KELLER WILLIAMS REAL ESTATE ASSOCIATES, BROKERAGE
INDEPENDENTLY OWNED AND OPERATED
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REALTY GROUP
ummer has finally arrived with a heat wave this week. It seemed to take an awfully long time to get here and we all know that by the end of October we will actually miss these crazy hot days, as the cooler seasons begin to descend upon us. This year was the most interesting year selling Real Estate in my 22 year career doing so. The outlandish highs of January, February, and March proved to be a seller’s dream as we sold properties for the highest price per square foot ever, while our buyers were exhausted from the multiple offer scenario trying to secure a place to live. Now we find ourselves in a situation where sellers still want what their neighbour just sold for, and buyers are sitting on the fence waiting for the prices of the spring market to drop even further. To top it all off, the government just raised interest rates once again to try and curb inflation. It will definitely continue to be an interesting year ahead. I would also like to let all of our clients and friends know that our team has been continually upgrading our skills and education to stay on top of every new market condition we are presented with. I personally have just completed my MCNE (Masters Certified Negotiation Expert) course, and have completed 2 of the 5 CIPS (Certified International Property Specialist) courses, with the remaining 3 courses to be finished by mid-October. According to CREA GLOBAL Canadians are the top buyers of US residential real estate, having spent over 42 billion dollars in the United States in the last fiscal year. The National Association of Realtors (NAR) reports that Canadians accounted for 8% of all foreign sales and that Canadians have spent an average of 473,600 USD on residential real estate. I have completed the local US portion of this CIPS course and can now happily assist you if you are considering purchasing property in the United States. If you’re looking to purchase in Europe or the America’s, we will be able to assist you with this by the end of October as well. In addition to buying, selling, leasing, and investing in Resale Real Estate properties, we are also able to locally provide for any Pre-Construction Real Estate opportunities you may be interested in. We now work directly with developers to offer you the option to purchase these properties for investment purposes or assist you with the purchase for your own personal residential needs, often before they are made available to the general public. A few of these opportunities have been featured in this month’s magazine for your convenience. As always, please don’t hesitate to reach out to our team members to assist you with any of your real estate needs. We are now able to offer full coverage throughout Vaughan, Toronto, Mississauga, Oakville, Burlington, Milton, and of course Florida, as well as any other US state. We hope you’re all having a wonderful start to your summer and are enjoying this incredible heat wave!
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CONTENTS JUN E I SS UE 2022
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WHAT IS MORTGAGE DEFAULT INSURANCE? LIVING IN THE SUNNY SOUTH FOR LEASE 65 PORT STREET, MISSISSAUGA FOR SALE 306 O’HARA POINT ROAD, PORT SEVERN SNOWBIRDS PURCHASING US REAL ESTATE THE QUEEN CITY TORONTO FOR SALE 1477 LAKESHORE ROAD, BURLINGTON
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FOR SALE 385 PRINCE OF WALES DRIVE, MISSISSAUGA BANKING REGULATIONS MAKING CHANGES TO HOME EQUITY LINES OF CREDIT FOR SALE 33 CONSERVATION WAY, COLLINGWOOD THERESA RECOMMENDS STRAWBERRY CRUNCH ICE CREAM CAKE SNEAK PEEK 65 PORT STREET EAST, MISSISSAUGA SNEAK PEEK 5233 DUNDAS STREET WEST, ETOBICOKE MARKET STATS AT A GLANCE WHAT’S NEW WITH THE TEAM 3
WHAT IS
MORTGAGE DEFAULT INSURANCE
Written by Corben Grant on June 16 2022 Text and photos seen on https://www.https://www.canadianrealestatemagazine.ca/expert-advice/what-is-mortgage-default-insurance-335148.aspx
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ou can get insurance for almost anything you own and often it is considered a very good idea to do so. Home insurance protects thousands every year from the financial cost of damage to their property and car insurance helps to cover the costs of unexpected auto collisions. If it’s an expensive replacement or repair, chances are you can get insurance on it. But, what about mortgage insurance – why is it different from most insurance policies people get?
You may have heard about mortgage insurance while in the process of working to buy your home. As a home buyer, you may have a choice to opt for mortgage insurance, though in many cases, you will not have a choice and it is required. Understanding what mortgage insurance is and what it means to you will be a crucial step in getting a mortgage that works for you. In this article, we will explore 4
what exactly mortgage default insurance is, who needs to get a mortgage insurance policy, and what it means for your mortgage.
WHAT IS MORTGAGE DEFAULT INSURANCE? Mortgage default insurance is quite different from most forms of insurance that consumers get. The basic concept is in the name: it’s insurance that protects against a defaulted mortgage. However, when a borrower defaults on a tbaird.com
mortgage, most of the financial damage is done to the lender and not to themselves. Therefore, mortgage default insurance protects your lender, not you – you just get to pay the costs. A mortgage default is essentially any breach of a mortgage contract. This could include a missed payment or any other violation of the mortgage terms. Often, your bank will work with you to correct your default so you can continue Power to Move You
paying, but in extreme circumstances, the bank has the right to execute power of sale. In this case, the bank will sell your home and use the proceeds to cover the money they borrowed. Sometimes this sale does not cover the cost of the mortgage due to poor market conditions, damage to the home, or other factors. This is where mortgage default insurance will come in to cover the loss to the banks. It is also important to know that while mortgage insurance protects your lender, it doesn’t mean that you are off the hook in the event of a default. The mortgage insurer may still come after the borrower to cover the cost of insurance.
QUALIFYING FOR MORTGAGE DEFAULT INSURANCE There are a number of criteria that a borrower must meet to qualify for mortgage default insurance. These may include: •
A home value of less than $1,000,000
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A down payment minimum of 5% for the first $500,000 and 10% for any value above
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Maximum Gross Debt Service ratio and Total Debt Service ratio of 32% and 40% respectively
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Amortization period no longer than 25 years
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A credit score of at least 600
WHY IS MORTGAGE DEFAULT INSURANCE NEEDED? Mortgage default insurance, along with measures like the mortgage stress test, is an important financial tool to mitigate risk in Canadian mortgage lending. On an individual level, a defaulted mortgage without insurance is costly to lenders. Looking at the broader picture, if there were an increased amount of defaults, this could cause a large shock to our financial system. Mortgage debt is the single highest type of debt in the economy and is a massive amount of the banks’ lending. Mortgage insurance is designed to protect the banks that are the foundation of our economic system and to mitigate large scale financial losses. Mortgage insurance is also important because, as we will explore later, it makes high ratio loans more secure. Any mortgage loan under 20% is considered riskier to banks, so these loans are required to have mortgage insurance. Mortgage insurance is also a key aspect of mortgage-backed securities as it allows bundled mortgage debts to be sold as reliable
investment products. Only insured mortgages are eligible to be sold as part of security, reducing the risk of these investments somewhat.
DO I NEED MORTGAGE DEFAULT INSURANCE? Whether or not you need mortgage default insurance will come down to your down payment value. By law, any mortgage with a loan to value ratio above 80% will be required to take out a mortgage default insurance policy. As mentioned above, these loans are riskier to banks and default insurance can help reduce this risk. If you are opting for a high ratio mortgage, getting default insurance will not be a choice, though you may still be able to choose between a few mortgage default insurance providers. Beyond the question of if you need mortgage insurance is the question of whether or not you should choose to get it. You always have the option to pay upfront for a higher down payment and avoid the need for mortgage default insurance. On the other hand, you may also choose to get mortgage
These are general guidelines and qualifying criteria may change with time and vary between providers. Be sure to check with your provider for the most up-to-date criteria. Power to Move You
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default insurance for a loan with a 20% or higher down payment. But, should you? In general, it’s usually best to go with as high of a down payment as possible. Not only will this help to reduce or eliminate your default insurance premiums, but it will also give you more flexibility for mortgage terms.
with 20% or more down, but this is not really your best option. If not required, mortgage insurance is just an extra cost you don’t need to pay. If you think you will default on your mortgage any time soon, it may be better to reevaluate your choice to get a mortgage rather than simply pay extra for insurance.
HOW MUCH DOES MORTGAGE DEFAULT INSURANCE COST?
That being said, you should evaluate how realistic it is to increase your down payment. If you are just short of 20%, waiting to save in order to increase your down payment or looking for a slightly less expensive home may be worth it. On the other hand, if you were planning to make the lowest down payment possible, it may take overly long to save 20% and it will be more worth it to simply buy now.
One of the biggest questions that people have when it comes to mortgage default insurance is just how much it will cost them. Naturally, if you are trying to pay the minimum down payment, you’re probably interested in keeping the amount you spend as low as possible. The price of mortgage default insurance can be substantial, but it will vary based on a number of factors.
Finally, you could technically get mortgage insurance on a loan
The biggest factors determining your cost of mortgage default in-
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surance will be your loan size and your down payment amount. The cost of mortgage default insurance is determined as a percentage of your loan’s total value. This means the more expensive the home, the higher your total cost of insurance. This percentage also scales inversely with your down payment amount. This means those paying the lowest down payment will also need to pay the highest premiums by percentage, and vice versa. Payment of mortgage insurance can be done all at once or it can be added to your mortgage’s principal and paid over time. This will save you money upfront, but cost you more over time with interest and increase your monthly payments. There are three major providers of mortgage insurance in Canada: the Canada Mortgage and Housing Corporation (CMHC), Canada Guaranty, and Genworth Financial. Each will have similar policies and
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terms with slight variations between them. The rates for CMHC mortgage insurance are as follows: •
4% for down payments below 10%
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3.10% for down payments between 10% and 15%
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2.8% for down payments between 15% and 20%
In some provinces premiums are also subject to sales tax. Let’s look at a cost example of CMHC mortgage default insurance. If you wanted to buy a home with a purchase price of $750,000, your minimum possible down payment would be about $50,000, or around 6.7%. Power to Move You
The price of your mortgage default insurance premium would be 700,000 x 4%, or around $28,000 for a total mortgage value of $728,000. For comparison, a 20% down payment ($150,000) on the same home would have a mortgage of only $600,000, and with a 4.7% fixed interest rate would pay about $700 less a month. Over the course of 25 years (assuming your rates stayed the same and you did not refinance) this would mean an additional payment of almost $90,000 in interest on the insured loan. While you pay more over time, there is also value to buying early. For example, five years spent saving for a larger 20% down payment also means you are five tbaird.com
years behind on building your home equity. In a market with a lot of appreciation, the headstart in equity can quickly outweigh the cost of insurance and you will be able to access it sooner through options like a HELOC.
CONCLUSION Mortgage default insurance is a good compromise between home buyers and banks. Buyer’s are able to buy sooner for a lower upfront cost, while banks are able to offer high ratio mortgages at reduced risk. Whether or not you decide to get mortgage insurance will come down to your personal circumstance. You should consider consulting with a mortgage broker if you want to learn more about what your options are. 7
Living in the Sunny South Thinking of moving to Florida? Here are several homes Realty Group has available. that the Property Listings Courtesy of John R Wood Properties
Pelican Bay in Naples - Welcome to excellence! This Sand Dollar Award Winning design by Renee Gaddis is the essence of elegance and quality. Stunning unobstructed 180 degree, mile wide mystique views! The “WOW” starts as soon as you enter the artistic foyer and unfolds as you walk through each room. Relax and enjoy entertaining in this 4 ensuite bedrooms, office, half bath, 2 car estate living with beautiful spacious living areas to share with family and friends. This flowing space is a timeless design for today, tomorrow and beyond. Fine features Include: parquet patterned flooring, custom crafted wood coffered ceilings, crafted live edge bedroom with remote control TV cabinet, master bathroom vanity-TV Mirror, marble wall accents, gorgeous eclectic light fixtures, soft and tonal fabric enhance guest room, bold accessories and an assortment of art complete the space and make this fabulous estate home “One-of-a Kind”. Enjoy life by just turning the key and having all your “I wants” ready to be enjoyed. Sweeping views yearround from 504, only a few steps from your resort pool, spa, fitness and tram pick up for sunset delight and 2 beachfront restaurants. Begin living the grand life in Pelican Bay!
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Montelanico Loop in Naples - One look will do! This model condition fabulous end unit Ramono floor plan coach home has all the “I Wants”. Celebrate the seasons in this turn-key home with 3 bedrooms, den, 3 bath, 1 car garage only a few steps to the community pool tucked away in a perfectly quiet location of Esplanade. Features include all Coastal Backgrounds and colors, luxury vinyl wood floors, hard wood steps, quartz countertops, fireplace in great room, brushed nickel hardware, under cabinet lighting, white subway backsplash, recessed lighting and custom light-fixtures, remote control fans, wall framing and molding detail throughout, crown molding, custom roll-out shelves in kitchen, white wood blinds in all rooms, large stainless steel kitchen sink, stainless steel appliances and more. This beautifully maintained home has been impeccably maintained and is great space for entertaining. Chef’s delight kitchen with this spacious design and light and bright. The furniture featured in the photos is not the furniture that will convey, we will be switching furniture with the home the owner is buying in Esplanade which is just as lovely, more on the gray side of colors but very clean lines and all new finishes.
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Naples Park in Naples - Southern exposure at its best with no neighbor to one side, walk to the beach from this beautiful 3 bedroom, 2 bath great room home with complete hurricane protection and a completely fenced in back yard. This fabulous light and bright home is ready to be enjoyed and shared with family and friends with plenty of outdoor living space. Great size pool to splash after your round of tennis or walk to the beach. Features and enhancements include new air conditioner, lawn irrigation is on a well, 2020 garage door, 2020 lanai screens, 2019 garage A/C (Mitsubishi), dual-zone wine beverage refrigerator, newer hot water tank & pool heater, wine & beverage bar, granite kitchen counters, closet systems. The best part of living in Naples Park is no HOA fees, walk to Publix, Whole Foods, LA Fitness is around the corner, a short bike ride to Delnor Wiggins State Park or enjoy dinner at the Turtle Club with toes in the sand. Only a few blocks away you will enjoy Pelican Bay community park where you will find tennis courts, playground for the children and walking trails. Location, location, location and very desirable area to enjoy for the season with the easy beach access. Welcome home!
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FOR
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65 Port Street in Port Credit, Mississauga PERFECT FULLY FURNISHED FOR LEASE This ideal lease is available beginning November 1st. The Regatta is the waterfront building in Port Credit where the trails run along the waterfront just outside its doors and the restaurants, shops and other amenities are plentiful. This 2 bedroom, 2 bathroom unit is being offered fully furnished, so it could be an awesome choice if you are new in town or planning a renovation on your home and need a great place to stay.
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This luxurious listing is courtesy of RE/MAX By The Bay Brokerage.
306 O’Hara Point Road in Port Severn SPECTACULAR PROPERTY ON GLOUCESTER POOL/TRENT SEVEN Only a short drive from Highway 400 North of Port Severn...you will drive through a well maintained private road surrounded by a maple sugar bush highlighted by tall white pines, to a south-west facing waterfront retreat! The beautiful four season cottage/home sits atop an amazing bedrock escarpment overlooking the pristine waters of Gloucester Pool, wrapped in a wonderful 400 ft of sandy/ rocky shoreline. Sunsets and glistening clear water views from the outdoor kitchen and gardens will make you the envy of your friends and neighbors. The 3,369 square foot 3 bedroom home plus accessible suite on main floor, has 4 bathrooms, infloor heating and a massive stone fireplace reaching up to soaring ceilings with natural wood finishes. On the lower level there is a 3 car garage with its own accessible elevator to the main floor accommodation. The home also has a generator with auto transfer switch. The outdoor grounds and waterfront are also easily accessible with level waterside concrete retaining walls, a fire pit with kayak and canoe racks. For more information on this and other luxury homes, contact the visit www.tbaird.com 14
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Realty Group at 647-298-0997 or Power to Move You
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racey Morrison
SNOWBIRDS PURCHASING US REAL ESTATE
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Written by Jennifer Leve and Alan Litwack in June 2022
nce that decision is made as to where and what, the structure of the purchase must be considered, so as not to run afoul of or be adversely impacted by various US and Canadian tax considerations during the ownership or sale of the property, or the death of an owner.
From a Canadian tax perspective, if the property is not used to generate rental income, and the money used to fund the purchase originates from the person buying the property, there are no Canadian tax consequences unless and until (a) the property owner sells the property at a profit or (b) passes away still owing the property and in both cases, the property has a fair market value at the time of death in excess of its tax 16
cost. In either situation, the property owner will become liable to tax in Canada on the capital gain on the growth in value of the property. US tax consequences are considerably more complex, and if not well planned, may result in significant tax liabilities that can be reduced or avoided with proper planning. A major difference between the Canadian and US tax tbaird.com
systems is that in the US, “Estate Tax” is assessed on the gross value of the estate of the deceased individual and not based on increases in value. For non-residents of the US, the Estate Tax is only levied on US situs assets which includes property in the US (and also shares of US corporations). Accordingly, if a non-US resident person dies owning any real estate in the US and it is subject to Estate Tax, the tax is calculated Power to Move You
based on the entire value of the real estate, regardless of whether or not it has appreciated in value. This means that a Canadian who has never been a US taxpayer is still subject to US Estate Tax on certain assets, including real estate owned in the United States. Depending on values, the Estate Tax could be as high as 40% of the value of the real estate. There is no foreign tax credit for the Estate Tax that Canadians can use to reduce any Canadian taxes. There is currently an exemption from US Estate Tax where a deceased’s worldwide assets do not exceed US$12,060,000 in value. Accordingly, when a Canadian dies holding worldwide assets under such amount, there will be no US Estate Tax imposed. The US exemption threshold is adjusted annually for inflation, but the current threshold is set to expire in 2026 at which time, if nothing else changes, the exemption threshold will be reduced to somewhere between US$6M to US$7M. It is important to note that as part of its tax reform, the Biden administration is looking to reduce this exemption to an even lower threshold and potentially sooner than 2026. For many years, there was a fairly simple method of avoiding US Estate Tax on Snowbird property; namely, a Canadian corporation would hold title to the property. On the death of the Snowbird property’s owner, no US Estate Tax would result as the corporation continued to hold legal title to the property; the deceased only held shares in a Canadian corporation and held no US situs assets. For many years, the Canada Revenue Agency (CRA) had a Power to Move You
policy that it would not take the position that the benefit of using the Snowbird property without paying market rent to the corporation was a taxable benefit. Unfortunately, a number of years ago, the CRA changed its policy such that the shareholders could no longer hold the Snowbird property through a Canadian corporation without becoming taxable on the shareholder benefit. This effectively put a stop to the Canadian corporation structure. More recently, another popular method of limiting US Estate Tax was by way of a non-recourse mortgage. US Estate Tax is only levied on the value of real estate net of any non-recourse mortgage against the property. Where there was no mortgage from a conventional lender, a mortgage could be given from a funding spouse to the other spouse who would use the money to buy the property. Thus, the only exposure of the property to US Estate Tax would be to the extent it increased in value from the original acquisition price. To avoid the application of the Canadian Attribution Rules (which could otherwise apply to certain loans and gifts between spouses, resulting in the income from the purchased property being taxed in the hands of the lending/gifting spouse), the non-recourse mortgage between spouses had to be interest bearing at the prescribed rate set by CRA, and the interest would have to be paid annually. The lending spouse would have to declare and pay tax in Canada on such interest earned on the mortgage. For the last few years, the prescribed rate has been 1%. If the Attribution Rules applied, tbaird.com
any taxable income from the Snowbird property would be attributed not to the owner, but to the lending spouse from whom the funds originated. This would also mean any capital gain on the Snowbird property being sold would, in Canada, be taxed in the hands of the lending spouse and not the owning spouse. An additional problem is that there would be a mismatch with respect to the availability of the foreign tax credit: since there would also be capital gains tax in the US, which would normally generate a foreign tax credit against tax on the same gain in Canada, in the ordinary course the person disposing of the property would be able to use this credit against their Canadian tax liability. However, if the gain was taxable in the US in the hands of the owning spouse, but taxable in Canada in the hands of the lending spouse, there would be no ability to use the foreign tax credit generated from the US tax against the tax in Canada. Given the appreciation on real estate in the southern US in the last few years, the interest that will be required using the non-recourse mortgage structure will be based on a significantly higher principal amount, and, given the recent hike in interest rates, the prescribed rate set by CRA will no doubt increase. This will cause a significant increase in the tax that will be payable on the interest received by the lending spouse on loans made after the increase. While we are still using the non-recourse mortgage to limit US Estate Tax exposure, over the last couple of years we have started using other structures, including “Trusts”. 17
Where a family has an existing Trust with the resources to fund a purchase of a Snowbird property and there would be no attribution resulting from a loan by the Trust to the purchaser, we can still use the non-recourse mortgage structure but there would be no obligation to charge interest or any resulting tax on interest. This structure is available where the people that contributed the assets to the Trust in the first place are either no longer alive or no longer a resident of Canada for tax purposes. There are also ways of using Canadian Trusts to acquire a Snowbird property such that the Snowbird property would not form part of the assets of the users for US Estate Tax exposure.
Such Trusts would never allow the users to have any rights to the Snowbird property other than through the permission of a beneficiary of the Trust to use the property, and the ultimate ownership of the property would flow to other beneficiaries of the Trust; normally children or other lineal descendants. Any such structure has to be crafted carefully so as to make sure it denies ownership rights in the Snowbird Property by the funders of the Trust, and also avoids any Attribution Rule issues. The other issue that has to be considered is the 21-year deemed disposition rule, requiring a Canadian Trust to pay capital gains tax every 21 years on increases in the value of its assets. To the extent the Snowbird property in such a Trust
has appreciated to any significant degree and the Snowbird property is still held, it would have to be distributed to the beneficiaries, presumably children or other lineal descendants, before the 21st anniversary of the setup of the Trust. A benefit, however, in such a structure is that it is in essence, a form of an estate freeze such that such a Snowbird property could remain in the family without triggering any capital gains taxes on the death of the original users. Such a structure should also avoid exposure to US and Canadian probate fees on the Snowbird property. There are, of course, many other considerations involved in the purchase of Snowbird properties that are beyond the scope of this article.
IF YOU ARE CONSIDERING INVESTING OR BUYING A PROPERTY IN THE UNITED STATES, TALK TO THERESA BAIRD, YOUR CERTIFIED AGENT FOR GLOBAL REAL ESTATE
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The
Queen City TORONTO Written by Heidi Siefkas
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View of the CN Tower, a signature icon of Toronto’s skyline.
oronto, located on the shores of Lake Ontario, is home to nearly 2.8 million residents; however, it is the diversity of Canada’s largest city that makes it magical. From its cuisine, arts, history, and numerous festivals, Toronto has something for every type of traveler. Discover must-do adventures, hotspots, and enjoyable side trips for your next trip to the Queen City.
To get the lay of the land and the immense Lake Ontario, there is no better iconic spot that the CN Tower. From the largest free-standing structure in the Western Hemisphere, measuring 1,815 feet tall, you can admire the spectacular beauty of Toronto, its neighboring islands, and the easternmost of the five Great Lakes. The CN Tower not only provides panoramic views, but a total sensory experience. For those hungry or thirsty for inventive, seasonal Canadian flavors, try its 360 Restaurant. Care for a dose of adrenaline before you dine? Opt for EdgeWalk where you get 20
a bird’s-eye view of the city while walking the outside edge of the tower. If you prefer to explore Toronto from the ground level, there are a plethora of pedestrian, biking, and watersport options. With nearly fifty kilometers (approximately twenty-eight miles) of waterfront, there are countless biking and walking trails from which to experience the shoreline. For rentals of bikes and watercraft such as kayaks and stand-up paddleboards, head over to Queens Quay. The bustling area offers restaurants, rental tbaird.com
outfitters, the ferry to the Toronto Islands, and, last but not least, stellar people watching. Take a quick ride-share or fifteen-minute stroll from Queens Quay to experience Canada’s Walk of Fame in the heart of downtown. The maple leaf stars displayed on the sidewalk over multiple blocks highlight Canada’s most notable actors, authors, athletes, and other luminaries. Find favorites such as Alex Trebek, Martin Short, and Alanis Morissette. DINE AND DASH Feel the mélange of cultures when you look for a place to grab a bite Power to Move You
in Toronto’s global neighborhoods. You will find a vibrant Little Italy as well as Chinatown. Plus, there’s Greek-Town, the largest in North America, which hosts its own Taste of Danforth in the summer to celebrate Hellenic cuisine and culture. For those lured by shopping, history, and gastronomic treats all in one place, the historic Distillery District is the ticket. Visitors can peruse art galleries, cafés, boutiques, and theaters, all on foot, throughout a hybrid of Victorian industrial architecture combined with the creativity and design of the twenty-first century. If you and your travel companion(s) crave a market where everyone can pick their favorite treat, the St. Lawrence Market is a crowd-pleaser. With over one hundred different, local specialty vendors offering fresh produce, baked goods, meat, fish, and dairy, the hardest part of a visit is narrowing down your picks. SOMETHING FOR EVERYONE. Whether you have a passion for food, music, the arts, the outdoors, history, or a combination
The glass-and-steel atrium of the Allen Lambert Galleria. of it all, Toronto has you covered. Treat yourself to dim sum in Chinatown or a cannoli and cappuccino in Little Italy. Indulge in local, award-winning wine while listening to global jazz artists at one of many music festivals. Experience life at your own pace via bike or kayak along beautiful Lake Ontario. Allow your passions to collide in the diverse city of Toronto. There’s always something new to experience here, in the waterfront Queen City.
Fresh fruit, veggies, and more local products at the St. Lawrence Market.
Photography by LeoPatrizi/iStock/Getty Images Plus, peterspiro/iStock/Getty Images Plus, Elton Law/ iStock/Getty Images Plus, RonTech2000/iStock/Getty Images Plus, CPQNN/iStock/Getty Images Plus.
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1477 Lakeshore Road, Burlington BURLINGTON ON THE WATER Stunning executive living at its absolute finest in the desirable Bunton’s Wharf building situated downtown Burlington. Spacious 1,985 sq ft condo featuring 2 bedrooms plus den, 9ft ceilings and 2 balconies with magnificent views of the city and Lake Ontario. The chef’s kitchen features large island and high-end appliances. This boutique condo building is meticulously well-managed and offers peaceful living as well as abundant lifestyle amenities. Enjoy the lounge/party room, billiards, indoor driving range, bicycle storage, fitness room, steam room and the stunning Lake views from the rooftop terrace and pool. Steps away from Burlington’s vibrant downtown, nearby fine dining establishments, trendy boutiques, The Art Gallery of Burlington, Burlington Performing Arts Centre and Spencer Smith Waterfront Park and Pier. 22
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701 - 385 Prince of Wales Drive, Mississauga CALLING ALL INVESTORS! Do you have a student entering Sheridan College in the Fall and you’re looking for somewhere for them to live? Or are you looking for an investment property with amazing rental potential due to its outstanding location and proximity to businesses, schools, retail, and transit? This bright and spacious unit in the highly sought-after Chicago Towers, in the heart of Mississauga may be just what you’re looking for! With award-winning amenities and just steps away from the Living Arts Centre, City Hall, Square One Shopping Centre, Sheridan College and amazing restaurants, this 1 bedroom, 1 bathroom condo has it all. Call us today for more information. 24
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BANKING REGULATIONS MAKING CHANGES TO HOME EQUITY LINES OF CREDIT Written by Tracey Morrison
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ast week, Canada’s banking regulator unveiled new rules that will govern how borrowers may use Home Equity Lines of Credit (HELOCs).
The new guidelines unveiled by the Office of the Superintendent of Financial Institutions (OSFI) will affect readvanceable mortgages, specifically those where the outstanding balance is greater than a 65% loan-to-value (LTV). Readvanceable mortgages are those with two or more portions to the loan, including an amortizing portion and a revolving line of credit. OSFI refers to these products as “Combined Loan Plans,” or CLPs. “The most significant concern with these products is the readvanceability of credit above the 65% 26
loan-to-value (LTV) limit,” OSFI said in its release. WHAT’S CHANGING? If you currently have a readvanceable mortgage, when you repay any principal, that money can sometimes be re-borrowed from the line of credit portion of the loan. But when OSFI’s new rules are fully implemented in 2023, any principal payments to your balance that’s above the 65% LTV threshold will go towards reducing the overall loan balance, and thus the readvanceable borrowing limit, until that limit reaches 65% LTV. tbaird.com
The changes will also apply to reverse mortgages and residential mortgages with shared equity features. OSFI said the new rules will have no impact on borrower payments. The new rules will take effect on October 31 or December 31 for new borrowers, depending on the lender’s fiscal year-end. For existing HELOC borrowers, the change will take effect on their renewal date if it occurs after the dates noted above. In terms of the impact of these changes, loan balances above the 65% LTV threshold currently acPower to Move You
count for $204 billion of the $1.8 trillion in outstanding residential mortgages, according to OSFI. Overall, readvanceable mortgages comprised $737 billion of the market as of Q1 2022, according to Bank of Canada data. “Our expectations include lenders
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ensuring that all combined lending product borrowing above a 65% loan-to-value (LTV) limit will be amortizing and non-readvanceable,” OSFI head Peter Routledge wrote in a piece for the Financial Post. “In so doing, we lessen the fragility produced when borrowers sustain high LTV ratios beyond
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contractual amortization periods.” If you currently have or are in the market for a readvanceable mortgage and have any questions about how these changes might affect your borrowing needs, please give me a call today and I’ll be pleased to walk you through the new rules.
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33 Conservation Way, Collingwood STUNNING TOWNHOME! Welcome to the beautiful, stunning, open concept townhouse in Collingwood, Ontario! With over 2,000 square feet of unique living space, this 3 bedroom, 2.5 bathroom townhome includes a finished basement, quartz countertops in the kitchen and a gorgeous ensuite master bedroom. A walkout to the back porch to enjoy the breathtaking views of the surrounding forest and golf course. The basement is overflowing with natural sunlight with 8’ ceilings and walkout to private terrace. Find out more by calling us today.
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Strawberry Crunch Ice Cream Cake
THERESA RECOMMENDS FOOD AND DRINKS
By Lisa Kaminski, tasteofhome.com https://www.https://www.readersdigest.ca/food/recipes/strawberry-crunch-ice-cream-cake/
“While growing up, I loved treats from the ice cream truck that rolled through my neighbourhood. This ice cream cake is inspired by one of those crunchy, strawberry novelties.”
INGREDIENTS Makes 9 servings 36 Golden Oreo cookies (divided) 4 tablespoons butter (melted) 3 cups vanilla ice cream (softened) 5 cups strawberry ice cream (softened) 1 carton frozen whipped topping 8 ounces, (thawed) 1 package freeze-dried strawberries 1 ounce, (coarsely crushed) Fresh strawberries optional
METHOD STEP 1: Line a 9x9-in. baking pan with parchment. Preheat oven to 350°. Finely crush 24 cookies. In a small bowl, mix cookie crumbs and butter. Press onto bottom of prepared pan. Bake until firm, 25-30 minutes. Cool on a wire rack. STEP 2: Spread vanilla ice cream onto crust; freeze, covered, until firm. Spread with strawberry ice cream and then whipped topping; freeze, covered, until firm. STEP 3: Coarsely crush remaining cookies. Combine cookie crumbs and freeze-dried strawberries; sprinkle over whipped topping. Freeze, covered, until firm, about 8 hours or overnight. Remove cake from freezer 10 minutes before serving. If desired, garnish with fresh strawberries. PREP TIME: 20 minutes (plus freezing) COOK TIME: 25 minutes Power to Move You
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SNEAK PEEK
65 Port Street East, Mississauga LAKESHORE LIVING AT IT’S BEST! Fabulous 2 bedrooms and 2 bathroom suite will be available on MLS next month. This condo is perfectly situated in Port Credit and allows for a truly walkable lifestyle. Steps to the lake, walking trails, shopping, restaurants, and public transit, this fabulous neighbourhood has it all! If you’d like more information before we go live on MLS don’t hesitate to call our team at 647-298-0997. 32
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SNEAK PEEK
5233 Dundas Street West, Etobicoke LOCATION, LOCATION, LOCATION! Fabulous 1 bedroom plus den, 1 bathroom suite with 720 square feet plus balcony. Easy access to all highways and minutes to Toronto or the airport. Close to shopping (Sherway Gardens and the new Farm Boy location), and near public transit. If you’d like more information before we go live on MLS don’t hesitate to call our team at 647-298-0997. Power to Move You
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Source: The Toronto Regional Real Estate Board, June 2022
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Summer fun with the team Theresa and her granddaughter Morgan on Canada Day.
Lindsay relaxing with her twin boys, Carter and Mackenzie.
Julia with her boyfriend, Tomash playing a round of golf.
Samantha and her two kids, Morgan and Jack, beat the heat with some delicious ice cream.
Carolina and Walter out walking on a hiking trail. Power to Move You
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KW Luxury is a force in the luxury space. Our vast and exclusive network of 10,000 designated Luxury agents helped sell and purchase $5.9 billion of real estate YTD through agent-to-agent referrals alone. No matter where you are in the world or what your real estate needs are, we’ve got you covered.
Real Estate Associates, Brokerage
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