Friday, October 30, 2009

Making Sense of Mortgage Rates in Today's Economy - From Corey Cunningham, Mortgage Specialist RBC

Making sense of mortgage rates in today’s economy

Many prospective homebuyers are wondering what has happened to mortgage rates in 2009, and where they may go from here. RBC Economics Research recently updated its’ outlook, and here is what the group has to report.

Since hitting a low in January of 2009, longer-term interest rates have trended higher with the move accelerating in July. The prospect that the worst is over for the global economy is giving investors the confidence to venture out of low-return fixed income securities and seek higher risk investments. While we expect many bumps on the road to recovery we still see potential for a very modest decrease in long-term rates in the final quarter of this year.

Outlook for the future

Momentum in the global economy appears to be changing. Leading indicators currently point to the end of economic contraction for the industrialized world in the third quarter of 2009. Stimulus from central banks, combined with government fiscal stimulus packages, is expected to support a fledgling recovery that is forecast to build momentum in 2010.

Until this recovery is well underway, no changes to policy rates are likely. The Bank of Canada is expected to maintain the status quo until mid-2010. Once the recovery is well established, central banks will normalize their policy rates, and interest rates are likely to increase.

Fixed vs. variable rate mortgages

One of the biggest decisions homebuyers face is choosing between a fixed or variable rate mortgage. This is not a simple decision, which is why many people are looking for advice to help them decide which mortgage interest type is best for them, based on their personal circumstances. I can help homebuyers and homeowners decide which option best fits their situation and risk tolerance.

Mortgage rates continue to trend at historic lows, despite the fact that fixed rates have edged up recently. In this environment, people who are comfortable without a guaranteed rate are opting for a variable rate mortgage. Such a strategy could result in considerable interest savings.

What homebuyers choose should depend on how they feel about rate fluctuations and their cash flow. For example, a first time homebuyer may want assurance that the rate, payment and repayment schedule will not change, and may be wise to opt for a fixed term. A homebuyer who is not concerned about rate fluctuations may want to take advantage of today’s low variable rates in a bid to save more on mortgage interest over the long term.

Today’s flexible mortgage products let you bridge the gap between these strategies. For example, the RBC Homeline Plan lets homebuyers split their mortgages and enjoy the advantages of both variable and fixed rates within a credit limit of up to 80% of the value of the home. The variable portion offers potential long-term savings, while the fixed rate portion offers rate protection. The dividing line is entirely up to the homeowner.

RBC has many resources available:

· Fixed or variable rate – know your options

· Consider the security of a fixed rate mortgage

· The advantages of a variable rate mortgage



Get more information

RBC publishes free research information. It’s easy to stay informed. Register at www.rbc.com/economics for automatic email delivery of new reports.

Your new home doesn't come with mortgage advice. I do.

Contact me today:
Corey Cunningham
Mobile Mortgage Specialist
RBC Royal Bank
(519) 535-2682
corey.cunningham@rbc.com
http://mortgage.rbc.com/corey.cunningham

The statements and statistics contained herein have been prepared by RBC Economics Research based on information from sources considered to be reliable. We make no representation or warranty, express or implied, as to its accuracy or completeness.

® Registered trademarks of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. © 2009 Royal Bank of Canada.

Asbestos and your Home - Courtesy of Jamie Woodend

If you are thinking of buying a home built before the 70's chances are it
may have some asbestos in it. Asbestos is a fibrous mineral that was used in
construction applications for the greater part of the 20th century. Often
appearing as insulation, piping, roofing, flooring and other items asbestos
in most forms is not dangerous, it is the dust that contains deadly fibers.

Exposure to damaged airborne asbestos fibers can lead to the development of
a severe lung ailment known as mesothelioma. Diagnosis of this
asbestos-related lung illness is a difficult task due to a long latency
period and many symptoms mimicking less serious ailments.

If you locate any suspected asbestos in the home, most experts suggest
leaving it un-disturbed until a home inspector can examine your property,
take evaluations and determine the safest course of action. Sometimes the
best action is no action at all. Disturbing asbestos in good condition may
cause its fibers to be released into the air.

There are companies that can assess, survey and remove asbestos with
qualified asbestos abatement professionals. With a professional staff, they
can help determine if you have asbestos and assist you in determining the
most logical method of managing the problem- disposal or removal. Most work
under provincial and federal regulations to ensure no health concerns arise
from improper removal.

If the home you are thinking of purchasing (or currently own) contains
asbestos don't panic but make inform choices.


Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell

Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Thursday, October 29, 2009

Homeowners should brace for increased debt

Reprinted courtesy Chronicle Herald

BANK OF CANADA governor Mark Carney has repeated his concern that Canadians may be getting in over their heads in the purchase of homes, saying the government has ways of slowing the market.

Carney told a Senate committee Wednesday afternoon that the central bank is conducting an analysis of whether Canadians are taking on too much debt, particularly in buying homes.

Canada’s housing market has rebounded more strongly than other parts of the economy with sales at times at record levels, although prices remain depressed.

The central banker said ""exceptionally low" mortgage rates are luring Canadians into taking on mortgage debt to purchase homes. Deputy governor Paul Jenkins said the effective variable rate is at 2.25 per cent, a post Second World War low.

"Over the lifetime of a mortgage, they will normalize (so) it’s only prudent that people look through the life cycle of rates to ensure they are borrowing appropriately," Carney said.

"And it’s also appropriate and prudent that financial institutions (lenders) take that into account as well."

High debt at extremely low teaser mortgage rates that eventually spiked higher eventually led to a collapse in the U.S. housing market. That triggered a financial crisis on Wall Street and the recession that swept around the world in the last 18 months.

Carney said he does not believe the central bank should use its power to raise interest rates to discourage Canadians from taking on too much debt, but he added there are other means of achieving the same result.

He noted that policy makers have the ability to influence financial institutions that issue mortgages, both through regulation and pressure, including the ability to change the terms of mortgage insurance.

Last July, Ottawa tightened the rules for government-guaranteed mortgages by limiting the maximum amortization period to 35 years and by requiring a minimum five per cent downpayment on house purchases.

Carney said he was speaking hypothetically, but added: "If this were to persist, there are other options. The housing market is subject to considerable regulation and policy influence.

""That would be the way to approach it."

Carney expressed concern over the potential creation of a housing asset bubble last week, but Wednesday’s comments were the first in which he speculated what action policy makers might take.

In other testimony to the banking committee, Carney said he was confident Canada’s economy would recover, although weakly, and that private businesses will be in position to carry growth forward once government stimulus spending winds down.

Government stimulus will add about one per cent to gross domestic product next year, one third of the growth projected by the bank, he said.

"Once government stimulus is withdrawn, the bank expects at the beginning of 2011 that corporate investment, private investment will increase," he said.



Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

New Listing - 585 Sales Dr


Realtor.ca link - MLS #63-341

This is a gorg­eous, well appointed, open concept home, close to 401/403, in immediate vicinity of the new Woodstock Hospital, close to parks and shopping and with all the amenities desired by the modern family. At only 1 year young, this nearly-new home has only been nicely broken in. With durable finishes such as ceramic and laminate flooring, a large double garage, and main floor laundry, this home is ready for your family, while the beautiful kitchen and open concept living room with dramatic cathedral ceiling will impress your guests. Call today to book your private showing! Immediate possession available. All RSA.


Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

New Listing - 597 Sales Drive


This gorgeous new quality built 2150 sq ft Bungalow is waiting for you! The gorgeous stone exterior is just a hint of the quality found in this home! Inside you will find an amazing, open concept floor plan with dramatic vaulted ceilings, a large main floor master bedroom with ensuite bath and walk in closet, main floor laundry room, and an exciting loft with its own bathroom and two more bedrooms. Finished with quality materials such as hardwood flooring in the great room and ceramic tiles in the bathrooms and kitchen areas, and painted in tasteful modern colours, not to mention beautiful dark stained oak kitchen cabinets and oak hand railings. Don`t wait for this one to pass you by!

Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Friday, October 23, 2009

On Monday Morning, don't bother with Timmies - come get your coffee here!

Please support the Alzheimer Society of Oxford county by stopping by Re/Max a-b Realty at 521 Dundas St on Monday Morning, October 26th between 8:30 and 10.

Come in, say hi, pick up a cup of coffee on your way to work. All proceeds will go to the Alzheimer Society of Oxford County.

Look forward to seeing you here!

Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Thursday, October 22, 2009

Ok, so, its 6:41, and I've been on the highway for 45 minutes, and gone about 6 km. Right now the car is off. Good times.

Ben Sage, Sales Representative
Re/MAX a-b Realty LTD
Brokerage: 519.536.7535 ext 487

Saturday, October 17, 2009

It would be impossible for the leafs to suck any more. That is all.

Ben Sage, Sales Representative
Re/MAX a-b Realty LTD
Brokerage: 519.536.7535 ext 487

Wednesday, October 14, 2009

Alzheimer Coffee Break - Please join us and support the Alzheimer Society!

Monday, October 26th, 2009 8:30-10 AM, at 521 Dundas St, Woodstock.

Come and enjoy your morning coffee with us, with all proceeds going to the Alzheimer Society!


Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Thursday, October 8, 2009

Kitchen Reno - part whatever: Repainted, Cabinets in, No hardware, countertop not done yet....

Here are a few shots of the cabinets installed. The countertop isn't finished yet - it shipped with a small crack in it, and Caseys Creative Kitchens is getting us a replacement piece. It won't be delivered until Tuesday though.

We should have hardware and appliances tomorrow night, but my next update won't be until I get back from a thanksgiving weekend away.












You might be able to tell by these photos that I have re-painted the entire kitchen. When we got the countertop into the room we noticed that the paint was really not working with it. Sooooo, I stayed up until WELL after midnight doing two coats of paint on the walls. Yep, two more coats. I was not pleased. Shockingly.

Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

First rumours of interest rate hikes surfacing

With Australia raising their interest rates, and the broader economic picture in Canada on the cusp of recovery, the first hints are coming down the pipe that the bank of Canada may not hold to its prediction that the overnight rate stay at 0.25% until mid 2010.

What does this mean to you?

If you're thinking of buying in the next 2-3 months, get to your lender and get yourself a "rate guarantee." This will give you a certain amount of time to act while still getting today's rates. Typically up to 90 days.

If you're thinking of selling shortly, get going. As you will see by viewing my blog, we are actually approaching a sellers market at the moment, with supplies dwindling and the cost to borrow remaining historically low, now is the time to get top dollar for your home.

If you're staying put in your home, consider speaking to your mortgage specialist today to explore your options in terms of re-financing to get that great rate, or fixing your variable rate mortgage to avoid the inevitable interest rate uptick.

Good luck, and call me if you have any questions!


Ben Sage, Sales Representative
Re/MAX a-b Realty LTD
Brokerage: 519.536.7535 ext 487

Housing Supply Shortage sparks bid wars

Today the Globe and Mail (courtesy of The Canadian Press) has confirmed what many agents have been saying for weeks now. They have eager buyers, and a stale inventory.

What does this mean? If you're thinking of selling, now is the time. Price it right and you will get it sold quickly and for a good dollar. Call me today for an evaluation of your options!

-----------------------

Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON


The housing market may be recovering, but is experiencing an undersupply of homes for sale in southern Ontario and elsewhere in Canada.

That's according to the latest house price survey by Royal LePage.

It says with the recession retreating, home prices are stabilizing and unit sales are increasingly driven by improved affordability.

Royal LePage says the average price of a two-storey home in Canada is up just 0.1 per cent from a year ago at $409,335.

Average bungalow values grew 0.06 per cent year over year to $341,146, while the price of an average condo increased 0.09 per cent to $243,748.

Royal LePage says a shortage in housing supply is leading to bidding wars in several cities, including Toronto, Montreal, St. John's, N.L.; St. John, N.B. Moncton, Edmonton, Calgary, North and West Vancouver, and Victoria.

While the Atlantic provinces saw a strong recovery in home prices, western provinces have been slower to recover from significant price corrections in 2008, particularly in British Columbia and Alberta.

Ontario and Quebec saw home prices stabilize or gain slightly year over year with much of the recovery occurring in a strong third quarter.

Wednesday, October 7, 2009

We chose a higher quality vinyl flooring, as it is less expensive, looks good, and is easier on your feet/knees/back. The flooring was supplied and installed by Ricks United Carpet, who I would recommend to anyone. They were very professional in all aspects of supplying the flooring, and the product looks great, and was well installed.



Marley was scared to walk on it at first.... She's weird.





Just today the cabinets are being delivered and installed.




More to come!

Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

The Kitchen Reno - part 5: "Surfaces"

I used Zinsser Bullseye 1-2-3 Primer on the ceiling. It has high adherence, seals porous drywall mud, and stops greasy stains from transferring through the new painted surfaces.

Two top coats of ceiling paint was used to guarantee a smooth flat finish. I used that fancy paint that starts pink and dries white. Its easier to see where you've already painted!



A coat of Zinsser Bullseye 1-2-3 was spot painted on all the drywall mudded areas, and the walls were all painted with one coat of ICI tinted primer.

Two top coats of Diamond Matt ICI paint were used to give a washable, flat finish. Flat paints hide minor wall imperfections, and the light colour will contrast our dark flooring and cabinets nicely (hopefully!!!)

Now that the "big dust" is gone, Marley is once again allowed in the kitchen area while i work!





Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

The Kitchen Reno - Part 4: "Rebuilding"

I've started taking fewer pictures at this point. The progress gets much slower, and more boring to watch. Plus I'm busy working on it and forgetting to take pictures as I go.

This is Bill Boulton - the man behind "The Handy Hubby" was contracted to help me with the drywall / plaster wall and ceiling repairs. I say "help" but I really mean "work while I watch and try to learn."

Some of the deeper differentials in the ceiling were filled with 1/2" drywall. I wasn't even aware that they made drywall that thin, but Bill found some, and screwed it in place. Taped the seams, and the mudding fun began.



Since we're not sure exactly whats happening on the "backsplash" area of the walls, we had to concentrate on making it as smooth as physically possible, considering that the fake bricks left holes of various shapes and sizes throughout the entire backsplash area.




Basically, three different phases of mudding were used. Bill is excellent at drywall repair, and is very much a perfectionist. I'd recommend him for any home-repair or renovation job.




Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

The Kitchen Reno - Part 3 - "Electrical"

This is a new circuit, to be a single lamp above the new corner-sink. One of the benefits of doing a total reno is that you can do the electrical properly. We ran 3 more circuits to the kitchen, including one split-outlet, and proper GFI outlets where necessary. We also repositioned a couple light switches to fit under the new cabinetry, and added a proper phone jack to the "desk" area of the new kitchen.



The box that we cut out of this location was behind the old fridge. I'm no electrician, but I'm under the understanding that a fridge should be on its own circuit.... When we pulled the "fuse" for the fridge circuit, my beautiful wife informed us that we had cut the power to the entire upstairs as well (except the smallest bedroom). That means that we had been running the fridge, lights, exhaust fan, hair straightener, and hair dryer at the same time on a single 15 amp circuit. I don't know how we never blew that fuse!



Marley has been the biggest victim of this renovation. She gets shuffled to the basement, or the back yard, depending on the weather at the time! poooooor marley.





Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

The Kitchen Reno - Part 2.2: Demolition! Day 2

On Day 2 of Demolition, we took out the ceramic flooring. There's no real graceful way to take this type of flooring out, other than to smash it to bits and shovel it into buckets. One tip I offer is, if you're going to go the sledgehammer route, take a heavier blanket (in this case we used some discarded curtains) and place it on the floor. Hammer the tiles underneath the blanket in order to keep the dust down. It's a dirty job, but anything you can do to keep the dust down is a plus - it really helped!

Another thing worth noting, is that hammering the crap out of the floor will make a mess in the area below where you're working. Lots of little sawdust bits, chunks of wood, and dust were distributed throughout the basement while we smashed the floor. Don't know how you can stop that, but you should be aware!




You're doing a great job Bruvey.



The view after the ceramic floor was removed. At this point we weren't sure exactly what we should do about the levelling compound that was all over the floor. I had assumed that, since the original ceramic floor had been improperly installed, it had actually been installed directly onto the subfloor, without adding a new layer. Well, I was wrong again - All we had to do to clean up the levelling compound was pull up that top layer of subfloor and chuck it in the bin.



After trying several different methods of removing the sub-floor, we found that the teamwork-garden-shovel method worked the best. After that, we just ripped all the pieces off the floor and discarded them! You want a good quality, heavy steel garden shovel with a good lift to act as a lever to pry the flooring free. After the subfloor was removed, I had to crawl around on my hands and knees and pull out all the screws that were used to hold that subfloor layer in place. Thank god they missed the studs on most of the screws, and I was able to use a claw-hammer to rip em out.



It's more work when the plywood "rips" but, we were learning!




Here's the load we took to the dump. Our dumping fee was only $55. Just over 1 ton of rubble (not including the appliances). Much better than the $400 it would have cost me to have a dumpster. You were right honey. :)










Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

The Kitchen Reno - Part 2.1: "Demolition! Day 1"

My lovely assistant (Thanks Mark!) begins the smashing time by assaulting the housing for the Oven. It came out remarkably easy, but (perhaps un-suprisingly) left some surprises!



The following two pictures are "what was left" after that oven cabinet was removed. Lovely panelling & painted panelling "backing" tacked to the wall, and a marble-looking vinyl tile flooring. If you look at the ceiling, you will see the first of a few problems that had to be addressed in the "rebuilding" stage. The ceiling under the oven was about about 1/8" higher than the surrounding ceiling, and still had the stipple finish. It turns out the flat part of our ceiling had been parged with plaster at some point in the past. Between 1/4 and 3/4" of it!!!



Time for a quick break once the appliances, oven cabinet, and countertop hadbeen removed. By the way, I don't advocate drinking while performing demolition. I am also poor at leading by example. Deal with it.



The view of the kitchen without any cabinets, and bulkheads are still in place. Nice, shiny orange paint has been revealed behind the old cabinets. Lovely!



One of my fears was how difficult it might have been to remove the bulkheads. It turns out my fears were completely un-necessary, as they basically fell off the ceiling once the cabinets had been removed. I don't have a picture of this, but a ceiling problem had been exposed (similar to above the oven cabinet). This differential was larger, more like 1/2" deep. A stippled ceiling was exposed at a different grade than the rest of the ceiling. More patchwork!




The view without any cabinets or bulkheads! Getting there!!!


I had hoped these "bricks" would be plastic or vinyl or something easier to remove, however they were actually painted clay bricks. As such I made the rounds with my mallet and small prybar and individually smashed each tile off. If you're planning to do this, wear eye protection! You can't see this, but I am wearing safety contact lenses. (Again, poor at leading by example!)








Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

The kitchen reno - part 1: "Before"

So many people ask us: "Why are you renovating your kitchen? There's nothing wrong with it!!!"

Well, so many people are unfortunately wrong. There were lots of things wrong with our kitchen. I had several problems with it. Namely:

The colour - I don't mind the colour on an individual basis, but I found it overbearing in the kitchen. On walls that you stare at all the time, that dark, angry red was a very negative force. Not to mention that darker paints make rooms feel smaller, and show more imperfections in the walls.

In the below photo, the only part that remains is the Table (for now), and the Light fixture. The walls have been painted, the door replaced with an insulated steel door, and the floor is gone!



What you can't see in the below picture, is how inefficient built-in-wall-oven is. The only time the oven door is closed firmly is when you stand and hold it closed. Since the thermostat was installed in the kitchen (seems dumb, but I'm not a heating and cooling expert??), and the oven door doesn't fully close (lol), the room temperature, and thus the temperature of the house, is affected by what's happening in the oven; in the winter, when the oven is on, the kitchen gets warm and the furnace thinks its doing a great job and shuts off, leaving the rec-room downstairs and the bedrooms upstairs FREEZING! The same thing of course happens in the summer, when the kitchen heats up, the AC goes crazy and freezes the rest of the house!

Another unseen hazard is the overhead cupboard. Many large concussion-creating baking and cooking accessories are stored up there (incl some heavy stoneware, pyrex, and even a rolling pin!). Don't open it without wearing your hardhat!!

I'm not even going to mention the fact that this built-in-oven was the same model I had in my parents house, a decade ago.




This photo here shows pretty much ALL of our counter space. Don't even try having two "cooks" in the kitchen. As for finishes, don't you just love the retro-painted-brick look not only on the backsplash, but also on that lovely archway over the window? As a side note, you can't wipe the brick backsplash, because the painted surface would come off on your cloth and ruin its lovely appearance, and could be dangerous!





Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Monday, October 5, 2009

New Listing - 597 Sales Dr - New Bungalow with Loft! Amazing home!!



MLS # 61-882 (realtor.ca link)

Asking $299,900


This gorgeous new quality built 2150 sq ft Bungalow is waiting for you! The gorgeous stone exterior is just a hint of the quality found in this home! Inside you will find an amazing, open concept floor plan with dramatic vaulted ceilings, a large main floor master bedroom with ensuite bath and walk in closet, main floor laundry room, and an exciting loft with its own bathroom and two more bedrooms. Finished with quality materials such as hardwood flooring in the great room and ceramic tiles in the bathrooms and kitchen areas, and painted in tasteful modern colours, not to mention beautiful dark stained oak kitchen cabinets and oak hand railings. Don`t wait for this one to pass you by!

Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON