Luxury house at sunny day in Vancouver, Canada.

Melissa is a mother of 2, lives in Utah, and writes for a multitude of sites. She is currently the EIC of HarcourtHealth.com and writes about health, wellness, and business topics.

Canada’s cooling real estate market is expected to slow further, and rising interest rates and stricter mortgage rules may slow home sales and rising values, according to a Reuters poll of property released in late September. For example, the prospects of home prices in Toronto showed a slight improvement over a few months prior but is a far cry from the heated market earlier this year. Meanwhile, Vancouver, which has some of the most impressive and expensive homes in the country looks more precarious.

Hedging Against Potential Losses with Real Estate Insurance

Experts from D.G. Bevan insurance brokers, in Ontario, suggest that residential and commercial buyers and investors consider real estate insurance to cover potential losses. If investors feel particularly nervous about the future of the industry in an uncertain political and economic period, having a tailored insurance policy can help put their minds at ease.

Canada’s Real Estate Market is Cooling

Based on forecasts from a Reuters poll of 16 analysts conducted September 4 to 7, national home prices could rise by an average of 1.7 percent, which falls below the expected inflation rate through 2019. This means that prospective buyers could lose money on their investment in the short-term future. This is an unwelcome reality check for latecomers hoping to join the trend of investors and homeowners cashing out of current homes for cash or to move to a better home.

House prices should increase by 2.1 percent next year, which is in line with the June forecast, and another 2 percent in 2020, which is lower than the previous forecast of 2.5 percent.

Modest Growth is Making Buyers Cautious

Buyers and sellers may see a very modest price increase across Canada, with no indication if the market will turn hot or fizzle out beyond the 2020 horizon of the poll. Some markets, such as Toronto and Vancouver, are still adjusting and recovering to the Bank of Canada rate increases, which are undoubtedly being felt in Ontario as well.

New rules passed at the beginning of the year require “stress tests” for borrowers have dampened enthusiasm for those thinking of buying a home or investment property.

Getting insurance can help offset different kinds of losses and conditions, which should give some investors more confidence in their riskier ventures.