An article in today's Metro paper explains why having a pre-approval in writing is very important prior to submitting an offer. I believe the first step anyone should take when considering a home purchase, whether you are a first time home buyer or not is to get a pre-approval. If you are in that process now and would like to discuss your options, please feel free to give a call or send me an email.
A pre-approval should also come in writing. It should be a commitment from a lender who is offering you a product at a set rate for a specific period of time. For example you may be pre-approved for $375,000 at a fixed rate of 5.34% for a 3 year term and this rate will be held for 120 days while you look for a home. You can then let your realtor know how much you have been pre-approved for and you can start your search knowing what price range you can shop for.
I also advise that you include the financing clause in your offer even with your pre-approval because many things can change in 120 days and it is better to be safe than sorry.
To read the article from the Metro - click here.
Call me today to get your pre-approval!
Thursday, November 6, 2008
Wednesday, November 5, 2008
GTA Resale Housing Market Continues to Reflect Economic Times
The Greater Toronto Area resale housing market reported 5,155 sales in October, Toronto Real Estate Board President Maureen O’Neill announced today.
This represents a 35 per cent decline from the 7,915 sales reported in October 2007 and a 25 per cent decrease from the 6,876 transactions that took place during the same period two years ago.
In the City of Toronto, there were 2,136 sales, with sales activity down 38 per cent from the 3,455 transactions recorded last October.
In the 905 Region 3,019 sales were recorded, with sales activity down 32 per cent from a year ago when 4,460 homes changed hands.
With 68,570 transactions to date this year, sales are within 16 per cent of the 81,563 transactions noted a year ago. The 2007 market referred to was a record breaking year with each month breaking records for the entire year. Putting into perspective 2008 figures are indicative of a return to a more balanced market.
Read Full Article Here
[Source - www.TorontoRealEstateBoard.com]
This represents a 35 per cent decline from the 7,915 sales reported in October 2007 and a 25 per cent decrease from the 6,876 transactions that took place during the same period two years ago.
In the City of Toronto, there were 2,136 sales, with sales activity down 38 per cent from the 3,455 transactions recorded last October.
In the 905 Region 3,019 sales were recorded, with sales activity down 32 per cent from a year ago when 4,460 homes changed hands.
With 68,570 transactions to date this year, sales are within 16 per cent of the 81,563 transactions noted a year ago. The 2007 market referred to was a record breaking year with each month breaking records for the entire year. Putting into perspective 2008 figures are indicative of a return to a more balanced market.
Read Full Article Here
[Source - www.TorontoRealEstateBoard.com]
Yes They Did
Wow! What an historical night, they actually did it.
Congratulations to President Obama and the United States of America.
I hope this means a sooner than expected turnaround for their economy, which of course will certainly benefit our economy here in Ontario. I believe this is an exciting time and the USA will be able to repair its image around the globe which in turn will hopefully lead to more peaceful times ahead.
Congratulations to President Obama and the United States of America.
I hope this means a sooner than expected turnaround for their economy, which of course will certainly benefit our economy here in Ontario. I believe this is an exciting time and the USA will be able to repair its image around the globe which in turn will hopefully lead to more peaceful times ahead.
Tuesday, November 4, 2008
Realtors urge feds to defer home-sale tax
[Source - Dave Cooper, edmontonjournal.com]
Ottawa could help Canadians cut carbon dioxide emissions and stimulate the economy by adopting a tax deferral plan that would allow investors to sell properties without facing an immediate tax hit if they reinvested in real estate, says the Canadian Real Estate Association.
The proposal would defer both the capital gains and capital cost allowance recovery when an investment property is sold and the proceeds are invested in another property within the year. This would stimulate investment and help regenerate aging urban communities, but could cost the federal government about $425 million in immediate tax revenue.
Read Full Article
Ottawa could help Canadians cut carbon dioxide emissions and stimulate the economy by adopting a tax deferral plan that would allow investors to sell properties without facing an immediate tax hit if they reinvested in real estate, says the Canadian Real Estate Association.
The proposal would defer both the capital gains and capital cost allowance recovery when an investment property is sold and the proceeds are invested in another property within the year. This would stimulate investment and help regenerate aging urban communities, but could cost the federal government about $425 million in immediate tax revenue.
Read Full Article
Don't balk, a case can be made for variable-rate mortgages
[Source - ROB CARRICK - globeandmail.com - 4/11/08]
Once the darling of savvy homeowners, the variable-rate mortgage has become a nasty piece of business lately.Rates for these mortgages are vastly more expensive than they used to be, and some lenders are charging a fair bit more than others. It's probably best to avoid variable-rate mortgages altogether for the time being, right?
Not so fast. There's a case to be made for variable-rate mortgages right now, even if homeowners are shunning them.
Before the global financial crisis gummed up bank lending, you could get a variable-rate mortgage at the prime lending rate at major financial institutions minus a discount of up to 0.9 of a point or so. Today, variable-rate mortgages are going for prime plus a full percentage point in many cases.
If you are in the process of purchasing a new home or you mortgage is coming up for a renewal, and you would like to discuss your options, please call or email Greg Barrow at Dominion Lending Centres at 416 807 7123.
Monday, November 3, 2008
Independent Mortgage Brokers Association (IMBA):
The Independent Mortgage Brokers Association of Ontario (IMBA) is an organization of mortgage financing professionals. IMBA exists to advance the mortgage brokerage industry on behalf of its Members through public advocacy; to participate in consultative processes with regulators and other industry participants; and to generally assist its Members with their businesses. Members of the Association are required to meet professional standards as a condition of membership.
IMBA counts approximately 1,600 Members, which represent more than 300 companies throughout Ontario. The Association’s membership is comprised of representatives from various mortgage-related industries, including mortgage brokers and agents, lenders, title insurers, appraisers, lawyers and real estate professionals.
Members are continuously kept informed about the latest industry advancements, products, trends, regulatory matters, and related services. Members receive information either through communication pieces, professional development conferences, seminars, or other events. Consumers can comfortably rely upon IMBA’s Members to provide them with superior levels of knowledge and experience when arranging mortgage financing.
I am a proud member of IMBA.
Visit their website: www.imba.com
Rate Your Mortgage Broker consumer survey
[Source - Canadian Mortgage Professional - October 2008]
In the first annual Canadian Real Estate magazine (CRE) Rate Your Mortgage Broker consumer survey, an astounding 94% of respondents said they'd use a mortgage broker again. Cindy Freiman talks to consumers to unveil the ins and outs of their recent mortgage experiences.
What brokers did well
Of the consumers polled, 38% revealed that they were happy with the overall experience offered by their broker and could not come up with suggestions on how to improve the relationship moving forward.
When it came to product knowledge, an astonishing 90% of consumers said they strongly agreed or agreed that their broker had a strong grasp on the available products to meet their clients' needs.
Brokers also received a favourable grade on product choice, with 73% of respondents saying the broker offered a wide variety of mortgage products from which to choose.
Where specific needs were concerned, 84% of participants felt their broker quickly understood their particular needs.
When asked the ever-popular rate-driven question of whether the broker found them a better-than-expected deal on a mortgage (regardless of whether they took the brokers up on these mortgages), 70% of consumers said they strongly agreed or agreed.
Read Full Article
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