipate delays in finalizing a mortgage transaction. Looking to purchase a home? Want more information on rate holds and the mortgage process?

Written by my DLC Marketing Team

First-Time Home Buyer Guide for Alberta (2025)

General Cedric Pelletier 30 Dec

 

Buying your first home can be an exciting but daunting experience. Whether you’re eyeing a condo, townhouse, or single-family home, it’s essential to be prepared for the home-buying process, especially in Alberta, where the market and regulations have specific dynamics. Here’s a comprehensive guide for first-time homebuyers in Alberta for 2025.

  1. Understanding the Alberta Housing Market

Alberta’s real estate market can be unique due to factors like oil prices, economic conditions, and migration trends. In 2025, buyers might see varying market conditions depending on the region (e.g., Calgary vs. Edmonton, or smaller communities).

  • Calgary and Edmonton: These two major cities typically offer the most diverse real estate markets, with both having a mixture of new builds, older homes, and condos.
  • Rural Areas: Smaller cities or towns like Red Deer, Fort McMurray, and Lethbridge could offer more affordable options, though availability and amenities may be different.

Trend to watch: The 2025 Alberta market may still be influenced by the post-pandemic recovery, interest rates, and migration from other provinces. Stay updated on market reports for the most relevant information closer to your purchasing time.

  1. Know Your Budget and Financing Options

Before you start browsing listings, it’s important to determine your budget. Here’s how:

  • Mortgage Pre-Approval: Getting pre-approved by a lender is crucial. This will give you a clear idea of how much you can borrow and the mortgage terms you can expect. In Alberta, you’ll need to provide proof of income, credit score, and debt obligations.
  • Down Payment: You’ll need a minimum of 5% of the home’s purchase price for a down payment if the price is under $500,000. For homes over $500,000, you’ll need 5% for the first $500,000 and 10% for the remainder.
  • Mortgage Insurance: If your down payment is less than 20%, you’ll likely need mortgage default insurance, which protects the lender in case you can’t repay the loan.
  • Mortgage Rates: In 2025, interest rates might be a key consideration. Be sure to shop around for the best rates, whether through fixed-rate or variable-rate mortgages. Keep an eye on the Bank of Canada’s rate decisions as they impact mortgage rates.

  1. First-Time Home Buyer Incentives and Programs

There are several programs and incentives for first-time buyers in Alberta, which can make homeownership more accessible.

  • First-Time Home Buyer Tax Credit: This federal program provides a non-refundable tax credit to first-time buyers of $5,000, which could reduce your tax liability by up to $750.
  • First-Time Home Buyer Incentive (FTHBI): This federal initiative offers a shared equity mortgage with the government, providing 5% or 10% of the home’s purchase price for first-time buyers. However, the incentive is subject to income and home price limits. You will need to repay the government’s share when you sell or after 25 years, whichever comes first.
  • GST New Housing Rebate: If you’re buying a newly built home, you may qualify for a rebate on part of the GST (5%) paid during the purchase.
  • Alberta’s Home Buyers’ Program: This provincial initiative offers a partial refund of the land transfer tax, which can reduce the upfront cost of buying a home.

  1. Choosing the Right Property Type

There are a few options when it comes to choosing a home in Alberta, each with different advantages and considerations:

  • Condo/Apartment: These properties tend to be more affordable, especially in urban centers like Calgary and Edmonton. However, you must factor in monthly condo fees and restrictions on pets or renovations.
  • Single-Family Home: This is ideal if you’re looking for more space and privacy. However, they typically require higher down payments and ongoing maintenance costs.
  • Townhouse: Offers a balance between the affordability of condos and the space of single-family homes. You’ll typically pay less for a townhouse than a single-family home.

  1. Factors to Consider Before Buying

  • Location: Whether you’re looking for access to work, schools, public transit, or amenities like parks and shopping, the location of the home is key. Remember, the more desirable areas in major cities will likely have higher prices.
  • Size and Layout: Consider the number of bedrooms, bathrooms, and living space you need. Make sure the layout suits your lifestyle (e.g., open-concept living, or a more traditional style).
  • Condition of the Home: Whether you’re buying new or resale, have the home inspected by a professional to assess its condition. A thorough inspection can uncover potential issues with the foundation, plumbing, roof, or electrical systems that might require expensive repairs.
  • Future Resale Value: Think ahead about whether the property will hold its value or appreciate over time. Key factors that influence resale value include the neighborhood, local amenities, and market trends.

  1. The Home-Buying Process in Alberta

  • Hire a Real Estate Agent: While not mandatory, a licensed agent can help you navigate the buying process, from finding the right property to negotiating the price. Make sure they are familiar with the Alberta market.
  • Make an Offer: Once you’ve found the right property, your real estate agent will help you make an offer. In Alberta, offers often include conditions like financing approval, home inspection, and a review of the title.
  • Home Inspection and Appraisal: After your offer is accepted, it’s wise to get the home inspected to avoid unforeseen costs. Also, your lender will require an appraisal to ensure the home’s value aligns with the loan amount.
  • Closing the Deal: If everything goes well, you’ll sign the purchase agreement, pay your down payment, and cover closing costs (usually 1.5-4% of the purchase price). In Alberta, the land title registration fee is one of the main closing costs.

  1. Legal and Closing Costs

In addition to your down payment, you’ll need to budget for the following:

  • Land Transfer Tax: This is calculated as a percentage of the property’s purchase price and varies by municipality. As a first-time buyer, you may be eligible for rebates.
  • Legal Fees: You’ll need a lawyer to handle the paperwork and title transfer. Expect to pay $500–$1,500 in legal fees.
  • Home Insurance: Lenders require home insurance to protect the property. Shop around for the best rates and coverage.
  • Title Insurance: This optional insurance protects against issues like fraud or title disputes, and is often recommended.

  1. Post-Purchase Tips

  • Maintenance: Keep your home in good condition by addressing minor repairs before they become costly problems. Regular maintenance on plumbing, electrical systems, and HVAC can help maintain or even increase your home’s value.
  • Property Taxes: Alberta’s property tax system varies by municipality, so you’ll need to budget for annual taxes. They’re usually based on the assessed value of your home.

Conclusion

In 2025, Alberta will likely offer a dynamic market with both opportunities and challenges for first-time buyers. By understanding the housing landscape, securing financing, utilizing available incentives, and making informed decisions, you can set yourself up for a successful home-buying experience. Always consult with local experts and stay informed about market trends as you begin this exciting journey.

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