Cambridge is about to get a lot taller. A long-debated redevelopment plan for the former Preston Springs Hotel property has officially cleared its biggest hurdle. After an appeal to the Ontario Land Tribunal (OLT), Haastown Holdings has secured approval to build three high-rise residential towers — two reaching 20 storeys and one 17 storeys — on the edge of the Grand River. It’s a significant shift for a city known more for charm and heritage than glass and concrete. But beyond cityscape debates, this decision has real implications for homebuyers, sellers, and mortgage holders in the region.
From Historic Landmark to Vertical Growth
Longtime residents remember the Preston Springs Hotel as a local icon, though it sat abandoned for years before being demolished in 2020 over safety concerns. Now, the land is poised for transformation as Haastown plans to cluster hundreds of condos on the site, just steps from nature trails and downtown Hespeler. That kind of density isn’t just ambitious for Cambridge — it’s precedent-setting.
The growing popularity of smaller Ontario cities, especially since the pandemic, has put pressure on local housing markets. According to the Canadian Real Estate Association (CREA), average home prices in Waterloo Region still hover well above pre-pandemic norms, sitting at over $750,000 as of early 2024. Even as sales normalize, demand has yet to catch up with supply — particularly for affordable multi-family housing.
This newly approved redevelopment may offer some much-needed relief, potentially adding 500+ units once fully built out. For homeowners in the region, more inventory could slow dramatic price jumps, create new opportunities to upsize or downsize, and reinforce long-term property values as the area modernizes.
The Mortgage Math: Weighing Supply Against Rates
In the current environment, new builds raise big questions for mortgage holders: fixed or variable? Buy now or wait? If interest rates drop later this year — as some anticipate — locking in a fixed rate today may carry short-term pain, but still protect you if home prices climb on new housing announcements like this one.
The Bank of Canada has held its overnight rate steady so far this year, but inflation is finally showing signs of cooling. Many analysts expect at least one rate cut by late 2024. That could revive buying activity, especially among first-time buyers sidelined in recent years. Sudden changes to housing supply in cities like Cambridge could create mini-market corrections — or trigger a localized buying rush, depending on how quickly construction begins.
For those with existing mortgages, this might be a good moment to consider a strategic refinance. Tapping into home equity while rates stabilize could support a renovation, investment, or even help you move into one of these future high-rises. Keep in mind that lenders are still cautious; having a clear credit profile and stable income is more important than ever for approvals.
What This Means for the Cambridge Real Estate Market
Let’s be honest: Cambridge hasn’t typically been a hotbed for skyscrapers. In fact, the proposed heights of these towers initially sparked controversy among local councillors and residents. But cities across southern Ontario are learning to adapt. As urban centres like Toronto and Mississauga sprawl outward, former bedroom communities are rapidly evolving into real estate hubs with their own identity.
For investors, this change is worth watching closely. New developments often signal broader infrastructure investments — better transit, updated utilities, and increased services. These are the kinds of changes that attract young professionals, making properties in the vicinity more desirable and, therefore, more valuable. A forward-looking homeowner might want to monitor similar projects or even explore a construction mortgage to build or invest before prices tick up.
And it’s not just real estate professionals taking notice. According to Statistics Canada, the population of the Waterloo Region grew by more than 9% between 2016 and 2021. As more employers adopt flexible or hybrid work, interest in mid-sized cities will likely remain strong. Haastown’s project is a bellwether of what’s to come — and a sign that real estate in Cambridge is entering a new era.
Planning Your Next Move
Whether you’re a current homeowner, a prospective buyer, or an investor keeping an eye on secondary markets, these kinds of developments can reshape your financial trajectory. Many Canadians are finding it worthwhile to re-evaluate their mortgage structure, whether that’s through a HELOC, switching terms, or exploring a reverse mortgage depending on stage of life and goals.
One thing is clear: real estate in places like Cambridge is no longer a sleepy side story. With OLT approval, the Preston Springs property becomes a symbol of growth, change — and opportunity. For many households, that means it’s time to assess how your mortgage aligns with your long-term goals.
If you’re unsure where to start, our mortgage specialists at Unrate are here to help. Explore the best mortgage rates available now, or reach out for personalized guidance tailored to your homeownership journey.
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