On October 30 and November 8, RAHB volunteers participated in a Habitat for Humanity Halton and Hamilton Build Day, respectively.

The October 30 Build Day with Habitat for Humanity Halton was in conjunction with RAHB’s $38,763.35 donation through HOAP, which was funded by RAHB REALTORS®. The Habitat for Humanity Halton Build Day featured nine fantastic RAHB volunteers who worked together to put up drywall.

Also, RAHB was asked by Habitat for Humanity Hamilton to come back to their Waterdown Build Site to help put up a special type of fence that helps to reduce the sound coming from Highway 5. This November 8 Build Day featured seven amazing RAHB volunteers who braved weather as low as -5 degrees!

Thank you to everyone who volunteered their time in RAHB’s three Build Days to help create stable and affordable housing in Hamilton and Burlington this year.

Below are buttons with resources that you can download to give to your clients to make them feel as prepared as possible. Please click the buttons below to download a list of what to bring to the first meeting with a mortgage specialist, as well as a list of key terms that they may hear when purchasing a home:

The HGTV Effect

Twenty years after it first premiered on September 30, 1999, HGTV’s House Hunters continues to offer an idealized glimpse into a far from the truth process of purchasing one’s first home.

On House Hunters we tend to see either the classic nuclear family that is looking to move onto bigger and better things compared to their first family home or the newlyweds looking to move into a house that reflects their respective parents’ homes. In summary, shows like House Hunters create an on-screen utopia that far from mimics the current housing market; as well as, perpetuates many of the classic myths about first-time home buyers.

More often than not, shows on HGTV have a first-time home buyer couple with a very modest budget accompanied by what can be imagined as a very modest income. While at the same time, this couple wants a granite counter-top, a pool in the back yard, a walk-in closet and finally, enough bedrooms for their growing family — all within their modest budget.

However, this is not the reality for most first-time home buyers today. While speaking with a mortgage specialist from TD Bank, he argued that first-time home buyers today have normalized expectations because of the stress test. Although first-time home buyers are used to living in their parents’ homes, they understand the importance of not being “mortgage poor.”

As REALTORS®, it is important to continue to de-bunk myths perpetuated by the media. A great way to accomplish this is to help your client be as prepared as possible when going to their first meeting with a mortgage specialist.

Currently, Canadians are struggling to find affordable housing options close to their workplace and family. As a result, the conversation about “affordable housing” has become a reoccurring topic for all the levels of government. As a result, it is important to ensure that when talking about affordable housing, the proper terminology is being used when speaking towards housing that is affordable vs. social housing.

According to the Canada Mortgage and Housing Corporation and RAHB, spending more than 30 per cent of before tax income on housing is unaffordable. It does not solely refer to social or subsidized housing. RAHB is advocating for elected officials and governments to use the proper terminology of “affordable housing” in policies and officials documents, and when speaking to the media.

Secondary suites are an untapped market that enables homeowners to create affordable rental spaces. The creation of affordable rental units will help to stimulate the rental market, while also helping to reduce the homeowner’s expenses.

Dr. Frank Clayton, senior research fellow, Center for Urban Land Research and Development at Ryerson University, argues that secondary suites are the most cost-effective way to create rental units. Below are the estimated costs* to create a rental unit:

• Secondary Suite in Existing Dwelling = $55,000
• High-end Downtown Area  = $425,680
• Median Central (Not Downtown) = $345,746
• Basic Fringe  = $242,623
• Non-Profit = $229,00 – $266,000

* The above costs are based on the Toronto Market Area.

A secondary suite is a great way for a first-time home buyer client to help subsidize monthly mortgage payments, while at the same time, helping to create more affordable rental units within the RAHB area.

However, to create a legal rental unit within the RAHB market area has become increasingly difficult. Thus, it is important that as REALTORS® you continue to speak about the importance of secondary suites and how they can help the RAHB market areas become more affordable not just for first-time home buyers, but for everyone.

For more information about affordable and social housing, please click the button below:

Officially launched in September, the First-Time Home Buyer  Incentive was created to help qualified first-time home buyers reduce their monthly mortgage payments. Overall, the First-Time Home Buyer Incentive was created to make owning a home for the first-time a reality.

So, how does the First-Time Home Buyer Incentive actually work?

The incentive is not interest-bearing and does not require ongoing payments. The incentive helps to create a more affordable monthly mortgage payment for the first-time home buyer. The Government of Canada will offer incentives for:

• 5% of a first-time buyer’s purchase of a re-sale home
• 5% or 10% for a first-time buyer’s purchase of a new construction

It is important to remember that the first-time home buyer will need to repay the incentive. The first-time home buyer can repay the incentive in full at any time or if the property is sold after 25 years — whichever happens first. The repayment of the incentive is based on the property’s current fair market value, multiplied by the incentive percentage amount:

• If they received a 5% incentive and the value of the home increased to $300,000, the payback would be $15,000
• If they received a 10% incentive and the value of the home decreased to $150,000, the payback would be $15,000

How to know if your client can actually qualify for the First-Time Home Buyer Incentive?

• Are they a Canadian citizen, permanent resident or a non-permanent resident who is legally authorized to work in Canada?
• Do they have a maximum qualifying household income of $120,000 per year?
• Is at least one borrower is a first-time home buyer?

Additionally, a first-time home buyer can come in many different forms:

• Has never purchased a home before
• Experiencing a breakdown of a marriage or common-law partnership
• In the last four years, did not occupy a home with a current spouse or common-law partner that either owned.

Please click the button below for more information on the First-Time Home Buyer Incentive: