Record December Caps Record Year for Canadian Home Sales

Christine MacPherson • January 22, 2021

Statistics released today by the Canadian Real Estate Association (CREA) show national home sales set another all-time record in December 2020.


Home sales recorded over Canadian MLS® Systems jumped by 7.2% between November and December to set another new all-time record.


Seasonally adjusted activity was running at an annualized pace of 714,516 units in December 2020 – the first time on record that monthly sales at seasonally adjusted annual rates have ever topped the 700,000 mark.


The month-over-month increase in national sales activity from November to December was driven by gains of more than 20% in the Greater Toronto Area (GTA) and Greater Vancouver.


Actual (not seasonally adjusted) sales activity posted a 47.2% y-o-y gain in December – the largest year-over-year increase in monthly sales in 11 years. It was a new record for the month of December by a margin of more than 12,000 transactions. For the sixth straight month, sales activity was up in almost all Canadian housing markets compared to the same month in 2019.


For 2020 as a whole, some 551,392 homes traded hands over Canadian MLS® Systems – a new annual record. This is an increase of 12.6% from 2019 and stood 2.3% above the previous record set back in 2016.


SHARE THIS ARTICLE

RECENT POSTS

No-Payment Mortgage Options: Are They Right for You?

By Christine MacPherson • April 11, 2025
When people hear “no-payment mortgage,” they often assume it’s too good to be true or that it comes with hidden risks. But in Canada, these options are designed to be conservative and sustainable, giving homeowners more financial flexibility without putting them in a bad financial position. There are three main types of no-payment mortgage options: Reverse Mortgages – Available to homeowners 55+ with significant home equity. Alternative Lenders – Offer similar options regardless of age but require strong equity. Private Lenders – Short-term solutions for homeowners who need temporary relief. Let’s break them down and see if one might be a good fit for you. Reverse Mortgages: Not as Risky as You Think Reverse mortgages tend to get a bad reputation, mostly because of how they were handled in the U.S. years ago. But in Canada, lenders are far more conservative. The biggest difference? Canadian reverse mortgages never allow you to owe more than your home is worth . How Do They Work? You must be 55 or older to qualify. You can borrow a portion of your home’s value , usually up to 55% . The older you are, the more you can borrow —since the lender calculates how long you’re likely to stay in the home. You don’t make monthly payments —instead, the interest gets added to your loan balance over time. When you sell or move, the loan is repaid from your home’s value. Why Can’t You Owe More Than Your Home’s Value? Most lenders offer a no-negative equity guarantee , meaning even if home prices drop, your estate will never owe more than your house is worth. But realistically, Canadian home values have remained stable or increased over time , making it unlikely you’d ever reach that point.

Should I renew or refinance my mortgage_

By Christine MacPherson • March 31, 2025
Should I renew or refinance my mortgage? Millions of Canadians are reaching the end of their mortgage term, eager to secure the best possible rate. While many focus on renewing their existing mortgage, they may overlook the possibility of refinancing—a decision that could make a big difference in their financial picture.  What’s the Difference Between Renewal and Refinance? Renewal: At the end of your mortgage term (commonly 5 years), you need to “renew” your loan to keep it active. When you renew, your mortgage balance and amortization period (the total time you have to pay it off) stay the same. You can renegotiate your interest rate, but you can’t borrow additional funds or change the original loan amount. Example. You bought a home in June 2020 and had a mortgage of $400,000. After a 5-year term at 1.70%, your outstanding mortgage balance will be around $332,939.71, assuming you haven’t made any extra payments. At this point, you’ll need to renegotiate a new interest rate and choose a new term based on your remaining balance. Refinance: Refinancing allows you to restructure your mortgage. You can change the loan amount, extend the amortization period, and often access your home’s equity. This flexibility gives you the option to lower monthly payments, consolidate debt, or free up cash for other purposes like renovations or investing. Example: Say your home’s value has grown significantly since you first purchased it. Through refinancing, you could borrow more against that increased equity, giving you funds to complete a kitchen renovation, start a small business, or pay off higher-interest debts. The Impact of Rising Rates If you locked in a 1.70% fixed rate five years ago, today’s rates—often over 4.50%—may feel like a big leap. Simply renewing might leave you with a payment shock. Refinancing, however, gives you the ability to adjust your monthly obligations, even as rates rise, by stretching out your amortization or accessing equity for financial goals.
Show More