Giant Japanese real estate developer Mitsubishi Estate Asia will back a major housing estate in NSW’s Illawarra region being undertaken by the private Abadeen operation, as the state’s housing industry digests the collapse of developer Bathla.

While the Bhart Bhushan-led empire is being broken up as lenders step into key sites and start developing them directly – and hopes remain of a rescue plan for some sites – the move by the Japanese group shows that premium operators are winning support.

The Japanese group already has ties with Abadeen and a host of top developers including Lendlease, where it has backed luxury skyscrapers in Sydney. It is also developing Sydney’s $2.3bn Harbourside precinct with Mirvac in a 50:50 joint venture.

In the latest deal with Abadeen, the pair will develop RIVA Calderwood, a new masterplanned estate with more than 230 new homes in one of the Illawarra’s fastest-growing regions.

RIVA Calderwood builds on existing ties between Abadeen and MEA at the Putney Wharf Harbourfront Precinct in Sydney, and is the pair’s next move in expanding into Australia’s housing sector.

The partnership shows that large-scale international players have confidence in Australia’s long-term housing fundamentals despite the slowing sales reported by major developers including Stockland and Mirvac.

Mitsubishi Estate Asia is backing a housing estate development by Abadeen in NSW’s Illawarra region.

The interest is heaviest in backing top operators who are expanding in growth corridors that address the more affordable end of the living sector.

The estate in Shellharbour is part of the broader Calderwood Urban Development Plan. RIVA Calderwood is designed around the Macquarie Rivulet with a focus on lifestyle.

House and land packages are targeted at a mix of first-home buyers, growing families, downsizers and lifestyle purchasers, with the net cast wide after the Albanese government’s shock property tax changes.

Homesites range from 300sq m to more than 2000sq m, so purchasers have the flexibility to design homes.

Abadeen executive chairman Justin Brown said the partnership was a milestone for both organisations to expand into the more affordable end of the housing market and demonstrated the growing appeal of Australia’s living sector to global investors.

“We’re incredibly proud to be partnering with Mitsubishi Estate Asia to deliver RIVA Calderwood,” he said. “MEA has an outstanding reputation internationally and continues to demonstrate its high conviction in Australia’s residential market through its investment in high-quality communities.”

Mr Brown said the project reflected Abadeen’s continued expansion into masterplanned communities across Australia, where there is pressing need for more stock to address the housing crisis.

MEA head of Australia, Yosuke Matsunaga, said Australia continued to present compelling long-term opportunities for residential investment.

“Abadeen’s track record of delivering high-quality residential communities and our shared long-term investment philosophy made them a natural partner for this project,” he said. “We look forward to a strong and enduring partnership with Abadeen and exploring further opportunities to work together in the future.”

Japanese companies have made large forays into home building and development with the likes of Sekisui House and Asahi Kasei Corporation active.

“Australia continues to benefit from strong population growth and sustained demand for quality housing, and MEA looks forward to continuing to actively invest and grow its business in Australia,” Mr Matsunaga said.

The first public release at RIVA Calderwood is planned for September with the developer optimistic about the site that fits into the affordable end of Abadeen’s pipeline. The company also develops premium boutique apartments and mixed-use projects.

It sports an active project pipeline valued at more than $3.5bn and a strong national presence. Abadeen is working on 20 projects across NSW, Victoria, Queensland and WA.

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Homebuyers looking for property in small or medium-sized Ontario markets may be hard pressed to find deals in some regions. A report by real estate listing site PropertyMesh identified the areas in which houses were least likely to sell below their asking price.

The report, based on MLS resale records of Ontario houses sold between April and July, found Thunder Bay , Ont. to be city with the lowest number of properties sold below their asking price . It said just 21 per cent of properties in the northern city sold below asking in the second quarter of 2026.

Houses in Thunder Bay were on the market for the second shortest period of time at 12 days. The report said 91 per cent of houses in the city sold within 30 days and 63 per cent sold within 14 days.

Timmins, also in northern Ontario, had the second lowest percentage of properties sold below asking, with 37 per cent.

This was followed by Wilmot, Ont., where 49 per cent of properties sold below the asking price; North Bay, Ont. with 50 per cent, and Waterloo, Ont. with 53 per cent.

Meanwhile, the area with the highest percentage of properties sold below asking price in Ontario was Blue Mountains, Ont., where almost all or 98 per cent sold below asking during the second quarter.

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Also in the top five Ontario areas most likely to sell below asking price are Niagara-on-the-Lake and Wasaga Beach both with 94 per cent, and Owen Sound and Fort Erie both with 93 per cent.

PropertyMesh said at least 90 per cent of properties in Collingwood, Orangeville and Bracebridge also sell below asking price.

• Email: dpaglinawan@postmedia.com

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The real estate market may have caught a break: a potential trade deal with America’s Tariff Don appears to be taking shape.

The less welcome news is that the real estate market still faces a long list of unknowns.

First, the positives

To a large degree, sentiment drives real estate values.

More confidence means more buyers competing for properties.

Bank of Canada staff research estimates that in the median Canadian city, a one per cent rise in housing demand pushes prices up roughly 0.45 per cent.

But economic uncertainty has been a persistent problem. Among Canadians looking to purchase a home last year, Royal LePage found that 49 per cent said the ongoing trade dispute with the U.S. had caused them to postpone their home-buying plans.

Whatever the exact figure, tens of thousands of buyers went on strike, doubtful about spending six or seven figures on a home amid so much market uncertainty.

With the tariff clouds beginning to clear (assuming the deal is signed) and employment already improving, the labour market could receive a further boost, which usually generates additional real estate demand.

That is, unless the next factors kick in.

Why and how rates climb matters

Good economic news can eventually put upward pressure on borrowing costs.

If a workable trade deal is finalized by Saturday’s deadline, Canada should see more investment and employment, all other things equal.

That tends to be inflationary, something that keeps interest rates higher than they’d otherwise be.

Mind you, it’s possible that as job growth improves housing demand, rising rates pull it the other way.

But it depends on why rates are rising.

If rates climb gradually as the economy rebounds, with incomes and jobs keeping pace, history says prices generally rise — or at least drift sideways.

That relationship generally holds right up until the economy overheats and the Bank of Canada intervenes with rate hikes to control inflation.

But if one examines rates, unemployment, population and home prices going back to at least 1980 (the extent of my available data), it reveals an interesting pattern.

Average national home prices rose 3.7 per cent over the following year during stretches when the five-year bond yield was rising (as it is now) and unemployment falling (as it is now), versus 7.2 per cent when yields were dropping.

The thing is, if rates jump more than expected because inflation has overheated, that’s a shock, and it becomes a whole different conversation.

In that scenario, incomes and demand fail to keep up, and housing gets none of the usual benefit.

The takeaway

If you’re rooting for higher prices, this week’s overdue trade deal could be positive for real estate stability — unless rates shoot up out of a cannon and hurt credit accessibility.

For those praying for cheaper homes, hope might rest on two rather grim possibilities:

• An ongoing oil shock that forces the Bank of Canada’s hand with rate hikes; and
• Canadian bond market contagion driven by fears of unsustainable U.S. debt (which just hit a frightful US$40 trillion and is growing by US$91,000 per second).

Of course, wishing for economic disaster and the potential loss of hundreds of thousands of jobs merely to purchase a home more cheaply is questionable karma. But people do it.

For now, let’s hope for a modest trade win — or, failing that, a modest loss with a side of stability. That recipe would give labour and real estate a decent shot at firming over the next 12 months.

• The best mortgage rates in Canada right now
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Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.

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Housing development is increasingly running up against a basic blockage beneath the streets: water and sewer systems that can’t keep up with a city or town’s growth.

As a result, housing projects are delayed, fewer homes reach the market and the cost of new infrastructure construction is increasingly passed onto buyers and renters.

Economists, developers and municipal leaders say water and wastewater systems are increasingly limiting housing construction in parts of Canada as cities and towns struggle with aging infrastructure, rapid population growth and the cost of upgrades.

For example, Killam Apartment REIT, one of the country’s largest residential landlords, said it was pausing new developments in Halifax due in large part to water and wastewater infrastructure bottlenecks. The city is rolling out a multibillion-dollar infrastructure overhaul as it grapples with capacity constraints while working with the province to fast-track development approvals and address pressure on existing infrastructure.

The issue is not solely about zoning approvals or land availability. More than 11 per cent of Canada’s water and wastewater assets are in poor or very poor condition, according to Statistics Canada, with more than an estimated $100 billion in upgrades needed.

Housing economist Mike Moffatt said water and wastewater systems built decades ago are increasingly struggling to keep up with the level of growth now being planned — a challenge that is becoming a reality for more municipalities.

He said a few communities have reached hard limits on their infrastructure, but many more are approaching them as population growth accelerates.

“It is an issue,” he said, pointing to parts of eastern Ontario, the Kitchener-Waterloo, Ont., region and Greater Vancouver as areas where infrastructure pressures are emerging.

He said many municipalities could begin hitting capacity constraints within the next five to 15 years.

“When those limits are reached, governments will have very expensive, capital-intensive decisions to make,” he said.

The challenge can be especially stark in smaller communities.

Moffatt, founding director of the Missing Middle Initiative, said municipalities of roughly 10,000 people can face infrastructure upgrades costing $100 million to $200 million, an investment that can be difficult to justify without certainty that growth will actually materialize.

“That will be the tip of the iceberg,” he said.

The most visible cases involve projects being delayed because servicing is not available, he said, but the larger issue may be less visible: communities simply don’t open land for development at all because they know infrastructure cannot support it.

Developers say the issue is already shaping decisions on the ground.

Justin Sherwood, chief operating officer of the Building Industry and Land Development Association, said water and wastewater infrastructure constraints are appearing “virtually everywhere” in some form, particularly in fast-growing parts of Ontario.

“You can’t build a house if you can’t flush the toilet,” he said.

He pointed to the York region north of Toronto, where wastewater capacity constraints have left large housing developments stalled as developers await major infrastructure expansions. For example, he said thousands of planned homes in East Gwillimbury are effectively waiting for sewer capacity before construction can proceed.

Sherwood said the issue affects both new suburban developments and denser city projects. In some cases, developers must fund costly upgrades to local pipes before higher-density projects can move forward. In others, entire subdivisions are effectively paused until regional infrastructure is expanded.

Even in established cities such as Toronto, he said aging infrastructure can create constraints depending on location and system capacity.

“It’s up there,” he said, referring to the importance of servicing capacity among housing constraints in some regions. “In York, sewer allocation is right up there — top three, top four issues.”

The issue is not always that projects are formally rejected, Sherwood said, but that infrastructure capacity shapes what can realistically happen in the first place.

“In the instance of infill, usually the developer and municipality partner find ways to get adequate piping put in the ground,” he said. “But that adds cost to the new project.”

Sherwood said development charges in parts of the Greater Toronto Area can reach $130,000 to $140,000 per unit, much of it tied to the cost of water and wastewater infrastructure needed to support new housing.

Municipal leaders say those pressures are becoming more difficult to manage as infrastructure ages and population growth accelerates.

The result, said Rebecca Bligh, president of the Federation of Canadian Municipalities and a Vancouver city councillor, is that municipalities are increasingly limited on how quickly they can move on housing approvals.

“When it comes to water and wastewater infrastructure, it’s all about planning and forecasting for both new and renewal of existing infrastructure,” she said. “It is holding up municipalities’ ability to move quickly in terms of approvals when it comes to housing.”

Bligh said the challenge varies across the country. Smaller municipalities, she said, face disproportionate pressure due to limited tax bases and smaller administrative capacity, while larger cities are dealing with aging systems and rising demand.

She pointed to Toronto, where she said sewer infrastructure constraints have contributed to delays of more than 60,000 homes, and to London, Ont., where multi-year upgrades are required before further housing expansion can proceed.

Bligh said existing federal funding tools, including the $51-billion Build Communities Strong Fund, are important, but will need to move faster and more directly to keep pace with housing and infrastructure demands.

She said municipalities largely rely on property taxes and user fees for revenue, which account for roughly one-tenth of total government revenues in Canada despite them being responsible for a majority of core local infrastructure.

“We know what we need to do,” she said. “The concern is we don’t have the fiscal capacity to do it at the speed and scale that housing targets require.”

The issue is prompting renewed attention from senior levels of government. An $8.8-billion housing-enabling infrastructure fund announced by Ottawa and Ontario earlier this year is aimed at expanding water, wastewater and related servicing capacity needed for new housing.

The program is intended to help municipalities finance major infrastructure upgrades while reducing some of the upfront costs passed onto developers. But municipal leaders say the impact will depend on how quickly funding flows and whether it keeps pace with rapidly growing demand.

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Even with new funding programs in place, Moffatt said the challenge is unlikely to disappear quickly. Many municipalities are approaching capacity limits, while the cost of expanding water and wastewater infrastructure continues to grow.

Sherwood said the issue goes beyond housing approvals and speaks to the broader role infrastructure plays in supporting municipalities.

“Why should people care about this issue?” he said. “It’s in everyone’s best interest that Canadian cities and towns have infrastructure that is modern and able to support the social and economic needs of a growing, vibrant country.”

• Email: arankin@postmedia.com

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Key takeaways

• The Chicago housing market slightly favored sellers in May, but the balance of power was nearly even.
• Home prices, sales, and listings all rose as activity returned to the market.
• The city’s seasonal trends acted more “normal” than they have in years, in line with the national market’s slow reset. 

Chicago housing market snapshot

Spring housing season was in full swing in May, and Chicago’s market followed suit. Sales increased, homes moved faster, and prices climbed. The typical listing took about seven weeks to sell, but those that were well-priced moved more quickly than in previous springs. The market was nearly perfectly balanced, but strategy still mattered.

Learn everything you need to know about the Chicago, IL, housing market as we edge closer to summer, and what buyers and sellers can do to succeed.

U.S. housing market snapshot

Nationally, prices are rising, inventory is growing, and pending sales are up. The prolonged slow and expensive buyer’s market that has defined the post-pandemic market is finally showing signs of thawing—but buyers are still firmly in charge.

“Housing has been stuck in a rut for years, with buyers and sellers priced out and too few homes to go around,” said Chen Zhao, Redfin’s head of economics research. “While conditions are still difficult, many cities are undergoing a yearslong reset from the pandemic, with price growth easing and inventory climbing—helping affordability improve as wages rise. Pending home sales have increased over the last three months, which is an early sign that buyers and sellers are beginning to reenter the market. But volatility tied to the Iran War is keeping everyone on edge.”

Let’s dive into the Chicago housing market.

Chicago’s housing market slightly favored sellers

In Chicago, buyers outnumbered sellers by just 0.5% in May, giving the market a slight tilt toward sellers. The number of buyers rose 5% year over year in May, while the number of sellers was essentially flat. Nationally, it was essentially the opposite; there were 47% more sellers than buyers. 

Homes moved relatively quickly. The median home sat on the market for 51 days, and 44% of listings went under contract within two weeks. Meanwhile, 37% of homes sold above their original list price, compared to just 26% nationally. 

Active buyers should move quickly on well-priced listings—homes that are priced right are still drawing multiple offers. Sellers can be confident in the demand but shouldn’t overprice; the data shows buyers are active but not desperate, and overpriced homes are sitting.

Prices rose at a less frenzied pace

The median sale price in Chicago reached $379,900 in May, up 5.4% year over year. That was a continued upward trend, but a deceleration from the 8.3% year-over-year growth at this time in 2024 and the 6.1% gain last year. Chicago’s appreciation outpaced the nation as a whole (where prices rose just 1.9%), but the gap narrowed. 

To put this data into context, Chicago’s median sale price has nearly doubled from its post-recession lows. The sharpest growth came during the pandemic, when prices jumped by $50,000 in under two years. The current pace of growth is far more sustainable, averaging roughly 5–6% annually since mid-2024.

Home searchers shouldn’t wait for price drops from sellers, though. Only 11% of active listings in Chicago have had a price reduction, compared to 20% nationally. That said, sellers who do cut their price are cutting by an average of 4% of their list price. Sellers should price to the market, and buyers should make competitive offers.

Inventory held steady

Active listings held steady at 26,679, up less than 1% year over year—essentially flat after several months of modest growth. New listings climbed 4%, a sign that more homeowners chose to sell. Combined with months of supply at 3.1 (compared to 3.5 nationally), Chicago remained a tighter market than the U.S. as a whole.

The data painted a picture of a market that was unevenly normalizing: inventory plateaued near its multi-year rebuild level, but demand absorbed much of it before supply could accumulate meaningfully. For buyers, that meant a similar number of options as last year and still limited leverage on price.

All data is a Redfin analysis of MLS, U.S. Census Bureau, and/or county record data. Check the Redfin Data Center for additional in-depth housing market data.

Trimming development fees would make dozens of housing projects across the country more economically viable in a time when Canada looks to seriously boost construction, says the nation’s housing agency.

Development charges, which municipalities levy on housing developers to pay for the new infrastructure such as roads, water and transit needed for these projects, are especially popular in Ontario and British Columbia and can vary greatly.

For example, a two-bedroom apartment in Ottawa commands development charges of $39,600 while Markham takes $121,500, according to data from Canada Mortgage and Housing Corp. (CMHC).

Given that the average new build was 55 units in Ottawa in 2024 and 246 units in Markham, a developer could be on the hook for $2.2 million and $29.9 million, respectively, in upfront fees for a build.

As a result, developers face a real hurdle in getting their projects off the ground.

But cutting the charges in half would boost the number of viable projects by about five per cent in Toronto and Vancouver, according to CMHC. An all-out cut would boost that figure to about 10 per cent.

“Reducing development charges can improve housing project viability, especially in communities where they are highest, but meaningful gains in supply require substantial reductions and they are only one part of the solution,” Mathieu Laberge, CMHC’s chief economist, said in a release .

“Improving affordability will require a broader approach, including improved land-use regulation and increased scale and innovation to boost productivity in the construction industry.”

On top of stalling projects, development charges also hurt housing affordability.

CMHC said development charges are passed down to homebuyers and that the price increases are often larger than the development fees themselves. The higher prices on new builds can also drive up prices for existing homes on the market.

High development charges, however, can be a bit of a double-edged sword since they can drive down prices of vacant land and help alleviate property taxes.

CMHC estimates Canada needs to double its annual housing starts to between 430,000 and 480,000 new units by 2035 to meet demand.

As of April, Canada was on pace for 256,777 housing starts in 2026.

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Professional stock pickers are having a hard time gaining an edge as Big Tech strengthens its grip on the stock market.

Only about 20 per cent of stock pickers have outperfromed the S&P 500 this year, according to Strategas Securities, which marks the worst performance since 2021.

IPO debuts of SpaceX, Anthropic PBC and OpenAI are expected to magnify the concentration at the top.

The S&P 500 is up 16 per cent this quarter.

Read more here.

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Opening a joint account with adult children may seem like a simple way to avoid probate fees or the delays of inheritance pay outs, but there are risks.

Ida Khajadourian of Richardson Wealth explains how joint ownership, often intended as a simple estate-planning shortcut, can create serious tax, legal, and family consequences if not structured properly.

Read more here.

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McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.

Financial Post on YouTube

Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.

Today’s Posthaste was written by Ben Cousins with additional reporting from Financial Post staff and Bloomberg.

Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com .

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• Brace for the coming labour squeeze as 25,500 Canadians retire every month

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Key takeaways:

• Sellers often prefer all-cash offers because they tend to lead to faster sales and are less likely to fall through than financed deals.
• Paying cash for a home can save buyers thousands in mortgage interest and lender fees over time.
• While all-cash offers provide speed and leverage, they can also tie up significant savings and reduce financial flexibility.

With mortgage rates still elevated and housing affordability remaining strained in many parts of the country, paying cash for a home can give buyers a major advantage in today’s market. An all-cash offer can help you negotiate a better price, close faster, and avoid years of mortgage interest payments and lender fees. At the same time, tying up a large amount of money in real estate comes with trade-offs, especially if it leaves you with limited liquidity afterward.

If you have significant savings available and you’re preparing to buy a home, understanding how to buy a house with cash can help you decide whether this strategy makes sense for your financial goals.

Why cash buyers have more leverage in today’s market

Competition and housing market conditions play a big role in how you should approach an all-cash deal today. During the pandemic housing frenzy of 2021, the market was ultra-competitive, reaching a fever pitch where nearly three-quarters (72%) of all offers faced a bidding war. In that environment, many buyers used cash just to get an edge and improve their chances of getting a home. 

While the market has cooled since then, cash buyers still make up a significant share of home purchases . By the end of 2025, roughly 29% of all U.S. home purchases were still made in all cash.

What’s changed is how buyers are using cash today.  As of March 2026, sellers outnumber buyers by 43%, marking one of the largest gaps in over a decade. In many markets, buyers now have more negotiating power as inventory grows and competition slows.

“When a buyer chooses to purchase a house with all-cash, they generally gain three key advantages: speed, cost, and an upper hand in negotiation,” said Chen Zhao, Head of Economics Research at Redfin. “There’s no lender involved, which means the deal isn’t dependent on mortgage approval or underwriting. Combined with fewer contingencies, this can mean much faster closing times. In a buyer-friendly landscape where sellers are frequently cutting prices to get attention, an all-cash offer can be too good to refuse, giving buyers strong leverage to score a home for faster and less.”

How to buy a house with cash step-by-step

Buying a house with cash is usually faster and simpler than financing a home with a mortgage. Still, there are several important steps to protect your investment and ensure the transaction goes smoothly

1. Get your finances organized

The first step is making sure your funds are accessible and ready for closing. Many cash buyers move funds into one primary account before submitting an offer to simplify verification and avoid delays during the wire transfer process.

If your money is spread across investments, retirement accounts, or other assets, it’s smart to speak with a financial or tax advisor before liquidating anything. Selling investments could trigger capital gains taxes or affect your long-term financial plan. 

It’s also important to avoid draining your savings entirely for a home purchase. Even cash buyers should maintain an emergency fund and reserve money for repairs, moving costs, property taxes, and ongoing maintenance.

2. Obtain proof of funds

Before accepting an all-cash offer, sellers typically want proof that you have the money available to complete the purchase.. Your bank can provide a proof of funds letter showing you have enough money available to buy a house with cash. This document is usually submitted with your cash offer and reassures sellers that the purchase won’t depend on mortgage approval. 

3. Find the right home

Once your finances are ready, you can begin shopping for a home. Even without a mortgage, working with a real estate agent can be extremely valuable. 

An experienced agent can help:

• Evaluate pricing
• Identify potential red flags
• Negotiate better terms
• Coordinate inspections and paperwork
• Help you move quickly in competitive situations

Because there’s no lender overseeing the transaction, buyers and their agents should be especially careful when evaluating the home’s condition and value.

4. Make your all-cash offer

After finding a property, you’ll work with your real estate agent to submit an all-cash offer along with your proof of funds letter. Without a lender involved, cash buyers can often move more quickly and offer flexible closing timelines that appeal to sellers.

While buying a house with cash removes the mortgage contingency, it’s still wise to keep protections like inspection and title search contingencies. 

5. Hire professionals to protect the transaction 

Even when buying a home with cash, you’ll still need professionals to protect your investment. A home inspector can uncover hidden issues, while a settlement agent, escrow company, or attorney may perform a title search to ensure the property is free of liens. 

Some cash buyers also choose to hire an appraiser to independently verify the home’s value, even though an appraisal usually isn’t required without a lender involved. Purchasing title insurance adds another layer of protection during a cash home purchase, helping confirm that ownership can legally transfer to the cash buyer.

6. Close and transfer funds

One major advantage of buying a house with cash is the faster closing timeline. While a financed deal typically takes 30–45 days, a cash purchase can close in as little as 7–14 days, depending on the speed of inspections, title work, and the seller’s specific timeline. 

At closing, you’ll typically transfer funds using a wire transfer or cashier’s check to cover the purchase price and any closing costs associated with the transaction.

7. Move in mortgage-free

After completing the final walkthrough and signing the closing paperwork, you’ll receive the keys and officially complete the cash home purchase. You’ll move into your new home without a mortgage payment. 

How much money can you save buying a house with cash?

One of the biggest financial advantages of paying cash is avoiding mortgage interest.

For example, a buyer financing a $500,000 home with a 30-year mortgage at a 7% interest rate could end up paying hundreds of thousands of dollars in interest over the life of the loan.

Beyond interest savings, cash buyers may also avoid:

• Loan origination fees
• Mortgage insurance
• Some lender-related closing costs
• Certain appraisal requirements

In some cases, sellers may even accept a lower purchase price from a cash buyer in exchange for a faster, more reliable closing.

Still, buyers should also consider the opportunity cost of tying up a large amount of money in real estate instead of keeping it invested elsewhere.

Buying with all-cash vs. financing

If you’re deciding between paying all-cash or financing your next home, here’s how the two approaches stack up side by side.

Pros and cons of buying a home with cash

Pros

Buying a home with cash can offer major advantages, especially in today’s housing market where sellers often value speed and certainty.

• Stronger negotiating leverage: Cash offers stand out in bidding wars because they eliminate lender uncertainty, making them highly attractive to sellers who want a guaranteed sale.
• Faster, smoother closing: Without mortgage underwriting or lender-required appraisals, you can often close in as little as one to two weeks.
• Substantial long-term savings: You avoid loan origination fees and decades of interest. On average, cash buyers pay about 11% less than those using financing.
• Immediate ownership and no monthly mortgage payment: You own the home outright from day one, eliminating the stress of monthly mortgage payments and the risk of rising interest rates.
• No credit hurdles: You can bypass credit checks and rigorous income verification, making the process accessible regardless of your credit score.
• Strategic flexibility: Some buyers use “delayed financing,” purchasing with cash first and refinancing later to regain liquidity if needed.

Cons

While buying a home with cash has clear advantages, there are also important financial trade-offs to consider.

• Reduced liquidity: Tying up a large sum in real estate means your wealth is less accessible. Unlike stocks or savings, property cannot be quickly converted back into cash for emergencies.
• Loss of tax benefits: Cash buyers cannot take advantage of the mortgage interest deduction, which can be a significant tax break for those who finance.
• Opportunity cost: The capital used to buy a home might earn higher returns if invested in the stock market or other high-yield assets.
• Ongoing ownership risks: Even without a mortgage, you are still responsible for property taxes, insurance, and HOA fees. Failure to pay property taxes can still lead to government foreclosure.
• Concentrated risk: Putting a  large portion of your savings into one property leaves you vulnerable to localized real estate market declines.

Requirements for buying a house with all-cash

• Financial documentation still required: You need a bank-issued proof of funds letter to attach to offers in lieu of a preapproval letter, showing sellers that you have the funds to back up your offer.
• Closing costs still apply: Closing costs don’t only apply to mortgages. Even when buying a home with cash, you are still responsible for your share of closing costs, including title insurance, escrow fees, and government recording fees. 
• Cash due at closing: Once the deal is ready to be finalized, you will need to bring a certified check or cashier’s check to closing.

Should you buy a house with cash?

Whether buying a house with cash is the best choice depends on your financial situation, long-term goals, and market conditions. For many buyers, paying cash for a house offers clear advantages, including faster closings, stronger negotiating power, and the total elimination of monthly mortgage payments. Because a cash offer removes lender approval from the equation, sellers often prioritize cash buyers, especially in markets where speed and certainty are the top priorities. Still, the decision to pay cash involves balancing these immediate benefits against significant financial trade-offs. 

Whether paying cash for a house is the right move depends on your financial situation, long-term goals, and how much liquidity you want to keep after the purchase. Paying cash offers clear advantages, including faster closings, stronger negotiating power, and avoiding monthly mortgage payments and interest costs. Still, those benefits need to be weighed against tying up a large amount of money in one asset.

While all-cash offers can be appealing, the reality is that many Americans are already struggling with housing costs. According to a recent Redfin survey, nearly half (49%) of U.S. residents struggle to afford their regular rent or mortgage payments, including about two-thirds (67%) of Gen Zers.

“In many cases, paying cash isn’t actually the most strategic move, even if you can afford it,” added Chen Zhao. “If buying a home outright would tie up most of your savings, you’re taking on liquidity risk, since real estate isn’t something you can quickly turn into cash. That’s why some buyers opt for a mortgage: it allows them to keep their money invested in the home and somewhere like a retirement or high-yield account—so more of their money can earn money. While a widespread crash is not on the horizon, if home values dip in your local market, monetary flexibility can be very helpful.”

Mortgage lender Rate is stepping further into digital asset territory with the launch of RateFi, a nationwide mortgage product that allows borrowers to use verified cryptocurrency holdings toward mortgage qualification without liquidating those assets.

The Chicago-based lender announced Tuesday that RateFi is fully operational within its digital mortgage platform and available under its non-QM (non-qualified mortgage) guidelines.

The move reflects a broader shift in financial services as lenders experiment with integrating digital assets into traditional underwriting while remaining within established compliance frameworks.

How RateFi works

Under the program, qualified borrowers can use verified cryptocurrency as reserves and, in some cases, as qualifying income. Down payments and closing costs must still be paid in U.S. dollars, though borrowers may convert crypto to meet those requirements.

Rate said the program includes standard anti-money-laundering and know-your-customer checks. It operates within the company’s existing non-QM infrastructure rather than through conforming channels backed by Fannie Mae or Freddie Mac, which do not currently provide broad guidance allowing cryptocurrency to count as qualifying income in standard agency loans.

“Digital assets are real assets, yet mortgage lending has treated them as invisible,” Kate Amor, EVP and head of enterprise products at Rate, said in a statement. “RateFi changes that. We built this product to apply common-sense underwriting to a modern financial reality, allowing qualified borrowers to use their crypto without selling it, without gimmicks, and without stepping outside established lending standards.”

Amor continued that RateFi represents the first phase of a broader digital asset lending strategy that the company plans to expand over time.

Rate President Shant Banosian emphasized that the product runs within Rate’s existing underwriting and pricing systems rather than creating a separate crypto lending channel.

“Crypto lending gets a lot of headlines,” said Banosian. “But this business is about closing loans consistently, compliantly and at scale.”

A response to growing crypto wealth

Industry research cited by Rate suggests more than 10 percent of Americans hold digital assets, with some maintaining six- and seven-figure portfolios. As digital wealth grows, lenders are beginning to adapt to borrowers who may prefer not to liquidate long-term holdings to qualify for a mortgage.

Historically, most lenders have required borrowers to convert cryptocurrency into cash before it can be counted toward mortgage qualification. That process can trigger capital gains taxes, lock in losses during market downturns or reduce exposure to assets borrowers believe will appreciate.

RateFi seeks to reduce that friction by recognizing verified digital holdings as part of a borrower’s financial profile without requiring full liquidation.

The product is not entirely without precedent. Other lenders, including Newrez, have introduced programs that allow cryptocurrency to factor into qualification, though most remain limited to non-QM or portfolio channels rather than conforming agency loans.

Why non-QM matters

The non-QM designation is key.

Because government-sponsored enterprises do not broadly recognize crypto as qualifying income, lenders offering these programs must operate outside conforming guidelines. Non-QM loans allow more flexible underwriting but are typically funded through private capital markets rather than sold to the GSEs.

That structure limits scale compared to agency lending, but it also provides a testing ground for innovation.

For Rate, the strategy appears incremental rather than disruptive.

Borrowers still make down payments in dollars. Loans are underwritten using traditional risk frameworks. Crypto is treated primarily as reserves or supplemental income, not as a new payment rail.

Why lenders are cautious about stablecoins

RateFi’s eligibility includes certain stablecoins, which are digital assets designed to maintain a 1:1 value with the U.S. dollar. Stablecoins such as USDC or USDT aim to reduce volatility compared to assets like Bitcoin or Ethereum.

Even so, lenders remain cautious.

Stablecoins can “de-peg” during periods of market stress. Liquidity depends on issuer reserves and the mechanisms for redeeming tokens, and exchanges can halt withdrawals. Regulatory oversight of digital assets continues to evolve at both the federal and state levels.

Mortgage underwriting also requires clear documentation of the source of funds and asset seasoning. Blockchain-based holdings may introduce additional verification steps, including confirming wallet ownership, validating exchange accounts and reviewing transaction history.

Those realities help explain why programs like RateFi require that funds for down payments and closing costs be converted into U.S. dollars before settlement.

What this means for agents and brokers

For now, RateFi appears to target a specific borrower segment: crypto-heavy, self-employed or nontraditional applicants who may not fit neatly within agency underwriting boxes.

But the symbolic significance may be larger.

As digital assets move deeper into mainstream finance — and as younger, crypto-forward buyers age into peak homebuying years — lenders face increasing pressure to modernize balance sheet analysis that was built around W-2 income and brokerage statements.

The larger strategic question is whether products like RateFi remain niche offerings within non-QM channels or represent early steps toward broader normalization of digital assets in housing finance.

Meaningful expansion would likely require clearer guidance from federal regulators or eventual recognition by the GSEs. Until then, crypto-recognition programs will remain largely within portfolio and private-market structures.

For agents and brokers, the immediate impact may be limited but noteworthy. 

Buyers with significant digital holdings may have more options to qualify without restructuring their portfolios. At the same time, these loans remain specialized and subject to stricter documentation and pricing dynamics than conventional mortgages.

For Rate, the bet is that a growing cohort of borrowers wants to build real estate wealth without exiting digital asset positions, and that providing a compliant bridge between those two worlds creates both competitive differentiation and new loan volume.

Email Nick Pipitone