Wednesday 24 July 2013

How to 'nail' an affordable home reno

(NC)—Anyone who has lived in the same house for a number of years inevitably gets the reno itch. While a gut job is expensive, home renovations are still an affordable way to upgrade without moving.
“It's natural that after a certain point, homeowners start to notice the flaws in their homes,” said Farhaneh Haque, director of mortgage advice at TD Canada Trust. “It could be that the layout is no longer practical, the bathrooms are outdated or the exterior needs some curb appeal. Each of these areas can increase the property value of a house while making it more suitable to the homeowner's needs.”
Before picking up the hammer and hardwood, Haque recommends homebuyers plan for the cost of a home renovation:
• Consider upgrades that save money: Green options, like installing insulated glass windows, may cost more initially, but they can make sense financially in the long-run when future energy bill savings are considered.
• Research and budget for the unexpected: The reality is that a home renovation often costs more than planned. Before starting any work, consult with at more than one contractor to help accurately assess costs of materials and labour. It's also a good idea to build a buffer into the budget for any unexpected expenses.
• Explore financing options: A home equity line of credit (HELOC) allows homeowners to use the equity they've already built in their homes to finance upgrades at a competitive interest rate. Consider using a HELOC to pay different tradespeople as the work progresses to avoid paying interest on credit that hasn't been used. With ongoing access to credit, it can be tempting to go overboard, so remember to stick to the budget.
For further advice on financing a renovation, visit: www.tdcanadatrust.com/homeownership.
www.newscanada.com
www.philrom.com

Monday 15 July 2013

News and Rate Advisor!


Courtesy of  Phil Romano, CPMB 905-516-1150

Certified Professional Mortgage Broker #M10002221
Verico House of Mortgage Experts

Welcome to the July issue of the News & Rate Advisor.
Current Discount Mortgage Rates Jul 2013
Variable Rate 2.79%
1 Year 2.79%
2 Year 2.69%
3 Year 2.79%
4 Year 3.09%
5 Year 3.39%
7 Year 3.59%
10 Year 3.89%
Prime Rate 3.00%
* Rates subject to change and OAC.
Canadian Qualifying Rate Jul 2013
Rate 5.14%
Source: Bank of Canada
Current Posted Mortgage Rates Jul 2013 Jul 2012 Jul 2011
1 Year 3.14% 3.10% 3.50%
3 Year 3.75% 3.95% 4.35%
5 Year 5.14% 5.24% 5.39%
Source: Bank of Canada
Nationwide Building Permits May 2013 May 2012 May 2011
Residential $4,558,415,000 $4,184,799,000 $3,679,871,000
Commercial $2,765,107,000 $2,825,538,000 $2,749,555,000
Total $7,323,522,000 $7,010,337,000 $6,429,426,000
Source: Stats Canada - preliminary figures
Current Bank of Canada Rate & Prime Rates Jul 2013 Jul 2012 Jul 2011
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 2013 May 2012 May 2011
Yellowknife $373,454 $441,465 $350,994
Vancouver $772,569 $732,736 $831,555
Victoria $477,281 $506,195 $527,181
Edmonton $350,921 $347,078 $331,537
Calgary $440,675 $429,459 $416,055
Saskatoon $341,737 $318,603 $317,932
Regina $322,029 $303,393 $296,838
Toronto $542,174 $516,787 $485,520
Hamilton-Burlington $416,664 $369,292 $344,864
Ottawa-Carleton $370,591 $363,502 $353,046
Quebec City $273,389 $260,230 $254,529
Montreal $331,594 $329,282 $318,355
Fredericton $200,245 $201,176 $187,905
Saint John $182,829 $175,815 $182,626
Halifax-Dartmouth $285,583 $283,010 $263,318
Winnipeg $274,437 $266,379 $248,548
Source: CREA - Most Recent Month Reported
Average House Prices by Province May 2013 May 2012 May 2011
National $388,910 $375,605 $376,817
Yukon $344,053 $381,871 $371,688
Northwest Territories $373,454 $441,465 $350,994
British Columbia $534,013 $519,923 $596,872
Alberta $385,702 $374,653 $357,086
Saskatchewan $294,414 $280,517 $268,574
Manitoba $267,662 $256,923 $241,504
Ontario $418,430 $403,156 $381,026
Quebec $277,225 $274,840 $264,752
New Brunswick $173,256 $175,466 $174,632
Prince Edward Island $166,994 $153,137 $125,078
Nova Scotia $229,646 $237,285 $222,667
Newfoundland $274,342 $255,897 $246,092
Source: CREA - Most Recent Month Reported


 "Always Striving to be your Trusted Mortgage Advisor!"

Friday 5 July 2013

COSTS ASSOCIATED WITH CLOSING A HOME



Your mortgage isn’t your only expense when buying a home. In fact, there are several closing costs that you must pay before you can take possession of your house (to “take possession” means the home is now legally yours). Many of these costs are listed below:
§  Appraisal Fee: This is the cost for a professional to come to your property to assess its value. Your mortgage lender or mortgage default insurer may require an appraisal to determine whether the selling price is reasonable for that market.
§  GST: You must pay the Goods and Service Tax (or Harmonized Sales Tax) on a newly constructed or substantially renovated home. Resale homes do not require a GST payment. Some of this can be recovered with the GST/HST rebate for new or substantially renovated homes.
§  Home Inspection Fee: This covers the cost of a professional inspection of your home. Hiring an inspector is voluntary but recommended for resale homes, and usually costs $400-$600.
§  Property Insurance: Since your lender has a large stake in your home, they will often require you to purchase insurance against fire and weather-related damage. It is also a good idea for you to purchase ‘contents’ insurance to protect your valuables.
§  Land Transfer Tax: This is a tax charged to buyers in most provinces, usually based on the purchase price.
§  Legal Costs: This includes fees charged by your lawyers or notary for services such as conducting a title search, drafting a title deed and preparing the mortgage, and registration fees. This will cost over $500.
§  Mortgage Default Insurance: High-ratio mortgages (those with less than 20% down payment) generally require mortgage default insurance. The cost is usually added to the mortgage and ranges from 1%-3.25% depending on the amount of your down payment.
§  Mortgage Life Insurance: Special insurance coverage to cover the cost of your mortgage in the event of death or severe illness is available from most lenders.
§  Moving Expenses: Costs will vary, depending on whether you do it yourself, rent a truck, or hire professional movers.
§  Prepaid taxes, Utility Bills and Other Charges: Any previous owner may have prepaid some bills before the closing date, which you will have to reimburse them for. All taxes, utility bills, and other charges incurred after the closing date become your responsibility.
§  Utilities: Most utility companies charge for hooking up your services and replacing any previous owner’s names with your name on the bill.                                                  

(Source: Genworth Financial)      
www.philrom.com                      

Wednesday 3 July 2013

How to 'nail' an affordable home reno

(NC)—Anyone who has lived in the same house for a number of years inevitably gets the reno itch. While a gut job is expensive, home renovations are still an affordable way to upgrade without moving.
“It's natural that after a certain point, homeowners start to notice the flaws in their homes,” said Farhaneh Haque, director of mortgage advice at TD Canada Trust. “It could be that the layout is no longer practical, the bathrooms are outdated or the exterior needs some curb appeal. Each of these areas can increase the property value of a house while making it more suitable to the homeowner's needs.”
Before picking up the hammer and hardwood, Haque recommends homebuyers plan for the cost of a home renovation:
• Consider upgrades that save money: Green options, like installing insulated glass windows, may cost more initially, but they can make sense financially in the long-run when future energy bill savings are considered.
• Research and budget for the unexpected: The reality is that a home renovation often costs more than planned. Before starting any work, consult with at more than one contractor to help accurately assess costs of materials and labour. It's also a good idea to build a buffer into the budget for any unexpected expenses.
• Explore financing options: A home equity line of credit (HELOC) allows homeowners to use the equity they've already built in their homes to finance upgrades at a competitive interest rate. Consider using a HELOC to pay different tradespeople as the work progresses to avoid paying interest on credit that hasn't been used. With ongoing access to credit, it can be tempting to go overboard, so remember to stick to the budget.
For further advice on financing a renovation, visit: www.tdcanadatrust.com/homeownership.
www.newscanada.com
www.philrom.com