Recent Reviews Prove Our Commitment to Excellence in Real Estate Services

At our core, we are a team of experienced professionals who understand the complexities of the real estate market. Whether you’re looking to buy or sell a home, invest in pre-construction projects, lease commercial space, or develop land, we have the expertise to guide you through the process.


In the residential real estate sector, we understand that buying or selling a home is one of the most significant transactions you will make in your lifetime. That’s why we take a personalized approach to every client we work with, ensuring that we fully understand your needs and preferences. From there, we use our extensive knowledge of the local market and our relationships with other industry professionals to help you find your dream home or sell your property quickly and efficiently.


When it comes to pre-construction, we have a proven track record of helping investors identify and secure high-quality, high-potential projects before they hit the market. Our team has the expertise to evaluate pre-construction projects and determine their potential for growth and profitability, ensuring that our clients are making informed investment decisions.


“Real People, Real Reviews”

Our Google Review Proves Our Dedication to Exceptional Real Estate Services. Don’t Just Take Our Word For It!”

At our company, we understand the importance of authenticity and trust when it comes to choosing a real estate provider. That’s why we take great pride in the reviews and feedback we receive from our clients. Our recent Google review serves as a testament to our commitment to providing exceptional service and expertise to every client. We believe in the power of human connections and personalised service, and it’s reflected in every aspect of our business. So, whether you’re buying or selling a home, investing in pre-construction projects, or developing land, you can trust us to deliver the best results, as confirmed by our valued clients.


Results Confirmed By Our Valued Clients


At Team Arora, our dedication to excellence in the real estate industry is reflected in the positive feedback we receive from our clients, including this recent review from a fellow Realtor. We understand that buying or selling a property can be a stressful and overwhelming experience, and that’s why we strive to make the process as smooth and seamless as possible. Our team of experienced professionals is committed to providing personalized service, effective communication, and flawless execution of every transaction.


Our recent collaboration with Sam Dhilon from our team is just one example of how we deliver on our commitment to excellence. The transaction went flawlessly, and we were able to achieve the expected results for our client. We also take pride in our accessibility and open communication with our clients. As mentioned in the review, Parveen Arora, our team leader, was readily available to discuss potential transactions, ensuring that our clients feel supported and informed throughout the entire process.


Understand What Important In Real Estate

We believe that maintaining a high standard of service is crucial in the real estate industry, and we are proud to be recognized for our efforts. Our team works tirelessly to stay up-to-date on the latest market trends and industry developments, ensuring that our clients receive the most comprehensive and effective service possible. So if you’re looking for a real estate team that puts your needs first, delivers exceptional service, and achieves outstanding results, look no further than Team Arora. We’re dedicated to making your real estate journey a success.


In the commercial real estate sector, we have a deep understanding of the needs of business owners and investors. We work closely with our clients to identify the best commercial properties for their needs, negotiate favorable lease terms, and manage their properties to maximize returns. Finally, in land development, we have a proven track record of success in helping landowners navigate the complex process of developing their land. We provide a full range of services, from initial site evaluation to project management, to ensure that our clients achieve their goals.


Our recent Google review has reaffirmed our commitment to excellence, and we are confident in our ability to deliver the highest level of service to our clients. We are passionate about real estate and are dedicated to using our expertise and experience to help our clients achieve their goals. In this blog, we will be sharing our insights, expertise, and news from the world of real estate. From tips on buying and selling a home to the latest trends in commercial real estate, we’ll cover it all. So, be sure to check back regularly for the latest updates, and don’t hesitate to contact us if you have any questions or are ready to get started on your real estate journey.

Finally, Get RE/MAX TOP 25 Worldwide Ranking Commercial Real Estate in 2022

Number #3 Ranked Commercial Real Estate Firm

We are thrilled to announce that according to RE/MAX news, Real Estate Centre Team Arora Realty has been ranked 3rd in Canada, Ontario province. With the lead in the real estate market, this is a massive worldwide achievement covered by on.

Info about RE/MAX

In collaboration with Newsweek, the esteemed BrandSpark market research company conducted a detailed study, collecting the opinions of thousands of individuals. 

The outcome? ReMax emerged as a top choice for discerning customers, seeking reliability in the real estate realm. In the competitive market American company ReMax is known for its experience and calibre. ReMax, is a brand celebrated for its trustworthiness by countless satisfied clients.


REMAX Rank 3
REMAX Rank 3

Team Arora is a global commercial real estate broker with a formidable presence in the industry. With RE/MAX’s recognition of Team Arora as one of their top 25 worldwide brokers for the year-end 2022, Team Arora has proven its commitment to delivering clients large-scale, high-impact commercial solutions across the world.

Team Arora’s expertise lies in providing comprehensive and reliable services while staying ahead of the curve on emerging trends and regulations. From researching market conditions to consulting on legal matters related to transactions, Team Arora offers customers full support every step of the way. Team Arora also works closely with various international stakeholders to provide specialized advice tailored to each customer’s unique needs.

Embrace the Power of Top-Tier Performance from Team Arora

Whether it is a large multinational company or a small business, Team Arora offers its clients the best in commercial real estate services. Our professional team is growing with a hundred percent profitable, and successful score. From market analysis to due diligence, Team Arora works diligently to ensure clients get results fast and efficiently.

Team Arora’s commitment to providing superior service has earned RE/MAX recognition as one of their top 25 worldwide brokers for the year-end 2022. Team Arora will continue their dedication to delivering customers large-scale, high-impact commercial solutions across the world. Contact Team Arora today for more information about their services.


Team Arora– delivering customers large-scale, high-impact commercial solutions worldwide.

Team Arora is an international leader in the commercial real estate industry and a proud recipient of RE/MAX’s recognition as one of their top 25 worldwide brokers for the year-end 2022. The experienced professionals understand that each customer has unique needs and provide customized advice to meet those needs. 

Team Arora provides its clients with the best in commercial real estate services and is dedicated to delivering results fast and efficiently. Contact Team Arora today for more information about their services. Team Arora– delivering large-scale, high-impact commercial solutions worldwide!

Investing in the Burlington Real Estate Market 

If we talk about Burlington city, some too many places and things come to our mind. Burlington is just the west side of Lake Ontario. It covers both sides with popular Niagara Falls and Toronto. This city is the best option for investors because of multiple factors discussed in our blog. 


If you’re looking for an area with a robust real estate market, look no further than Burlington, Vermont. With its vibrant culture and bustling economy, Burlington has become a popular destination for those looking to invest in real estate. Read on to find out why this city is the perfect place for your next investment.


Previous Year Data By Toronto Regional Real Estate Board

  • In August 2022, the average sale price for a home in Burlington was $1.07 million, a decrease of 5.8 percent or $65,354 from July 2022 and an increase of 1.9 percent or $20,450 from August 2021.
  • There were 211 home sales and 442 active listings at the end of August. Sales were down 13.9 percent, and active listings were up 179.7 percent year-over-year.
  • All houses and condos in Burlington saw an average price increase of 113.5 percent compared to August 2012, with detached houses increasing by $665,336, semi-detached houses increasing by $552,313, attached houses increasing by $639,020, townhouse-style condos increasing by $511,606 and apartment-style condos increasing by $301,114. (source)


Low Unemployment Rate

Burlington’s unemployment rate is among the lowest in the nation, hovering around 2-3%. This low unemployment rate means that more people are employed and have money to spend on housing. Similarly, since there are more jobs available, potential buyers have more options when it comes to where they want to live. As a result, investing in Burlington’s real estate market can be an attractive option because of its stable economy and job opportunities.


Growing Population

Burlington has seen steady growth in population over the past few years. This population growth has created a greater demand for housing and real estate investments as people look for places to reside in the city. Additionally, this population increase also means that there will be more potential buyers for your property if you decide to sell it down the road.


Affordable Prices

Despite being one of the most sought-after areas to live in the Northeast, Burlington remains relatively affordable compared to other cities in the region. According to recent statistics from Zillow, median home values are around $400K, making it difficult for some buyers but still within reach of many households earning median incomes or higher. Moreover, rental rates remain fairly consistent throughout much of Burlington giving investors an opportunity to build their portfolio without breaking the bank.


Investing in real estate can be a great way to supplement income or build long-term wealth over time. For those interested in investing in real estate markets, Burlington should definitely be at the top of their list due to its stability and affordability compared with other cities. With low unemployment rates and growing populations creating demand for real estate investments, now is a great time to consider investing in this city’s vibrant market!

Household Debt in Canada: The Startling Numbers You Need to Know

As living expenses rise, Canadians face a growing burden of debt that can be overwhelming. Household debt has become an increasingly serious issue for many people across the country. Owing to the high cost of higher education, many individuals have taken out significant student loans which, combined with their mortgage payments, add up to hefty household debt.

Facing a hefty sum of debt can take time and money to properly resolve, leaving you unable to save for certain things such as your dream home, car or retirement. Are you curious about the household debt statistics in Canada? Keep reading on to find out more!

2022 Updates:

  • In April 2022, the Canadian household debt skyrocketed to an unbelievable US$2.116 trillion (according to CEIC Data).
  • Recent statistical evidence reveals that in March 2022, the Canadian household debt percentage rose to an incredible 105.1% of Canada’s Nominal GDP (CEIC Data).
  • In 2022, Canadian household debt hit an all-time high of 180.02% of the gross income – a worrying statistic reported by Trade Economics.

Canadians are Facing an Uphill Battle with Growing Household Debts

  • The term “household debt” refers to the total amount of money owed by all members of a household.
  • The typical Canadian household has an astonishing amount of debt – a staggering $41,500 – excluding mortgages.
  • As of April 2022, Canadian households owed a total of $2.116 trillion in debt.
  • In 2019, half of all Canadians earned an income less than the middle-ground median salary of $37,899.
  • In 2021, mortgage borrowing saw an impressive 41% growth.
  • In 2021, the debt-to-income ratio skyrocketed to 173.08%, a staggering 85% increase from the average rate of 88.77% in 1990.
  • Canadians between the ages of 46-55 bear the greatest debt burden, with an average household debt (excluding mortgage) totaling a staggering $72,482.
  • An overwhelming majority of Canadian households, nearly 60%, are currently in debt.
  • Canadians typically have a credit score between 600 and 650, with scores higher than this range considered to be excellent.
  • Startlingly, only 34% of Canadians are living debt-free and own their homes.
  • In the 1960s and 1970s, household debt in Canada stayed below $200 billion; however, it has increased rapidly since then and currently stands at over $1 trillion.
  • Struggling with unmanageable debt from loans and credit cards? Don’t worry. Talk to an expert today about consolidating your debts, and learn how you can save on expenses. Together we will create a plan that works for you!

What is household debt?

Before we focus on the household statistics for Canadians, it is important to understand what is meant by debt and how it differs from personal debt. It is often defined as the combined liabilities that require payments of interest or principal of all members in a household.

In other words, household debt is the combined amount owed by all members of a household.

Types of debt

There are different types of debt that contribute to household debt, which include:

  • Secured debt, which is any type of debt that is backed by collateral. This collateral will be forfeited to the lender if the debt is not paid. The amount you are able to borrow is determined by the value of the asset used as a collateral. An example of secure debt would be a car loan where the lender will repossess the car if the loan isn’t paid.
  • Unsecured debt is not backed by collateral and includes debt from credit cards and unsecured loans. How much you can borrow is based on your credit score. The better your score, the more you can borrow.
  • Mortgage debt is a subset of secured debt where the property is the collateral. Most people will pay back their mortgage over several decades.
  • Student loans can be government issued or private loans. They are a type of unsecured loans as there is no collateral used.


The average household debt in Canada

Without factoring in mortgage debt, the typical indebted individual owes a staggering $20,739; thus making two-person households liable for nearly $41,500 collectively. Nevertheless, when mortgages are added to this assessment of average per person debt in Canada – that number skyrockets up to an unparalleled amount of almost seventy five thousand dollars!

Canadian households had amassed a staggering $2,116 billion in debt by April of 2022- although this number is lower than the amount which was reported for 2020: $2,330 billion. Mortgages accounted for the most considerable portion of household debt at an impressive total of $1,550 billion with non-mortgage loans and consumer credit making up the difference of roughly $802 billion. (Source)

The average earnings and net worth of Canadian households

In 2019, the median annual income in Canada was $37,899 according to Statistics Canada – not the average yearly salary of $49,000. This is an important distinction; 50% of Canadians earned less than this amount.

Outliers can deceive an individual’s understanding of the average income, which is why median statistics are often more useful when studying data on salaries.

According to Statistics Canada, the net worth of Canadians increased by a striking 3.5% annually between 2012 and 2016. Fast-forwarding to 2019, their median net worth amounted to an impressive $329,000!

Boasting a millionaire population of near one million, the median net worth gives us an accurate reflection of Canada’s wealth distribution. Toronto and Vancouver have the highest median net worth while Montreal has the lowest – Calgary, Edmonton, and Ottawa fall somewhere in between.

What is the primary factor that has caused households to become more and more indebted?

This year, Canadian households are bearing a heavy burden of debt- largely due to the rapid surge in mortgages. It’s no wonder that new mortgage borrowing skyrocketed by an astounding 41%, pushing household debt levels higher than ever before.

Despite this, non-mortgage debt decreased as government issued funds helped many Canadians to pay off their credit card bills. Plus, the lockdowns caused households to spend less money altogether.

Who is most likely to be encumbered with the greatest debt?

Data reveals that Canadians in the 46-55 age bracket owe the greatest amounts of money. Without mortgages, their consumer debt averages around $36,241 while total household debt stands at an estimated figure of $72,482.

Young Canadians, aged 18-25 were in debt to the tune of $8,847 on average at the start of 2020. As those ages increased so did their obligation: 26-35 year olds had an outstanding balance of $18,398; 36-45 owed around $28,863; 56-65 inked a hefty sum totaling up to a staggering amount – approximately 30K! Surprisingly enough though seniors over 65 held a modest estimated total liability at just under 17 grand ($16,491).

What percentage of Canadian households are financially independent and free from debt?

According to Statistics Canada, only 3 in 10 Canadians are debt-free – a figure rising to almost 6 out of 10 for households headed by those aged 65 or over. The growth in seniors’ indebtedness is largely attributed to an increase of mortgage borrowing and credit card use throughout the past few decades.

Mortgage statistics

Lending for mortgages has skyrocketed in 2021, with a surge of 41% compared to the year before. But what other mortgage-related figures exist across Canada? In 2020 alone, Canadians had borrowed an astounding $1.7 trillion on their mortgages – marking the most substantial climb since 2010 when this debt increased by an impressive $118 billion within one single year! Low interest rates and rising property values were instrumental contributors that propelled such spending growth in this sector. This potential hazard is reminiscent of the 2008/2009 financial crisis, when soaring mortgage rates pushed many people into purchasing properties beyond their means. This could be a perilous situation if history repeats itself.

Astonishingly, only 34% of Canadian households own their homes outright. Not surprisingly, these homeowners are more likely to be debt-free and possess fewer liabilities than those with mortgages. This data reveals the breadth of home ownership across Canada; it is clear that for most Canadians mortgaged houses are a reality rather than an exception!

What is the standard credit rating among Canadians?

Equifax Canada has determined that the average Canadian credit score lies between 600 and 650. Credit scores are calculated based on multiple factors such as payment history, debt levels, and length of credit. Canadians who possess a score of 650 or more show financial stability making them likely candidates for loans from lenders. An excellent credit score is one above 760 points according to Equifax’s research findings.

Uncovering Canada’s history of household debt – from its beginnings to today.

Every year in Canada, the total household debt has increased since 1961 when records began. In the 1960s and 1970s, even though there was growth each year, it was slow and consistent. The total debt remained below $263 billion. However, by the end of the 1980s decade, the debt had risen to over $500 billion and surpassed 1 trillion in early 2000.

Over the years, family debt has gone through an array of transformations.

Over the past several years, household debt in Canada has undergone dramatic shifts- particularly when examining the ratio of total debt to household income. In the 1980s, this figure was 66%, yet now it stands at 173.08%. Clearly, Canadian households owe much more money than they did thirty years ago – and a major factor is that most people cannot purchase their home without taking out mortgages. Undoubtedly, these numbers are concerning but also serve as an important reminder of how essential financial literacy and responsibility can be!

Despite Canadians earning more than they ever did before, the debt to income ratio still stands at $1.73 for each dollar earned – a clear indication that what’s left in their pockets is less than what they owe. This unfortunate statistic can be traced back to 1961 when the total amount of Canadian household debt was merely 16 billion dollars; now it’s over 2 trillion!

Nevertheless, there is an optimistic side to this story. The proportion of debt from credit cards has been on a downward trajectory in Canada and recently reached a six-year low. This decrease is closely correlated with the restricted spending due to COVID-19 restrictions. Furthermore, the overall debt to income ratio was higher prior to the pandemic – it was estimated at 180% during Q4 2019! In short: Canadians have made strides towards reducing their reliance on borrowing money which can only lead us down a path of financial wellbeing going forward.

What factors have contributed to the sharp rise of household debt in Canada since the mid-1900s?

As the economy flourished after WWII, Canadians took on more debt with a newfound attitude towards it; instead of viewing debt as something to stay away from, people began embracing taking out loans and using credit. This shift in perspective marked an increase in debts throughout Canada.

Following WWII, Canadians’ access to loans and the use of credit grew in popularity. Though spending on credit became more accepted, it wasn’t until the 1990s that household debt skyrocketed throughout Canada.

Since its foundation in 1971, the credit score system has been improved to make it simpler for those earning a median wage to obtain loans.

Are you concerned about the impact of debt on your financial future? If so, there are several concrete steps that you can take to manage and reduce this burden.

Struggling to stay on top of debt payments? You’re not alone and there are resources available to help. Start by utilizing a debt calculator – an effective tool that will estimate your repayment timeline as well as the amount of interest you’ll end up paying. Knowing this information is essential for establishing a successful plan towards becoming financially free.

Utilizing a debt calculator can give you an indication of whether or not you are capable of taking care of the debt yourself by allocating extra cash each month to increase payment speed. If your budget only allows for minimum payments, or even worse if it is unable to cover them in full, consulting with a financial professional may be beneficial as they can assist in minimizing expenses through methods such as consolidating loans and decreasing outgoings.


Despite the vast amount of household debt in Canada, it is not necessarily an indication that a financial crisis will arise. While there are common elements to past recessions including historically low interest rates and booming real estate market conditions, banks have been more mindful of lending large amounts to unstable households with poor credit ratings.

As people spent less during the lockdowns following the pandemic, the ratio of debt to income in Canada slightly improved. However, it is still too soon to tell what has happened since the return to a more normal life.

Assignment Sales Toronto in the Pre-Construction Market [February 2023]

Looking for a great deal on a Toronto condo? Check out our list of assignments for sale! With units starting at just $$$$$, you’re sure to find something that fits your budget.

Negotiate significant savings in comparison with resale and other pre-construction units.

Move into your new home in just weeks or months

Get the full warranty on a brand-new, never-been-lived-in unit

An Assignment Sale in the Pre-Construction Market

In other words, an assignment sale is thesale – or “assignment” of a contract to buy a pre-construction condominium suite. An assignment sale usually happens before the condo has been registered, so no one can own the unit itself. The only thing that can be sold is the contract.

When you buy a pre-construction condominium unit, you receive an assignment clause/right to sell in the form of a contract. You can decide to sell your assignment even before the condominium is constructed.

  • The Assignee is not purchasing the property from the Assignor. Instead, the Assignee is obtaining the right to buy the property from a third party, such as a builder.
  • The Assignor is authorizing the transfer of its interest and rights in the Original Agreement with the Builder (or original seller) to another party.
  • The Assignor is assigning its interest in the original deposit to the Assignee.
  • The Assignee agrees to take on all the duties of the original contract from the Assignor.

The many benefits of contract sales exist for both the buyer and seller before a building is even constructed and registered.

This article will explore assignment sales, from why they are used to the process of making this type of transaction and how it can be transferred.

By learning more about assignment sales, you can decide if this type of sale is right for you. Here at GTA-Homes, we pride ourselves on giving our clients the tools they need to make informed decisions about investing in pre-construction homes.

This way, you will be able to determine if an assignment sale is right for you. We at GTA-Homes strive to provide our clients with the knowledge of the pre-construction market, so that they can make a more informed choice when it comes to investing in their future.

Is It Worth It to Purchase an Assignment?

You may be able to find some of the best deals on condos in the GTA by looking for assignment sales. These types of sales typically have fewer buyers because many real estate agents aren’t familiar with them and don’t bother to advertise these listings.

Assignment sales are often foregone by potential buyers because they are not fully understood. Lack of Knowledge about the process can cause people to overpay for their suite due to bidding wars amongst other things. By opting into an assignment sale, you have the opportunity to avoid all that extra competition and pay much less than what you would for a resale unit.

The condo market benefits both the buyer and the seller in multiple ways. The seller can list their unit earlier, and the buyer can save time and money.

An assignment agreement also has the perk of receiving a unit that is brand-new and automatically registered under the seven-year Tarion Warranty Program. Also, you’ll be able to move in much sooner than if you were waiting for the building completion which could take 3 to 4 years!

The Bank of Canada has once again raised its key interest rate, but plans to keep it at the same level for now.

On Wednesday, the Bank of Canada declared a triumphant quarter-percent increase in its key interest rate and stated that this would be their final move to combat inflationary levels unseen since long ago. This is the eighth hike consecutively since March as they attempt to rein in rapidly inflating prices with these measures.

The bank’s key interest rate is currently at 4.5%, the highest it has been in almost 14 years!

This morning, the Bank of Canada will reveal its interest rate decision amidst widespread speculation that it is likely to choose a quarter-point raise. A news statement from the central bank declared that with the Canadian economy still surpassing capacity, its governing council has decided to increase interest rates yet again. The Bank of Canada’s headquarters located in Ottawa on Tuesday July 12th, 2022 was pictured by THE CANADIAN PRESS/Sean Kilpatrick.

But if economic conditions remain as expected, the central bank has indicated that it will maintain its key interest rate at the current level.

Wednesday’s rate hike follows a period of decreasing inflation. In the summer, Canada’s annual inflation hit an apex of 8.1%, yet has since dwindled to 6.3% in December – indicative of slower economic growth over recent months and clearly presenting Wednesday’s rate increase as essential for market stability moving forward into 2021.

The Bank of Canada’s latest Monetary Policy Report, which they published Wednesday, contains the most up-to-date economic and inflation projections. As per the report, inflation is predicted to slow more than initially thought; it will descend to three percent by mid-2023 and ultimately reach its two percent target in 2024.

The recent decrease in inflation may be credited to falling oil prices as well as the mitigation of worldwide supply chain interruptions. Simultaneously, labor is still relatively scarce and both businesses and individuals maintain a heightened anticipation for rising inflation, the central bank remarked.

According to Statistics Canada’s recent labour force survey, Canada is at the brink of a historical low in unemployment with its December rate standing at five per cent. Previously, the Bank of Canada had warned about potential inflation due to strong wage growth; however now it claims these risks are on a decline as wages have leveled off.

Despite the Bank of Canada’s optimism at keeping interest rates unchanged, they made it clear that they will not hesitate to raise them if needed in order to return inflation back up to the two percent target. With high interests rates continuing their drag on our economy, this could lead to a softening of the labor market in ensuing months. “Governing council is prepared,” The central bank said, “to increase the policy rate should circumstances necessitate.”

Rising interest rates have already had a negative impact on the economy, particularly in relation to housing. However, in upcoming months we can anticipate more extensive ramifications as businesses and consumers reduce their spending due to higher borrowing costs.

As the process advances, it’s estimated that economic growth will stagnate throughout the first half of 2022 before rebounding at year-end. The Bank of Canada is forecasting a 3.6 percent boost in 2022 and an unimpressive one percent gain for 2023 — further demonstrating how this progress has been stalled by the pandemic.

The central bank has noticed that global growth is surpassing expectations, as people continue to spend money. The focus of the central bank remains on domestic prices and demand, however international dynamics have potential for inflationary effects. A case in point could be China’s lifting of COVID-19 restrictions; if this happens it may lead to a surge in world economic activity, plus rising commodity costs.

The ongoing war in Ukraine has created an environment of uncertainty and risk, according to the central bank. Additionally, domestically services price inflation could be stronger than anticipated if labour costs and heightened expectations become more established than initially projected. The Bank cited by saying “Services price inflation in Canada could be stickier than projected if elevated inflation expectations or increased labour costs prove more persistent than expected.”

Although inflationary pressures are a major worry for the Bank of Canada, an extreme global downturn could cause economic instability just as quickly.

Despite this, the risk of a serious global recession has fallen in recent months. This report from The Canadian Press was initially published on January 25th, 2023.

New vacant home tax takes effect in Toronto: What homeowners need to know

As a Toronto homeowner, you must be aware that the Vacant Home Tax (VHT) is now in effect and all residential property owners are required to report on their occupancy status annually – even if they live there. It’s essential to get this done by February 2nd so make sure it’s marked on your calendar!

The Vacant Homes Tax (VHT) seeks to motivate property owners to make their properties available for purchase or rent, thus encouraging the growth of housing in Toronto. But what do we consider a “vacant” property? The City of Toronto states that if it was unutilized as a primary residence by any owner(s) or permitted tenants during the previous year and remained empty for six months total within that time frame, then such land is considered vacant. Moreover, when an owner fails to declare occupancy status related to such premises, they can be deemed ‘vacant’.

The Vacant Home Tax is a fee of one percent based on the Current Value Assessment (CVA) of your property. For instance, if the CVA is assessed at $1,000,000 then you will owe an amount of $10,000 ($1% x $1M). It’s crucial to remember that this tax amounts are calculated for last years occupancy status- so if it was vacant in 2022 by 2023 you’ll have to pay up.

Are you wondering how to declare the status of your property? It’s quite straightforward. All that is required for this process are two numbers – a 21-digit assessment roll number and customer number, both found on your property tax bill or account statement. Declaring occupancy status must be done through the City’s secure online declaration portal.

All residential property owners in Toronto must now be mindful of the Vacant Home Tax. Don’t forget to declare your occupancy status annually; you can do this via the City’s secure online declaration portal, with a deadline of February 2nd! Remember to take note on your calendar-the tax is calculated at one percent of the Current Value Assessment for each property.

How Can I Avoid Paying Vacancy Tax?

Property owners can escape the vacancy tax if they allow themselves or a tenant to occupy the property for at least six months of every year.

Are you able to submit a Notice of Complaint?

If you’re unhappy with your Vacancy Tax Notice or Supplementary Assessment, take action and submit a Notice of Complaint within 10 business days of April for the Vacancy Tax Notice or 90 days after receiving the Supplementary Notice. Don’t let this opportunity to dispute your assessment pass by; make sure to act quickly!

Is Toronto Imposing a Tax on Unoccupied Properties?

The Toronto City Council is requiring 1% to be charged on all vacant or underused residences in the city. Homeowners must adhere to the Ontario housing tax regulations when declaring any empty homes they own within Toronto.

Have you been wondering what the difference is between an Empty Home Tax and a Speculation Tax? Let’s take a closer look at how these two taxes differ from one another.

Empty home taxes are levied by either the federal or provincial government and speculation tax is imposed at a municipal level. Both of these taxes have been designed to ensure that vacant properties remain occupied for an appropriate period throughout each year.

Housing Market Gains Momentum with Modest Rise in December Sales in Canada

Canada’s home sales exhibited an uncommon boost from November to December, hinting at a prosperous close to the year.

CREA has recently revealed its national statistics for December 2022, and while they don’t come as a surprise, there are still significant insights to glean from them.

Chart A from the national association unveils a subtle pattern: in times of economic uncertainty, Canada’s real estate market inevitably slows down. This is evident in 2009 and 2020, when there was an abrupt decrease in volume just as we are seeing today – however, after this slowdown both years saw rapid recovery to surpassing the 10-year average. Therefore, it can be expected that once again these trends will follow suit.

For those who can brave the turbulence of the market, this form of rebound tends to benefit them. According to CREA’s predictions, a resurgence in volume is due around 2024.

Sales volume

Although it appears disconcerting, sales volume was down by an impressive 40% last month compared to the remarkable December 2021. Keeping that in mind, this decline is not as worrisome as one might initially think.

December saw a notable 1.3% surge in monthly volume, contrasting the usual downtrend of December and January after an abrupt drop last year. This signifies that the output remains stable despite expected seasonal fluctuations.

After a period of stagnation, the market is finally showing signs of life again; indicating strength and optimism. This departure from usual trends suggest buyers who had been priced out in recent months may be re-entering the marketplace.

From recent market trends, it appears that buyers are eagerly waiting for the right time to purchase. This has caused a shift in the market where urgency is no longer present; instead, what’s on everyone’s minds now is affordability. The current state of affairs suggests an opportunity-filled environment with a slower yet steadier and healthier approach towards buying.

Chart B

When determining affordability, economists typically examine a few components to reach their conclusion:

  • House prices
  • Interest rates
  • Income

In their Q3 Housing Affordability Monitor, National Bank reported that the level of affordability had not been seen since 1981 and 1989. Unfortunately, after these peaks in housing affordability both times, there was a significant drop as prices adjusted and interest rates returned to normal levels.

To maintain a healthy and sustainable market, the Bank of Canada has focused on job vacancies to curb inflation – this likely won’t have an effect on income. Therefore, prices or interest rates must be reduced for affordability to remain constant.

December witnessed the most drastic year-over-year decrease in house prices since 2009, with national home costs dropping 12 percent. Examining regional benchmark rates further reveals a noticeable shift towards city centers as workplaces and travel resume. Consequently, core markets appear to be more resistant than their surrounding suburbs.

The cities that witnessed skyrocketing prices during the pandemic are now experiencing similarly eye-popping decreases.

Uncover the essential data about December’s housing market from CREA’s report. Click here to explore further!

Why the increase in Toronto home sales in October is a good sign for the housing market

Although October’s home sales saw a slight month-over-month increase from September, it’s still 36% lower than last year, leading many real estate industry observers to say that the housing market isn’t roaring back as initially hoped. These analysts’ outlooks come as the Canadian Real Estate Association revealed Tuesday that total sales for October were 35,380—just 1.3% higher than September.

Even though sales increased from the month before in 60% of all local markets, Robert Kavcic- a senior economist with BMO Capital Markets noted that last months activity was still below pre-COVID standards. Greater Vancouver alone had an increase of six percent.

It was even the quietest October for unit volumes since 2010, Kavcic said.

Rishi Sondhi of TD Economics had a similar opinion.

Sondhi told investors that sales have decreased by over 40% since February and are currently at levels not seen since 2012. He also said that these numbers appear to be below what is typical given other factors such as income and housing supply.

They attributed the slowdown mainly to interest and mortgage rates, which have increased in recent months to fight an inflation rate not seen for decades.

Low consumer purchasing power, in combination with few new listings, has kept many buyers from entering the market and instead waiting for prices to drop even lower.

Because prices have lowered since the beginning of the year, sellers are now more hesitant to list their properties unless they have to move.

CREA found that the number of seasonally-adjusted and newly-listed homes totalled 68,605 in October—a 2.2 per cent month-over-month increase.

New listings dropped 1.3% in November from the previous month, which Kavcic attributes to lower buyer affordability caused by high demand early in the year.

“There aren’t many listings to choose from outside of some areas, and sellers can still say ‘no thanks’ and pull their listings.”

The average national home price was $644,643 in October—a decrease from last year by 9.9%. Seasonally adjusted, the figure reaches $643,743 which is 0.6% lower than September’s number.

Cailey Heaps, president of the Heaps Estrin Real Estate Team in Toronto stated that after a 10% drop from their pandemic peak, prices in the GTA have begun to level off. “The market has stabilized since June,” said Heaps.

“It is possible we will see a small alteration of percentage in the next year or so, but I don’t think there will be the same severe decrease in Toronto’s central core. Although, we might see it in the areas surrounding the city.”

According to her theory, buyers are making multiple offers on listings last month and recognizing that despite lower prices, higher borrowing costs still exist.

According to her, the buyers in today’s market are mostly those who are upgrading and can take advantage of lower pricing, or those who aren’t as impacted by interest rates.

Kavcic and Sondhi both noted that the downward price pressure will continue into next year because mortgage rates are pushing above five per cent–and more interest rate hikes could be on the horizon.

According to Sondhi, home prices are expected to fall by about half of the gains made during the pandemic. However, they cautioned that supply levels represent a key risk to TD’s predictions.

“Rising interest rates are making it difficult for homeowners to make their monthly payments. Some of them may be forced to sell their homes, even though the number of new listings each month is still relatively low,” Sondhi wrote.

“If a large number of these homeowners list their homes, prices could drop more than we expect.”


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