Zoning refers to the local government's regulation of land use within a specific area. It involves dividing a municipality or jurisdiction into different zones or districts, each with specific rules and regulations regarding how the land can be utilized. Zoning laws typically dictate the type of activities or developments allowed in a particular zone, such as residential, commercial, industrial, or mixed-use.

The primary purposes of zoning are:

1. Land Use Planning: Zoning helps communities plan and organize their development in a way that promotes orderly growth and protects the overall well-being of the community. It prevents incompatible land uses from being located too close to each other.

2. Property Values: Zoning can impact property values by influencing the character of a neighborhood. Residential areas, for example, are often zoned to preserve a certain quality of life, while commercial areas are designated for business activities.

3. Public Health and Safety: Zoning regulations can address concerns related to public health and safety by setting standards for things like building setbacks, fire codes, and environmental protection.

4. Aesthetic Considerations: Zoning may include regulations on the appearance and design of buildings, ensuring that developments contribute to the overall aesthetic of an area.

5. Infrastructure Planning: Zoning can help in planning for necessary infrastructure such as roads, utilities, and public services by aligning them with the expected development in specific zones.

When purchasing real estate, understanding zoning regulations is crucial for several reasons:

1. Intended Use: Zoning determines what you can and cannot do with a property. Before purchasing, it's essential to know if the property is zoned for your intended use, whether it's residential, commercial, industrial, or mixed-use.

2. Future Development: Zoning regulations provide insights into potential future developments in the area. This information can affect property values and the overall desirability of the location.

3. Compliance and Restrictions: Zoning ordinances come with specific regulations and restrictions. Buyers need to be aware of these rules to ensure compliance with local laws and to avoid legal issues in the future.

4. Property Value Impact: Zoning can influence property values directly and indirectly. Understanding the zoning regulations in an area can help buyers make informed decisions about the long-term value and potential resale value of the property.

In summary, zoning is a critical aspect of real estate that influences the use, development, and value of properties. Prospective buyers should thoroughly research and understand zoning regulations before making a real estate purchase to ensure their plans align with local zoning laws and to make informed investment decisions.

Home trends coming your way this 2025

The past five years have been of immense change. As we adapted to the realities of COVID, and then moved away from them, our homes adapted to our lifestyles. 

Many people now spend more time at home working, studying and exercising.  For this reason, it’s no surprise that the trends for 2025 focus on comfort, ease, and making our spaces truly ours. 

Check what design experts in North America have predicted for home trends in 2025:

1. Sustainability

The rise of climate change concerns has made people reconsider the ways they relate to their environment. 

According to The Home Network, in 2025, there will be a bigger focus on making homes more energy-efficient to not only be kind to the environment, but also save money on utilities, increase home value, and benefit from tax incentives. 

Check out these tips from CREB® on how you can make your home greener. 

Aside from making homes energy-efficient, according to HomeNetwork people are also choosing natural (and even homemade) cleaning products instead of ones with high amounts of chemicals, and are opting to buy furniture made out of sustainable materials such as cork.  

Experts also predict an increase of natural plants in homes – not just for decoration but to truly bring nature into the spaces to help improve air quality and reduce stress.

2. Coziness and Comfort

Comfy and inviting furniture became popular last year, but in 2025, design experts predict it will take the lead through the use of curves: Rounded sofas like the famous “Blob” sofa, chairs and circular coffee and dining tables, as well as accent chairs and oblong mirrors that help create a sense of fluidity and comfort. 

Warm neutral palettes, earthy tones, and organic colours, along with wood elements such as ceiling beams, trim, millwork, wall paneling, and cabinetry are expected to be seen more this year to add warmth.

3. Self-care in Style

COVID made us realize the importance of mental health, self-care and rest. As we move forward, people have prioritized these aspects of health. This includes bathing, which has become more than a duty. It’s now an immersive experience to relax and rejuvenate. 

For this reason, experts predict that people will move towards bathrooms that can be turned into micro-spas with mesmerizing bathtubs, spacious showers, underwater speakers and luxurious bath products. 

Originally designed for large spaces, wet rooms are also expected to be popular as homeowners include separate showers and tubs in them for more comfort.

4. Boldness and Vibrancy

This year, maximalism is coming back. Houzz senior editor Michelle Parker told Forbes Magazine that designers are getting more and more requests to include layers of bold colours, patterns and textures. Examples are grooved walls and ceiling panelling in bold colours, as well as patterned furniture, rugs and pillows. 

Lively colours like magenta and tangerine carefully mixed and matched with contrasting textures (rough, smooth, soft, hard) seek to add vibrancy and energy to spaces in 2025. 

5. Embracing Outdoor Spaces

Owners of single-family homes with backyards and front porches found solace in these spaces during the pandemic to escape cabin fever.

While we live in a post-COVID era, the love of homeowners for their outdoor havens has stayed. So much so that Forbes Magazine reported that going into 2025, homeowners with backyards will focus on creating memorable outdoor entertaining spaces to welcome guests. 

According to Michelle Parker, homeowners are embracing outdoor cooking methods that go beyond the classic BBQ and are choosing to install pizza ovens, smokers, ceramic kamado-style barbecues and Argentinian-style gaucho grills that use wood or charcoal. 

In addition to the culinary aspect, more people are also focused on adding more features to their space, such as outdoor showers, waterproof sound systems and freestanding home offices.

Sources:

• Home Network 

• Martha Stewart

• Forbes

Key Points:

• Purpose: Used when buying a new home before selling the current one.

• How It Helps: Bridges the gap in down payments until the sale closes.
  Firm Sale Required: Most lenders require a firm sale on the current property to consider bridge financing.

• Expert Guidance: Different lenders offer varying rates and terms. Expert advice can save or cost clients significantly.

Bridge financing, also known as an interim mortgage, is a short-term loan that helps buyers bridge the gap between selling their current home and purchasing a new one. It allows the buyer to use the equity in their current home as a down payment on their new home. 

Bridge financing is most common in competitive real estate markets, and is often used when the buyer needs to make a quick decision on a new home. The loan is typically paid off when the buyer sells their current home. 

• Loan term

  Bridge loans are usually for a maximum of 90 days, but can range up to 12 months or longer. 

• Interest rates

  Bridge loans usually have higher interest rates than mortgages because they are short-term. The rate is often between the prime rate + 2% and the prime rate + 3%. 

• Collateral

  Bridge loans are secured against the current property. 

• Lenders

  The lender that provides the new mortgage typically also provides the bridge loan, but a second lender may be used if the primary lender doesn't offer bridge financing. 

• Documents

  To qualify for bridge financing, you'll usually need a copy of the sale agreement for your current home and the purchase agreement for your new home.

If you have questions please reach out to your mortgage broker.

Ideally, refinancing is done at the end of your mortgage term to avoid penalties, but the timing can vary depending on your goals. For some, it’s about unlocking the equity in their home to fund renovations or cover big expenses like college tuition. For others, it’s an opportunity to consolidate debt, lower their interest rate, or change up their mortgage product.

Let’s take a closer look at some of the ways refinancing your mortgage can help!

• Get a Better Rate: As interest rates have continued to decrease with the Bank of Canada updates these past few months, now is a great time to consider refinancing for a better rate and lower overall mortgage payments!  Experts anticipate the Bank of Canada will move to have the overnight rate down to 4.0% at year-end and potentially down to 2.75% next year.

• Consolidate Debt: When it comes to renewal season and considering a refinance, this is a great time to review your existing debt and determine whether or not you want to consolidate it onto your mortgage. In most cases, the interest rate on your mortgage is less than you would be charged with credit card companies or other forms of financing you may have. Plus, having all your debt consolidated into a single payment can keep you on track!

• Unlock Your Home Equity: Do you have projects around the house you’ve been dying to get started on? Need funds for a large purchase such as a new vehicle or post-secondary education? When you are looking to renew your mortgage, it is a great opportunity to consider refinancing in order to take advantage of the home equity you have built up to help with these larger changes in your life!

• Change Your Mortgage Product: Are you unhappy with your existing mortgage product? If you have a variable-rate or adjustable-rate mortgage, you may be considering locking it in at the lower rates. Alternatively, you may want to switch your current fixed-rate mortgage to a variable option with the interest rates expected to continue decreasing into 2025. You can also utilize your refinance to take advantage of a different payment or amortization schedule to help pay off your mortgage faster!

PLUS! Some latest changes by the Government of Canada will make it even easier for you when it comes to your renewal and refinancing options:

• Those of you who may have an uninsured mortgage will no longer have to pass the stress test as of November 21st. This means that you have more flexibility when it comes to rates and mortgage products in renewal or refinance cases in cases where you wish to switch lenders without adding additional funds to your mortgage!

• Beginning January 15, the federal government will allow default-insured mortgages to be refinanced to build a secondary suite. If you’ve been considering adding a suite to your property, you may be eligible to access up to 90% of your home’s equity for this purpose.

published By Danica De Souza  Mortgageline Mortgage Architects

Clients often ask if they need a 20% down payment to buy another home, and the answer is, 'it depends'.

If they are purchasing a property for rental or investment purposes, then yes, they'll typically need a minimum 20% down payment.

However, if they are converting their current home into a rental property and buying another home for themselves to live in, they can put down a minimum again.

One program that many overlook is how to buy a second home with as little as 5% down.

Here's how it works:

• The property needs to be owner-occupied, meaning they or immediate family members will use it.

• It must make sense, such as a second home in a different city for work, leisure, or family to live in. Lenders will be vigilant if it seems like they are trying to use this program to buy a rental property without a 20% down payment.

• The purchase price needs to be under $500,000 to qualify for 5% down or under $1 million for the minimum down payment.

• Hypothetical rental income (or Airbnb income) cannot be used to qualify since the property is for owner-occupied use only. Even if family members are renting from them, the rent won't be considered. This means they have to qualify for both their first home and this new second home without rental income.

For more information contact 

Jayden Backs

BRX Mortgages

403-370-9020

jayden@jaydenbacks.ca

Understanding down payments and deposits

Buying a home can be a complex financial journey. If you plan to get a mortgage, you’ll hear about the need for a down payment, but your REALTOR®will also mention a deposit.

Are these two terms the same? Let’s clarify the difference between a deposit and a down payment and their impact on your path to homeownership. Whether you’re a first-time buyer or looking to refine your strategy, grasping these concepts will help you make informed decisions and succeed in the housing market. Let’s dive in! 

What is a down payment? 

A down payment is the amount of money a buyer must provide independently of the mortgage loan. Sources for a down payment can include: 

• Savings 

• Investments 

• Gifts from family*

• Borrowed funds** 

Note: If using gifted funds, the lender requires a gift letter. The funds should first be deposited into the buyer's account before being used as a deposit or down payment. Inheritance funds come with different requirements that depend on the lender. 

*Note: In some cases, lenders may allow borrowing against personal lines of credit or other properties. 

How much should I save for a down payment? 

In Canada, most lenders require a down payment of 20 per cent of the purchase price. However, insured mortgages allow for down payments as low as 5 per cent. While the minimum down payment is 5 per cent, lenders typically expect an additional 1.5 per cent saved to cover legal fees and other associated costs, including: 

• Appraisal fees 

• Home inspection fees

• Title insurance 

Why do I need to give a deposit when making an offer? 

A deposit is not the same as a down payment and usually doesn’t constitute the entire down payment amount. It serves as a security measure for the seller, ensuring that if the buyer does not complete the purchase, the seller is compensated for their potential loss. In short, your deposit signals to the seller that your offer is serious. 

Does my deposit count toward my down payment? 

Yes, it does. However, the lender will need to track a 90-day history of where the deposit originated in addition to the down payment. For instance, the lender will request 90-day bank statements from the account where the deposit is held. They will need to see a record of the deposit leaving your account (as part of the down payment) and a record of the selling brokerage receiving the deposit. 

How does my deposit contribute to my down payment? 

When your file is conveyed at the law office, the lawyer will request the deposit from the seller’s brokerage. This deposit will then be included in the total purchase funds. 

Now that we've clarified the differences between down payments and deposits let’s explore some scenarios, starting with Ideal Camille. 

Scenario 1: Ideal Camille 

Imagine Ideal Camille, who, with the assistance of her REALTOR®, finds a home listed at $400,000. For a 20 per cent down payment, Camille has saved $80,000 for which she can provide her lender with a 90-day transaction history. She is pre-approved for a mortgage to finance the remainder of the purchase. 

To strengthen her offer, Camille and her REALTOR® include a $20,000 deposit. Once the seller accepts the offer, Camille delivers the deposit to the seller’s brokerage and receives a Receipt of Funds, she then provides her lender with confirmation that the deposit has been received by the listing brokerage. This ensures the lender recognizes that $20,000 will be applied to her $80,000 down payment. 

Scenario 2: Gift Cliff 

Not every transaction is as straightforward as Ideal Camille’s. Take Gift Cliff, who is eager to purchase a $300,000 home. He receives a $15,000 down payment gift from his father, which is only 5 per cent of the purchase price, necessitating an insured mortgage. Excited about the home, Cliff instructs his REALTOR® to include the entire $15,000 as a deposit in his offer. 

Once his offer is accepted, the $15,000 deposit is sent to the selling brokerage. Cliff must inform his lender that his down payment will come from this deposit and advise that the deposit was received by the listing brokerage. He also communicates to his lender that the deposit was a gift from his father, prompting the lender to request a gift letter and outline the necessary details for the letter. 

Down payment and deposit pro-tips: 

1. If any portion of your deposit or down payment is a gift or borrowed, consult your mortgage broker regarding the lender's policies on these funds. Some lenders accept gifted funds from anyone, while most require them to be from a direct family member. 
   

2. Lenders are becoming stricter about tracking the source of funds for down payments. Be prepared to provide at least 90 days of financial history for all funds used for your deposit and down payment. 
   

3. Avoid transferring large sums in and out of the account, instead holding your down payment during the purchasing process. Any large transfers must have complete records detailing where the money came from, where it’s going, and why. Due to Canada’s strict anti-money laundering policies, it's essential to maintain clear documentation of transactions. The best practice is to keep your down payment in a separate account designated solely for your home purchase. 

Supply levels improving for higher-priced homes

Sales gains for homes priced above $600,000 offset declines at the lower end of the market, resulting in October sales that were similar to last year. The 2,174 sales in October increased over September and stood 24 per cent above long-term trends for the month.

“Housing demand has stayed relatively strong in our market as we move into the fourth quarter, with October sales rising over last month,” said Ann-Marie Lurie, Chief Economist at CREB®. “However, activity would likely have been stronger if more supply choices existed for lower-priced homes. Supply levels in our market are improving relative to the ultra-low levels experienced last year, but much of the gains have been driven by higher-priced units for each property type. This results in conditions far more balanced in the upper end of the market versus the seller's market conditions in the lower to mid-price ranges of each property type.” 

The gains in new listings relative to sales over the past six months have supported inventory gains in the city. As of October, 4,966 units were available, a significant improvement over the near-record low of 3,205 units reported last October. While inventories are starting to reach levels more consistent with long-term trends, the inventory composition has changed as nearly half of all the residential inventory is now priced above $600,000.

Adjustments in supply are helping move the market away from the tight market conditions experienced in the spring. However, conditions remain relatively tight, with 2.3 months of supply and a 67 per cent sales-to-new listings ratio, and the months of supply does vary significantly by price range and property type. For example, detached homes priced below $700,000 are reporting less than two months of supply, while homes priced over $1,000,000 are reporting over three months of supply. This is likely resulting in different price pressures depending on price range and property type.

Overall, the total residential benchmark price was $592,500 in October, over four per cent higher than last October and on a year-to-date basis, averaging over eight per cent higher than last year's levels. The unadjusted benchmark prices did ease slightly over last month due to seasonal factors, as seasonally adjusted prices remained relatively stable in October compared to September. 

Detached
Home sales rose to 1,071 in October, a gain over last month and nearly 10 per cent higher than last year. While new listings were higher than last year, they slowed over last month, causing the sales to new listings ratio to rise to 69 per cent and preventing any further monthly gain in inventory levels. With 2,199 units available, the months of supply remained near two months, a gain over the under two months reported last year at this time, but slightly lower than last month.

The unadjusted detached benchmark price was $753,900 in October, slightly lower than last month but still eight per cent higher than levels reported last October. Additional supply choices in the higher price ranges have taken some of the pressure off home prices. However, the recent monthly pullbacks are more related to seasonal conditions, as seasonally adjusted prices have remained relatively stable over the past three months.

Semi-Detached
Sales in October rose over last month and were over six per cent higher than levels reported last year at this time, contributing to the year-to-date growth of over three per cent. New listings for semi-detached homes have also been on the rise, supporting some steady gains in inventory levels. The shift in supply compared to demand has helped push the market toward more balanced conditions, especially for higher-priced properties. However, with only two months of supply, the overall conditions still favour the seller.

The unadjusted benchmark price was $677,000 in October, similar to last month and over eight per cent higher than last year. Year-to-date prices have averaged an over 11 per cent gain. 

Row

Following a strong start to the year, sales activity has slowed since June. However, the pullback in sales is not due to a shift in demand but related to supply constraints. The declines in sales have been driven by homes priced under $400,000, the same segment of the market which reported a 35 per cent decline in new listings. Year-to-date sales have remained relatively stable compared to last year, as pullbacks in the lower range offset the gains in the upper price ranges. Over 70 per cent of the sales have occurred over $400,000, a significant shift from last year, where the upper end accounted for 47 per cent of all the sales.

Improvements in supply did cause the months of supply to push above two months in October, the first time that has happened since the end of 2021. Supply growth, especially in the upper price ranges, has helped take some pressure off prices. However, with an unadjusted benchmark price of $456,600, prices are still over eight per cent higher than last October and year-to-date, which have averaged an increase of nearly 16 per cent.

Apartment Condominium

While sales in October improved over last month, October marks the fifth consecutive month with a year-over-year decline. However, it is important to note that the 6,782 sales so far this year are only down slightly over last year's record high and nearly double the number of sales we have averaged over the previous decade. Higher lending rates, rising rents, and limited supply choices for lower-priced properties have fuelled demand for apartment condominiums. However, like other property types, sales declines were driven by pullbacks for lower-priced units due to a significant drop in supply. Inventory levels in October did rise over the previous year, with most of the gains occurring in the $300,000 - $500,000 range, supporting more balanced conditions in those price ranges. Meanwhile, conditions remained relatively tight for lower-priced condominiums.

The additional supply choices, especially in the higher ranges of the condominium market, are taking some of the pressure off prices. In October, the unadjusted benchmark price was $341,700, down over last month but still 11 per cent higher than last year's levels. While much of the monthly decline can be attributed to seasonal factors, areas with a relatively high number of newly constructed and completed projects are impacting resale activity, resulting in a slightly higher monthly decline. Nonetheless, on average, year-to-date prices are nearly 17 per cent higher than levels reported last year. 

REGIONAL MARKET FACTS

Airdrie

While both sales and new listings improved over the levels reported last October, the monthly pullback in new listings was enough to cause the sales-to-new-listings ratio to rise over last month, reaching 67 per cent. While this slowed the growth in monthly inventory levels, the 365 units in inventory is a significant gain over the exceptionally low levels of 213 reported last year at this time. Following three consecutive years of low inventory levels, recent gains are helping shift the market toward more balanced conditions. 

A shift away from the extreme sellers’ market has reduced the pressure on home prices. The unadjusted benchmark price was down over last month in October, but it was still five per cent higher than last October. Some of the monthly decline is related to seasonal factors, as seasonally adjusted data indicates prices remained relatively stable over the past four months.

Cochrane

Sales this month improved over last year, keeping above long-term trends for the town. At the same time, new listings also improved, reporting the highest October total on record. Recent gains in new listings relative to sales have helped support some steady gains in inventory levels. However, with 178 units available in October, inventories are still below long-term trends, keeping the months of supply relatively low at 2.3 months. 

While conditions are not as tight as in the spring, the shift is slowing the pace of price growth. The unadjusted benchmark price in October was slightly lower than last month but still six per cent higher than last year's levels. Overall year-to-date average benchmark prices are over nine per cent higher than last year's levels.

Okotoks

Sales in October improved over last year's levels as recent gains in new listings provided choices for many buyers struggling with supply options. While the sales gain relative to new listings prevented further monthly gains in inventory levels, the 103 units available in October significantly improved over the near-record low of 66 units reported last October. 

With less than two months of supply, conditions continue to favour the seller. The persistent seller market conditions have driven price growth in this market throughout most of the year. While unadjusted prices did ease slightly over last month in October, levels are still over six per cent higher than last October and over eight per cent higher on a year-to-date basis. 

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

Fall is a good time to do some home repairs and maintenance so you can keep warm and dry during the long winter months. After all, every home needs a little TLC to maintain its value and keep the homeowner comfortable.   

Exterior maintenance 

Keeping the exterior of your home in good condition not only helps it look good, but can also save you money and the headaches that go along with a neglected exterior. 

Foundation 

Your foundation needs special attention to prevent water from seeping in as the weather warms up and during thaws. Inspect it thoroughly, both inside and out. If you see cracks that are more than 0.3 cm wide, or any signs of efflorescence (white deposits), seepage, or humidity, ask a professional to look into the matter. 

Roof 

Assess the condition of your roof or have a roofing professional inspect it to ensure that it's ready for winter. Make sure the seals around the chimney, skylights, and vents are in good condition and that there are no missing or loose shingles. 

Gutters 

Clean gutters and downspouts and replace damaged sections. It may be a good idea to install leaf guards that allow water to go through while preventing leaves and other debris from accumulating. Gutters are designed to keep rainwater away from the house so if your gutter is blocked, water can overflow onto your property and even seep into the basement. The grading around your house also helps drain run-off water from the foundation. Make sure you have a small slope that runs for at least 1.8 m from the house. 

Driveway, yard, and porch 

Repair cracks in sidewalks, steps, and driveways with concrete or special-purpose sealant to prevent damage during winter. Store summer equipment (lawn mowers, leaf blowers, gardening tools) and prepare winter equipment (shovels, snow blowers, etc.). Clean, repair, and store your patio furniture and barbecue for next spring. 

Outdoor faucet 

If your home has a frost-free outdoor faucet, remove the garden hose and make sure the faucet is completely turned off. If you have a standard faucet, drain it to prevent it from bursting when temperatures dip below freezing. 

Interior maintenance 

Fire prevention, water damage, and energy efficiency should be your top priorities when preparing your home's interior for winter. 

Sealing and insulation 

As there’s more precipitation than normal in the fall and winter, check the airtightness of your doors and windows to prevent water seepage. Airtight doors and windows could also help reduce your electricity bill. If necessary, add weatherstripping or caulking. 

Plumbing 

Water damage is a real nuisance for properties as it may uncover hidden issues such as mould. Make sure your pipes and everything around them is dry: the pipes under your sinks, washing machine and dishwasher inlet hoses, and the floor around toilets, the washing machine, dishwasher, and water heater. Further, water heaters have a limited lifespan, which is generally around 10 years. It’s therefore necessary to pay particular attention to it (leaks, corrosion, seepage, etc.) and plan its replacement in the short term. 

If you really want to reduce the risk of water damage, there are now leak detection systems that automatically close the water intake valve when a leak is detected. No more leaks, thanks to detectors installed close to your home's major plumbing appliances! 

Heating and fireplace 

Check the condition of your heating system and fireplace. To ensure optimal performance, have your heating systems inspected by a licensed professional, especially if you notice any signs of malfunction such as a noisy belt.  

If you have a fireplace or wood-burning appliance, it's important to have your chimney swept at least once a year to remove creosote and blockages. A buildup of creosote can result in a chimney fire, and blockages can put you at risk of carbon monoxide poisoning. 

Humidifier 

If you use a humidifier to make the air in your room less dry and comfortable during the winter, be sure to clean your unit and its filter, or replace the filter as needed, to prevent the growth of bacteria and mould buildup. 

Ceiling fan 

To reduce your heating costs in winter, reverse the direction of your fan blades to create an upward draft helping to better distribute warm air from the ceiling. During winter, the blades should be turned clockwise. 

Smoke and carbon monoxide detectors 

Make sure the smoke and carbon monoxide detectors in your home are working properly—clean them and replace the batteries once a year. Better yet, install detectors with a 10-year lifespan to avoid the yearly replacement of batteries.  

Finally, give your home a thorough cleaning. Get rid of the things you no longer need such as newspapers and old household cleaning products and chemicals to keep your home clean and safe.