The 10 Most Expensive Homes in Canada

Canada’s luxury real estate is sought-after the world over, and that isn’t surprising more so after you’ve taken a look at the list of the top 10 most expensive homes in Canada below. From jaw-dropping big city mansions, exquisite ocean-side estates, to impressive rural acreages, discerning buyers are having a feast at this taste of Canadian luxury real estate.

Alberta’s 242004 Range Road 32 in Rural Rocky View M.D

With an asking price of $30 million CAD, this equestrian’s dream in Springfield, Kestral Ridge Farms boasts of 160 acres of the beautiful Canadian Rocky Mountains and the Elbow Valley. The home has separate quarters for staff, is just minutes away from Calgary, and has a lot of possibilities should you decide to further develop the land. Nevertheless, the home is grand enough now for you and your guests to live in comfortable luxury.

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Alberta’s Kettle Lake Ranch in the Rural Foothills M.D.

242 acres of Alberta’s pristine wilderness can be yours for just $28,899,000 CAD. The grounds feature a horse barn, a pasture, a paddock, and a covered bridge. The home itself is a 5,000 sq. ft. bungalow with 6 luxurious baths, tasteful details and décor, plus a high-end kitchen.

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Ontario’s 10 High Point Rd in Toronto

A $28,800,000 CAD palatial mansion with gold leaf wall treatments, 7 limestone fireplaces, and an onyx bar awaits you in Toronto. The magnificent urban property sits on 2 acres in the city itself!

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British Columbia’s 4749 Belmont Ave. in Vancouver

This Vancouver house sits in the much sought-after Point Grey neighbourhood and is up for grabs for $25,800,000 CAD. Although the home is a boarded up relic, the fabulous views in this home is well worth the price!

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Celine Dion’s ÎLE GAGNON in Laval-Ouest (Laval)

A 24,000 sq. ft. French Normand Chateau in an exclusive 830,000 sq. ft. private island can be yours for $25,500,000 CAD. All you have to do is come up with the asking price and the mansion is yours, ready to be lived-in. Hmm, tempting!

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68 The Bridle Path in Toronto

4 acres of Toronto’s exclusive Bridle Path is up for grabs for exactly $25 million CAD. The home was designed by Gordon Ridgely Architecture & Gluckstein, making it a chateau worth craving for!

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Quebec’s 51 Rue Vercheres at Magog

Another opulent and stately home for exactly $25 million CAD, this 20-room home in Lake Magog sits on 8 acres of land and features 3 guest houses aside from the main home.

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British Columbia’s 5050 Happy Valley Lane in West Vancouver

This West Vancouver home has world class quality 8 bathrooms and 7 bedrooms sitting on 2.3 acres of land for just $22,800,000 CAD. That’s almost a steal!

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British Columbia’s 4868 Belmont Ave. at Vancouver West

A contemporary 3 story home in the coveted Point Grey area, this 12,000 sq. ft. Hawaiian style mansion is on the market for $21,800,000. If you love city views, mountain views, and ocean views, this Canadian luxury home is for you!

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Alberta’s Terre Blanche-25130 Escarpment Ridge in Rural Rocky View County

This $20 million CAD 17,000 sq. ft. French manor is just a stone’s throw away from Calgary. The 10-bedroom house oozes with European sophistication and luxury on a 10-acre property with magnificent views of the Canadian Rockies.

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How Brexit Can Make the Vancouver and Toronto Real Estate Markets Even Hotter

Policy makers have been trying to slow down the skyrocketing prices of homes in Toronto and Vancouver and it looks like Brexit could add more fuel to their headache. How so? Realtors from Vancouver and Toronto are currently pitching Canada’s most-loved cities as a safe haven for real estate investors now that investing in London seems a lot riskier, thanks to Brexit.

The owner of Toronto brokerage Engel & Völkers, Anita Springate-Rinaud was quoted as saying that Brexit is good for Toronto brokers, further saying that field agents will most likely begin calling to redirect their investments to Toronto – a seemingly safer bet from an investor’s point of view.

Foreign Investors Eyeing Canada for Future Investments

It is no secret that foreign investors are now viewing Canada as the land of certainty as far as real estate is concerned. In fact, if Springate-Rinaud’s statement is right, we can expect an even higher demand for our office towers, homes, and condos in Toronto and Vancouver from foreign moneyed clients.

Figures from Cushman and Wakefield shared that there’s around $443 billion in global capital that wealthy investors have set aside for commercial property that’s not used up yet. Brian Kriter, Cushman & Wakefield’s executive managing director of valuation and advisory shared that within hours of the Brexit outcome, at 6:30am Toronto time, he was discussing potential ramifications of the event with colleagues in New York and London. Since then, he has met with an Asian commercial real estate lender who is now considering channeling his funds for plans of a multimillion-dollar financing deal in London to North America instead. As you read this article, Cushman & Wakefield may have already held their client day in New York. The client day is aimed to discuss the early effects of Brexit’s fallout.

Kriter shares that there is a phenomenal amount of capital that’s just looking for a new home in commercial real estate; and that right now, that capital is very fluid. He also added that foreign investors are seeing Canada as a land of certainty.

A Quick Look Back at London

It is to be noted that during the past 10 years, central London had the biggest price increase in residential property compared to any major city and that it has also been a favoured destination for global capital that’s seeking a stable sanctuary. Knight Frank LLP shared that 3 out of 4 newly built homes in London were bought by foreign buyers in 2013 and that half of the buyers were from Asia. As for commercial property, 70% of central London purchases in 2015 were made by foreigners.

Sotheby’s International Realty in Canada chief executive officer Brad Henderson added that Brexit and the pound’s plunging in value may go the other way around and attract even more foreign buyers if it creates more predictability in the UK.

The Chinese Factor

In 2014, China invested $18.3 billion in global pursuits, and more than half of that went to Sydney, Manhattan, and London according to Toronto-based real estate firm Colliers International Group. Since then, they’ve diversified to other markets, with Canada’s market getting a bigger slice of the money over the years. Chinese investment in Canada surged to 42% of $1.4 billion as of February this year. That’s a huge leap from previously recorded 5%.

With everything said, Sotheby’s Henderson said that we are still in the early days, so concerns about real estate markets overheating in Vancouver and Toronto may just play out as an overreaction. However, he further added that Canada is still a bargain and that capital will always go towards stable, more attractive markets.

Half a Million Reasons On Why You Need to Teach Your Kids About Real Estate Today

It is no secret that the younger generation is having a tough time entering the real estate market in Canada these days. With the average home in Canada now sporting an average price tag of $508,097 (as of April this year anyway), the average home price might be closer to a million by the time they’ve grown up enough to purchase a home of their own. How prepared they are going to be by that time largely falls on you.

Alarming Numbers?

Real estate prices in Canada surged up 13.1% this year, a trend that is likely to continue as Canada remains to be one of the most desirable places to migrate to and purchase a property at in the international real estate scene.

The struggle to buy their first home is evident in a survey by YPNextHome where 45% of Canadian millennials stated that they do not believe that they would be capable of purchasing their own home in the next 5 years. In fact, only a quarter of the survey respondents believes that they might be able to do so, while another quarter shared that they only see it happening if they can get a lot of help.

Not very encouraging, eh?

A survey by CIBG showed that although more than half of their Canadian millennial respondents are planning to purchase a home in the next 5 years, only just half of them have started saving towards that goal.

The younger generation is facing numerous financial challenges when it comes to future home ownership, aside from worrying about factors that can impact their ability to buy such as rising real estate prices and job security, they also have to content with coming up with the required sum for a home down payment.

We Need to Teach Financial Literacy

With all the challenges young future Canadian homeowners are facing, the importance of arming them with financial know-how as early as now can’t be discounted. If you need more convincing, just know that major investor groups, Canadian banks, and organizations such as the Financial Consumer Agency of Canada are taking matters into their own hands and have started programs for our youth’s financial literacy.

CIBC mortgages and lending vice-president Barry Gollom shared that the millennials’ plan and desire to own their own homes in the next few years is plagued by many hindrances and competing financial priorities, but that can be addressed by empowering them with knowledge so that they can map out a realistic time frame to make their goal of homeownership a reality.

Yes, it won’t be easy, but this way, it is certainly attainable.

Time to Act is Now

Another CIBC survey shares that 77% of Canadians believe that the younger generation is indeed having a tougher time as compared to previous generations and the majority believe that help should be extended to millennials so they can break into the housing market.

With Canadian home prices going up year after year (although the figures are largely affected by the boom in Vancouver and Toronto, so some markets are friendlier to those with limited finances), millennials would need $200,000 more to purchase the same half a million dollars property now because the average by then would have climbed up to $709,811.

Looking for another reason to teach your kids about real estate today? Think about this, the average home price back in 1992 is less than a third of what the same property costs today.

Yes, time is ticking, and home prices will continue to go up. How prepared are your kids for that?

Interested in investing in Toronto real estate? Bookmark Marketplace Toronto for updates and Toronto real estate news. Have an enquiry? Contact us soon!

Forecast Says Canadian Real Estate to Have Largest Annual Price Increase this Century

One of the country’s biggest real estate companies, Royal Lepage forecasted that Canadian real estate price will have its biggest increase for this century, the largest appreciation leap in the last 16 years.

The Rise Continues

In a report released mid of this week, Royal Lepage shared that low-interest rates and economic uncertainty in other countries are still fueling the high demand for Canadian real estate. The real estate company also predicted that prices will shoot up by about 12.4% this year as compared to 2015, making the average rise up to $563,000.

Royal Lepage added that Vancouver will still lead the price increase across the nation, with a predicted increase of 27% or an average home price of $1.206 million. Toronto, on the other hand, will average to $718,000, a rise of 14.9%.

Lepage shared that their previous forecasts have not accounted for a long period of low mortgage rates, a factor that is no doubt fueling the housing market at current time.

Lepage chief executive Phil Soper says that their previous forecasting models only included a modest rise in the cost of borrowing, hence their prediction of a slowing housing market as 2016 progresses. With the introduction of new social and economic disruptions, the Bank of Canada is most likely to leave the current interest rates as is, which will have an effect on real estate. He added that no correction seems to be in the works for the red-hot Toronto and Vancouver markets.

Foreign Ownership

Lepage added that foreign money is likely to continue flowing into the Canadian commercial real estate market despite the uncertainty brought by Brexit. Their internal surveys state that foreign markets do have an impact on Vancouver and Toronto real estate, but money is coming from more than just the European Union.

Lepage’s surveys of 74% of agents in Greater Vancouver and 71% of agents in GTA reported an increase in foreign investor activity in the second quarter of 2016. Foreign investors are defined in here as people who live outside of Canada for the past 6 months. Lepage also shared that 37% of Greater Vancouver agents and 35% of GTA agents believe that ownership by foreigners accounts for less than 10% of sales.

Meanwhile, the government is still thinking of ways to deal with the impact of foreign ownership of real estate. The federal finance minister recently announced that they’ve created a working group of municipal and provincial counterparts to consider the issue in Vancouver and Toronto. Earlier this week, Vancouver was granted the right to tax owners of vacant property by British Columbia, a move that partially affects foreign investors.

Too Much Government Involvement? 

Soper warned against too much government involvement in the housing market, saying that the excessive use of tax policy to artificially affect the values of assets in an open market economy like what Canada has could have a negative impact more so in an industry like housing. With that said, he also shared that people in real estate do have concerns about the impact on prices the fast-paced market will bring.

Soper warned speculators that people who see buying residential real estate as a buy and flip investment may get burned when the market slows down, so better treat it as a long term investment like they do at Royal Lepage.

Need help investing in a home? Speak with your trusty Toronto Mortgage Brokers today! We’ll strive to answer your questions and help you into a brighter financial future. Contact us now!

Home Prices in Toronto Climb Up 16.8% in June

Demand for homes in Toronto continues and home prices keep spiraling up. Last month, the average home price for the region of Toronto reached a record high of $746,546 as released by the Toronto Real Estate Board on Wednesday. That’s an increase of 16.8% compared to a similar period last year!

Home prices in Toronto have been steadily increasing over the past year and more, fueling discussions about housing prices in the city for which the board plans to release additional research on.

Ever Increasing Demand

TREB president Larry Cerqua says that the lack of supply for homes in the GTA should be discussed as an important matter in the coming months when local, provincial, and federal levels of government discuss the topic.

He added that although there is no doubt about the fact that the demand is at a record level, it is the would-be home buyers that are facing this ever-growing challenge of finding a home amidst the declining supply in listings.

What Cerqua says is true. New listings in June was actually down by 3.8%, although TREB recorded 12,794 sales in June, an increase of 7.5% more sales. This only means that the already low supply is a lot smaller now while more people are still looking for homes.

This low supply partly caused by reluctant homeowners who are unwilling to let go of their properties, but who can blame them when finding a new one is not easy either. Although some homeowners acknowledge and feel the need to upgrade, especially if they have a growing family, they are choosing to renovate rather than move.

Skyrocketing Home Prices

It should be noted that home prices rose up to an average of $775,400 in the city of Toronto in June. The average for the same month last year is almost $100,000 less, coming in at just $682,489. That’s a huge leap!

Earlier this week, we shared in some interesting nuggets of information in our Unbelievable Facts About Toronto Real Estate article. We’ve shared that a detached Toronto home will now cost you more than $1.2 million on average, leaping 15.2% more compared to a similar period just a mere 12 months ago.

Detached homes across the region rose up about 20% in prices over the past year. Townhomes increased 14.9% and highly in demand but low in supply semi-detached homes rose 16.4%. In the same period, condo prices increased by just 7.7%.

Fueled by Migration?

A provincial working group has been recently announced by the federal government and was tasked to look at policy options that can cool the still climbing Toronto housing market. They also promised to take a closer look into how foreign investments might be fueling the high prices in both the Toronto and Vancouver area.

GTA is expected to have an additional 2,800,000 new residents over the next 25 years, a significant portion of which would no doubt be from outside Canada. However, the Toronto migration boom is also partly because more and more Canadians are now planning to make Toronto their future home.

Not a fan of purchasing a second home or an income property? Then use your home equity to further increase your property’s value by using it for upgrades! Contact us to find out more about how you can use your current home equity to finance your future investments.

 

Toronto and Vancouver Mortgage Rules to Change Starting mid-February

Planning to purchase a new home? Moving to Toronto or Vancouver soon? You might be in for a surprise starting February 15,2016! Vancouver and Toronto’s housing markets are at a frenzy and the Liberal government turned to tweaking lending rules in an effort to cool them down.

The Big News

In an announcement a few weeks ago, it was revealed that new residential mortgages with portions in excess of $500,000 will be subject to a 10% down payment instead of the current 5% –  a change that will take effect a month from now. The first $500,000 will still be subject to a 5% down payment and existing mortgages will remain as is, with homes costing more than a million still having to follow the required 20% down payment, as shared by Finance Minister Bill Morneau.

Benjamin Tal, CIBC’s deputy chief economist says that Calgary could get hit hard by this change – because it has a relatively large share of high-ratio mortgages compared to other places.

A Matter of Safety?

Different policy changes had been placed in effect in recent years to limit Canadians’ vulnerability to financial risk in the event of a correction in the housing market. Since 2008, there has been four occasions when mortgage rules had been tightened to cool off blistering real estate markets. The cooling effect is indeed effective, albeit it should be noted that the effects are only temporary.

Morneau told reporters in an interview that the increase in down payment is believed to help with stabilising the entire market as well as make people more secure by creating a buffer. It is estimated that about 1% of the total market will be affected by this change; a number that is equivalent to an estimated number of less than 10,000 home purchasers.

Morneau further shares that the move is aimed to cool down and keep the housing market stable; more so for Toronto and Vancouver, both of which are sporting fiery hot real estate markets. 4% of Toronto’s home sales and 6% of Vancouver’s home sales are above $500,000; a big difference compared to the national average of only 1%.

The Minister also shared that the change is planned in such a way to not have a negative impact on certain markets, like Alberta’s where the situation is more challenging.

The announcement has been widely expected in light of growing concerns that homeowners could end up being in a very tight situation if prices suddenly collapse in an overheated market.

Comes with a Price

What does this mean for the aspiring home owner? A lot, apparently.

Those who may be planning to purchase a pricier home in Vancouver and Toronto might be ‘forced’ to put off doing so because they would have to save up more money for the down payment, not to mention having to meet some mortgage requirements like having a minimum annual income of $120,000 with no debts to qualify if someone wants to purchase a half million-dollar home. A family or individual with a monthly income of $7,000 after taxes and spends $5,000 to $6,000 on monthly expenses will need a few years to save up for the new down payment – something that’s not to be taken lightly.

Need help getting approved for a home mortgage or have some questions regarding this mortgage news? Meeting your real estate financing needs is our expertise! Contact us today!

Canadian Household Debt Soars to $1.64 for Every Dollar Earned

How’s your debt situation? If you’re making as much as you owe or more, then you’re doing great! The 3rd quarter of 2015 brought some attention-grabbing news as borrowing rose faster compared to income growth for the average Canadian household.

With the housing markets in Vancouver and Toronto still as hot as ever and the slow income growth in our oil-producing regions, debt level has risen and may continue to do so to record-high levels.

Statistics Canada released the data on mid-December 2015, sharing that the amount of household debt rose to 163.7% compared to household income for this year’s 3rd quarter, still a rise from 2nd quarter’s 162.7%. That’s owing $1.64 for every dollar of disposable income made for the average Canadian household.

Doug Porter, Bank of Montreal’s chief economist says that the combination of hearty borrowing and sluggish income growth brought the current deterioration in the headline as expected. He adds that mortgage growth is being driven up by Ontario’s and BC’s hot housing markets; in effect over-riding the oil-producing region’s softness. He further shares that income growth is being dampened by the continuing decline in oil and commodity prices.

More Significant Numbers

Disposable income did increase by 0.8%, but then household credit grew by 1.4%. To date, total household credit market debt is at $1.892 trillion (includes non-mortgage and mortgage loans plus consumer credit). The numbers are at $1.234 trillion for mortgage debt and at $572.3 billion for consumer credit debt.

Policy markets and economists continues to be concerned with what’s going on in the household market and the current numbers for household debt. Earlier this month, Ottawa made a move to require larger down payments for homes costing more than $500,00 to cool some of our hottest real estate markets.

Diana Petramala, TD Bank’s economist shared that the new rules will most likely only affect a small percentage of the housing market. She then adds that the debt to income ratio will likely to keep rising through 2016, given that there is rising unemployment. Oil producing regions such as Saskatchewan and Alberta will continue to have to deal with continued decline in home prices and rising unemployment.

Managing debts have not been a real problem for consumers in the past because of low interest rates; but then, what will happen when borrowing actually becomes ‘expensive’?

How Does Next Year Look?

This year’s report was released the day before the Bank of Canada was set to release its latest financial system review. The review will include potential vulnerabilities for the financial system and an examination of household debt.

Porter shares that the Bank of Canada’s policy is not likely to be affected much by the rising ratio of household debt to disposable income. He further shares that in the bank’s latest policy statement, the bank sees that the overall risks to financial stability are developing as expected despite the growing vulnerabilities in the household sector.

The household debt service ratio slipped to 13.6%, and the interest-only debt service ratio fell to a record low of 6.1%, while the ratio of total household debts to total assets rose 0.1% from 16.9% in the 2nd quarter to a solid 17% in the 3rd quarter.

Not sure what to make of these numbers? Contact your trusty Toronto mortgage brokers for help. We’ll make sure to answer your borrowing questions and assist you make smart informed decisions when it comes to your mortgage.