Condo hunting: 5 advantages of resale

5 advantages of resale: no surprises, if you do your homework

Yesterday we reviewed the advantages of buying a new condo, here are the advantages to buying resale. Up for sale by the current owner, resale condos are usually available in older buildings and have already been occupied.
"What you see is what you get with resale condos," says our expert. "You can see exactly what you're paying for — the unit, common elements, amenities, location and neighbours." That can be a big comfort to some buyers. Other benefits:

1) Established neighbourhood. "You already know what to expect from a neighbourhood and who your neighbours will be," informs Mr. Hill. New condo buildings, on the other hand, may be in an up-and-coming neighbourhood that may change substantially in the next few years. "Speak with condo board members and owners in the building," he also advises, to get the feel of the condo community.

2) Books to review. "You can also review the condo reserve fund and other documents to get a sense of whether or not the condo has sufficient funds to see to repairs and replacements," adds Mr. Hill. "That will help ensure that you don't get hit with an unexpected charge for repairs to common elements such as elevators, balconies, parking garages and roofing, for example."

3) A firm moving date. Your closing agreement firmly determines when the place will be yours, unlike new developments, where move-in dates can be rescheduled.

4) More predictable costs. You don't have to pay GST on a resale condo (unless the unit has been substantially renovated). You'll also have a firmer grasp of maintenance fees, current utility bills and property taxes.

5) Spacious floor plans. In many cities, new condos are getting smaller and smaller. Older condominiums may offer larger units.

For more information on buying a new or older condo, download the CMHC's Condominium Buyers' Guide.

Source: The Smart Life - August 2008 - TD Bank]

If you have any questions on obtaining financing for a condominium, please call Greg at DLC Perfect Mortgages.

Have a great day and happy condo hunting!

Condo Hunting: 5 advantages of buying new

Enticed by those ads for a new condo development? Or looking for a resale condo in an existing building? If you're on a serious house hunt, it can be worth weighing the advantages of both new and resale condos, suggests Duncan Hill, manager of Sustainable Housing Policy and Research for the Canada Mortgage and Housing Corporation (CMHC). "If new and resale condos are available where you choose to live, look at both in order to choose a condo that best fits your needs and lifestyle."

New condominiums, whether under construction or newly built, give you a fresh slate with respect to design and amenities. "You have the advantage of new appliances and modern fixtures in your unit and new common elements, such as elevators, pool or gym," says Duncan Hill. The upside doesn't stop there, however:

1) New building condition. "New buildings can have less wear and tear than older buildings," he says. "And the condo unit and common elements should be in good condition for years to come, meaning there may be less risk of expensive and disruptive repairs and renovations."

2) Choice of units. "If you buy early, you have more choice of units in the building." You may even be able to choose what floor and direction your unit faces.

3) Customized finishes. In addition to choosing finishes for countertops, cabinetry and even flooring, you can usually pay for upgrades on appliances or other fixtures.

4) More efficient construction. New developments may be built to higher standards of energy efficiency, and also include recycling facilities. New construction is also subject to the most recent building codes
Expert tip: Ask about special measures taken to protect your comfort levels. "Are there any special provisions to limit noise transmission between units? How are the units heated, cooled and ventilated? How are odours controlled?" All of these are factors to ask about so that you are better informed.

5) New home warranty protection. To ensure that new dwellings are properly constructed, "many provinces have new home warranty programs," explains Mr.Hill. If anything covered goes wrong during the warranty period, the homeowner is protected
Expert tip: If you do buy a new condo, take advantage of the GST Housing Rebate that allows you to recover some of the GST or federal portion of the HST you pay. Note that some developers include GST/HST in the listing price and others don't.

[Source: The Smart Life - August 2008 - TD Bank]


Tomorrow we will review the 5 advantages to buying resale

If you have any questions on obtaining financing for a condo you have just purchased, please call Greg at DLC Perfect Mortgages.

What is considered when a lender is looking at your mortgage application for a pre-approval?

Income and Job Stability – Your income determines how much you may borrow. In most cases, 32% of your gross income for salaried, non-self employed or commissioned persons is used to determine how much you can borrow to cover the cost of the mortgage payments, taxes, and any applicable maintenance. All other debts i.e. car loans, credit cards etc. must not exceed an additional 12% of your gross income.

Credit History – Your credit must show that you pay your bills on time. If not, you may still be approved but the interest rate may be higher than expected. What you need to supply the lender:
a) Income confirmation: For salaried persons: letter of employment and most recent pay stub.
b) Down payment confirmation: The lender will require that you demonstrate what source your down payment is coming from. You will have to send in bank statements, statements showing RRSP’s, stocks etc. You must show a 3-month history of the money. If there are any large lump sum deposits, you are likely to be asked to show where the deposit originated. For mortgages where your down payment is less than 20% of the purchase price, you will also be asked to
demonstrate that you have access to 1.5% of the purchase price in your bank account. You must be able to show this through a credit card, line of credit, gift from family or savings in case closing costs run higher then expected.
c) Contract of purchase and sale: This is a copy of the accepted offer of the home you intend to purchase and a copy of the MLS listing sheet.

RBC Royal Bank decreases residential mortgage rates

TORONTO, August 6, 2008 — RBC Royal Bank announced today that it is decreasing its residential mortgage rates effective August 7, 2008. The changes are as follows:

Six-month open - 8.15 per cent (down by 0.25 per cent)
Six-month convertible - 6.35 per cent (down by 0.25 per cent)
One-year open - 8.50 per cent (down by 0.30 per cent)
One-year closed - 6.35 per cent (down by 0.30 per cent)
Two-year closed - 6.35 per cent (down by 0.30 per cent)
Three-year closed - 6.35 per cent (down by 0.30 per cent)
Four-year closed - 6.69 per cent (down by 0.30 per cent)
Five-year closed - 6.85 per cent (down by 0.30 per cent)
Seven-year closed - 7.30 per cent (down by 0.30 per cent)
Ten-year closed - 7.45 per cent (down by 0.30 per cent)
Twenty-five year closed - 8.35 per cent (down by 0.30 per cent)

Special Offers*

6-month convertible - 5.29 per cent (down by 0.25 per cent)
Four year closed - 5.63 per cent (down by 0.30 per cent)
Five year closed - 5.79 per cent (down by 0.30 per cent)
Seven year closed - 5.85 per cent (down by 0.30 per cent)

* The rates indicated are special discounted rates and are not the posted rates of Royal Bank of Canada. To calculate a rate discount compare the Special Offer rate against the posted rate for the applicable term. Special Offers may be changed, withdrawn or extended at any time, without notice. Not available in combination withany other rate discounts, offers or promotions.

[source - http://www.rbc.com/newsroom/links.html]

The other big banks will likely follow with rate cuts, however you will still always get a better rate and better service when dealing with a Mortgage Broker.

10 Tips To Protect Your Home

To ensure you protect the investment in your home it's important to perform regular maintenance. The following tips were designed not only help you to prevent costly repairs in the future, but can also make your home more efficient, saving you money on your monthly utility bills. When it comes time to refinance or sell your home, your investment will be worth more if you keep the following 10 important things in mind:

1. Inspect the exterior of your home annually:

• Check the foundation for cracking.


• Check the weather stripping and caulking around doors and windows, and check for cracks and holes in the siding.


• Check the paint for peeling, cracking, fading or blistering.


• Trim shrubs and trees so they clear the foundation, exterior walls, and roof.


• Drain and shut off your outside faucets before winter.


• Clean gutters and downspouts in the fall and spring.


• Clean leaves and mulch from under porches and decks, and pull mulch away from foundation walls.

2. Check annually for water or moisture in the crawl space, as well as for water leaks in the basement or in the attic.

3. Drain a gallon or two from your hot water heater at least twice a year to extend its life expectancy.

4. Have your chimney cleaned each year before using the fireplace.

5. Check the filters on your heating/cooling unit once a month and change or clean on the recommended schedule. Have the unit serviced annually.

6. Check faucets for drips and the rest of the plumbing for leaks once a month.

7. Check your dryer vent and stove hood monthly and clean them as needed.

8. Inspect and repair tile grout in bathrooms and kitchen annually.

9. Change the batteries in your smoke alarm twice a year.

10. Make sure that you know where the main cut-off valves or switches are for the plumbing, electrical and gas systems.

For more information on refinancing your home in Ontario, please call 416 807 7123 or email gbarrow@dominionlending.ca

Financing a Vacation Property in Ontario

Thinking of buying a vacation home that you can use at your leisure, instead of renting every summer? Before you sign a purchase agreement, remember that making a smart decision involves more than finding a great view at an affordable price. Purchasing a recreational property can affect your finances and your lifestyle, now and down the road. Here are some important factors to consider.

Take stock of your goals

As a start, ask yourself the following questions. Be honest about what you and your family really want.

How often will you use the property?

How much will it cost to get there?

Will you use it year-round?

Are you looking for an investment property, something to pass down to future generations, or a place to just relax?

Will it become your retirement residence?

Would it make more financial sense to continue renting a vacation property as needed and use your savings for travel or other financial goals?

Create a list of your objectives and share it with your financial advisor and real estate agent. Your financial advisor can help ensure your plans fit with your current financial situation, while your realtor can help narrow your property search.

Financing your property

At DLC Perfect Mortgages, our agents can arrange financing for vacation properties and/or second homes. Depending on the type of property you want to buy, you may be eligible to obtain financing for up to 95% of its value, subject to approval by a mortgage default insurer.

Your primary residence is a good place to look for financing. By tapping into your home equity (its current market value less your outstanding mortgage) you may be able to borrow at a lower rate than if you took out a typical loan.

If you won't be using the property year-round, consider renting out the property to help pay for carrying costs and expenses. Be sure to save all receipts associated with maintenance, utilities, and insurance, as you may be able to claim tax deductions if you are drawing income from your property. Bear in mind you'll still be responsible for keeping the property clean and well maintained.

Pooling your funds with family or friends to purchase a recreational property is one way to reduce the financial burden of ownership, as long as you're prepared to work out schedules for share use and maintenance — preferably in writing. A lawyer's advice can be invaluable in helping work out all potential issues that may arise from shared ownership.

Like any important decision, it's a good idea to do your homework if you are considering a recreational property. A Mortgage Broker, local real estate agent, and lawyer are good sources of advice and information.

Draw on local expertise

Local real estate brokers are a valuable resource who can help you in your planning and budgeting. They understand the market and can give you good estimates on property taxes and annual upkeep. Strict local and provincial rules regulate land use and development. Local expertise can help you learn about zoning and other legislation, such as restrictions on renting, construction or landscaping, that might affect your goals and budget. Check with local authorities to get the appropriate permits and to ensure your plans won't damage sensitive habitats
and ecosystems, such as shorelines.

For more information on financing a vacation property in Ontario, please call 416 807 7123 or email gbarrow@dominionlending.ca

[Source: MyVauly - Scotiabank - 2008]

AIG has joined CMHC and Genworth in announcing the end of insured 40-year amortizations and 100% financing.

Canada's second-largest private mortgage insurer, AIG United Guaranty Canada, confirmed today that it supports the new policy provisions announced by the Department of Finance for loans that are default insured under the Government of Canada Guarantee.
"We view this as a prudent approach taken by the government to support the long-term health and sustainability of the Canadian housing market," said Andy Charles, president of AIG United Guaranty Canada. "We support this direction and will amend our product line-up to reflect the new policy set out by the Department of Finance, commencing October 15, 2008, for all government guarantee mortgage insured loans."
AIG United Guaranty Canada has established a strong presence in the Canadian mortgage market since beginning operations in November 2006. With a customer base of more than 30 lending partners, the company will continue to work with its partners and mortgage professionals to develop solutions for the Canadian housing market.
[source - http://www.newswire.ca/en/releases/archive/July2008/18/c5829.html]