How to determine the best mortgage for you.
When doing research to determine what one can afford, planning on interest rate rises in the future should be a consideration.
Although interest rate rises affect home buying power, it may not be as much as many think.
A mortgage of $400,000.00 with a 25-year amortization :
- Monthly payment at 4% = $2,104.00
- Monthly payment at 5% = $2,326.00
Also, lenders use several parameters to determine mortgage...
Canada’s Inflation Revisions Show Something Is “Really Wrong”: National Bank - BetterDwelling
AUGUST 23, 2022
Canada’s headline inflation is falling, but core inflation, the central bank’s preferred measure, is still climbing. That was the focus of a research note from National Bank of Canada (NBF) last week, in response to July inflation data. Core inflation, considered a more stable measure, climbed to a three-decade high. Even more surprising, this year’s numbers have been revised three times, meaning this measure isn’t as stable as the central...
Here’s How The Bank of Canada Drove Over 250,000 Excess Real Estate Sales - BetterDwelling
Canada’s real estate bubble went from a small localized problem in pricey cities to a country-wide failure. Excessively long use of low rates from the Bank of Canada (BoC) drove tens of thousands of excess home sales over the past two years. Now that rates are rising, purchase volumes have suddenly cratered and prices are beginning to come back down to normal. Just how many excess sales did the BoC stimulate? Let’s crunch the numbers, but first we should explain the how...
July Market in Review (Video)
GTA REALTORS® Release July Stats
There were 4,912 home sales reported through the Toronto Regional Real Estate Board (TRREB) MLS® System in July 2022 – down by 47 per cent compared to July 2021. Following the regular seasonal trend, sales were also down compared to June. New listings also declined on a year-over-year basis in July, albeit down by a more moderate four per cent. The expectation is that the trend for new listings will continue to...
10 FOUNDATIONAL FINANCIAL TIPS JUST FOR YOUNG ADULTS
Young adults have a lot to think about, and money is right up there at the top. As they leave the nest, they have got to learn to manage credit, keep a budget, and save for a rainy day. Oh, and get a job that pays enough to live on!!!
But there are other things they need to learn that can have an even more profound effect on their finances. If you are in your twenties (or you know someone who is), here are ten of those life lessons you need to take to heart early on that can affect...
It might be that you're "house blind" to factors that affect someone who's looking at your home for the first time. According to appraisers, here are six of the most common issues that affect value.
1. An obsolete floor plan
If your home has a small, enclosed kitchen, a tiny bathroom, no door to the back garden, or you have to walk through one room to get to another, those kinds of things will affect value. In real estate, this is...
The New Emergency Fund Advice
The standard advice on emergency savings has always been three to six months' worth of income, which is a massive hill to climb. But when COVID hit, many people discovered that even six months wasn't enough.
So, what now? Telling people to save a year's worth of income won't help, even though that's what many needed. Financial planners still recommend at least three months of savings, but they also suggest a more diversified income...
How to Use Your Equity to Buy a Rental Property
If want to buy a rental property using your equity, you don't need to sell your home. You can tap the equity using one of these three approaches without selling:
Refinance your home so that you have a new mortgage and get the equity back in cash.
Get a second mortgage, which is an additional mortgage on top of your current first mortgage.
Get a home equity line of credit (called a HELOC).
Whichever approach...
6 THOUGHT-PROVOKING QUESTIONS TO ASK YOURSELF ABOUT (EVENTUALLY) BUYING A HOME
1. WHAT IS YOUR MOTIVE FOR BUYING?
Buying a home will drastically affect your lifestyle. Just because everyone else is doing it, doesn't mean you should. And just because your parents did, or you think society expects it, doesn't mean you should. You should buy if it makes sense for you, after weighing the pros and cons of ownership (expenses, flexibility, life goals, etc.). Sometimes the right decision is...
DIY Home Inspection Part 2. Not ready to go inside yet.
In the last edition, we talked about looking at the outside of the house. In my next section, I will go over the inside of the house.
I forgot to go over one other thing to look at before looking at the inside of the house.
Grading.
Why is this important? Poor drainage resulting in leaky basements often stems from having an insufficient slope away from the foundation. To do land grading properly, you must first know how much slope you need to have away from the...
DIY Home Inspections
How did we get here?
To "win" that house that you want, it has gotten to the point where the only really acceptable offers to sellers are offers without any conditions (and of course the right price). No condition on Financing. No condition on Home Inspection. That is how competitive the real estate market has become. In the previous blog, we covered pre-approval, pre-qualifying for financing.
Now let us look at home inspections. Do I recommend...
Many of us have thought about becoming or are actually Landlords. I have some information that I would like to share with you that will be a relief to landlords.
Owning a rental property can be a great way to invest.
The Tenant pays the mortgage.
The main reason why many people are hesitant to become owners of a rental property is the fear of the risk that the Tenant does not pay the rent.
That is a reasonable fear, the cash flow implications can be very uncomfortable as...
The Benefits of
Great Credit
(and How to Boost Yours)
Whether you want a loan to make a large purchase or you are applying for a job, a high credit score may give you an advantage. It not only helps you secure a lower interest rate and save money over the life of your loans, it aslo demonstrates to lenders and potential employers that you are financially responsible and likely responsible in other areas of your life. Financial institutions and employers put their trust in this...
How to
Boost Curb Appeal
If you are thinking of selling this year, I would be happy to help you decide which of these projects would net the best value. Even if you are not planning to sell any time soon, updating and maintaining your home regularly shows you take pride in owning it.
Wash the exterior. Over the years, dirt, grime and cobwebs can collect on your home's exterior. A pressure washer can remove this buildup and give your home a fresh look, while at the same time...
10 Deadly Mistakes Buyers Make When Purchasing a Home.
MISTAKE NO. 1.
Choosing a real estate agent who is not committed to forming a strong business relationship with you.
HERES HOW TO AVOID IT.
Making a connection with the right real estate agent is crucial. Choose a professional who is dedicated to serving your needs- before, during and after the sale.
MISTAKE NO. 2.
Making an offer on a home without being pre-qualified.
HERE'S HOW TO AVOID IT.
Pre - qualification...
Why learning about the real estate market matters...
Why learning about the real estate market matters…
(even if you are not currently in the market for a home)
The health of the local market influences the value of your home. Higher home prices in your local area mean that your home may also be worth more. Since real estate is local and can vary from city to city --- even from neighbourhood to neighbourhood in some cases – the more you know about the market, the better equipped you are to understand the value of...
Benefits of Reduced Debt
If you have set a goal to pay down your debt this year, you are not alone. According to a recent study, more than half of Canadians have set a goal to pay off debt in 2018. * Strategically reducing or paying off debt benefits your finances tremendously but can positively impact other areas of your life as well.
Reduce Stress: Finances are a top source of stress for many Canadians. When you make the commitment to pay off your debt, you...
Who wouldn't want to get the best mortgage rate when buying a house or renewing your mortgage?
Here are the major differences between a Big Bank and a Mortgage Broker.
Big Banks
You will likely sit down with a loan officer or 'mortgage specialist' when you visit one of Canada's major banks for a mortgage.
They will (hopefully) go into detail the terminology involved with mortgages. Based on what you tell them they will make a recommendation.
If you play...
It all has to do with ownership when it comes to buying or selling a freehold propety and a condo property.
Freehold home: You own the house and the plot of land it is built on.
Condo Apartment or Townhome: You own the interior of a unit. The lot the building sits on is collectively owned by all unit owners.
It is a matter of personal preference and what you are looking for in a property.
There are pros and cons in each real estate option.
Pros of Freehold Real...
Hello.
There are some suprises ahead.
Contrary to what most people think, the real estate market is doing just fine.
The biggest challenge for buyers is not financing or house prices, it is finding the right house that matches their wish list.
This weekend I was involved in a multiple offer situation in Hamilton. Who would have thought that?
What is happening is that a soon as good house comes on the market that is priced right, shows well, is in a great or even just...
That has to be the most disappointing thing that can happen to a seller in today's real estate market.
I feel for those sellers. It didn't have to happen.
Most people that follow the real estate market don't really notice that a listing has expired and the house is no longer for sale.
Why would they, everthing sells in todays market right?
All along the way with some small adjustments here and there and it likely would not have happened.
They ask...
"Much of the sales volatility in 2017 was brought about by government policy decisions. Research from TREB, the provincial government and Statistics Canada showed that foreign home buying was not a major driver of sales in the GTA. However, the Ontario Fair Housing Plan, which included a foreign buyer tax, had a marked psychological impact on the marketplace. Looking forward, government policy could continue to influence consumer behavior in 2018, as changes to federal mortgage lending...
When will it become a real way of finding, negotiating and purchasing a home without leaving your home or office?
With today's technology it cannot be that far away.
All the required legal documents, aggreements of purchase and sale, amendments, waivers, extensions, all documents that previously had to be signed in person with a witness to the parties signature.
Now documents can be emailed and signed online without the signatures being witnessed. They don't even have to be...
Are you trying to sell me something? Well, actually I am not.
The following is written by Seth Godin. You may or not have heard of Seth. I enjoy reading Seth's blog, I like what he writes about. Maybe it is because he is my age, maybe it is because of his business experience, or maybe it is just because I think Seth "Gets it". I know I am bias, but I like this latest writing of Seth's. I have made my comments in blue ( for what they are worth).
"Are you trying to sell me something?"
For a culture that...
Everyone wants to know if housing prices will rise or fall in 2018.
In July 2015, David Madani, Senior Economist with Capital Economics predicted that Canadian house prices would decline by 30%.
In June 2017, Mr. Madani says that Canadian house prices will drop by 40% over the next 5 years.
Wonder what he is going to say next year?
If we really drill down and search(surf?) the internet I am sure we can find some expert somewhere with an opposing view.
"I'm a...
That is how many units of real estate were purchased (I would like to say people but that would be misleading as some families sold and bought) in the GTA through the Toronto Real Estate Board's MLS system in the month of November, 2017.
That number doesn't include new construction purchases, private sale purchases and exclusive listing through realtors purchases.
To me that means a lot, and by the way congratulations to those who made the decision to go ahead and buy their...
Everyday I talk with current homeowners, interested buyers and sellers. The number one question is "Are prices going to go up or down in 2018", well if you know someone that can guarantee the answer to that please have that person contact me, I would love to hear how they can quarantee that.
Check out this chart Prices from 1971 to 2016
Here is a list of questions that I think most would be real estate buyers and sellers run over and over again in their head,...
Averages can be a little bit misleading, the median sale price is important. One low or high price sale can skew the numbers.
Here are the October and November detached sales for Erin Mills and Clarkson, both great neighbourhoods in Mississauga.
Erin Mills October Sales
22 sales, average price $953,873.00, median price $847,500.00. Low sale $675,000.00. High sale $1,400,000.00.
Erin Mills November Sales
19 sales, average price $1,028,289.00, median price $888,000.00. Low...
Hello;
Was out showing houses this afternoon in Mississauga.
On the way home it started to snow just a tiny bit. It didn't last for long.
The Santa Clause parade was today.
There are some great deals out there for Christmas shoppers ( at least it looks like it).
The number of houses sold has been declining - the price of houses is still increasing. For stats on specifice areas, just shoot me an email, and I will get the information to you.
Sellers at this time...
Now the stress test that was previously only being used on borrowers with less than 20% down will apply to all borrowers, regardless how much more they have for a downpayment.
Thanks to the changes made by the Office of the Superindent of Financial Institutions, effective January 1st, 2018 the average purchasing power of home buyers will decrease by 16%. Chris
Is the tightening the lending rules a sign of higher interest rates in the near...
