{"id":182993,"date":"2025-10-01T17:06:10","date_gmt":"2025-10-01T17:06:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/182993\/"},"modified":"2025-10-01T17:06:10","modified_gmt":"2025-10-01T17:06:10","slug":"canadians-struggling-to-sell-their-homes-face-financial-planning-implications","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/182993\/","title":{"rendered":"Canadians struggling to sell their homes face financial planning implications"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Clients who can\u2019t sell as quickly as planned may face ripple effects, including carrying costs and delayed retirement, as well as the need to tap into other investments prematurely.sesame\/AFP\/Getty Images<\/p>\n

Ryan McLellan, a financial advisor with Edward Jones in Nepean, Ont., recently had a client come to him with a tight timeline. <\/p>\n

The client had purchased a new home in southern Ontario and needed to sell his property in Ottawa within three months. But in the current housing market downturn, he wasn\u2019t optimistic.<\/p>\n

\u201cThere was no enthusiasm,\u201d Mr. McLellan recalls. \u201cHe had already moved past hope and was bracing for what it might cost him if the sale fell through.\u201d<\/p>\n

Advisors across Canada are encountering similar cases. Clients whose financial plans hinge on a real estate sale may now be facing unexpected delays. <\/p>\n

Driven by reasons such as retirement, long-term care needs, or transitions following the loss of a spouse or a new job, these planned asset sales are now facing a cooling seller\u2019s market. <\/p>\n

In turn, financial advisors are stepping in to help clients bridge the gap, offering strategies to manage liquidity and preserve longer-term goals.<\/p>\n

Rather than relying on a forced sale, Mr. McLellan works with his clients to rethink their strategy, which may include tapping into a home equity line of credit (HELOC) \u2013 a concept some still view with skepticism. <\/p>\n

\u201cEspecially for retirees, they\u2019re like, \u2018Oh, I thought this [concept] was dirty.\u2019 And I explain, \u2018This is your largest asset and it\u2019s the majority of Canadians\u2019 largest asset, so we need to look at how to maneuvre,\u2019\u201d he says.<\/p>\n

For years, Canadians treated real estate as a reliable way to accrue long-term wealth, but now many are rethinking that assumption. Mr. McLellan encourages clients to build in cash-flow buffers and tax-aware withdrawal strategies that don\u2019t rely on a single asset.<\/p>\n

\u201cWhen someone loses a job or a spouse, or needs to move into care, they are often overwhelmed,\u201d he says. \u201cIt\u2019s the advisor\u2019s job to provide clarity and options, not just a one-size-fits-all plan.\u201d<\/p>\n

Trying to avoid a forced sale<\/p>\n

Brianne Gardner, senior wealth advisor and co-founder of Velocity Investment Partners at Raymond James Ltd., who works in both Vancouver and Toronto, says the current landscape is a tale of two markets. <\/p>\n

Trophy properties in desirable areas are still selling, she says, but other segments, such as downtown condos or higher-end homes in slower-growing areas, are sitting on the market longer. <\/p>\n

Clients who can\u2019t sell as quickly as planned may face ripple effects, including carrying costs and delayed retirement, as well as the need to tap into other investments prematurely.<\/p>\n

Ms. Gardner says the key is to avoid turning someone into a \u201cforced seller.\u201d Instead, the focus is on strategic planning. That might involve accessing home equity through a HELOC, drawing from liquid investments such as tax-free savings accounts (TFSAs) or non-registered accounts, or resorting to bridge financing, which often carries higher interest rates than more traditional loans, when necessary. Some clients are even reconsidering their retirement or estate plans.<\/p>\n

\u201cThe conversations we have include stress-testing retirement projections against lower valuations or delayed sales, and ensuring estate plans don\u2019t hinge on a single illiquid asset,\u201d Ms. Gardner says. <\/p>\n

\u201cIn practice, it\u2019s about adding options and multiple buckets to spend from, making sure there are ample liquid investments, alternative income streams, and tax-efficient structures, so their retirement and legacy goals aren\u2019t dependent on the mood of the housing market,\u201d she adds.<\/p>\n

For Ms. Gardner, avoiding surprises means devising contingency plans for various possibilities. <\/p>\n

\u201cMy advice is simple: don\u2019t leave the sale to chance or crisis,\u201d Ms. Gardner says. \u201cPlanning a few years ahead allows families to choose their timing, prepare the property properly, and avoid selling into a soft market under duress.\u201d <\/p>\n

Managing stressful conversations<\/p>\n

Grace Zhang, an advisor with Yijun Grace Zhang Financial Services Ltd. at Sun Life Financial Investment Services (Canada) Inc. in Richmond, B.C., has seen several clients navigating their way through this real estate limbo. <\/p>\n

In some cases, they\u2019re juggling multiple investment properties with mortgages they can no longer sustain. In others, they are experiencing a personal transition, such as job loss, retirement or the need for long-term care. One client had to sell after losing his job and was unable to manage the mortgage payments.<\/p>\n

\u201cThese are stressful conversations,\u201d Ms. Zhang says. \u201cClients are often emotionally overwhelmed and worried about making the wrong decision. They need to know they have options and someone to guide them through it.\u201d<\/p>\n

She says her role is a combination of providing financial planning and emotional support. She works with clients to develop flexible strategies that can adapt to life\u2019s changing events. <\/p>\n

That may involve establishing what she calls \u201cPlan A, B and C\u201d \u2013 such as selling a property, refinancing, drawing from registered investments or renting out a suite to generate cash flow. Ms. Zhang also encourages clients to begin these conversations early, well before a sale becomes necessary.<\/p>\n

She notes that real estate isn\u2019t always the stable retirement plan people believe it to be. Properties are illiquid and expensive to transact. Public equities, on the other hand, with their greater liquidity and easier access, can provide faster access to funds in a crunch.<\/p>\n

\u201cWe just need to find the best option for the client and their situation,\u201d Ms. Zhang says.<\/p>\n

As more clients grapple with the emotional and financial strain of delayed property sales, advisors say that conversations are becoming more proactive. Stress-testing retirement plans, rebalancing portfolios and integrating estate planning with liquidity needs are now standard practice.<\/p>\n

\u201cYou never want to be in a position where an unsold home derails your retirement,\u201d Mr. McLellan says. \u201cA good financial plan prepares for what you can control and helps you stay calm through the rest.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Clients who can\u2019t sell as quickly as planned may face ripple effects, including…\n","protected":false},"author":2,"featured_media":182994,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[5267,1397,45,49,48,133,5266,131,132],"class_list":{"0":"post-182993","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-advisor-noregwall","9":"tag-appwebview","10":"tag-business","11":"tag-ca","12":"tag-canada","13":"tag-finance","14":"tag-globe-advisor","15":"tag-personal-finance","16":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/182993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=182993"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/182993\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/182994"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=182993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=182993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=182993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}