Budgeting Towards Homeownership

Transitioning from renter to homeowner is one of the biggest decisions you’ll make throughout your lifetime. It can also be a stressful experience if you don’t plan ahead by building a budget and saving prior to embarking upon homeownership.

Budgeting is a core ingredient that helps alleviate the stress associated with money issues that can sometimes arise if you purchase a home without knowing all of the associated costs – including down payment, closing expenses, ongoing maintenance, taxes and utilities.

The trouble is, many first-time homeowners fail to carefully think about their finances, plan a budget or set savings aside. And in this society of instant gratification, money problems can quickly escalate.

The key is to create a realistic budget based on your goals. Track your spending and make your dollars go further by sticking to your budget once it’s in place. Budgeting offers a step-by-step formula for figuring out how to best save your hard-earned money to invest in homeownership.

Start by listing your household income, then your household expenses, and review your spending habits. All of this can be done on a pad of paper or on a computer spreadsheet.

Keeping receipts for everything that you purchase will enable you to accurately keep track of where your money is going each month so that you can review and make necessary changes to your plan on an ongoing basis.

Examine all areas of your life from entertainment to the type of food you buy, where you buy your food and clothes, and how and where you travel. Also look at your spending personality and make necessary adjustments. Are you a saver, a splurger, a spontaneous shopper or a hoarder? Become smarter with your money and avoid impulse buying.

If you find you’re spending a lot of money in one area, such as entertainment for instance, set aside a reasonable amount each month and prepare to stop spending money in this area once your budget has been exhausted.

Budgeting provides you with the opportunity to re-evaluate your needs and wants. Do you
really need the magazine subscriptions, the gym membership and all the other things you may spend money on each month? Although everyone needs some “me time” to wind down, could you not get that by taking a walk or reading a good book you borrowed from the library?

If you can set your budget solidly in place before you head out home or mortgage shopping, you will be far more prepared to purchase your first home.

Following are three top tips to help you prepare for the purchase of your first home:

1. Set up a savings account. You can deposit a predetermined amount into this account each pay period that you will not touch unless it’s absolutely necessary. This will enable you to put money aside for a down payment and cover closing costs, as well as address ongoing homeownership expenses such as maintenance, taxes and utilities.

2. Save up for big-ticket items. As you accumulate money in your savings account, you will be able to also save for specific purchases to help furnish your home – avoiding the buy now, pay later mentality, which can have a negative impact on your credit when you’re seeking mortgage financing.

3. Surround yourself with a team of professionals. When you’re getting ready to make your first home purchase, enlist my services as a licensed mortgage professional and find a trusted real estate agent. Experts are invaluable to you as you set out on the road to homeownership because we help first-time buyers through the home purchase and financing processes every day. Experts can answer all of your questions and set your mind at ease. I have access to multiple lenders, and can help you get pre-approved for a mortgage so you know exactly what you can afford to spend on a home before you head out house hunting, while a real estate agent will be able to match your needs with a house you can afford. Both parties will negotiate on your behalf to ensure you get the best bang for your buck. And, best of all, these services are typically free. Experts will also be able to refer you to other reputable professionals you may need for your home purchase, including a real estate lawyer and home appraiser.

[Source - Dominion Lending Centres]

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Visit my website: www.gregbarrow.ca, there you will find helpful mortgage calculators to help out with your budgeting. Also please feel free to call if you would like to get together in person to get your budgeting started.

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Dominion Lending Centres Mortgage Industry News Highlights

Dominion Lending Centres Mortgage Industry News Highlights - December 16th, 2009

National home sales increased by 73% in November from the trough seen a year ago, with Ontario and Quebec hitting new monthly records as buyers took advantage of record low interest rates to secure mortgages.

The national average price gained 19% compared to November 2008, at $337,231, CREA said. Since the beginning of the year, prices have gained 4.4% compared to the same time last year.

“The year-over-year increase in November continues to reflect the high degree to which the average was skewed downward last year by plummeting activity in Canada’s priciest markets, and then upward by rebounding activity,” the association said.

CREA tracked 36,383 deals on its Multiple Listing Service in November. Crediting the housing market for leading “the overall Canadian economy out of the recession,” association President Dale Ripplinger said the numbers were a sign of an entrenched recovery. “National home sales activity last month shows how strongly the housing market has rebounded since the beginning of the year.”

Click here to view the full CREA release.

Canada’s real estate market is finding its balance.
A surge in new listings in November helped ease a chronic supply shortage and temper prices from a month earlier, easing fears of a bubble in the making even though the rebound in the market continued unabated.

That’s what economists were looking for because a steady string of monthly price increases could inflate an asset bubble and lead to a severe correction when interest rates eventually rise.

For the past several months, prices have been rising month-over-month, with double-digit percentage increases posted year-over-year.

Listings in November increased by 5% compared with October, the largest one-month gain in two years, CREA said Tuesday. The increase is a sign of consumer confidence, and signals a return to normalcy in what has been an extremely volatile market.

More inventory ultimately means lower prices. The average national price in November declined by 1.1% from October to $337,231, although that was still up sharply from the depressed levels seen 12 months ago.

Prices for new homes in Canada rose 0.3% in October after a 0.5% increase the previous month, Statistics Canada said Friday.

It was the fourth straight monthly gain in the federal agency’s new-home price index, although the increase was slightly below the 0.4% many economists had expected.

The biggest price increase was in Quebec City, up 1.1%, followed by Vancouver, up 0.7%.

As the Canadian real estate market continues to rebound from a steep decline a year ago brought on by the recession, homebuyers remain nervous about the stability of the economy, according to a survey of 1,225 Royal LePage agents and brokers across Canada. But few buyers think home prices will decline again.

When asked to comment on the most common fears they are hearing from homebuyers over the past three months, 38% of Royal LePage agents and brokers cited economic stability and related factors such as job security. Some 23% said homebuyers fear they may not be able to sell their existing homes at the price they are hoping for, while 12% said buyers are hesitant because they believe prices have not yet hit the bottom of the cycle. Twenty percent of agents and brokers said they are not hearing any concerns from buyers.

The Royal LePage Advisor Survey, conducted online in November, also found that an increasing number of Canadians are purchasing homes as investment properties, and almost 50% of brokers and agents say the number of buyers intending to renovate their properties after purchase is increasing.

“Given the volatility in the real estate markets over the past 18 months, it is not surprising that the state of the economy continues to weigh on the minds of Canadians as they consider buying a home,” said Phil Soper, President and Chief Executive, Royal LePage. “Canadian real estate markets are enjoying a strong recovery as 2009 draws to a close and appear poised for healthy growth in 2010. Our survey shows that consumer confidence is edging towards normal levels. Canadians clearly believe that the worst of the recession is behind them and that the real estate market is on the path to sustainable recovery.”

Click here to view the full Royal LePage release.

A new report from Statistics Canada carries a sober message: collectively, Canadians are deeper in debt than ever before.

But economists say record-low interest rates mean that debt loads are still manageable and will likely improve as the economy begins to recover from the recession.

The StatsCan report, issued Monday, comes on the heels of a stern warning about rising debt issued last week by the Bank of Canada.

Surging stock markets pushed up Canadians’ net worth in the third quarter, StatsCan said. The S&P/TSX Composite Index rose 9.8% in the third quarter. That’s on top of a 19% gain in the previous three months.

Household net worth, the value of families’ assets such as cars, homes, savings accounts and investments, minus what they owe, reached $5.72 trillion at the end of September. That’s an increase of 2.3%, marking two quarters of gains after three consecutive drops.

But household debt, mainly mortgages and consumer credit, rose from July to September as Canadians rushed to take advantage of low interest rates. Personal sector liabilities rose to $1.41 trillion, up 1.6%.

Click here to read the full article in The Star.

Bond yields and mortgage rates could head higher before the Bank of Canada’s pledge to hold interest rates steady expires in July, the Chief Economist at Bank of Nova Scotia said last week.

“There’s a very good chance long-term rates will head up before then,” Warren Jestin said in Toronto at a briefing sponsored by the Investment Funds Institute of Canada.

He warned new homeowners with variable-rate mortgages not to be influenced by the central bank’s neutral statements on rates last Tuesday. The bank has pledged to hold rates at a historic low of 0.25% until the end of the second quarter of next year, inflation conditions permitting.

Read the “fine print” and he believes it’s likely three-year and five-year mortgage rates will be higher before July 2010.

Click here to read the full Financial Post article.

The Royal Bank says Canadians can expect to be hit by higher interest rates in the second half of next year and in 2011.

Royal Bank economists say the Bank of Canada will be among the next group of central banks to move off floor-low rates, with the Canadian bank’s overnight rate finishing 2010 at 1.25%. And RBC economists say they believe the trend-setting rate could rise to as much as 3.5% in 2011.

The bank rate has been at 0.25 for most of 2009, a rate that is encouraging borrowing but also raising concerns that Canadians may be overextending themselves.

The Royal Bank says Canada has not suffered as badly as other economies in the recession, and will be among the first, after Australia and Norway, to start raising rates.

Click here to read the full article in The Star.

Mark Carney is urging prudence among Canadians who are borrowing at super-cheap rates today but may not be able to afford higher payments tomorrow.

Household debt is now the biggest risk to the financial system, even if it is not expected to climb to levels that could cripple bank balance sheets, the central bank said last Thursday in its review of the financial system. It used a “stress test” to show that rising interest rates between mid-2010 and mid-2012 would saddle a growing number of Canadians with unmanageable debt loads.

Carney, the Bank of Canada’s Governor, who has guided monetary policy throughout the crisis, is relying on consumers to help drive a recovery juiced by his historically low interest rates. Yet he is also warning borrowers and lenders not to go overboard and to think about the consequences of hefty debt in an inevitable environment of rising rates.

The semi-annual report marked the first time the bank has analyzed the risks based on interest rates reaching specific levels.

Click here to read the full article in the Globe and Mail.

Your first-time buyer clients have a chance to win one of two gift cards from Sears worth $250 apiece by filling out the following survey by January 10th for Buying Your First Home magazine (a consumer publication owned by CMP parent company, KMI Publishing & Events Ltd): http://yourfirsthomecanada.ca

The survey targets readers of the publication, but the magazine is also interested in hearing from those who haven’t read it, but are planning to buy their first home.

DLC Mortgage Industry News

Already the envy of the financial world, Canada’s banks are heading into their best period in at least 10 years, says Bill Downe, BMO’s CEO.

Over the next few years, the fundamentals of the banking business “are going to be as good as we’ve seen in a decade,” Downe said Tuesday as BMO kicked off the industry’s fourth-quarter earnings season by topping expectations.

Despite that optimistic talk, investors showed just how cautious they remain, pushing down BMO shares slightly on a day when most bank stocks also took minor dips.

Among the reasons for the decline: BMO’s results show that Canadians are continuing to struggle with their credit card debts – and they also suggest that the stellar trading profits domestic banks have posted in recent quarters are coming to an end.

Indeed, analysts questioned whether BMO’s target of 10% profit growth is too ambitious in the wake of the financial turmoil that has pounded financial institutions around the world and a recession that has hit consumers in their wallets.

But Downe said the exit of a number of non-bank competitors in the lending market means that the banks should be able to earn more on their loans. “I think that the prospects for good asset growth at better margins over the next couple of years are quite realistic,” he told analysts on a conference call, adding that the banking system is absorbing more than $1 trillion worth of short-term financing previously done by other lenders.

Click here to read the full Globe and Mail article.

Canadian home resale prices rose for a fifth straight month in September on gains in five of six major metropolitan markets surveyed, according to a report released today.

The Teranet-National Bank Composite House Price Index, which measures price changes for repeat sales of single-family homes, showed overall prices were up 1.3% in September from August, the smallest rise in four months.

Vancouver, where prices were up 2.1%, had the biggest monthly rise, followed by Toronto, up 1.5%. Calgary posted a 0.9% gain, while Halifax rose 1.7%.

Montreal was the only metropolitan area that reported a decline in the month, down 0.2%, although the report said the fall was “not due to a deterioration of market conditions.” It said new listings in the city have slipped following a rise in home sales every month since May, citing statistics from the Greater Montreal Real Estate Board.

Click here to read the entire Financial Post article.

The cost of homeownership in Canada became more expensive for the first time since the spring of 2008 across all housing segments, according to the latest housing report released today by RBC Economics Research.

“Home affordability deteriorated in all provinces and major markets in Canada due to a slight rise in key mortgage rates and appreciation in property values,” said Robert Hogue, Senior Economist, RBC. “Despite this increase in homeownership costs, affordability measures have still shown improvement from a year ago.”

The RBC Housing Affordability measure captures the proportion of pre-tax household income needed to service the costs of owning a home. During the third quarter of 2009, the RBC Affordability measure at the national level rose across all housing types (the higher the measure, the more expensive it is to afford a home).

The benchmark detached bungalow moved up by 1% to 40.2%, the standard townhouse rose by 0.7% to 32.3%, the standard condo climbed by 0.5% to 27.6% and the standard two-storey home increased by 1.2% to 45.8%.

The RBC report found that demand in the housing market has outgrown supply since the rebound started last winter, leading to a much more competitive market and widespread increases in home values across many parts of the country.

Click here to read the full RBC report.

Results of the TD Canada Trust Generational Homeownership Survey released on Monday reveal the younger the owner, the older the home.

Almost half of Canadians (48%) aged 18-34 years old bought a first house that was at least 21 years old, according to the TD Canada Trust survey. On the other hand, those 55+ chose newer homes with only one-quarter (27%) of that group purchasing a property 21 years or older for their first home.

The survey was conducted to understand the differences in behaviours and attitudes of Canadians across the generations when purchasing their first home. “The TD Canada Trust Generational Homeownership Survey showed that one of the most significant differences in behaviour for first-time homebuyers across the generations is the age of the home they purchased,” says Chris Wisniewski, Group Product Manager, Real Estate Secured Lending, TD Canada Trust. “This behaviour suggests today’s first-time homebuyers are looking for cost-effective options, which in urban centres are often older homes.”

Possibly looking for a more affordable option, younger Canadians were the most willing to take on a fixer-upper (35%) as their first home compared to 24% of those now 55+ who did the same when they were first-time homebuyers.

Click here to read more about the TD Canada Trust survey results.

Canadian corporations earned $54.1 billion in operating profits in the third quarter, up 7.9% from the previous quarter after three straight quarterly declines, Statistics Canada said today.

Profits in the non-financial industries increased 10.4% from the second quarter to $41.7 billion. Profits in the financial industries were relatively flat as firms reported $12.4 billion in profits, up 0.3%.

Overall gains were widespread, as 18 of 22 industries reported higher profits in the third quarter.

Together, profits for oil and gas, and petroleum and coal increased 20.4% to $5.9 billion, marking their first increase in four quarters.

Manufacturers reported $9.4 billion in operating profits in the third quarter, up 28.6% from the second quarter. Motor vehicle and parts manufacturers reported an operating loss of $100 million – but this compares with an operating loss of $1 billion in the second quarter and a loss of $1.7 billion in the first quarter.

Transportation and warehousing earned $2.8 billion in profits in the third quarter, up 14.8%.

Bowing to pressure from home builders, the British Columbia government is promising to provide a bigger break on the new harmonized sales tax (HST) to new home buyers.

The province announced earlier this year that BC will move to the HST next July, combining the 5% GST with the province’s 7% sales tax.

But home builders argued the tax would stifle new home sales at a time when the market is still reeling from the recession.

Finance Minister Colin Hansen, who said early last week he could not follow Ontario’s lead in offering new breaks on the HST, said last Thursday in a statement: “We heard the concerns from consumers and industry about how the HST might affect home buyers.”

The threshold will rise to $525,000, instead of the $400,000 that was initially proposed. It means that, on average, purchasers of new homes up to $525,000 pay no more tax than they would under the current tax regime.

The shift to the HST in BC caused a political firestorm because the BC Liberal party stated during the spring election campaign it was not planning to adopt the tax. After the election, in the face of collapsing revenues, Hansen said he decided BC would benefit from the shift, which will bring $1.6 billion in transfers from the federal government. – Globe and Mail

Your first-time buyer clients have a chance to win one of two gift cards from Sears worth $250 apiece by filling out the following survey for Buying Your First Home magazine (a consumer publication owned by CMP parent company, KMI Publishing & Events Ltd): http://yourfirsthomecanada.ca

The survey targets readers of the publication, but the magazine is also interested in hearing from those who haven’t read it, but are planning to buy their first home.

Canadians on mortgage "binge"

[Source - MortgageBrokerNews]

Canadians are taking out mortgages nearly eight per cent faster than they did a year ago, according to a report in the Globe and Mail, sparking concern that highly leveraged borrowers will be in over their heads when interest rates rise.

"We know that cheap money in the past caused some problems. This is a time to be prudent," CIBC economist Benjamin Tal told the Globe, adding that household debt in Canada rose 3.4 per cent in the first half of the year and the debt-to-income ratio rose to 140 per cent. In the meantime, U.S. consumers have been steadily increasing their rate of savings.

The report warned that borrowers' decision to take on bigger mortgages is not consistent with larger paycheques and could be problematic if housing prices take a hit once the buying frenzy cools down. There are also concerns of a housing "bubble" due to the high number of sales and the pace of price increases.

"It's environments like these that breed bubbles," ING Direct Canada CEO Peter Aceto told the Globe. "There is what feels to be a little bit of irrational behaviour in the real estate market, and I do think it's in a large way fuelled by how low interest rates are."

Mark Carney downplayed the risk of a housing bubble in a recent speech, saying he expects the real estate market to cool down by 2011. He added he will take necessary measures if low interest rates continue to spur out-of-the-ordinary activity.

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If you have any questions or concerns regarding your current mortgage, please feel free to contact me for a free mortgage check-up.

If you are a first time home buyer and are getting ready to make your first purchase, have you done enough research and budget analysis? I would be more than happy to speak with you to make sure you are well-informed and are confident that you will be making educated and sound decisions with respect to your purchase.

How to inspect your home inspector

A home is one of the most expensive items you will ever buy, if not the most expensive purchase. Getting your home inspected is an essential step in the home buying process. No one wants to buy a money pit and once you have signed on the dotted line there is no going back.

Your realtor, mortgage agent or friends can recommend a home inspector for you and I strongly advise that you do use a home inspector that has come recommended.

Your home inspector will tell you almost everything you need to know about the home your going to purchase so that you can make an informed decision. Therefore you need to trust this person's advice.

Mike Holmes wrote a great article on "How to inspect your home inspector" that I read on www.canada.com yesterday. This is an excellent read for anyone who will be needing the services of a home inspector.

Mike published a few really good questions you should be asking your home inspector:

Questions to ask your home inspector:

1. Can I see your license/professional credentials and proof of insurance?
2. How many years’ experience as a home inspector do you have? The business card might say 25 years experience, but at what, exactly?
3. How many inspections have you personally done?
4. What qualifications do you have? What kind of training do you have? Are you a member of a professional organization? What’s your background?_Construction? Engineering? Plumbing?
5. What kind of report do you provide?
6. What kind of tools do you use in your inspection?
7. Can you give me an idea of what kind of repairs the house may need? And, they’d better not have “a friend” who can do it for you, cheap.
8. When do you do the inspection? Let’s hope they don’t have a day job, and can only do them at night when it’s too dark to see the roof.
9. How long do your inspections take?
10. Do you take pictures of the house and add them to your report?
11. Can I see some references? Make sure you ask for them, and check them

You can read the full article here: How to inspect your home inspector

First-Time Homebuyer’s Monitor

The housing market may have experienced some ups and downs this year, but the spirits of potential first-time homebuyers across Canada remain strong. In Genworth's recent First Time Homebuyer Monitor, they found that 84 per cent of those surveyed said that owning a home goes beyond its financial value and feel that homeownership pays off in more ways than one.

The study measured both the financial and psychological factors of homeownership – providing the following insights into the link between homeownership and personal fulfillment:

• 84 per cent agree with the statement, ‘Owning a home provides a greater sense of emotional well-being and security’.
• 85 per cent believe that even though homeownership may mean more work and effort, they’d rather own than rent.
• 88 per cent say they would feel more financially secure owning their own home.

The national survey of 2,521 Canadians was conducted between April 24 and May 4. Access Genworth Financial Canada First-Time Homebuyer’s Monitor for full details.

Understanding Your Credit Report

As credit has become more and more abundant in our society, your credit report, and thus your credit rating, has become more important in your daily life. Your credit rating affects all aspects of your financial activities when it comes to borrowing money. Your credit rating also has the ability to affect the job you get, the apartment you rent, and even the ability to open a bank account.

Your credit report itself is simply a listing of all of your mortgage and consumer debt. Here in Canada, the two main credit reporting agencies are Trans Union and Equifax. Both agencies have a credit history file on anyone who has ever borrowed money. Every time you borrow money, or make a payment on a loan or credit card, the lender then reports the information about the transaction to these two agencies. In addition to credit information, you will also find liens and judgments on your credit report as well as your address and possibly your work history. The accumulation of all of this information is called your credit report.

The information on your credit report varies based on your creditors and what they have reported about you. Potential lenders and others, such as employers, view your credit history as a reflection of your character. Whether we like it or not, our financial habits have a lot to say about the way in which we choose to live our lives.

The credit score, or beacon score, is a number which gives mortgage lenders an idea of your lending risk. Credit scores range from 300 to 900, the higher your credit score the better. The mortgage products and interest rate that you will qualify for are often determined by your credit score.

One thing that many people do not know is that you have the legal right to obtain a copy of your credit report. A mortgage professional can help you obtain a copy of this report and go through it with you to verify that all of the information is true and correct. This can be important for first time home buyers who need to prepare for their first purchase, and may need to do some work to get their credit score a little higher in order to qualify for certain mortgage products.

The good news is that your credit report is a working document. This means that you have the ability over time, to repair any damaged credit and increase your credit score.

In order to obtain a copy of your credit bureau with the credit score you can order it online at http://www.equifax.ca/

First-Time Homebuyer’s Monitor

The housing market may have experienced some ups and downs this year, but the spirits of potential first-time homebuyers across Canada remain strong, according to Genworth Financial Canada’s First-Time Homebuyer’s Monitor released yesterday.

“The survey results show Canadians have a deep emotional attachment to homeownership,” said Peter Vukanovich, President of Genworth Financial Canada. “Most people closely associate financial security and emotional well-being with homeownership. That’s particularly true among first-time homebuyers.”

The study measured both the financial and psychological factors of homeownership – providing the following insights into the link between homeownership and personal fulfillment:
84% agree with the statement, ‘Owning a home provides a greater sense of emotional well-being and security’
85% believe that even though homeownership may mean more work and effort, they’d rather own than rent
88% say they would feel more financially secure owning their own home
The national survey of more than 2,500 Canadians was conducted between April 24th and May 4th, 2009. The complete First-Time Homebuyer’s Monitor with a regional breakdown is available at: http://click.icptrack.com/icp/relay.php?r=10344338&msgid=239886&act=FV56&c=191858&admin=0&destination=http%3A%2F%2Fwww.genworth.ca%2Fcontent%2Fetc%2Fmedialib%2Fgenworth_ca%2Fpdfs.Par.2386.File.dat%2FFTB_Monitor_June_2009_EN.pdf

Possibly the Best Time Ever for First Time Home Buyers

First Time Home Buyers in Toronto and across Canada are purchasing their dream homes and taking advantage of today's low interest rates and lower housing prices, and the pace is picking up. The spring market is here and we are definitely in a buyers market.

Some of my clients have lost out on multiple offer situations and others have gone back to make an offer, only for the property to already have been sold. Needless to say, if you have been waiting to make an offer due to lower rates, or further declines in the housing costs, you really don't need to wait any longer. It's time to get out there with your Realtor, find your dream home and snap it up before someone else does.

I have talked about the many incentives for First Time Home Buyers including:

1) Increase to $25,000 withdrawal amount from your RRSPs under the Home Buyers Plan (HBP)
2) $750 tax credit to closing costs for any purchase in 2009
3) Provincial Land Transfer Tax Rebate
4) Toronto Land Transfer Tax Rebate

For more details on any of these incentives, please call email me.

You are also invited to attend my FREE Mortgage Seminar on May 25th, 2009. It will be held at the Rexall Health Centre in Richmond Hill. I will be covering many topics, including Mortgage Basics, Market Conditions, First Time Home Buyer Tips, Assembling your Team of Experts and more. To register, please call Greg at 416 807 7123 or email me.

Have a great day and Happy House Hunting!

First Time Home Buyers Toronto

Finally!!!!
The nice weather has arrived, what a beautiful day! If you are a first time home buyer this will certainly encourage you to start looking for your new dream home. Before you do be sure to contact a Mortgage Professional so you know everything you need to know to be prepared for one of the biggest purchases you'll ever make.

On Wednesday April 15th, 2009 I held a First Time Home Buyers Seminar in Richmond Hill. We had many first time home buyers attend, as well and many Realtors with their first time home buyer clients.

We covered all aspects of the home buying process including:
1) Is Home Ownership right for you?
2) Are you Financially Ready?
3) Building Your Team of Experts
4) Arranging your Mortgage
5) Making the Offer
6) Closing the Sale

Download a PDF version of our seminar by clicking on the image below

We will be holding more seminars in May, so be sure to subscribe to my blog to be notified of the upcoming dates. If you can't wait for the next seminar, then please call Greg Barrow at 416 807 7123 to arrange a time to meet, where I will go over all of the same information with you in a one on one setting where you can ask all the questions you want!

Have a great weekend!

First Time Home Buyers Seminar - FREE to attend

What: Learn from experts why now is an ideal time for First Time Home Buyers to purchase a home, how to put together a team of experts to assist with your purchase, and general information on the process for purchasing a home - what you need to know.

When: Wednesday April 15th, 7:00pm to 8:00pm

Where: Rexall Health Centre - 9625 Yonge Street (Yonge & Weldrick)
view map and get directions

To Register for this FREE Mortgage Seminar, please call Greg at 416 807 7123 or by emailing gbarrow@dominionlending.ca

For First Time Home Buyers in Richmond Hill, Thornhill, Vaughan, Markham, Aurora, Newmarket, King City, Oak Ridges, Toronto, North York, Stoufville, Georgina....

To Rent or Buy? That Is The Question.

[By Genworth Financial Canada]
Most Canadians at some time in their lives have probably asked themselves whether it is better to rent or buy a home. Purchasing a home is one of the biggest decisions most people ever make in their lives. Ultimately, it is a personal choice. But it helps to look at the pros and cons of buying to determine whether home ownership is right for you.

Some Advantages of Buying a Home
Owning a home is generally considered to be a sound, long-term investment that can provide satisfaction and security for you and your family. A recent survey by real estate company, Re/Max, found that house prices in Canada have appreciated by 53.7 per cent over the last decade, or more than five per cent a year. Prices
skyrocketed most dramatically in Montreal (85.9 per cent), Calgary (81.7 per cent) and Halifax (77.3 per cent). Each month when you make your mortgage payment, you are building equity in your home. Equity is the portion of the property that you actually build through your monthly payment versus the portion that you still owe the lender. At the beginning of your mortgage, more of your payments go toward paying off the interest and less toward paying off the principal. However, the longer you stay in your home and the more mortgage payments you make, the more principal you pay off and the more equity you accumulate. Most mortgages also offer you the option of making additional monthly or annual payments to reduce your principal faster.
There is also a tax advantage. If your home is your principal residence, any profit you make when you sell it is tax-free. A home can appreciate, or increase in value as time passes, building more equity. As you build up equity, it’s usually easier to afford another more expensive home in the future thanks to the profit you’ll make when selling your current home.
As an owner, you can also decorate and improve your home any way you like. Ownership tends to give you a sense of pride and can give you and your family stronger ties to the community. If you do decide that home ownership is right for you, it’s important to choose a home you can afford. If you can’t afford to buy your dream home, purchasing a more modest home can be a great place to start building equity that one day may allow you to buy the home of your dreams.

Some Disadvantages of Buying a Home
It’s easy to get caught up in the excitement of buying a home. So it’s important to remember that home ownership has some additional responsibilities as well. For one thing, a home can be expensive. Chances are, your mortgage payments will be more than what you are currently paying in rent. There are also added costs of home repairs and maintenance.
Owning a home ties up some of your cash and is likely to reduce your flexibility to move to a new location or change jobs. While your home might increase in value as time goes by, don’t expect to get a big return quickly. There are no guarantees that your home will increase in value, particularly during the first few years. In the beginning, you could actually lose money if you sell because your home may not have appreciated enough to cover the real estate fees and moving, renovation and other costs. Real estate is usually considered a good investment over the longterm, however. When making the decision about whether or not to buy, it’s important to carefully choose a home you can afford, and then weigh the pros and cons. Millions of people enjoy the rewards of home ownership. But ultimately it is a personal decision based on your personal priorities.

Please call me so we can discuss whether now is the ideal time for you to purchase your first home.
Greg Barrow - 416 807 7123 or gbarrow@dominionlending.ca

Great opportunity for first-time homebuyers

If you’ve been thinking about purchasing your first home, but haven’t yet made up your mind, now is an ideal time to think about taking the plunge into homeownership. Since Canada’s currently in a buyers’ real estate market and interest rates have been dropping to historic lows as of late, now is the perfect time to consider your mortgage options.

Your first step in the home-buying process should be to talk to a licensed mortgage professional. These experts have access to a vast array of lenders – up to 90+ institutions, including big banks, credit unions and trust companies – which enables these professionals to negotiate the best possible mortgage products and rates on your behalf. In comparison, if you approach your bank with a mortgage request, they can only offer you a narrow choice – namely, their own products.

Mortgage professionals can get you pre-approved for a mortgage so that you know how much you can afford to spend on a home before you start shopping.

And thanks to the latest federal budget, there are a couple more reasons why now is the optimal time to purchase your first home.

First, the budget proposes a $5,000 increase to the RRSP Home Buyers’ Plan, meaning first-time homebuyers can now withdraw up to $25,000 from their RRSPs for a down payment – tax- and interest-free.

The budget also proposes a $750 tax credit for first-time homebuyers to help with closing costs, such as legal fees, disbursements and land transfer taxes.

The tax credit is based on an amount of $5,000 for first-time homebuyers who acquire a qualifying home after January 27, 2009 (ie, the closing is after that date).

An individual will be considered a first-time homebuyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years.

[Source - Dominion Lending Centres]