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Why Lower Interest Rates Are Good News for Ontario Homebuyers Thinking about buying a home in Ontario but have been holding back? You’re not alone — and the good news is, things may be starting to turn in your favour. Interest Rates Are Starting to Fall Over the past few years, rising interest rates made mortgages more expensive. This pushed monthly payments higher and caused many would-be buyers to hit pause on their plans. But now, the tide seems to be turning. Interest rates in Canada have started to come down gradually, and more cuts are expected. While it’s not happening overnight, the overall direction is positive. That means borrowing money to buy a home could get cheaper in the coming months. What Does This Mean for Buyers? Here’s why this shift in interest rates could be great news for you: 1. Lower Monthly Payments When interest rates drop, mortgage payments usually go down too. That means more manageable monthly bills — and that helps your overall budget. 2. Easier to Qualify for a Mortgage As borrowing costs fall, more people may find it easier to qualify for a home loan. This is especially important for first-time buyers who were previously priced out. 3. More Confidence to Enter the Market With some stability returning to the market and affordability improving, buyers who were waiting on the sidelines are starting to come back. That boost in confidence can also support home values in a healthy way — without things overheating. 4. Better Deals on Fixed-Rate Mortgages Fixed-rate mortgages — the ones where your interest rate stays the same for years — are also starting to become more competitive. This gives buyers more peace of mind with predictable payments. 5. Good Time for Investors Too Lower rates can also make rental properties more appealing. With lower mortgage costs and steady rental demand, investing in real estate could make more financial sense now than it did a year ago. When Will Buyers Feel the Impact? You might not notice the change instantly, but small rate cuts are already making a difference for people renewing their mortgages or looking to buy this fall. If current trends continue, the buying environment could keep improving into 2026. Final Thoughts If you’ve been thinking about buying a home in Ontario but felt the costs were too high, now might be a good time to start watching the market more closely. Falling interest rates could open the door for more affordable borrowing and renewed opportunities — whether you’re looking for your first home, a move-up property, or an investment. Just remember while rates are improving, it’s still important to run your numbers, work with a trusted mortgage advisor, and make sure the timing is right for your situation. _____________________________________________________________________________________________ GET IN TOUCH As your trusted resource for all things real estate, we would be more than happy to provide you with additional insight on how to best prepare for buying or selling real estate. If you have any questions about the market, please reach out anytime. Want a better real estate experience? Call the Giles Team, we are always happy to help. NOT RECEIVING OUR NEWSLETTER? Send us an email so we can add your name and address to our monthly mailout. We look forward to connecting DK and Amanda

SELLING BEFORE BUYING: WHY ONE COUPLE CHOSE TO LIST FIRST (AND WHAT YOU CAN LEARN) When Emma and Daniel decided it was time to upgrade from their starter home and move into their “forever” home, they were faced with a big decision: Should they buy their new home first, or sell their current one first? It’s a question that many homeowners wrestle with, especially when timing, inventory, and finances can all collide. After extensive discussions with various professionals, including their Realtor, financial planner, and others, they weighed the options and chose to sell their existing home first . While it wasn’t without stress, it ultimately proved to be the right move for them. Here’s how they made their decision, and what you should know about both approaches. Why They Chose to Sell First Emma and Daniel’s reasoning came down to minimizing risk, financial security, and avoiding overlap . They couldn’t afford to carry two properties at the same time along with all the costs that go with each (mortgage payments, insurance, property taxes, utilities, and maintenance). In fact, for them, that wouldn’t have even been an option as the mortgage on the home they eventually purchased was pre-approved conditional on selling their existing home. So, if they bought first and then their existing home didn’t sell before the closing date on their new home, they almost certainly wouldn’t have been able to close on the new home. This would have put them in breach of their purchase agreement, which could have opened them up to extremely costly litigation. More often than not, buyer breach cases in the courts are settled by way of a simple summary judgement, which means a buyer in breach of their contract could quickly be facing a significant judgement in favour of the seller. The buyer in breach would likely be on the hook for any difference in sale price if the seller had to take less money when they resold the property, all carrying costs until the sellers could successfully close on the property to a new buyer, all legal costs, plus court fees and interest. It’s not uncommon to see judgements of hundreds of thousands of dollars against buyers in breach. Needless to say, buyers should not risk this outcome and, by any means possible, find a way to close if not closing becomes a possibility. Even in a hypothetical scenario where Emma and Daniel bought first and managed to get a firm deal in place on their existing home, but the closing dates didn’t align creating an overlap (carrying two properties for some period of time, say a couple weeks), this would mean added expenses for bridge financing. Sometimes, bridging makes sense as it can allow time for renovations and make a move less stressful by not having to move fully from one house to another on the same day. But, in this case, Emma and Daniel were only looking at homes that were mostly turn-key and without the need for renovations, so they felt bridging costs were an unnecessary extra expense. By selling first, they knew exactly how much equity they’d have to put toward their next purchase and would avoid the crushing stress they’d surely experience if their current house sat on the market longer than expected, sold for less than anticipated, or didn’t sell at all. Selling First: Pros, Cons, and Risks Pros Financial Clarity – You know your exact budget before making an offer on your next home. No Double Mortgages – Avoids the risk of paying for two homes at the same time. Helps Ensure You Can Close – If you don’t qualify to carry two mortgages, selling first helps ensure you don’t face financial ruin. Stronger Negotiating Position – With cash in hand or firm financing, your offers can be more attractive to sellers. Cons Temporary Housing May Be Needed – If you don’t find your ideal new home right away, you may need to rent or stay with family for some period. Multiple Moves – You might have to move twice; once into temporary accommodation, then again into your new home. Market Risk – Prices could rise in between selling your old home and buying your new one (though, the opposite could happen too, which would be a positive). Risks Limited Inventory – If there’s little available that suits your needs, you may feel pressure to settle for something less than ideal. Lifestyle Disruption – Packing, storing belongings, and living in a transitional space can be stressful. Buying First: Pros, Cons, and Risks If Emma and Daniel had decided to buy first, here’s what they might have faced instead: Pros Smooth Transition – Move directly from your old home to your new one without temporary stops. More Time to Shop – You can search for the perfect home without feeling as rushed. Market Advantage – If prices are climbing, locking in your new home early can save money. Cons Two Mortgages – Assuming you qualify for two mortgages, you may need to carry the cost of both homes until your old one sells. Bridge Financing Costs – Temporary loans to cover the overlap between two houses can add up. Added Pressure to Sell – If your home takes longer to sell, you might be tempted to accept a lower offer. Risks Overestimating Sale Price – If your current home sells for less than expected, you could face financial strain. Unexpected Delays – A slow sale could result in additional expenses that eat into your savings or force budget cuts elsewhere. Inability to Close – If the existing home isn’t sold by closing day on the new home, not closing on the new home would then create the potential for litigation resulting in potential financial catastrophe. The Bottom Line For Emma and Daniel, selling first gave them peace of mind and a clear budget and that outweighed the risks that can come with buying first. The right choice for you depends on your financial resources, flexibility, tolerance for uncertainty, and local market conditions . If you prioritize security and clarity , selling first may be best. If you value convenience, finding your perfect match , and have the financial resources to potentially carry two properties at the same time, buying first could be the way to go. In either case, work with a knowledgeable real estate professionals, like the Giles Team. We can help guide you through these decisions and connect you with other professionals such as financial planners, mortgage brokers, and real estate lawyers who can also provide valuable guidance. You’ll then be better prepared and informed to make the move that’s right for you. GET IN TOUCH As your trusted resource for all things real estate, we would be more than happy to provide you with additional insight on how to best prepare for buying or selling real estate. If you have any questions about the market, please reach out anytime. Want a better real estate experience? Call the Giles Team, we are always happy to help. NOT RECEIVING OUR NEWSLETTER? Send us an email so we can add your name and address to our monthly mailout. We look forward to connecting DK and Amanda