In a chilling reminder of what happened to our market as of July 1st, 2010, it is today being speculated that Jim Flaherty, our wonderful Finance Minster may act to stem the scourge of consumer credit that us Canadians are apparently awash in.
Pundits have been ironically warning us for nearly a year, as our spending lifts the country further from the throws of a double dip recession, and distances us from our under-water American counterparts, that our growing household debt is a problem.
Am I talking about raising interest rates? Not likely at this point. This certainly wouldn't help our escalating Loonie keep pace with the rest of the world. What is being suggested today has far more sinister consequences for the real estate market. For buyers and sellers alike.
The reduction of the maximum mortgage amortization from 35 years to 30 years (or even 25?).
Two years ago, maximum amortizations were reduced from 40 to 35 years. The results on the Real Estate market were difficult to track, as local pricing / market trends were all over the place in 2008.
This time around, I'm 100% certain that it will chill an otherwise recovering new and re-sale housing market in Woodstock. Let's look at a scenario.
December 2010's average sale price in Woodstock was $183,107.
Assuming 5% down over 35 years at a fictional rate of 3.94%, your payment would be $760.65
At 30 years, payments translate to $821.28
Under the same terms, at 25 years amortization, the payment balloons to $909.37
With Woodstock property taxes increasing at par with assessment phase-in, HST now in full effect on Hydro, gas, and other services, the dawn of Metered Water services, Time-of-day Hydro usage, Rising Garbage tag prices, and other financial pressures on the household, what do you think could happen to the value of your home?
Fewer buyers able to buy, fewer sellers able to sell for "what they need" out of a home...
Basically, a big chill. 2007-2008 all over again.
The time to list is now. Seriously!
Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
Showing posts with label Ontario. Show all posts
Showing posts with label Ontario. Show all posts
Friday, January 14, 2011
Monday, January 4, 2010
How to Hire a home inspector - courtesy CBC news
Here's a great article regarding Home Inspectors posted today on CBC NEWS.
The home inspection business got a big black eye in November 2009 when a British Columbia judge ordered an inspector, Imre Toth, to pay $192,000 in compensation to some homeowners after they sued him for failing to identify major problems.
Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
The home inspection business got a big black eye in November 2009 when a British Columbia judge ordered an inspector, Imre Toth, to pay $192,000 in compensation to some homeowners after they sued him for failing to identify major problems.
The issues in the Toth case focused on his failure to note extensive rot in part of the house, using a lowball estimate for repairs and rushing his clients to sign a contract limiting his liability. Toth says he will appeal the decision.
The case caused a buzz right across the country. Homeowners who felt they'd had a faulty home inspection issued a chorus of angry rants about inspectors' incompetence or lack of liability, while the decision sent a chill through the home inspectors.
One thing is clear: The standards for home inspections in Canada are all over the map.
"To be a home inspector you only need a business card and a flashlight," says Bill Sutherland, the president of the Canadian Association of Property and Home Inspectors (CAPHI), an association that is trying to raise the standards of home inspections.
Sutherland, who lives in Kamloops, B.C., says about half of Canada's home inspectors are members of CAPHI. The rest don't belong to any recognized associations.
Still, even hiring a member who belongs to an association is no guarantee of a trouble-free inspection. Imre Toth is a CAPHI member in B.C., the only province that now regulates the profession. Sutherland said the Toth case was unfortunate, adding that even educated and trained inspectors can make a mistake, but he says he believes most accredited inspectors do a good job.
Finding a qualified inspector
Consumers without an extensive knowledge of home construction and maintenance are in a tough position when it comes to hiring an inspector. It's something that's usually done in a hurry, sometimes even after an offer to purchase has been made. Few people have any idea about who they've just hired unless they live in a small community where the inspectors are known.
So how do you find the right one?
- Don't wait until the last minute. Start looking for an inspector as you begin to look for a home.
- Ask around to see if family or friends know an inspector they trust.
- Your real estate agent may make a recommendation. If you trust your agent, get in touch with them.
- Check the internet to find an inspector and see if there is any feedback online about them from happy or unhappy clients.
- Ask the inspectors for their credentials and references. One inspector with 16 years experience and many recognized credentials said no one has ever asked him about his education. The person you're about to hire should be a good communicator. You should ask what they did before they became a home inspector.
Credentials
B.C. has licensed its inspectors since March 2009, which means they must belong to one of three organizations with a recognized level of education and experience and carry liability insurance.
All the other provinces have self-regulating professional bodies that set the standards for home inspectors, and they are also members of CAPHI national. You should look for a Registered Home Inspector (RIH) designation. That means they've passed accredited courses specific to home inspections and defect recognition classes. They've also performed a minimum of 250 paid inspections.
There are a few other building trades organizations, such as the Applied Science Technologists and Technicians (ASTT) which is outside CAPHI but certifies home inspectors.
Another type of accredited inspector is a National Certificate Holder (NCH). They can work in any province, have done 150 paid inspections and have had their work peer reviewed by CAPHI.
You can verify if someone is certified nationally by checking this website.
Standards of Practice
Before hiring an inspector, check out the standards of practice.
It's the guideline for professional home inspections, although many inspectors go beyond its basic requirements. It also forms the basis of a contract you'll be expected to sign which limits the inspector's liability if problems crop up that weren't identified during the inspection.
Before the inspection begins, read the contract carefully and ask questions. And understand what they mean when they say it is a "visual inspection of readily accessible places."
Be sure to attend the inspection. It's your chance to learn something about all the systems that make a house run. The home inspector should provide a written report reviewing every major home system and component within 24 hours of the inspection.
If your inspector finds something that worries you, consider hiring a specialist for a second opinion. Inspectors are generalists and you might need a specialist to look at specific concerns about the wiring, the furnace or that damp basement.
The whole home inspection should take about three or four hours and cost about $350 to $500.
Some critics of the business say that's not enough time to thoroughly inspect such an expensive investment. They suggest paying more and hiring a contractor or even an engineer, but that idea has not yet caught on.
Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
Thursday, November 19, 2009
RBC drops fixed interest rates
From Corey Cunningham, RBC Mortgage Specialist
With all the news lately about mortgage rates on the verge of climbing, I am very happy to report that rates have dropped for most of our fixed rate terms.
Variable closed remains very popular amongst most clients at PRIME (2.25%).
Our most attractive fixed rate term I suggest would be the 3 year at 3.85% which will line up nicely with the next presidential election. And if history repeats itself, like it usually does, that's always a time for lower interest rates.
Please email Corey @ corey.cunningham@rbc.com for more details and to discuss your mortgage!
Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
With all the news lately about mortgage rates on the verge of climbing, I am very happy to report that rates have dropped for most of our fixed rate terms.
Variable closed remains very popular amongst most clients at PRIME (2.25%).
Our most attractive fixed rate term I suggest would be the 3 year at 3.85% which will line up nicely with the next presidential election. And if history repeats itself, like it usually does, that's always a time for lower interest rates.
Please email Corey @ corey.cunningham@rbc.com for more details and to discuss your mortgage!
Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
Sunday, November 15, 2009
Open House, Today, Sunday November 15, 2009 - 41 Canrobert - 2 - 4 PM
Good Day all!
I am getting ready to head out to 41 Canrobert St, in Woodstock to open a GREAT starter house. The home would be a perfect start for your family, or a fantastic upgrade. Get out of renting or condo living and enjoy your own detached, well decorated 3 bedroom home with finished basement, a single garage, parking for two cars, a private fenced yard, and a two tiered deck! This move-in-ready home comes with all the appliances too!!!
See you there, 2-4 today, or book a private showing with me!! Click HERE for more information
Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
Wednesday, November 11, 2009
Great opportunity for a first time buyer or upgrading! - MLS 63-437 - 41 Canrobert St, - Move in Ready, only $189,900.
*hint* - click the underlined words for more detail!
This is a great 15 year old raised ranch located in a well established family friendly neighbourhood. It is located very close to parks and has quick and easy access to the major highways.
What more could you ask for? This sturdy, fully finished and move in ready home features a concrete foundation, 3 bedrooms (Master, 3rd Bedroom/Office, Nursery). and a full bathroom on the main floor, as well as main floor laundry, a spacious eat-in kitchen, and separate dining room. Plus a comfortable living room!
In the newly finished basement level you will find inside entry to your single car garage (a rarity in this neighbourhood!), extra storage in the utility room and under the staircase, a spacious full bathroom, rec room, family room, and a bonus room.
Enjoy year round convenience and efficiency thanks to the high efficiency forced air gas furnace with central air conditioning, and no-maintenance exterior of brick and vinyl siding.
Let’s not forget the nice two-tierd deck in your fully fenced back yard. This extremely well decorated home has plenty of space for your growing family, and is ready for quick possession! All appliances included. Be sure to check out the Virtual tour!
For Room Sizes and additional details, check out the Realtor.ca info page
What more could you ask for? This sturdy, fully finished and move in ready home features a concrete foundation, 3 bedrooms (Master, 3rd Bedroom/Office, Nursery). and a full bathroom on the main floor, as well as main floor laundry, a spacious eat-in kitchen, and separate dining room. Plus a comfortable living room!
In the newly finished basement level you will find inside entry to your single car garage (a rarity in this neighbourhood!), extra storage in the utility room and under the staircase, a spacious full bathroom, rec room, family room, and a bonus room.
Enjoy year round convenience and efficiency thanks to the high efficiency forced air gas furnace with central air conditioning, and no-maintenance exterior of brick and vinyl siding.
Let’s not forget the nice two-tierd deck in your fully fenced back yard. This extremely well decorated home has plenty of space for your growing family, and is ready for quick possession! All appliances included. Be sure to check out the Virtual tour!
For Room Sizes and additional details, check out the Realtor.ca info page
Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
Tuesday, November 3, 2009
Luxury housing sales edge higher as purchasers take advantage of buying opportunities in Ontario-Atlantic Canada, says RE/MAX
Mississauga, ON (November 3, 2009) -- Luxury homes sales continue to accelerate as economic
recovery takes hold in major markets in Ontario and Atlantic Canada, according to a report released today by RE/MAX.
The RE/MAX Upper End Report found that momentum is building in St. John’s, Saint John, Halifax-Dartmouth, Ottawa, Kingston, Greater Toronto, Hamilton-Burlington, and London as purchasers realize that the best buying period in recent history is about to come to a close. Sales are already on par or ahead of last year’s levels in 50 per cent of cities surveyed, while the remaining markets are set to reach 2008 figures by year-end.
“Twelve months of healthy home buying activity have clearly been crammed into five short
months,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “It’s hard to believe that the transition in the market began in May. We’ve seen steady upward
momentum since that time, with solid year-over-year gains posted each and every month.”
Pent-up demand and greater affordability have been the catalyst. Increased selection in all markets—except Greater Toronto—as well as record low interest rates have also helped fuel moveup activity from Ontario to Newfoundland.
Leading in terms of sales appreciation is London, Ontario where the number of homes sold, priced in excess of $500,000, has climbed 11 per cent from January to September 2009, compared to one year ago. Greater Toronto and Ottawa both reported a one per cent increase in the number of homes sold in the top end during the same period. Within the GTA, Richmond Hill/Thornhill is particularly heated, with sales up 24 per cent over 2008 levels, followed by Mississauga— up 10 per cent. St. John’s, Newfoundland is on par with year-ago figures.
Of the six markets reporting a year-over-year decrease in sales, four are off by just a handful of
transactions (10 units or less), including Halifax-Dartmouth (off eight units), Kingston & Area (off three units), Toronto – West End (off 10 units), and Oakville (off five units). Activity in the
remaining two markets—Saint John and Hamilton-Burlington—is on the upswing, with the gap between 2008 and 2009 narrowing each month.
“A considerable shift is underway in the upper end,” explains Polzler. “The price correction that we witnessed earlier in the year is over and prices have since firmed up. Conditions are more balanced across the board or leaning toward seller’s territory once again. The one exception is the Greater Toronto Area -- now largely a seller’s market -- with bidding wars making a comeback amid tight inventory levels. The strength of the luxury segment is evident. This is now a real estate market with all sectors working in tandem.”
Highlights:
RE/MAX is Canada’s leading real estate organization with over 17,000 sales associates situated throughout its more than 677 independently-owned and operated offices across the country. The RE/MAX franchise network, now in its 36th year, is a global real estate system operating in more than 70 countries. Over 6,700 independently-owned offices engage nearly 100,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, and asset management. For more information, visit: www.remax.ca.
Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
recovery takes hold in major markets in Ontario and Atlantic Canada, according to a report released today by RE/MAX.
The RE/MAX Upper End Report found that momentum is building in St. John’s, Saint John, Halifax-Dartmouth, Ottawa, Kingston, Greater Toronto, Hamilton-Burlington, and London as purchasers realize that the best buying period in recent history is about to come to a close. Sales are already on par or ahead of last year’s levels in 50 per cent of cities surveyed, while the remaining markets are set to reach 2008 figures by year-end.
“Twelve months of healthy home buying activity have clearly been crammed into five short
months,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “It’s hard to believe that the transition in the market began in May. We’ve seen steady upward
momentum since that time, with solid year-over-year gains posted each and every month.”
Pent-up demand and greater affordability have been the catalyst. Increased selection in all markets—except Greater Toronto—as well as record low interest rates have also helped fuel moveup activity from Ontario to Newfoundland.
Leading in terms of sales appreciation is London, Ontario where the number of homes sold, priced in excess of $500,000, has climbed 11 per cent from January to September 2009, compared to one year ago. Greater Toronto and Ottawa both reported a one per cent increase in the number of homes sold in the top end during the same period. Within the GTA, Richmond Hill/Thornhill is particularly heated, with sales up 24 per cent over 2008 levels, followed by Mississauga— up 10 per cent. St. John’s, Newfoundland is on par with year-ago figures.
Of the six markets reporting a year-over-year decrease in sales, four are off by just a handful of
transactions (10 units or less), including Halifax-Dartmouth (off eight units), Kingston & Area (off three units), Toronto – West End (off 10 units), and Oakville (off five units). Activity in the
remaining two markets—Saint John and Hamilton-Burlington—is on the upswing, with the gap between 2008 and 2009 narrowing each month.
“A considerable shift is underway in the upper end,” explains Polzler. “The price correction that we witnessed earlier in the year is over and prices have since firmed up. Conditions are more balanced across the board or leaning toward seller’s territory once again. The one exception is the Greater Toronto Area -- now largely a seller’s market -- with bidding wars making a comeback amid tight inventory levels. The strength of the luxury segment is evident. This is now a real estate market with all sectors working in tandem.”
Highlights:
- Upper end sales started to move upward as positive indicators of economic recovery began to emerge. The momentum is expected to continue as Canada edges closer to positive periods of GDP growth in Q4 2009 and in 2010.
- Locals are fuelling luxury sales in the majority of markets surveyed. Activity among out of-province and international purchasers has waned from one year ago, although their presence in still evident in some markets.
- Sixty-one properties in Canada are currently priced over $10 million, with 18 of those located in Ontario. The priciest Ontario home is nestled in Toronto’s prestigious Bridle Path area, listed at $23 million.
- Three hundred properties currently listed for sale are priced over $5 million in Canada.
- In Atlantic Canada, there are 22 listings in excess of $2 million—13 in Nova Scotia, five in New Brunswick and two in Prince Edward Island. The most expensive property in Atlantic Canada is a $7.75 million estate on a bluff fronting the Atlantic Ocean on PEI’s north coast.
RE/MAX is Canada’s leading real estate organization with over 17,000 sales associates situated throughout its more than 677 independently-owned and operated offices across the country. The RE/MAX franchise network, now in its 36th year, is a global real estate system operating in more than 70 countries. Over 6,700 independently-owned offices engage nearly 100,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, and asset management. For more information, visit: www.remax.ca.
Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
Friday, October 30, 2009
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
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
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
Monday, October 5, 2009
New Listing - 597 Sales Dr - New Bungalow with Loft! Amazing home!!
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
Wednesday, September 30, 2009
Haggling over your first mortgage - Courtesy of The Globe and Mail
Reprinted courtesy of Paul Brent and The Globe and Mail
Original Article Here
Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
Original Article Here
Special to The Globe and Mail Last updated on Wednesday, Sep. 30, 2009 07:08AM EDT
Building Blocks, a special web series geared towards educating young Canadian families about various personal finance topics, launches today on the globe investor personal finance site. Check out this story on the do’s and don’ts of negotiating your first mortgage, as well as a video where Canada’s banking ombudsman provides tips on what to look for before you sign on that dotted mortgage line. Building Blocks will run online every Wednesday for four months.
You've been to the open houses, explored various neighbourhoods and perhaps even checked out local schools before settling on the home of your dreams. Now it's time to negotiate your first mortgage, a process which done right, could save you tens of thousands of dollars.
Today's low interest rates have made buying that first home easier but it can also breed complacency. Rates will rise eventually so purchasers need to not only find a place they can afford, but ensure that they have negotiated the best mortgage terms possible and educated themselves on the document they are about to sign.
When it comes to mortgages, the first lesson is that not all mortgage lenders are created equal. That become quickly apparent to Naysan and Nahid Hariri, both 28, who are mortgage shopping for a $438,000 home now being built for them in Richmond Hill, Ont. “I found that a couple of institutions were a number of (interest) points higher than others,” he said.
The Hariris also found that the big banks, which tend to have higher posted rates than smaller financial institutions, were reluctant to lower their rates. “My understanding with banks is that if you have services with them, they tend to work out something better for you.” Because first-timers typically have less money parked with a particular institution, they tend not to have the leverage to demand lower rates.
“ Usually they are borrowing a lot more money and there is quite a lot to learn. ”— Lois Volk, mortgage broker
The stakes and the learning curve are higher for first-timers. “Usually they are borrowing a lot more money and there is quite a lot to learn,” said Lois Volk, a 22-year mortgage broker with Invis in Toronto's trendy Beaches neighbourhood. “If they don't know, certainly we go through everything: make sure they are comfortable with the concept, what their payments are going to be, work through a budget if necessary and help them consolidate debt if necessary.”
But before couples even start house shopping, they should meet with their bank to obtain a pre-approval or, at the very least, a rate guarantee, said Martin Beaudry, head of lending underwriting at ING Direct.
Mr. Beaudry said that the difference between the big banks and independent firms is rate transparency. “The big banks start very high with their rates and you need to negotiate the rates down and sometimes they have as much as 1.5 per cent leeway on their posted rates while small institutions like ING Direct will post their lowest rate.”
ING Direct's most popular mortgage term among its customers is its 5-year fixed rate, currently sitting at 3.99 per cent. Five-year, fixed rate mortgages for the big banks range between 5.49 and 5.55 per cent, according to Globe and Mail data. The lowest rate found was 3.94 per cent offered by Meridian Credit Union.
Crunch the numbers
Obtaining a pre-approved mortgage forces new buyers take a long, hard look at not just how much house their bank says they can afford, but how much debt they are willing to shoulder to get into home ownership, combined with whatever else they owe. Be aware that your comfort zone and the lending institution's are not necessarily the same. Banks are in the business of maximizing earnings which could translate into a mortgage which you can afford – on paper at least – but one that leaves little money left over for fun indulgences.
The Hariris, who both work for IBM Canada, decided to determine their debt threshold before sitting down with a financial institution. “The first thing you need to do is figure out your monthly budget,” said Mr. Hariri. “My wife and I sat down for months in advance to see exactly what we can afford, what is comfortable for our lifestyle.”
On their own, they also managed to say the 20 per cent of the purchase price for a down payment so that they don't have to carry the extra expense of mortgage insurance from Canada Mortgage and Housing Corporation (CMHC).
Financial institutions say that mortgage borrowers should devote no more than 30 to 32 per cent of their combined gross incomes to mortgage payments, property taxes and heat. “CMHC will also allow you to go up to 40 per cent or sometimes slightly higher if you have no other debt,” said Ms. Volk, the mortgage broker.
As ING Direct clients, the Hariris are leaning towards taking a fixed rate mortgage with that bank. While financial experts say that over the long term borrowers do better with variable rates, new buyers often opt for the peace of mind that fixed rates offer.
And while the Hariris are not using a mortgage broker to help them hammer out the best deal possible, it is an increasingly popular option. Last year 33 per cent of purchasers used mortgage brokers, up from 27 per cent the prior year, according to a CMHC survey.
Do some research
Mortgage brokers, who are typically paid on a commission basis by lenders, may save borrowers some money on the rates and terms they negotiate, but Ms. Volk says a large part of their role is educating people. “The main things to watch for is terms and conditions of the mortgage.”
With the recent drop in mortgage rates, Ms. Volk says many people have been dismayed to find they cannot take advantage of potentially huge interest rate savings because the “break fee” to get out of their current mortgage is prohibitive. Interest penalties for getting out of your mortgage early vary and may take the form of a three-month interest payment or interest rate differential charge. Make sure to get your lender to spell out the break fee to you, and get it on paper.
Some lenders offer “blend and extend” options which can allow some borrowers to get at least some of the benefit of lower rates. Typically, the penalties for breaking the original mortgage are included in the blended rate calculation so borrowers are not faced with an upfront charge.
Pre-payment privileges are also something first-time buyers should seek for two reasons: Because they are typically early in their careers, they can reasonably expect higher take-home earnings through promotions or switching employers for a better paying job and are able to make additional payments to the mortgage. As well, the interest on mortgages is front-end loaded, meaning that the majority of payments in the early years of 25-year amortization mortgage go to interest, not principal.
The math
Here is why shopping around for the best rate possible is no trifling matter. Take a half-point interest rate difference on a 5-year, $500,000 mortgage with a 25-year amortization period. With a 5.75 per cent rate, the mortgage holder would have monthly payments of $3,125.11 versus $2,979.59 at 5.25 per cent. That doesn't sound like much until you run the 5-year amortization schedule. At the higher rate, the buyers made mortgage payments of $187,506.60, with 72 per cent of that, or $135,086.29, going towards interest payments. At the 5.25 per cent rate, the mortgage holders not only pay $178,775.40 less, but 68.8 per cent or $123,032.28 less goes to interest and more to chipping away at the principal. The difference? A total of $8,731.20 less in payments - $12,054.01 in interest saved and an extra $3,322.81 to the reduction of the principal owed.
The Canadian Association of Accredited Mortgage Professionals has a variety of calculators on its website, including a prepayment calculator, maximum mortgage calculator and a rent vs buy calculator.
Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
Tuesday, September 15, 2009
Canadian home sales remain strong
Reprinted courtesy of The Globe and Mail
Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
Canadian home sales dipped slightly in August as the market took a breather after strong spring and summer sales, according to statistics released Tuesday by the Canadian Real
Year-over-year, the number of sales was up 18.5 per cent from August, 2008.
“On a seasonally adjusted basis, national …[resale] home sales held steady. At 42,426 units, seasonally adjusted activity came within six-tenths of 1 per cent of levels in the previous month,” CREA said.
“Seasonally adjusted activity in Alberta and Quebec declined, offsetting activity gains in British Columbia.”
Economists had expected that the pace of resale activity might ease a bit between July and August “following a 61 per cent blast-off in the prior six months,” Douglas Porter, deputy chief economist of the Bank of Montreal, said in his morning research note.
Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
Thursday, September 10, 2009
Bank of Canada keeps key rate unchanged
Reprinted courtesy of CBC NEWS
The Bank of Canada left its key overnight interest rate unchanged Thursday as it again warned that a high Canadian dollar poses a risk to economic recovery.
The target for the overnight rate will remain at 0.25 per cent. Economists had expected no change.
The central bank also reiterated its commitment to leave the key rate at that level through the middle of next year as long as inflation remains in check.
The central bank said growth for the remainder of the year will likely be higher than it forecast earlier this summer.
"Combined with recent information on inventory adjustments and automotive production, this suggests that GDP growth in the second half of 2009 could be stronger than the bank projected in July," it said in a release.
The central bank said it still expects inflation will remain low and will return to its two per cent target in the second quarter of 2011 "as aggregate supply and demand return to balance."
Wednesday, September 9, 2009
Government softens impact of HST on new housing
Reprinted courtesy of CREA
The Government of Ontario is proposing two measures that will soften the impact of the harmonized sales tax (HST) on new housing. The HST was introduced in the 2009 Ontario Budget.
Under the first measure, the province proposes to enhance the new home HST rebate so that it
would be calculated as 75 per cent of the provincial portion of the HST payable on the purchase
of a new home, up to a maximum rebate of $24,000. Under the government’s initial proposal only homes under $400,000 qualified for the 75 per cent rebate.
Similar to the enhanced new housing rebate, the province is proposing a rebate for new residential rental properties. Landlords who purchase new rental homes would be eligible for the rebate, calculated as 75 per cent of the provincial portion of the single sales tax payable on the purchase of a new rental home, up to a maximum rebate of $24,000.
The province is also proposing HST transitional rules for new housing. Generally, as part of the
transitional rules, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010.
For more information on the HST - click HERE
There you go - buy your new house before June 18, 2010 and save!
The Government of Ontario is proposing two measures that will soften the impact of the harmonized sales tax (HST) on new housing. The HST was introduced in the 2009 Ontario Budget.
Under the first measure, the province proposes to enhance the new home HST rebate so that it
would be calculated as 75 per cent of the provincial portion of the HST payable on the purchase
of a new home, up to a maximum rebate of $24,000. Under the government’s initial proposal only homes under $400,000 qualified for the 75 per cent rebate.
Similar to the enhanced new housing rebate, the province is proposing a rebate for new residential rental properties. Landlords who purchase new rental homes would be eligible for the rebate, calculated as 75 per cent of the provincial portion of the single sales tax payable on the purchase of a new rental home, up to a maximum rebate of $24,000.
The province is also proposing HST transitional rules for new housing. Generally, as part of the
transitional rules, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010.
For more information on the HST - click HERE
There you go - buy your new house before June 18, 2010 and save!
Canadian housing starts jump in August
Reprinted courtesy of CBC News
Canada's housing sector continued on the comeback trail in August as home starts for the month jumped more than 12 per cent, according to new figures released Wednesday.
Canada Mortgage and Housing Corp. said construction companies started work on 14,177 new homes in August, for a seasonally adjusted annual rate of 150,400.
The August jump represented a 12.1 per cent increase versus July and reinforced CMHC's belief that the housing sector is seeing a sharp rise in activity.
"Housing starts are trending higher, reflecting improvements in both the single and multiple segments," said Bob Dugan, chief economist at CMHC's market analysis centre.
"The improvement in housing starts is consistent with our expectation of a stronger second half for 2009," he said.
Building rise
Similar to the American housing market, Canada's home sector has seen increased activity, both in new house construction and resale activity, in recent months.
Markets in the two countries had been pounded during the past year as a slumping economy cut house values and reduced the incentive to buy a new abode.
Thus, even with August's increase, housing starts were still down more than 25 per cent compared to the same month in 2008.
Analysts have pointed to record low interest rates and relatively low mortgage costs — currently hovering around four per cent at many institutions — as major factors underscoring the housing comeback.
In a report also released on Tuesday, RBC Economics backed up that point, noting that home affordability in Canada improved in the second quarter of the year.
B.C. gain
The big provincial winner in the CMHC figures appeared to be British Columbia as annualized housing starts reached 17,000 for the country's most westerly province. That represented a jump of 56 per cent versus July's figure.
The Prairie region was the area with the second best growth rate for August, up 16 per cent compared to the previous month while Ontario saw housing starts rise by more than 13 per cent.
Housing affordability improves, RBC says
Reprinted courtesy of cbcnews.ca
It's becoming easier to carry the costs of home ownership in Canada, but a survey by RBC Economics on housing affordability suggests this may be as good as it's going to get.
Home ownership became more affordable in the second quarter, the bank said Wednesday. It was the fifth straight quarter that the measure improved, it said.
"The national home affordability level has been restored to pre-housing boom levels," senior RBC economist Robert Hogue said in a statement.
But he warned that consumers shouldn't expect affordability to improve much more.
"The recuperative phase of the affordability cycle seems to be drawing to a close, with housing prices firming up in many parts of the country, and mortgage rates no longer trending downward," Hogue said.
Most banks lowered their mortgage rates in the last week, reversing this summer's earlier rate hike. A five-year fixed closed mortgage can now be obtained at 4.19 per cent at many banks and as little as 3.99 per cent at a few smaller financial institutions.
The RBC affordability study measures the percentage of pre-tax household income needed to service the costs of buying a home (mortgage payments, utilities and property taxes).
The study found that it took an average of 39.1 per cent of income to pay for a detached bungalow in the three months ending in June — down from 39.7 per cent in the first quarter.
The priciest market continued to be Vancouver, where it took 63.4 per cent of pre-tax income to service a bungalow purchase.
Nationally, the RBC study found that affordability also improved for two-storey homes, townhouses and condos.
Despite predictions that home affordability is levelling off, RBC economists say the recent bounce-back in the housing market is not likely to wane any time soon.
"Supply of properties for sale is dropping as demand bounces back, which is working to heat up prices again in many parts of the country," RBC's Hogue said.
Figures from the Canadian Real Estate Association showed that 50,270 homes changed hands in July via MLS — a record for any July.
The average residential resale price rose 7.6 per cent from a year ago to $326,832.
Tuesday, September 8, 2009
Announcing the launch of our amazing new website!
Woodstock/Stratford/St.Mary's is proud to announce the launch of our new brokerage website!
Check it out here -> Remax a-b Realty Ltd
Check it out here -> Remax a-b Realty Ltd
Thursday, September 3, 2009
I called it! Stephen Harper planning to use YOUR TAX DOLLARS as a bargaining chip in fall election
I called this months ago!
As soon as I "discovered" that the "Home Reno Tax Credit" that has been touted as one of the saving graces of local economies across Canada, was not actually Law.
My prediction was that this absolute tax break was going to resurface as a hot-button election issue, and here it is, landing in my lap, courtesy of the CBC.
The good people at Home Depot, Lowes, Rona, and Canadian Tire have managed to peddle their wares on us for the past 7 months under the guise of a sure-fire tax rebate, prompting Canadians to spend when perhaps they should be holding on to their cash, all the while knowing that the HRTC was not actually law. The government of Canada has even produced and paid air time for "Public Service" style advertisements instructing us (in Harper's true wisdom) to "go out and spend" on home renovations, and we'll see a break on our income taxes.
In my day-to-day life I come in contact with many tradespeople who have noticed a resurgence in home-renovation jobs this year, which has definitely helped the handyman have a great year, despite the economic turmoil. In that way, this Home Reno Tax Credit has been a fantastic ploy by the Conservative government to get us to go out and spend. We get a small break on our income taxes, it encourages tradespeople to work "above board" (ie. claim their income!), and homeowners all see increases in their equity.
I just hope some late 2009 position jockeying by the ruling parties of this country doesn't cost the honest taxpayer their 15% tax break.
References: CBCnews
As soon as I "discovered" that the "Home Reno Tax Credit" that has been touted as one of the saving graces of local economies across Canada, was not actually Law.
My prediction was that this absolute tax break was going to resurface as a hot-button election issue, and here it is, landing in my lap, courtesy of the CBC.
The good people at Home Depot, Lowes, Rona, and Canadian Tire have managed to peddle their wares on us for the past 7 months under the guise of a sure-fire tax rebate, prompting Canadians to spend when perhaps they should be holding on to their cash, all the while knowing that the HRTC was not actually law. The government of Canada has even produced and paid air time for "Public Service" style advertisements instructing us (in Harper's true wisdom) to "go out and spend" on home renovations, and we'll see a break on our income taxes.
In my day-to-day life I come in contact with many tradespeople who have noticed a resurgence in home-renovation jobs this year, which has definitely helped the handyman have a great year, despite the economic turmoil. In that way, this Home Reno Tax Credit has been a fantastic ploy by the Conservative government to get us to go out and spend. We get a small break on our income taxes, it encourages tradespeople to work "above board" (ie. claim their income!), and homeowners all see increases in their equity.
I just hope some late 2009 position jockeying by the ruling parties of this country doesn't cost the honest taxpayer their 15% tax break.
References: CBCnews
Thursday, May 7, 2009
First Time Home Buyers - What a GREAT time to buy!!
Are you thinking about buying your first home? Has the recent recession reduced home prices to the point that you're considering diving into the world of home ownership?
Now is DEFINITELY the time to act.
Contact me right now to find out how I walk buyers through the entire process of buying their first home, from the very first private showing, all the way through to personal pizza delivery on moving day, I will be with you every step of the way.
Here are only some valuable areas I can provide assistance:
Introduce you to a mortgage specialist. A friendly person, who will meet you in your home on your own terms to discuss your plans, and get a pre-approval.
Arrange private showings on listings that we select together. Ride in my car, if you want. I keep it running well and its (normally) very clean!
Benefit from my knowledge of Woodstock. Where will my kids go to school? Where can I find the best ice cream in town? Who does the fastest oil changes?
Assist through the process of making an agreement to purchase. Negotiating a purchase price that works for your budget, drafting conditions to protect you and your future investment, advising on aligning dates that work for you.
Recommending professional tradespeople to perform any services that you might require. As a real estate agent, a homeowner, and an investment property owner, I meet and use lots of Home inspectors, mortgage specialists, insurance agents, movers, cleaning services, plumbers, electricians, property maintenance, etc.
Show you how you can maximize your purchase and get thousands of dollars in government rebates for home renovations, deduct thousands of dollars from your income taxes, pay no land transfer tax, cash in your RRSP's tax free towards your downpayment, and benefit from historically low interest rates.
Respond very quickly to any requests you make. By embracing technology, I am equipped to receive your email, text message, and voicemail requests instantly and endeavour to always respond as soon as possible. Even if it's as quick as "Hey Bill, I got your Message. I'm on the 14th hole. I will respond to it as soon as I return to the office!"
So with property prices down, and rent steady or increasing, why not take the plunge? I go above and beyond with every step. Take advantage of what I'm offering today!
Call me - 519-536-7535 ext 487
Arrange private showings on listings that we select together. Ride in my car, if you want. I keep it running well and its (normally) very clean!
Benefit from my knowledge of Woodstock. Where will my kids go to school? Where can I find the best ice cream in town? Who does the fastest oil changes?
Assist through the process of making an agreement to purchase. Negotiating a purchase price that works for your budget, drafting conditions to protect you and your future investment, advising on aligning dates that work for you.
Recommending professional tradespeople to perform any services that you might require. As a real estate agent, a homeowner, and an investment property owner, I meet and use lots of Home inspectors, mortgage specialists, insurance agents, movers, cleaning services, plumbers, electricians, property maintenance, etc.
Show you how you can maximize your purchase and get thousands of dollars in government rebates for home renovations, deduct thousands of dollars from your income taxes, pay no land transfer tax, cash in your RRSP's tax free towards your downpayment, and benefit from historically low interest rates.
Respond very quickly to any requests you make. By embracing technology, I am equipped to receive your email, text message, and voicemail requests instantly and endeavour to always respond as soon as possible. Even if it's as quick as "Hey Bill, I got your Message. I'm on the 14th hole. I will respond to it as soon as I return to the office!"
So with property prices down, and rent steady or increasing, why not take the plunge? I go above and beyond with every step. Take advantage of what I'm offering today!
Call me - 519-536-7535 ext 487
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