The Difference Between a Home Equity Line of Credit and an Equity Loan

Homeownership provides a potential source of borrowing power, as once you build up home equity, you can tap it as a source of funds when you need money.

The equity – the difference between your home’s fair market value and the balance on your mortgage – can offer some of the lowest-cost lending available, through either a home equity loan or a Home Equity Line of Credit (HELOC).

Home equity loans:

Simply put, it is a second mortgage that allows you to access real estate equity in one lump sum. After the loan closing, the lender either cuts a cheque for a lump sum or wires the funds to the borrower.

If you own a home worth $300,000 with a $200,000 balance on your…

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Toronto Market Report

Home sales in the Greater Toronto Area (GTA) were down 10.7 percent for August 2021 from August 2020. The average sales price year-over-year saw the biggest increase in detached homes which were up 11.2 percent from August 2020 with an average price of $1,674,641.

The Toronto Regional Real Estate Board (TRREB) is reporting the third-best sales result on record for the month of August. While the market has taken its regular summer breather, it is clear that the demand for ownership housing remains strong. At the same time, the supply of listings is down. The result has been tighter market conditions and sustained competition between buyers, resulting in double-digit annual increases in selling prices.

Greater Toronto Area…

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Ottawa Market Report

Home sales in Ottawa were down 22.8 percent for August 2021 from July 2020. The average sales price year-over-year saw the biggest increase with bungalows at a 13.3 percent with an average sales price of $635,886.

Members of the Ottawa Real Estate Board sold 1,572 residential properties in August through the Board’s Multiple Listing Service® System, compared with 2,006 in August 2020, a decrease of 22 percent. August’s sales included 1,175 in the residential-property class, down 25 percent from a year ago, and 397 in the condominium-property category, a decrease of 9 percent from August 2020. The five-year average for total unit sales in August is 1,684.

August’s unit sales followed a trajectory typical of the resale…

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Ottawa Market Report

Home sales in Ottawa were down 20.9 percent for July 2021 from July 2020. The average sales price year-over-year saw the biggest increase with bungalows at 18.6 percent with an average sales price of $648, 689.

Members of the Ottawa Real Estate Board sold 1,724 residential properties in July through the Board’s MLS® System, compared with 2,183 in July 2020, a decrease of 21 percent. July’s sales included 1,312 in the residential-property class, down 20 percent from a year ago, and 412 in the condominium-property category, a decrease of 24 percent from July 2020. The five-year average for total unit sales in July is 1,775.

July’s average sale price for a condominium-class property was $419,545, an increase of 17 percent…

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Toronto Market Report

Home sales in the Greater Toronto Area (GTA) were down 8.6 per cent for July 2021 from July 2020. The average sales price year-over year saw the biggest increase in townhomes which were up 8.5 percent from July 2020 with an average price of $1,172,796.

There were nearly 9,400 sales reported in July 2021 in Toronto. Demand for ownership housing remained well-above average for the time of year despite being below the record July result set a year earlier. Market conditions actually tightened relative to July 2020, with sales accounting for a greater share of new listings compared to last year. The sellers’ market conditions sustained a double-digit annual rate of price growth.

TRREB President Kevin Crigger said that the…

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Toronto Market Report

Home sales in the Greater Toronto Area (GTA) were up 16.2 percent for June 2021 from June 2020, with the average price at $1,106,200. The average sales price year-over-year saw the biggest increase in detached homes and townhomes this month.

June home sales were up compared to last year, however they remain below the March 2021 peak, and were lower than the number of transactions reported for May 2021.

Greater Toronto Area REALTORS® reported 11,106 sales through TRREB’s MLS® System in June 2021 – up by 28.5 percent compared to June 2020. Looking at the GTA as a whole, year-over-year sales growth was strongest in the condominium apartment segment, both in the City of Toronto and some of the surrounding suburbs. On a…

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Ottawa Market Report

Home sales in Ottawa were up 24.51 percent for June 2021 from June 2020, with average sales price being $659,929.

Members of the Ottawa Real Estate Board (OREB) sold 2,131 residential properties in June through the Board’s Multiple Listing Service® System, compared with 2,038 in June 2020, an increase of 5 percent. June’s sales included 1,647 in the residential-property class, up 2 percent from a year ago, and 484 in the condominium-property category, an increase of 13 percent from June 2020. The five-year average for total unit sales in June is 2,098.

Year to date sales are tracking 48 per cent higher than last year at this time, which is due to the increased activity in the first five months of 2021 compared to the previous…

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Toronto Market Report

Home sales in the Greater Toronto Area (GTA) were up 10.66 per cent for May 2021 from May 2020, with detached and semi-detached homes seeing the biggest increase.

Toronto Real Estate Board (TRREB) reports that residential transactions reported through TRREB’s MLS® System remained high in May 2021, but fell short of the 2016 record, and were below this year’s March peak. Despite a slight drop in sales over the last two months, market conditions remained tight enough to push the average selling price to an all-time record in May.

Greater Toronto Area REALTORS® reported 11,951 sales – more than double the result from May 2020. May 2021 sales were below the May 2016 record of 12,789 but remained well above the average May…

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Ottawa Market Report

Home sales in Ottawa were up 31.6 per cent in May from May 2020, bringing the average sale price to $661,127.

Members of the Ottawa Real Estate Board (OREB) sold 2,296 residential properties in May through the Board’s Multiple Listing Service® System, compared with 1,342 in May 2020, an increase of 71 percent. May’s sales included 1,779 in the residential-property class, up 67 per cent from a year ago, and 517 in the condominium-property category, an increase of 85 per cent from May 2020. The five-year average for total unit sales in May is 2,123.

It is worth noting that there were twice the number of new listings entering the market in May 2021 compared to last May, with approximately 50 units more than the five-year average…

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Toronto - Return to Downtown Core?

Many Torontonians put their downtown Toronto condominiums on the market, in order to move further out of the city into the suburbs where they were able to afford homes with yards. However, two developers do not expect this trend to continue as the pandemic is nearing its end.

During the 2021 Land and Development Conference that was held in June, the impact of COVID-19 on buying trends and design was examined.

Data revealed that 2020 sales of condominium units in the 905 region surpassed the sales in the 416 region for the first time. One developer revealed that he believes this trend is not likely to continue, and sales will increase again in the downtown core, however it will not be exactly as it was before…

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