Saturday, 26 July 2014

Tough questions to ask when buying a home

(NC) Home ownership is part of the Canadian dream, according to 90 per cent of Ontarians who participated in a recent study by the Ontario Real Estate Association (OREA). Achieving that dream however, requires serious planning, says Costa Poulopoulos, president of OREA.
“Buying a home is a major financial decision and maintaining it requires a great deal of discipline,” Poulopoulos continues. “Home buyers should be prepared to make some tough choices in this pursuit.”
Some of these choices include:
Condo, house or other: Before deciding to buy a detached or semi-detached house, a condo or other form of home, consider your lifestyle, current and anticipated needs, and your budget. It's a good idea to create a prioritized list of features that you are looking for. Finding the right home involves balancing your "must-haves" with your "nice-to-haves".
Fixed or variable mortgage: A fixed rate mortgage offers security and is guaranteed not to change for the term of the mortgage. A variable rate mortgage, on the other hand, offers possible long term interest savings, but with the risk of interest rate increases. The 'right' mortgage depends on your tolerance for risk, as well as your current goals and life stage.
More than, or less than, 20 per cent down payment: If you buy a home with anything less than 20 per cent down, you'll have to buy high-ratio mortgage insurance. The lower your down payment, the more expensive the insurance. If you don't want to pay mortgage insurance, you'll need at least 20 per cent down. A bigger down payment also means that you'll pay less interest in the long run.
Conditional or unconditional offer: In a multiple offer situation, some buyers might be tempted to waive all conditions in the hope of securing the sale. Conditions are in place to protect the buyer. If you decide to waive conditions on an offer that gets accepted, you'll be in a bind if you have trouble securing a mortgage, or end up with a home that needs costly repairs.
“It doesn't end there,” adds Poulopoulos. “As a home owner, you'll be faced with choices every day. But we believe that the sense of pride, security and the long-term investment value that comes with home ownership, makes it all worth it.”
More information is available at www.wedothehomework.ca.
www.newscanada.com
www.philrom.com  
***this article only applies for Ontario

Tuesday, 15 July 2014

July News and Rate Advisor!

Welcome to the July issue of the News & Rate Advisor.
Current Discount Mortgage Rates Jul 2014
Variable Rate 2.45%
1 Year 2.89%
2 Year 2.34%
3 Year 2.79%
4 Year 2.77%
5 Year 2.99%
7 Year 3.79%
10 Year 4.39%
Prime Rate 3.00%
* Rates subject to change and OAC.
Canadian Qualifying Rate Jul 2014
Rate 4.79%
Source: Bank of Canada
Current Posted Mortgage Rates Jul 2014 Jul 2013 Jul 2012
1 Year 3.14% 3.14% 3.10%
3 Year 3.75% 3.75% 3.95%
5 Year 4.79% 5.14% 5.24%
Source: Bank of Canada
Nationwide Building Permits May 2014 May 2013 May 2012
Residential $4,134,301,000.00 $4,554,913,000.00 $4,184,799,000
Commercial $2,811,245,000.00 $2,856,371,000.00 $2,825,538,000
Total $6,945,546,000.00 $7,411,284,000.00 $7,010,337,000
Source: Stats Canada - preliminary figures
Current Bank of Canada Rate & Prime Rates Jul 2014 Jul 2013 Jul 2012
Bank Rate 1.25% 1.25% 1.25%
Prime Rate 3.00% 3.00% 3.00%
Source: Bank of Canada
Average House Prices by City May 2014 May 2013 May 2012
Yellowknife $462,143 $373,454 $441,465
Vancouver $814,418 $772,569 $732,736
Victoria $496,378 $477,281 $506,195
Edmonton $371,871 $350,921 $347,078
Calgary $465,579 $440,675 $429,459
Saskatoon $338,195 $341,737 $318,603
Regina $317,662 $322,029 $303,393
Toronto $585,204 $542,174 $516,787
Hamilton-Burlington $406,007 $416,664 $369,292
Ottawa-Carleton $383,168 $370,591 $363,502
Quebec City $270,824 $273,389 $260,230
Montreal $335,937 $331,594 $329,282
Fredericton $196,656 $200,245 $201,176
Saint John $183,755 $182,829 $175,815
Halifax-Dartmouth $290,587 $285,583 $283,010
Winnipeg $287,026 $274,437 $266,379
Source: CREA - Most Recent Month Reported
Average House Prices by Province May 2014 May 2013 May 2012
National $416,584 $388,910 $375,605
Yukon $314,974 $344,053 $381,871
Northwest Territories $462,143 $373,454 $441,465
British Columbia $565,233 $534,013 $519,923
Alberta $405,294 $385,702 $374,653
Saskatchewan $301,409 $294,414 $280,517
Manitoba $279,668 $267,662 $256,923
Ontario $447,682 $418,430 $403,156
Quebec $276,919 $277,225 $274,840
New Brunswick $178,609 $173,256 $175,466
Prince Edward Island $177,533 $166,994 $153,137
Nova Scotia $215,298 $229,646 $237,285
Newfoundland $295,199 $274,342 $255,897
Source: CREA - Most Recent Month Reported
www.philrom.com


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Monday, 14 July 2014

Are you ready to buy your first home?

(NC) Buying a house is one of the biggest investments of our lifetime – and it's a journey that is usually filled with questions around affordability, impact on savings, and lifestyle changes.
There are a number of online calculators and tools that can help answer many of these questions and give you a good sense of how much 'house' you can afford and what your monthly mortgage payments will look like. Take a look at these three tips for first-time homebuyers, courtesy of the mortgage specialists at RBC:
Know how much you can afford – beyond the mortgage amount, don't forget to consider ongoing home ownership costs and your lifestyle needs. Use the How much home can I afford calculator available at www.rbcadvicecentre.com to find out where you stand.
Get a pre-approved mortgage – shop for a home with confidence and let everyone know you are a serious buyer. Additional benefits for pre-approval include being able to put in your offer faster, and potentially beating out another prospective buyer who hasn't done their homework.
Know your mortgage options – take advantage of flexible pre-payment privileges to cut years off your mortgage. There is always more to your mortgage than the interest rate, so be sure you know what options are available in each mortgage type, and how they can be used to save you money. Use online tools and calculators to test out different scenarios.
Additional information, including mortgage tools and tips, is available at
www.rbcadvicecentre.com
www.newscanada.com
www.philrom.com

Tuesday, 20 May 2014

News and Rate Advisor

Welcome to the May issue of the News & Rate Advisor.

Current Discount Mortgage RatesMay 2014
Variable Rate2.50%
1 Year2.89%
2 Year2.59%
3 Year2.79%
4 Year2.87%
5 Year3.09%
7 Year3.79%
10 Year4.39%
Prime Rate3.00%
* Rates subject to change and OAC.


Canadian Qualifying RateMay 2014
Rate4.79%
Source: Bank of Canada


Current Posted Mortgage RatesMay 2014May 2013May 2012
1 Year3.14%3.00%3.20%
3 Year3.75%3.55%3.95%
5 Year4.79%5.14%5.44%
Source: Bank of Canada


Nationwide Building PermitsMar 2014Mar 2013Mar 2012
Residential$3,674,001,000.00$3,597,733,000.00$3,910,267,000
Commercial$2,313,322,000.00$2,700,725,000.00$2,932,792,000
Total$5,987,323,000.00$6,298,458,000.00$6,843,059,000
Source: Stats Canada - preliminary figures


Current Bank of Canada Rate & Prime RatesMay 2014May 2013May 2012
Bank Rate1.25%1.25%1.25%
Prime Rate3.00%3.00%3.00%
Source: Bank of Canada



Average House Prices by CityMar 2014Mar 2013Mar 2012
Yellowknife$328,945$417,875$359,510
Vancouver$801,543$759,340$761,742
Victoria$493,323$474,937$513,374
Edmonton$361,870$350,723$335,579
Calgary$462,994$441,424$409,750
Saskatoon$344,600$331,249$315,935
Regina$328,781$314,353$287,772
Toronto$557,684$519,879$504,117
Hamilton-Burlington$410,553$388,147$353,165
Ottawa-Carleton$359,286$359,321$353,714
Quebec City$252,400$266,897$259,316
Montreal$320,558$326,259$317,924
Fredericton$175,007$182,540$185,192
Saint John$169,978$164,182$168,371
Halifax-Dartmouth$268,333$282,048$272,599
Winnipeg$278,527$271,198$247,459
Source: CREA - Most Recent Month Reported


Average House Prices by ProvinceMar 2014Mar 2013Mar 2012
National$401,419$378,532$369,453
Yukon$328,954$331,520$327,267
Northwest Territories$328,945$417,875$359,510
British Columbia$562,316$540,662$545,959
Alberta$402,933$386,330$362,798
Saskatchewan$304,428$291,094$272,260
Manitoba$269,865$257,657$240,414
Ontario$435,046$405,780$393,153
Quebec$264,197$272,531$264,788
New Brunswick$156,795$163,566$159,943
Prince Edward Island$174,311$151,243$163,333
Nova Scotia$213,336$222,688$225,304
Newfoundland$288,865$281,210$259,088
Source: CREA - Most Recent Month Reported

Thursday, 10 April 2014

Hamilton Real Estate: March 2014 Stats

Hamilton Real Estate: March 2014 Stats: (April 3, 2014 – Hamilton, Ontario)  The REALTORS ® Association of Hamilton-Burlington (RAHB) reported 1268 property sales were processed ...

Monday, 7 April 2014

Make your home ownership dream a reality

Purchasing a home is a huge decision and requires a lot of financial planning and support. With mortgage rates fluctuating and the Canadian housing market unpredictable, buying a house is like a puzzle and it takes a bit of work to fit the pieces together. There are, however, a number of financial incentives available to help you take that leap when the time is right for you, as follows: First-timers are eligible to save on the purchase with the home buyers' tax credit. You can claim up to $5,000, resulting in savings of up to $750 on your taxes for the year in which the home is bought. If the buyer has a disability, or the home is being purchased for a person with a disability, they can claim the credit even if they have previously bought and owned a home. If you are looking to boost your down payment, you may also be eligible for the Home Buyers' Plan. This plan allows you to use money from your RRSPs to buy or build a home for yourself or a related person with disabilities. You can withdraw up to $25,000 in a calendar year, and have up to 15 years to repay your withdrawals without taking a hit on your taxes. You'll find more details about these programs at www.cra.gc.ca/myhome. Investment potential, freedom from rent, and pride of ownership await. Maybe your new home is finally within reach; this might just be your year.
www.newscanada.com
www.philrom.com

Monday, 3 March 2014

Increase in CMHC Mortgage Loan Insurance Premiums — Key Facts


Mortgage loan insurance helps protect lenders against mortgage default and enables consumers to purchase homes with a minimum down payment of 5% with interest rates comparable to those with a 20% down payment. Mortgage loan insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price.
Effective May 1, 2014, CMHC is increasing its homeowner mortgage loan insurance premiums to reflect its increased capital targets. The increase applies to mortgage loan insurance premiums for owner occupied, self-employed and 1-to-4 unit rental properties, including low-ratio refinance premiums.
For the average Canadian homebuyer requiring CMHC insured financing, the higher premium will result in an increase of approximately $5 to their monthly mortgage payment. This is not expected to have a material impact the housing market.
Effective May 1st, 2014, CMHC Purchase (owner-occupied 1 – 4 unit properties) mortgage insurance premiums will be:
Loan-to-Value Ratio Standard Premium (Current) Standard Premium (Effective May 1st, 2014)
Up to and including 65% 0.50% 0.60%
Up to and including 75% 0.65% 0.75%
Up to and including 80% 1.00% 1.25%
Up to and including 85% 1.75% 1.80%
Up to and including 90% 2.00% 2.40%
Up to and including 95% 2.75% 3.15%
90.01% to 95% – Non-Traditional Down Payment 2.90% 3.35%
*CMHC mortgage loan insurance premium is calculated as a percentage of the loan based on the loan-to-value ratio. The premium can be paid in a single lump sum but more frequently is added to the mortgage principal and amortized over the life of the mortgage as part of regular mortgage payments.
**For loans with a loan-to-value ratio of 80% or less, the premium surcharge for every five years beyond the 25 year standard amortization period will increase from 0.20% to 0.25%.
CMHC’s new premium rates will be effective for new mortgage loan insurance requests submitted on or after May 1, 2014. In order to be eligible for the current mortgage loan insurance premiums, lenders must submit a request for mortgage loan insurance to CMHC prior to May 1, 2014, regardless of the closing date of the home purchase. As is normal practice, complete borrower and property details must be submitted to CMHC when requesting mortgage loan insurance.
http://www.cmhc-schl.gc.ca
www.philrom.com