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A new mortgage stress test was put into effect earlier this month in an attempt to cool down the red hot Canadian housing market.

After record low interest rates during the pandemic, the new stress test aims to protect buyers who may struggle to make their mortgage payments if interest rates increase in the future.

The new minimum qualifying rate for uninsured mortgages has been raised to 5.25%, an increase of about half a percentage point from where it was before.

REALTED: 3 Tips To Get The Maximum Price For Your Home

This will reduce the buying power for some Canadian home buyers.

For example, if you qualified for $500,000 under the previous minimum qualifying rate of 4.79%, that amount is reduced to $479,000 under the new…

Warm weather and long daylight hours make summer an ideal time to list your home. But just like every other season, summer presents unique challenges and opportunities for home sellers looking to get maximum value.

Here are 4 expert tips if you are thinking of selling your home this summer: 

Prepare The Exterior Of The Home

When selling a home during the summer, it’s extremely important to prepare the exterior of the home. Trimming the bushes, cutting the lawn, planting flowers and adding special touches around the front entrance will go a long way for potential buyers. First impressions count, and making sure your exterior is crisp, clean, and attractive will help your home stand out from the rest.

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The May market stats were released by TRREB last week, and as anticipated the Toronto housing market is starting to see a cool down after a red hot start to 2021.

During May, 11,951 homes were sold in the area, down from 13,663 in April. This represents a 13% decrease compared to the previous month.

Despite the month-over-month decrease, home sales in Toronto increased by 4,594 compared to the same time period last year.

As expressed in previous market updates, the year-over-year increases are not surprising since it was around this time last year that the market was on pause during the COVID-19 health crisis.

RELATED: 5 Step Guide For Selling Your Home

May is typically the strongest month for Toronto real estate, but considering…

A housing bubble occurs when there is a rapid increase in home prices at an unstable rate.

Under healthy conditions, homeowners continue to earn equity over time, sellers can make a profit on resale, and buyers can still afford to get into the market. But in a housing bubble, a sudden price decrease can result in many owners holding negative equity (a mortgage debt higher than the value of the property).

Homebuyers who purchased a home during a housing bubble likely paid more than the property is worth. Over time, the property will rebound back to its true value and return to positive growth. But those who purchased a home and are now forced to sell will come up short on resale.

For example, someone who purchased at peak market prices,…