When it comes to the Canadian housing market, there are lots of options for where to live! From renting an apartment to owning a single-family home, it all comes down to where you see yourself living and what you can afford! The beauty is, there is no right or wrong answer when it comes to renting versus buying but let’s break down the pros and cons of both and hopefully help you to decide which is best for you!

why do people rent?

One of the most common answers to this question is affordability. Most people rent because they believe it is cheaper than owning a home. This can be true in some cases, but there are also times when monthly rent costs are higher than monthly mortgage payments. Of course, there are also cases where rent is far more affordable than buying, especially when you factor in the cost of a down payment and maintenance on a home you own, rather than one you rent. Affordability is fairly dependent on an individual’s situation, but it is not the only decision factor for choosing to rent.

Another reason individuals may choose to rent is that they simply aren’t sure where they want to live, or maybe they cannot find a place that fits their needs. If you are new to an area, you may want to rent in the meantime so you can get to know the neighbourhoods and determine which area is the right fit for you. In some cases, you simply may be unable to find a home that is affordable to buy in the area you want or within a reasonable commute from your work.

For individuals who travel a lot for work or like to be free-floating, renting can be the perfect option but if you simply believe buying a home to be out of the question, it is time to take a hard look at your options because it may not be so far fetched!

pros and cons of renting:

To help you decide if renting is right for you, we have put together a little list of pros versus cons to help you see if it is the right fit.

why do people buy?

According to the most recent data, Canada boasts an overall homeownership rate of 67.8%. Even for those Canadians aged 35 and under, more than 40% of households own their own homes. This is quite an impressive statistic! So, let’s look at why people choose to buy.

One of the main reasons that people choose to buy a home is to have the stability and peace of mind of owning the place you live. This means you are not at risk of being put in a situation where the landlord wants to move their parents into the basement suite and you have to leave or having to deal with increased costs if you go to renew a lease agreement.

For others, the benefit to buying comes in building up equity and ensuring that nest egg for your future. When you choose to rent, you are paying into someone else’s mortgage and into their future but when you work towards buying your own home, suddenly all that money you invested is going to your future instead. This is an extremely important aspect to consider in today’s age when many are having trouble with the idea of saving for retirement.

Now I get it, you may be thinking “if I can’t afford to retire, how can I afford to buy a house” but if you can afford to pay the high cost of rent in today’s market, then home ownership isn’t as far out of reach as you think. This is especially true if you buy a two-story home and rent out the basement, giving you ample living space upstairs but also additional income to pay your mortgage.

pros and cons of buying:

To further show the benefits and costs to buying, we have broken down some pros and cons to help you to determine if this is the right path for you.

to rent or buy, that is the question!

Did you know? 4 in 10 households spend more than 30 per cent of their pre-tax income on rent, which is above the commonly accepted affordability threshold.

The latest National Bank report revealed that monthly mortgage costs for median-priced condos was higher than the average monthly rent for a similar unit in Toronto, Montreal, Vancouver, Victoria and Hamilton. At the same time, monthly mortgage payments were lower than rents in Calgary, Edmonton, Quebec City, Winnipeg and Ottawa. While this data does not include suburbs, it shows a staggering difference between mortgage payments and rent payments.

If someone can rent for $900 a month or pay a mortgage of $1200 a month, it may seem like a no brainer but it is important to remember that paying rent does not build equity! However, if you are unsure of where you want to live or cannot find a suitable and affordable home with a close enough commute to work, renting may be your only option. This is where checking listings and discussing with a real estate agent may open doors and where a mortgage broker can come in handy to help you determine if purchasing a home is viable in your near future.

yes, you can buy!

The reality is that in the long run, homeowners often fare financially better than renters because homeownership enables forced savings that accumulate over the years, growing into a sizeable nest egg.

If you are unhappy renting or really prefer the idea of owning your own home, you CAN. It is time to stop assuming you cannot make the leap from renting to buying – all you need is the right information and the right preparation!

To determine if you are able to purchase a home, a good place to start is the My Mortgage Toolbox app from Dominion Lending Centers. This app is perfect for seeing what you can afford. Using the app to calculate minimum down payments and monthly mortgage costs can help you to get a good picture of the financial landscape and your options. Looking at your budget and evaluating your current rent costs and other monthly expenses can also help you to determine your affordability bracket.

Some other things to consider before buying include:

• Your credit score – do you have good financial standing to be approved for a mortgage?
• Your savings – do you have any money put away for a downpayment? If not, do you have wiggle room in your budget to start saving?
• Your time – do you have the resources to maintain a home from the yard to any necessary repairs?

If buying a home to live in is out of the question due to the availability in your area or cost of homes close to work, another option is to consider an investment opportunity. Maybe you cannot afford to buy in the area you want so you rent in order to keep your commute short and be in a neighbourhood you love. However, you can still reap the equity benefits by investing in a vacation or rental property which would give you the necessary nest egg and help you feel more secure about your future financial situation. You could keep the investment property as long as you want! If you end up finding the perfect home in your area down the line, you could always sell your investment property and take the earnings for a down payment on the right home – or keep it as an extra security blanket!

Regardless of whether you choose to continue renting or make the leap to owning your own home, the most important factor is your financial security. What works for your friend or your parents may not work for you – and that is okay! However, educating yourself and looking into all the options will ensure that, at the end of the day, you are in the best situation for yourself.

Fitness trainer Mandy Gill makes the case for Summer Salad Rolls!

Call them spring rolls, summer rolls, salad rolls, fresh rolls—the common denominator is that we’re certain these are the only kind of rolls you’ll want this summer.

This easy-to-make recipe, bursting with flavour, can be served as a side dish at a sunny barbecue or enjoyed as a full meal on its own. The cost to make rolls at home is a fraction of what you’d pay in a restaurant or grocery store—plus you can add in whatever ingredients you’d like.

I choose to order nearly all the items below directly to my doorstep from Vitasave.ca, which has options for free shipping across Canada and a commitment to make healthy living easy and affordable for everyone. It’s also vegan, gluten-free and dairy-free.

Summer Salad Rolls

Serving: 8-10 rolls

Total Time: 30 min

• 1 package spring roll rice paper wrappers (found in the Asian section of your local grocery store; go for the option with little to no added sodium)
• 1 head romaine lettuce (finely chopped)
• 4-5 large rainbow carrots (peeled into thin ribbons)
• ¼ cup chia seeds
• ¼ cup hemp seeds
• ½ cup fresh mint (this completes the flavour)
• » ½ cup Thai basil (sub cilantro if needed)

Instructions:

1. Take a rice paper and dip it into warm water. Immediately pull it out of the water, letting it drip off for a second before placing it onto a clean surface with a bit of grip (a cutting board works well).
2. Lay carrots side by side in the center of the rice paper. This is where the colour will come from.
3. Layer lettuce, mint, Thai basil, hemp and chia seeds on top.
4. Pull up the bottom of the rice paper wrapper like you would to wrap a burrito, tucking the sides, and meeting at the top edge.
   1. *Tip: use the first roll as an experiment (and the one you eat), seeing as it likely won’t be your prettiest!
5. Cut in half with a sharp knife and serve with the Lemon Garlic Tahini sauce.

Lemon Garlic Tahini

Serving: 2/3 cup

• ½ cup tahini (from raw or roasted sesame seeds)
• ¼ cup warm water, plus more as needed
• 1 tbsp avocado oil
• 1 tbsp Flavorgod, lemon & garlic
• Squeeze of lemon, salt & pepper to taste

Instructions:

1. Add tahini, avocado oil, Flavorgod lemon & garlic, and a squeeze of lemon into a small mixing bowl. Combine together.
2. Add water a little at a time, continuing to whisk, until you have a creamy sauce. Taste and adjust seasonings as needed.
3. If you have any leftover sauce, it can be kept in the fridge for 1-2 weeks. It’s delicious on salads, falafel, veggie burgers, and much more!

Published by DLC Marketing Team

Relocate or Renovate.

Like Lighting in a Bottle. That’s how Todd Talbot describes the chemistry between him and Jillian Harris, his co-host of the reality TV series Love It or List It Vancouver. There’s an undeniable electricity that flows between the pair who have battled against each other through 104 hour-long episodes of the home-design series. Sparks fly, but ultimately, both have the same goal: to find a solution for homeowners whose spaces simply don’t suit their needs.

In the “love it” corner is Harris, an interior designer (she wore her heart on her sleeve on The Bachelor and The Bachelorette) whose strategy is to help homeowners kiss and make up with their space, thanks to her design-savvy renovation. Talbot, a realtor (he’s been acting on stage and screen since he was a kid), is firmly in the “list it” corner, coaching quarrelsome couples to sell and start fresh.

The sparring is real, but there’s no bad blood between Harris and Talbot. “Jill and I really agree with each other 99 per cent of the time,” says Talbot. “We’re like brother and sister with each other, on camera and off.”

EMBRACING CHANGE

Buy or renovate? Talbot says the answer isn’t absolute. “Generally speaking [buying a house]; it’s a really fun journey. And it can be really fun on the reno side,” he says. “Life is lived in the grey areas, the nuances in between.” Those shades of grey involve negotiation and prioritization, among other practical and philosophical considerations that happen behind the scenes.

Off set, Talbot is a dedicated DIYer. “My happy place is building and renovating. I manage all my rental properties and do almost all the maintenance,” he says. He even renovated the house he shares with his wife and two children, located in Lions Bay, a sleepy seaside town in B.C. But that doesn’t mean they’ll live there forever. Like the homeowners featured on the show, Talbot and his wife wrestle with opposing forces. “Are we going to sell? Stay? Move?” Relocation to a condo in the city is a real consideration.

That struggle is what makes the show’s appeal universal. Our lives are constantly shifting. Babies are born and kids move out. Jobs change and communities evolve. Still, many homeowners are reluctant to step outside of their comfort zones, says Talbot, noting that the people who come on the show are fixated on location. “I’m the opposite: I’m a change guy. I love the idea of a different home in a different area. Nothing excites me more.”

As the TV series closes in on its fifth year of filming in June, Harris, a new mom, reflects on how her design sensibilities have shifted. “Now that I’m a parent, especially, I’m leaning towards more colour, less clutter and softer finishes, whereas before I was all about everything being white,” she says.

No two families are alike, but all are in desperate need of change, says Harris. She eases the transition, giving growing families more functional space within the existing square footage or cozying up a family home that feels empty after the kids have moved out. Each has their own wants, needs and personal style, which Harris tries to tease out of the homeowners so she can design workable spaces they love. “It’s our job to show them their best options and help guide them towards the right choice for them,” says Harris.

The obstacles families face, however, go beyond bad design and unpredictable real estate markets. A recent episode of Love It or List It Vancouver, where the homeowner uses a wheelchair, presented a new type of design challenge for Harris. “I wanted to think about every part of her home she would experience, from the front entrance to the kitchen cabinetry to being in the living room with her family. Even though they ultimately chose to list [the house], that episode really stuck with me and reminds me not to take things for granted.”

FINANCING FIRST

Whether overhauling an aging home with a sinking foundation, or buying bigger in a hot real estate market, those decisions are guided by budget. “People don’t want to talk about money. It’s not sexy,” says Talbot. His true passion for real estate is connected with the financial side. “What I really love doing is empowering people and coaching them to be able to make the decision to fulfil their vision.”

Talbot believes that gathering information and building knowledge is essential, rather than solely relying on an expert’s perspective. When you start making decisions based on instinct, it takes lots of the worry out of homeownership. He also believes everyone should view real estate as an investment and determine the end game of the property before they buy it: when they’re going to sell it and who they’re going to sell it to.

“At the end of the day, for anyone making decisions about renos or buying and selling, that’s a very personal choice and a choice that ultimately the homeowner takes responsibility for,” says Talbot.

Harris also advises thinking long-term. “It’s so important to look at both your five and 10-year plan as a family. If your house does not have any additional square footage to work with, then maybe a lipstick reno and a quick sell is your best option,” she says. “If your home does have extra space [and] it’s just not being utilized well, but you love the neighbourhood, then I would suggest renovating it to support your family for years to come.”

HOMEOWNERSHIP FOR ALL

For his part, Talbot is rethinking the entire ethos of homeownership. “In today’s day and age, we don’t live the same way as our grandparents did, [who] lived in their houses for 50 years. [Now] houses are more designed to facilitate lifestyle than be the lifestyle themselves,” he says.

“I’m really interested in the idea of redefining the Canadian dream of what makes a great house.” I think we’ve gotten off target as a society: 5,000 square feet is indulgent!” Instead, Talbot says it’s about those shades of grey and finding the sweet spot where financial responsibility, sustainability and quality of life intersect.

That’s a tough sell for some. Especially when our social media feeds are awash with idyllic images of families frolicking in sprawling backyards and cooking in couture kitchens. Dream home envy indeed. Harris sees beyond the soft filters and careful cropping and suggests homeowners look inward.

“I think the best thing is to identify what’s important to you and then build a plan around how to achieve that,” she says. “Or, be on Love It or List It Vancouver and have Todd and I figure it all out for you!”

TODD’S FIRST MORTGAGE

“Real estate kind of snuck up on me. I didn’t get into it for the money,” says Talbot who was working as successful actor when he started renovating.

“I’ve always struggled with this: being an artist and this financial fixation.” Talbot describes his first foray into the real estate market. “I bought a two-bedroom, two bathroom condo in [the Kitsilano neighbourhood in Vancouver], which happened to be the display suite. I had no furniture so I tried to negotiate in all the staging furniture.

They didn’t go for it. The only way I could swing buying my first place was to convince my buddy to rent the other room from me and that ended up subsidizing half my monthly costs. I drew up what I would later learn was a rental contract, literally on the back of a napkin. We lived together for three years before that property turned into a rental property. I refinanced it many times and funded multiple other properties with it.

I learned huge lessons owning that first property, which I sold a few years ago.”

JILLIAN’S DESIGN SECRETS

Harris is expanding her airy aesthetic of white-on-white and introducing saturated splashes of colour. Here, she shares five tips on finding your own style. Mix it up “I like to mix vintage with all sorts of eclectic styles. I like a tad of whimsy in a space and I love to see a person’s personality and life experiences shine through in the décor.” Harris also likes blending textures: “I love mixing muslins with thick rugs and knits and sequins and sparkles.”

Build Layers: Start with a blank canvas and build layers within the room. Anchor a room with an area rug, then add larger investment pieces such as sofas and loveseats. Then add in smaller pieces such as side chairs, ottomans and table lamps.

Get Colorful: “I have had a lot of fun over the years experimenting with coloured kitchens, using finishes like olive green and royal blue.”

Add Artwork: Harris suggests finding something inexpensive yet valuable in a sentimental way to inject polish and personality into your home. Or making a piece from meaningful items. “Frame flies from your great grandpa’s fly-fishing collection.”

Accessorize: Achieve a luxe look for less with a high-low mix of accessories, such as “steals” from stores such as Home- Sense and Target and “splurges” from boutiques, which act as “the icing” on the cake. “It gives your house that look of timelessness and richness.”

Twenty-five or thirty years can sound like an impossibly long time to service a loan – and for many of us, it is. If you are looking to pay off your mortgage faster, here are some tried-and-true tactics to get you to financial freedom that much sooner!

1. Make a Double Mortgage Payment: A double payment once a year can shave over four years off the total life of the mortgage! Better yet, if your mortgage allows for double-up payments, another option is paying an extra $100 into your mortgage – per month. This can save you over $26,000 in interest on a 5.5% fixed-rate, 25-year amortized mortgage.
2. Increase Your Payment Frequency: Changing your mortgage from monthly to bi-weekly accelerated payments can shave over three years off your mortgage. At $2,000 a month, three years of no payments is worth $72,000 (not to mention the interest saved!).
3. Increase Your Payment: Did you know? A one-time 10% increase can shave four years off the mortgage. That’s $96,000 in savings! Imagine if you bumped the payment 10% every year from the get-go. You would be mortgage-free in 13 years—start to finish! Can’t do it? How about 5% every year? You would be mortgage-free in 18 years! You can also consider increasing the payment by the amount of your annual raise.
4. Lump Sum Payments: This is another option to become mortgage-free even faster! Even just one extra payment a year equivalent to one monthly payment will give you similar results as #2 above. Annual work bonuses or other extra-income is a great option for this.
5. Renegotiate When Rates Drop: Revisiting your mortgage is a good idea when rates drop. However, it is always best to get expert advice from a mortgage broker to ensure it makes sense for you. If so, the benefits can be huge! For instance, a 1% reduction on a $300,000 mortgage will save $250 a month—times five years, that’s $15,000.
6. Maintain a High Credit Rating: Even if you have already qualified for the mortgage you want, don’t let your credit rating slip. Pay your bills on time and keep balances low in relation to limits on credit cards, lines of credit, etc. Ideally, using 30% or less of your available credit will garner the highest results (assuming you pay the balances in full every month). Even if you’re filling your card to its credit limit max and paying it off in full each month, it will look like you are maxing out your credit limit and your credit score will drop accordingly.
7. Increase Your Mortgage: Increasing your mortgage for the purpose of debt consolidation can be helpful for paying off credit card debt, line of credits, car loan and so on for a better rate and a set payment plan.
8. Make an RRSP Contribution: By making an RRSP contribution, you can then use your income tax refund to pay down your mortgage!
9. Switch to a Variable Rate: Switching your mortgage to variable-rate while keeping your payments the same as if on fixed can help you pay your mortgage faster. Since variable rates are typically lower, you will be paying more to your principal loan versus the interest.
   • Caution: Variable rates are not for everyone. Always be sure to seek the help of a mortgage broker to find out if variable-rates are the best choice for you.
10. Take Your Mortgage With You: When you move, switch your old mortgage to the new property to avoid a penalty or higher rate on a new mortgage. This is called “porting”, however not all mortgages have this feature so be sure to ask! It is not widely known but could save you a ton of money.
11. Set Up Automatic Savings: Even setting aside $10 per paycheck can help! When your extra savings reaches the amount of one mortgage payment, apply it to the mortgage! This concept goes nicely with #4.
12. Unhook From The Money Drip: Stop paying with your fancy points credit or debit card. These make it way too easy to overspend. Go old school, go off the grid and pay cash. It works and can help you stay on track!
13. Don’t Buy on Layaway: You know, those don’t-pay-for-six-month “deals”, well a lot can change in six-months and you’ll still be on the hook. If you cannot afford it now, don’t buy it. Wait until you are financially able to make the investment.
14. Downsize Your House: Are you living in a 5-bedroom family home but your kids are grown up and moved out? Consider downsizing to a smaller house. It will save you money on your mortgage payments and maintenance fees in the long run!
15. Rent Out the Basement: Not ready to move? Consider converting spare rooms to rental and use the income to pay down debt.
16. Make Your Mortgage Tax-Deductible: If you are self-employed, own rental property or have investments, this is likely possible. Check with your Dominion Lending Centres mortgage broker to see if this option is right for you!
17. Prioritize Your Payments: Define your various debts by category. This can help you see where you spend your money and also help you pay off your debt faster.
18. Start With the Highest-Interest Rate: Pay off loans with the highest interest rates first, as these are the ones eating into your extra income!
19. Leave Tax-Deductible Until Last: Pay the non-tax deductible loans first and fastest and leave tax-deductible debt to the end.
20. Focus on Ugly Debt First: Debt such as credit card balances are the worst on your credit rating. Pay these off first.
21. Pay Off Bad Debt Next: Debt for items that depreciate in value, such as car or boat loans, should be the next on your priority list.
22. Clear Good Debt Last: Loans such as mortgages or investments for assets that should appreciate in value are the least harmful to your net worth and can be paid out last.
23. Buy a New Car – Outright! Finance it if you have to but don’t lease, unless you are self-employed in which case leasing makes more sense.
24. Use Your Secret Stash: If you have $20,000 in a bank account for a rainy-day or vacation and yet owe $20,000 on a line of credit, you need to reconsider. The bank account is paying you next to no interest (which is taxable income) and the line of credit rate is way higher (and not tax deductible). You know what to do. You can keep the line of credit open and on standby for a rainy day. Make it the secret line of credit that you have but never use.
25. Give your Banker More Money: No, really. Keep enough in your chequing account to meet the minimum requirement to waive your service charges. Some banks charge a fee for transactions and nothing, zero, zilch, zip if you keep $2,500 in the account. Let’s see, $10 x 12 is $120 a year to pay off debt. I’d have to earn 5% with the $2,500 in my savings account to come out ahead. No-brainer here. Oh yeah, if you need more than 25 transactions a month, see #12 above.

Let’s face it, your financial future will not get any brighter if you continue to run deficits forever. Unlike a bank or big company, you won’t get a bailout! Stop procrastinating and take charge of your own finances with the above tips!

If you are looking for expert advice about your mortgage and how to pay it down faster, contact a Dominion Lending Centres professional to discuss YOUR situation and options.

BORROWER BEWARE:

It is always important to take things with a grain of salt. This is especially important when it comes to too-good-to-be-true, ultra-low-rate mortgages. These “no frills” mortgages are often loaded with restrictions such as pre-payment limitations, fully-closed terms, stripped-out features or unusual penalties. If you’re not looking at what you’re giving up, you may regret it in the future. These hidden terms alone could prevent you from taking advantage of tips #1, 2, 3, 4, 5, 7, 8, 9, 10, 14, 16 and 22!

I can offer my clients lower rates because of the large volume of mortgages I successfully fund with lenders each year.

This enables me to offer wholesale versus retail pricing.

In most cases, using a mortgage broker is absolutely free to the borrower.

Mortgage brokers get paid a finder’s fee from the lender/bank once your client’s mortgage is placed and successfully funded. So it’s in my best interest to match your clients with the perfect mortgage product that meets their specific needs – or I won’t get paid!

I do my homework on available mortgage products and stay abreast of new products, or changes to existing products, to ensure I find the best mortgage to fit your clients’ specific needs.

Did you know?

Under the RRSP Home Buyers’ Plan, each individual first-time homebuyer can withdraw up to $25,000 from an RRSP for a down payment – tax- and interest-free – with 15 years to pay it back. And if a couple is buying their first home, they can each withdraw up to $25,000 from their RRSPs.

Luz Manjarres

Mortgage Professional

Tel: 519 933 3299

Fax: 519 652 8595

Email: lmanjarres@dominionlending.ca

Web: www.luzmanjarres.ca

I’ve got good news and bad news. The bad news is: we’re not getting any younger. The good news is: we’re not going away anytime soon, either, as life expectancy for Canadians is higher than ever before! At least, I think that’s good news—check back with me in 2050 and let’s see how we all feel about it.

Globally, we’ve hit astoundingly high population numbers for people aged 65+, exceeding a threshold of 672 million people (about 8.9% of the total population) in 2019. That’s an increase of more than 500 million compared to 1960 when there were about 150 million people above 65+ globally (roughly 5% of the global population). Oh yes, that’s a whole lot of people.

In fact, it’s only going to get more crowded as the years go by, with the UN estimating that the number of older persons (above 60) is projected to reach 2.1 billion by 2050. And we think it’s crowded now!

This brings us to Canada’s own ageing population: according to Statistics Canada, “seniors are expected to comprise around 23% to 25% of the population by 2036, and around 24% to 28% in 2061”. With a shrinking working population supporting that ~25% segment, the precise economic implications are too varied to be certain of any firm outcome. What is certain is that the older members of our population will need a place to live, which will have a significant effect on Canada’s real estate landscape.

EFFECTS ON THE SUPPLY OF REAL ESTATE

Our ageing population affects the supply of property in the real estate market in several interesting ways. The expectation was that baby boomers would find themselves living in large homes with more space than they needed once they’d retired and their children moved out. At that point, they were supposed to sell their property and downsize to smaller (or less expensive) homes. This influx of property into the market (projected to be half a million homes) would help meet rental or purchase demand, in some cases allowing developers to re-purpose the property into larger, higher density structures (especially in cities).

However, changes to the real estate market may significantly affect how that scenario plays out in reality.

• Small condos and detached or semi-detached townhouses used to be prime candidates for someone looking to downsize. Now, rising real estate prices (especially in cities like Toronto and Vancouver) can make this an incredibly difficult endeavor.
• Millennials (and soon Gen Zs) have begun to move back in with their parents, as they struggle to contend with exorbitant rent prices, lack of steady work, and extremely high property prices. It’s proven economical for them to live at home rent-free (or at least, with a much lower rent) and save their money to put towards buying homes of their own later.

With more reasons to remain in their current homes (such as their kids moving back in with them), as well as high property prices and a lack of suitable options to downsize to, older homeowners are increasingly choosing to hang on to their property. This, of course, delays the timeframe in which their (usually larger) homes will be released into the housing market, which in turn will further exacerbate property shortages.

EFFECTS ON THE DEMAND FOR REAL ESTATE

Our ageing population has implications for the demand side of the real estate market as well. Accessible property, for example, will increasingly grow in demand as people get older. Fierce competition in the housing market has made it difficult for older people to acquire suitable apartments or houses that cater to their needs (such as, ground floor units or accessibility-friendly rental housing).

Affordable, smaller housing with room for live-in or part-time caregivers, especially in close proximity to essential services and infrastructure (health services, public transit, malls/grocery stores, etc.) will become much more desirable as our population ages.

Some of this demand will likely be met by the government, as it works to fund the construction of homes for senior citizens through the Canada Mortgage and Housing Corporation (CMHC). This will prove vital in the years to come, as increasing numbers of modest to middle-income Canadians retire and start being priced out of the normal rental market. However, with Canada’s population projected to increase at a sharp rate until the middle of the century, we’ll need more than just government intervention to address the issue.

FINAL THOUGHTS

The effects of an ageing population on Canada’s own future will be far-reaching, but impossible to predict definitively. That’s not to say we don’t have a good idea of what the likely outcomes are—we’ll need more housing, and we’ll need to be able to support older Canadians, to name two—but nothing about the upcoming decades is written in stone. The manner in which our government addresses social security issues, housing crises, and indeed, which government we even have in power will all play a role in securing stability or uncertainty.

Any speculation on the effects of projected population growth figures should be tempered with the understanding that they’re precisely that: projections. Not everyone agrees with the UN’s assessment of rampant increases, arguing that we might see a return to “normal” population levels towards the end of the century instead of endlessly spiraling into overpopulation. But whatever the outcome, it’s important that we’re paying attention.

Major Cyber Threats to Real Estate Businesses.

While many industries have struggled to navigate the changes brought on by the pandemic, the real estate industry has continued to thrive. Although real estate has found ways to combat many of the unforeseen threats of COVID-19, cyber risks continue to be a heightened concern. Remote business operations have presented new digital vulnerabilities that, if left unprotected, can have disastrous and costly consequences on Canadian real estate businesses.

According to the CIRA 2020 Cybersecurity Report, approximately 30 per cent of Canadian businesses have seen a spike in the volume of cyberattacks and more than 50 per cent of businesses have implemented new cybersecurity protections in response to COVID-19. While this is certainly a step in the right direction, there is still work to be done as half of businesses still have not taken the appropriate security measures.

So, what are the five major cyber threats to real estate businesses and how can you protect against them? Let’s find out.

MORTGAGE CLOSING WIRE SCAMS

Wire scams are a very common cyber threat associated with payment transactions when buying a home. Hackers obtain personal information from upcoming homeowners by sending realistic-looking emails regarding mortgage closures. These emails commonly outline steps of how to wire the money over to the agent, but instead, the mortgage down payment is successfully taken by the hacker.

BUSINESS EMAIL COMPROMISE (BEC)

BEC is a type of cybercrime that tricks real estate employees into wiring funds to a fraudulent business partner. The hackers will mirror emails from CEOs, escrow agents or attorneys and wire funds to the con artist. This tactic has cost businesses billions of dollars and remains one of the most serious threats to real estate today.

TITLE FRAUD

Title fraud occurs when a fraudster executes an identity scam on someone else’s title. This starts with hackers stealing data from an unprotected real estate business or directly from the homeowners to obtain personal information. Email interception, phone scams and phishing attacks are the most common sources of identity fraud as victims unknowingly hand over personal information, unaware of the crime taking place. After the hackers have acquired the necessary information, fake identities are created using the hackers’ own picture and forged documents. The hackers will then undergo tasks like remortgaging the home or even selling the home while pretending to be the homeowners. Snowbirds are most targeted for these situations as potential buyers – and scammers – can view the home while the homeowners are away for months at a time.

UNPROTECTED INFRASTRUCTURE

Real estate businesses without secure IT infrastructure are more likely to be susceptible to cybercrimes such as malware, data breaches and ransomware. Due to minimal rules and regulations regarding a business’ in-house IT security, most real estate businesses have not invested in the proper training or programing to prevent them from cyber vulnerabilities. This is commonly seen with businesses that use cloud storage to organize data and other confidential information without embedding proper data protection software against potential hackers.

RANSOMWARE

The real estate industry, like many others, has been crippled by the effects of ransomware – a form of malware that can encrypt all data within a digital operating system. This makes all digital operations and systems unavailable until a ransom is paid by the business. This can be detrimental, especially to small real estate businesses, as most housing delegations and documentation processes are largely dependent on digital systems. These systems store information, undergo transaction details, communicate with business partners and clients and more. It only takes one employee to make the wrong click and lock out an entire business from essential workplace systems, forcing businesses to potentially pay a ransom with a hefty price tag.

WHY IS THIS IMPORTANT?

The pandemic has spiked an even larger demand for digital technology, and it is important for real estate businesses to not only adapt but do so safely and securely. The first step should always be to protect your clients, their personal information and the digital systems that help your businesses thrive. Implementing new cybersecurity technology and enforcing cybercrime training among staff are just some of the ways we can adapt to this new digital normal and prevent hackers from damaging real estate businesses across the country.

Published by FCT

November 20, 2020

The breakneck pace of technological change has fundamentally affected the way industries operate and innovate, and banking is no exception. Accessing financial services online has been the norm for years now, with an overwhelming majority of the population using digital channels for most banking transactions. The infrastructure that makes all of this possible, routinely processes massive amounts of sensitive data and needs to constantly evolve to ensure it all remains secure.

To gain a better understanding of how banks protect themselves and their customers, I spoke with Ali Farouk Shaikh, a Unified Communications Solutions Architect at Cisco Systems Inc. who works with major international financial institutions. Ali is a specialist in Software Defined Networking (SDN), with a focus on routing, encryption, and security for large financial services, retail, and manufacturing enterprises.

Where we were

How was customer and banking data handled by banks in the past?

In the classic model, all software applications and data for a bank would reside on a central data centre. Branches communicated with this centre through physical infrastructure entirely separate from (and unconnected to) what you’d use at home to access the internet.

Because of this, security parameters were well-defined. Data and locations were well-defined. It was cumbersome for external threats to access a bank’s network; conversely, it was difficult for users within the network to access the internet.

What prompted a change from that model?

What really started to drive transformative change was a combination of mobile devices and the cloud. The first iPhone pretty much broke the old model. Users could now access data from anywhere, and there was a demand for additional services to be delivered in a mobile-friendly way.

Simultaneously, modern applications were increasingly based in the cloud, leveraging external services such as Google, Microsoft and Amazon. This changing model meant that bank data was now moving in ways that it hadn’t before, and needed new modes of security and building modern infrastructure. In the industry, this is called the digitization of services—essentially moving from classic networks to networks for digitization.

So, the way customers wanted to access banking changed how banks operated?

Pretty much. The end-user experience has changed. Customers can’t be expected to come to the branch for banking anymore—both customers and bank employees use remote devices to access and provide service (whether this is smartphones or mobile devices on the customer side, or employees with iPads and a VPN on the bank’s side).

As a result, the applications (e.g. mobile banking apps) that provide this changed end-user experience had to move away from the traditional model. Banks were slow to introduce their own apps, but this was always the direction they had to head in. However, they also had to account for privacy and security concerns while meeting strict regulations—more importantly, they had to adapt and meet the requirements of a new digital world.

Now, these applications don’t reside with banks, they reside on the cloud and have to interact with various services that external companies like Google, Amazon, Salesforce, etc. provide. They rely on them for analytics, telemetry, auditing data, marketing data, etc. Because of this, the centers of data were no longer data centres. What I mean is, data now lived everywhere, from mobile devices to cloud services like Amazon Web Services (AWS). This new model required stronger safeguards, security, and encryption, because data now had to be transmitted over the internet.

Where we are

In light of this new model, how do banks ensure their data and their customers’ data is protected?

As I mentioned before, banks and financial institutions already had privacy, security, and regulatory compliance in mind when modernizing their operations. Now, there are three principles that are fundamental to maintaining a secure banking environment that satisfies both pre-existing and new regulations imposed by the government: confidentiality, integrity, and application security.

Could you elaborate on those principles? What does satisfying the “confidentiality” principle entail?

In this context, “confidentiality” just means making sure no one except you and your bank can see your data. Naturally, when using your banking application, you want to be assured that no one can access your data while it’s in transit. Banks go to great lengths to make certain that their systems use the highest encryption standards to protect their data and their clients’ data. This means that when using a properly developed banking app, no one will be able to see anything you’re doing on the app even should they somehow manage to covertly intercept your data. Confidentiality is achieved using the latest encryption—Transport Layer Security (TLS) with Advanced Encryption Standard 256 (AES256).

Side note:if you’re wondering how secure AES256 encryption is—it would reportedly take 77,000,000,000,000,000,000,000,000 years and the dedication of the entirety of earth’s population to crack one encryption key. Not to mention, all of those people would need 10 computers each, capable of processing 1 billion key combinations per second. So, it’s safe to assume it’s pretty secure!

What about the “integrity” principle?

Integrity means ensuring data isn’t tampered with in any shape or form. The desire for this is pretty self-explanatory: you’d naturally want your data to be safeguarded from being tampered with. This is achieved in a number of ways. There are mechanisms to enforce data-integrity checks at the machine-level, to make sure data isn’t corrupted or altered in any way while in transit or when stored. There’s a lot of technology and processes that are used to achieve this, including packet duplication, parity, checksums, asynchronous data replication, etc. etc. In essence, even in cases of outages and system failure, data has to remain secure, untampered with, and stored on multiple systems to avoid total loss.

The “security” principle seems straightforward enough, but what exactly goes into achieving that?

So, “security” is the aspect that actually protects users from malicious threats from both “state” and “non-state” actors. From a security standpoint, “state” actors are individuals or groups sponsored by foreign governments that carry out malicious attacks. Banks are critical pieces of a country’s infrastructure and are thus natural targets. “Non-state” actors operate in a similar manner, but without the support or direction of a foreign government.

Banks and financial institutions safeguard against these threats by using firewalls to ensure only authorized applications can access data. This is where Intrusion Prevention Systems/Intrusion Detection Systems (IPS/IDS) are applied, both to only grant access to authorized users and to protect against malware. There are also measures taken to prevent Denial of Service (DoS) attacks so that a customer’s access to their banking services isn’t interrupted. A combination of these techniques is used in what’s called “stateful inspection”—that is to say, before data can move between a client and a server, the data is inspected in multiple ways to ensure that it’s clean and legitimate.

All of this is done by banks to provide their clients with the highest level of security while giving them a new, modern banking experience. Governments are, of course, very actively engaged in setting and implementing standards for security, which include things like PCI-DSS (the standard for the payment card industry), SOC2, ISO27001, ISO9001, ITIL, etc. all of which banks need to meet in order to operate.

Security is taken very seriously, to say the least.

Where we’re headed

What do you think the future holds for the banking industry? Does that future come with its own set of challenges?

Well, there are a couple of things: there’s an increasing evolution of machine-learning, the data it provides, as well the services that can be built on it. Not to mention the 5G revolution that will further accelerate the digitization of the world. I think we’ll begin to see new banking experiences including packages tailored for individuals based on their data, as well as new modes of banking like virtual tellers. Of course, this is all predicated on next-gen technology that has started to enter the marketplace.

The protection of individual data is of paramount importance. Things will have to be secure, untampered with and protected from malicious entities.

Innovation is always a challenge, but the industry will adapt. It always does!

Published by FCT

Selling your home can be an extremely stressful experience. Between thinking about moving logistics and financials, it’s easy to miss the small details in between the process.

With that in mind, we’ve built this checklist for selling your home to help you keep track of the things that will get a potential buyer interested. Turns out, it’s not as simple as just fluffing pillows or doing a light dusting. “Put your buyer’s hat on and walk through your home like it is the first time,” Marilou Young, an Accredited Staging Professional and an Associate Broker with Virtual Properties Realty in the metropolitan Atlanta area, told Forbes.

Below is the ultimate checklist for selling your home.

GET FAMILIAR WITH THE PAPERWORK

For home sellers interested in the history of the house, make sure you’ve got all the information handy; this can include paperwork on renovations, property tax receipts, deeds and transferable warranties.

GETTING THE PRICE RIGHT

According to HGTV, it can be helpful to do some market research on what homes in your area are selling for- then shave 15 to 20 percent off that. This way, you attract multiple buyers who can end up outbidding each other and bringing up the price. While that can seem like a risky move, it could work in the competitive markets of big Canadian cities.

DEPERSONALIZE AND DECLUTTER

You want potential buyers to see themselves in the space, which is hard to do if you have family photos on the wall or personal items around. This would be a good time to start putting items in storage or try to keep your personal items out of sight. At the same time, you’re also ensuring that you’re keeping your house tidy—a must if you want to make your home sellable. Check around the house for dirt, stains or small cracks you might be able to fix. And if you have pets, make sure their litter boxes and play areas are also clean and odour-free.

FIND A QUALIFIED REALTOR

Realtors can be helpful to take some of the processes off your plate, including marketing your home and arranging open houses. If you do go this route, none of this list will matter if you decide to work with a realtor that doesn’t know the market inside out. You can search their name on the Real Estate Institute of Canada to ensure that they’re qualified, and meet with them to see if you mesh and understand how they price your unit. At Proptalk, we also have this handy guide for more details.

DON’T SKIP THE HOME INSPECTION

While presenting an unconditional offer may win you the home of your dreams, it can also end up costing you more than you expected. If you’re mortgaged to the max, you can’t afford surprises like repairs or replacements that you haven’t already budgeted for. Consider a Home Protection Plan that includes an 18-month warranty and up to $20,000 in warranty coverage for major household features such as foundation, roof, heating and cooling.

As you’re undoubtedly aware, the holiday season can be a very expensive time. Not only are there gifts to buy, but there can be a host of hidden extra expenses – gift wrapping, postage, and more take-out meals than normal for a start.

It’s therefore no surprise that many Canadians find themselves struggling to afford these extra costs; many wind up paying for the holiday season with their credit card. According to a study by lowestrates.ca, 63% of Canadians expect to do this, with just over half of those carrying the balance into the new year.

And since credit cards have some of the highest interest rates around, they can easily lead consumers into a spiral of debt.  Today almost a third  of Canadians have outstanding credit card debt.

how a chip reverse mortgage can help

If you’re worried that you’ll overspend on your credit card this holiday season, the CHIP Reverse Mortgage could be for you. The CHIP Reverse Mortgage is a financial solution for Canadians over the age of 55 that allows you to access up to 55% of your home’s value in tax free cash.

The money can be used for whatever you want. This could include consolidating debt – including credit cards – renovating your home, or increasing cashflow at certain times of year, such as the holiday season.

Lower Interest Rates:

The CHIP Reverse Mortgage has a number of benefits over regular credit cards, with the first being lower interest rates. While credit cards can have interest rates between 12 and 23%, the CHIP Reverse Mortgage has rates of 4-7%.  If you are using a credit card and don’t pay it off in full, the holidays could cost you less if you used the funds from a reverse mortgage instead.

No Monthly Repayments:

Another advantage the CHIP Reverse Mortgage has over credit cards is that it doesn’t require monthly repayments. When you take out a Reverse Mortgage, you don’t have to pay anything until you leave your home.* Without the need for monthly debt repayments,  your monthly cashflow will increase, helping you avoid starting the new year with holiday debts to pay.

Cover the Cost of the Holidays for Years to Come!

The CHIP Reverse Mortgage doesn’t have to support your cashflow only this holiday season, but funds can be drawn on time and again when needed.

For example, say you initially took out the CHIP Reverse Mortgage for $25,000, then later down the road you wanted to enjoy some more of the cash in your home. Provided there’s enough equity left, you can take a subsequent advance of a minimum of $5,000 – all without repaying the initial amount first.  As with the initial lump sum, this money can be spent on whatever you want, whether that’s covering the costs of future holiday seasons, completing long wished-for home renovations, or supporting adult children with the down payment for their own home.

The holidays can be a stressful time, especially if you feel you have to use your credit card to cover the costs – costs which are often carried into the new year. With the CHIP Reverse Mortgage, however, you can pay for the holidays this year and for years to come, relaxed in the knowledge that you’re enjoying lower interest rates and don’t have to pay back what you borrow until you leave your home.

For further details and to see how the CHIP Reverse Mortgage can help you, please contact your DLC Mortgage Professional.

*You must continue to pay your property taxes and insurance and maintain your home in good condition.

Written By: Agostino Tuzi
Post Sponsored by HomeEquity Bank