Breaking News - CMHC Tightens Mortgage Insurance Rules

Starting July 1st, 2020, buyers who offer down payments of less than 20 percent in order to access CMHC’s default mortgage insurance will require higher credit scores, lower debt ratios, and will not be allowed to borrow monies used for down payments.

Specifics include:

• a minimum credit score of 680 instead of the current 600

• a limit total gross debt servicing ratios to its standard requirement of 35 percent of annual income, compared with a threshold as high as 39 percent currently, and total debt servicing to 42 percent versus as much as 44 percent now

• borrowed money can not be used for down payments.

The impact? While these changes are small, they will affect those who were on the cusp of pushing their limits. The largest impact will be to the debt service ratios, which could reduce a buyer’s financial buying power by 12 percent. While there are other mortgage insurance companies, CMHC is the largest in Canada.

Questions about how this will affect you as a buyer, or as a seller? Let’s chat - fill out the form on the bottom of the page or email us directly here.

New - Personal Protective Showing Kits

With the new reality of COVID-19, and the need to safely buy and sell Ottawa real estate, we have put together these new Personal Protective Showing Kits for our clients. Each kit will allow the client to be protected, and provide protection to the seller of the property. Each kit contains a single disposable face mask, a pair of biodegradable nitrile gloves, two Alcohol wipes, and a pair of disposable foot covers.

Our goal is to provide a safe experience for our clients, the public, and our team members.

Questions about selling or buying during this time? Lets chat!

Farm Boy - Tribeca - Now Open!

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After months of patiently waiting, Farm Boy is now open in the podium of Tribeca (179 Metcalfe).

This announcement has been well received from the public who either work or live near the establishment, as it was once a Sobeys but was bought out by Farm Boy. During this closure, patrons had to go to the nearby Farm Boy at Rideau Centre or to the Independent on Bank St. 

Farm Boy offers a vast selection of fruits and veggies, continuously updating their produce section with what is in season. Check out their artisanal cheese and a fresh dairy section that will have everything you need and more for making the perfect charcuterie board. Their butcher quality meats will showcase their best cuts for beef, pork and chicken. Farm Boy also has an amazing selection of vegetarian, vegan, and plant-based foods, catering to everyone’s dietary needs. If you are looking to satisfy your sweet or savour tooth, check out the in-store made treats from the Farm Boy Kitchen. This location also includes beer and wine!

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Aside from the amazing selections that Farm Boy has, one of the main draws is their fresh made-to-order grilling stations. These stations offer amazing breakfast, lunch and dinner features. This will really open the door for those looking for healthier take out options! Another great feature that store has is the hot bars, salad bars, gourmet pizza and sushi section. This is ideal for those looking to grab lunch or a quick snack while on the go. 

For those living in condominiums near the new Farm Boy and want to know how far of a distance walking is, we have broken that down for you!

71 Somerset - 8 minutes
199 Slater - 8 minutes
429 Somerset - 9 minutes
199 Kent - 9 minutes
20 The Driveway - 11 minutes
320 Mcleod - 12 minutes
354 Gladstone and 349 Mcleod - 12 minutes
224 Lyon - 12 minutes
470 Laurier - 13 minutes
225 Argyle - 13 minutes
225 Bay - 13 minutes
360 Mcleod - 13 minutes
340 Mcleod - 13 minutes
445 Laurier - 13 minutes
475 Laurier - 14 minutes
500 and 530 Laurier - 15 minutes
429 Kent - 15 minutes

179 Metcalfe - Less than 1 minute
197 Lisgar - 1 minute
40 Nepean - Less than 1 minute
18 Nepean - 2 minutes
108 Lisgar - 4 minutes
260 Metcalfe - 4 minutes
300 Lisgar - 4 minutes
205 and 215 Somerset - 4 minutes
364 and 374 Cooper - 5 minutes
295 Gilmour - 6 minutes
317 Metcalfe - 6 minutes
138 Somerset - 6 minutes
141 Somerset - 6 minute
375 Ligar - 7 minutes
235 and 245 Kent - 7 minutes
324 Laurier - 7 minutes

 

Looking Back - The Ottawa Condo Market of 2009 Vs 2019

Starting a new decade is always exciting, especially to see how we have progressed over that time. Let’s take a look back at the Ottawa condo market of 2009 and compare it to the condo market of 2019. Will it help us look forward? 2009 was the year that saw a ton of condo buildings finish construction and begin occupancy - Mondrian (324 Laurier), 90 George, Hudson Park (235 and 245 Kent), La Tiffani (70 Landry), Westboro Station (401 Golden), The G (235 Patterson), The Galleria (200 Besserer), River Court Lofts (950 Marguerite), School House Lofts (19 Melrose), Lebreton Flats (200 Lett), Tavani (682 Churchill), Le Saint Denis (345 St Denis), Stonework Lofts (323 Winona), Petrie Island (100 Inlet Private), etc.

FYI: Unless mentioned, we are looking at one level apartment-style, one level condominiums only. This does not include two stories, stacked, row-unit, etc.

The condo market in 2009 saw only 1,359 new listings of which 1,369 sold. Of these, 252 units sold at or above list price. Compared to 2019 which saw 3049 new listings which 2503 sold, with 871 units selling at or above list price. The average sold price in 2009 for all areas was $252,913, compared to $326,472 for 2019.  DOM was 41 in 2009 and the same for 2019!

If we look back, 2009 was the very beginning of a six-year period that many of us are glad to be past. We had an oversupply which really turned the condo market on its head, and into a buyers market. We started noticing things changing in 2017, but really felt them in 2019. Shorter days on market, more units selling at or above list price, and a general lack of supply for condos in desired areas. We have almost doubled the amount of sold units since 2015.

Let’s take a closer look at the average sold price for our top neighborhoods, and the differences that we have seen.

Average Sold Price

Centretown - 2009 $330,241 - 2019 $387,979 - Difference of $57,738
Byward Market and Sandy Hill - 2009 $324,981 - 2019 $391,273 - Difference of $66,292
Little Italy and Lebreton Flat-2009 $324,647 - 2019 $412,237 - Difference of $87,590
Westboro - 2009 $396,313 - 2019 $454,863 - Difference of $58,550
Hintonburg - 2009 $276,914 - 2019 $356,113 - Difference of $79,199

New vs sold one level apartment style condominium properties since 2004.

Days on market for one level apartment-style Ottawa Condominiums since 2004. * Keep in mind that this number includes the conditional period. For condominiums, this would also include the status certificate which is usually 10-14 days.

What to chat more about how this affects your condo or condo purchase? Want to dig deeper? Want to chat? Fill out the form near the bottom of the page.

What Is The Ten Day Cooling Off Period?

As per the Ontario Condominium Act, each developer has certain restrictions and rules to follow that are in place protect you, the consumer. When you buy a newly-built condo direct from the developer, you have the right to cancel the purchase within a 10 calendar day cooling-off period. This was put in place so when on launch day you get all caught up in the hype and excitement, you are still able to make sure you don't have any buyers remorse. Just remember that there is no cooling off period on re-sale condominiums.

Things to be aware of:
- The clock on the 10 day period starts from the time you receive a copy of the fully signed purchase and sale agreement OR the disclosure statement, which ever comes later.
- You also have the right to cancel a sales agreement within 10 days after any "material change" (significant change) to the disclosure statement.
- If you decide to cancel, the developer must refund any deposit plus any interest that may be payable.
- A developer is not able to terminate your purchase and sale agreement without your consent or a court order.

During the 10 day cooling off period we highly suggest that you:
- Have your lawyer to review the agreement and discuss any concerns that you might have about the purchase or the agreement. This is the time to request any changes to the agreement, not once the cooling off period is over.
- Speak to your mortgage broker and ensure you are pre-approved for the purchase. Keep in mind the closing date and get in writing that they are able to do a rate hold till your closing. Not all mortgage brokers and banks are able to do long rate holds for pre-construction condos in Ottawa.

More questions? I would love to help you find the answer! Contact Matt.

Richcraft Joins The Tallest Condo in Ottawa Battle!

Next week Richcraft is going to be in front of the planning committee to get approval for the tallest condo building in Ottawa. The building will be located at 845 Carling, one of three buildings they are hoping to construct on the site which is the old Dow's Honda location. 

From Ottawa Citizen Article

Currently approved and now under construction, Claridge's Icon holds (or will hold?!) the title for tallest condo building in Ottawa sitting at 45 storeys. Richcraft is hoping for a 55 storey(180 meters) building, along side a 45 storey (148 meters) and 18 storey (66 meters) sister towers, all containing approximately 1120 units, with 6,800 sq meters of ground floor commercial space.  Currently the entire Carling/Preston area is zoned for 31 storeys, which was approved last summer.

The main issue at this point seems to be over parking. Minimum parking for the complex is 675 residential spaces (91 commercial), however Richcraft is looking for an extra 100 spaces (766 in total plus the 91 commercial). The builder is also looking for an increase in bicycle parking spots to 566. Plus this complex will have direct access to the O-Train's Carling station, raising questions as to why the extra spots. 

Link to the Zoning Amendment

Link to the Wind Study

Any questions about pre-construction condos? I would love to chat!

Lifestyle Photoshoot - Edgecliffe Avenue

Selling a home in Ottawa is more than just sqft and number of bedrooms. It comes down to feelings, emotions, and the future lifestyle for the buyer. While the buyer is looking at numbers and prices, they are really searching for a certain lifestyle that they do not have now. A large kitchen to cook and entertain in, or bathroom with a tub that lets them relax, or even as simple as a space they can see their future kids running around. Sell the lifestyle of the home or condo that the new buyer will have, rather than just selling by price and upgrades. 

Anyone can put a home on the MLS, but pushing top dollar for your home or condo can only be done with experience. Thinking of selling? I would love to chat more.

Check out more photos and all of the information of the home 1487 Edgecliffe Avenue.