Posts for Home Buyer
Once you have several choices for each trade you need to narrow it down to a primary choice and a backup (if your water heater is leaking and your choice for a plumber is at the beach, you will need an alternative!) The most important items to evaluate are on the following checklist.
1. How long have they been in business?
2. Do people consider them to be reliable?
3. How is the quality of their work?
4. When the work was finished, was the job site neat and clean?
5. What is their hourly rate?
6. Is the work done by them or will someone else be doing the work?
7. Do they have proper insurance coverage?
8. If necessary, do they have the proper license?
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If you’re planning to Sell or Buy a Home in 2010 here are a few key recommendations to remember.
Sellers:
1. Review your existing mortgage agreement with your mortgage specialist. If you’re in the first year of a five-year term, the payout penalty might be so high that you decide to wait until at least the mid-point, if not the end of that term.
2. Assess the selling costs, which may include repairs, home appraisals and inspections, legal and Realtor’s fees so that you can budget and save for them.
3. Crunch the numbers and look forward. Will your home’s proceeds cover your next home purchase? Do you plan to invest part of the proceeds?
4. Purge and de-clutter six or more months in advance, because over-stuffed storage areas suggest a lock of space rather than reflecting on the homeowner’s organizational skills and hoarding tendencies.
5. Identify items that are worn, outdated or don’t work, then repair or replace them.
6. Get a referral for a Real Estate Agent. Your Mortgage Specialist works closely with many realtors and can steer you in the right direction.
Buyers:
1. Have your mortgage professional pull your credit report. If necessary, you can commit to improving your rating by paying off credit cards and/or loans before you look for mortgage financing.
2. Crunch the numbers to see if you can really afford it. Your mortgage specialist can help you calculate your net worth, current household budget, monthly debt payments and how much you can afford to spend on a home purchase. Remember you will need a minimum down payment of five percent.
3. Get your mortgage and financing documentation in order. You will need to prove your personal information, your net worth, income, employment and the source of your down payment.
4. Get pre-approved for a mortgage to determine the amount you can afford based on the lender’s review of your finances. This will also provide written confirmation on the interest rate that can be held for up to four months.
5. Search online for homes in your desired location and price range. Get a feel for what’s out there before contacting a realtor.
Remember your TMG Mortgage Agent can help you through the entire home buying process. If you have any questions please call today 1-877-933-8383.
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Usually, the builder uses it to house the water heater, the heat exchanger, the electric panel, the central vacuum system, etc. As it’s usually quite small and already holds numerous items, its important to maximize the remaining space from floor to ceiling.
The first step consists of determining what items will be stored there and then group them in categories. First category, memories: furniture, clothes and baby toys and all the items we keep “just in case”, but haven’t that been used in years… Destination: the farthest corners, on the highest shelves or under the stairway for example. For books and clothes, try plastic tubs as they resist humidity. They’re also available in many sizes and in different styles: on wheels, stackable, transparent, with separators or drawers, etc. Be careful of their weight once filled, they can get too heavy. If that’s the case, it’s better to leave them on the ground and pile lighter items on top of them. Also avoid putting cardboard boxes directly on a cement floor. It’s better to place them on the lowest shelf if there is one or build a low platform at floor level. Last piece of advice: don’t forget to label the tubs and boxes! It’ll make it easier to locate separate items a few years down the road. If you can’t write directly on the tubs or boxes, use self-adhesive labels.
The second category is seasonal items. Off-season items such as clothes, accessories, boots and sports gear (bicycle helmets, knee protectors, elbow pads, balls, pucks, etc.). The storage tubs must be easy to locate, as they’ll be emptied of their contents and refilled in six months. Wall hooks are good for hanging ice or in-line skates, snowshoes, etc.
Products sold in large quantities, family packs or simply great specials create additional storage needs. Thus, surplus bathroom tissue, paper towels or tissues, canned goods sold by the case, bottles of wine, large volume cleaning products, dry goods (flour, sugar, etc.), your preserved pickles and jams and the fall harvest from the garden must all find a place in the house. The installation of a wall unit made up of metal wire shelves, hooks, a small wine rack or suspended baskets, wheeled cubes or tubs will allow you to store all these day-to-day use items. The wall closest to the closet door is the best place for this wall unit, as long as the room is neither too hot nor too illuminated. Fruits and vegetables, as well as preserves and jams last longer in cool, dark areas. For flour and sugar, hermetically sealed containers are a must.
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The rumours about a possible change in the mortgage rules in Canada have been floating about since December of last year, but today the Government finally made its announcement.
“Canada’s housing market is healthy, stable and supported by our country’s solid economic fundamentals,” said Finance Minister Flaherty. “However, a key lesson of the global financial crisis is that early policy action can help prevent negative trends from developing.”
The Government has therefore decided to adjust the rules for government-backed insured mortgages as follows:
- Require that all borrowers meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. This initiative will help Canadians prepare for higher interest rates in the future.
- Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90 per cent from 95 per cent of the value of their homes.
- Require a minimum down payment of 20% for government-backed mortgage insurance on small (i.e., 1- to 4-unit) non-owner-occupied residential rental properties. Borrowers purchasing owner-occupied residential properties which also include some rental units (e.g., borrowers purchasing a duplex to live in one unit and rent out the other) will still be able to access government-backed mortgage insurance with a 5 per cent down payment.
These adjustments to the mortgage insurance guarantee framework are intended to come into force on April 19, 2010. Exceptions would be allowed after April 19 where they are needed to satisfy a binding purchase and sale, financing, or refinancing agreement entered into before April 19, 2010.
Earlier today Rob Carrick of The Globe and Mail wrote that most home buyers will not be terribly affected by the changes. He’s right. Given that most lenders were already using the 3 year rate to qualify clients, moving to the 5 year will only influence those who were barely able to afford a mortgage before the changes were made.
The people who will be significantly affected will be real estate investors. The option of a low downpayment (as low as 5%) is no longer available. As of April 19, the minimum down will be 20%. Also, don’t be surprised if we see some changes to the way rental income in calculating debt-service ratios. Overall it just became much more difficult to become a real-estate investor in Canada.
Now there are other options available for determined investors. Certain private lenders will allow rental property purchases with only 15% down. Second mortgages are also available. However, both these options typically come with higher interest rates and lending fees. We’ll be highlighting some of these alternatives on our blog at OttawaMortgageSolutions.com, so check back often for updates.
Have any questions or comments about these changes? Feel free to get in touch by sending a note to d.bandoro@OttawaMortgageSolutions.com. You can also follow me on Twitter.
Filed under: Economy, Home Buyer, Mortgage Information, Real Estate Investment | Submit A Comment
Owning your own home can be an incredibly rewarding experience. Having a home that is truly yours will not only bring you a sense of pride and pleasure, but it can also be a satisfying long-term investment. That said, not everyone is in a position to buy their own home.
Some of the reasons you might not be able to buy a home today include:
- Lack of down-payment. You typically need at least 5% of the home price saved in order to buy a home. However, there are still ways of buying with 0% down! But, you will need a good income and credit score.
- Poor credit history. Perhaps you’ve had missed payments, or may have even had to default on some debt. While eventually, bad credit gets removed from your credit history, your credit score may be too low to qualify for a mortgage today.
- New to the country or No credit history. Whether you have recently moved to the country, or simply have never had a loan, you may be in a situation where you have no credit history in Canada at all.
Even though you may not be able to buy your home right away, there is an attractive alternative. If you have a good income, but lack a down-payment, or have a low or nonexistent credit score, you may be able to qualify for a Rent-To-Own program. These programs, sometimes called Lease Options, essentially allow you to select and move into your dream home without needing to qualify for a mortgage. How does this work?
The Rent-To-Own process typically goes as follows:
- After qualifying for the program, you go shopping for a home with a Realtor.
- When you find a home, an investor then comes in and buys it for you.
- You sign a contract with the investor indicating that you will pay him a set amount each month for a number of years, typically three. After those three years, you then have the option of buying the home for a predetermined price.
- Over those three years, you make extra payments every month that will eventually be used as your down-payment.
By using a Rent-To-Own program, you give yourself a number of years to save for a down-payment and at the same time improve your credit score. But in the meantime, you get to live in the house of your dreams!
We plan on writing a number of articles on Rent-To-Own, so stay tuned on our Blog – OttawaMortgageBlog.com. If you have any questions about the Rent-To-Own process, simply let us know by contacting us at info@OttawaMortgageSolutions.com
Filed under: Home Buyer, Rent To Own | 1 Comment
While this might be a day late, as for many of us we awoke to big white fluffy stuff falling from the sky, it is enevitable winter is coming. Along with the snow comes plummeting temperatures – remember Ottawa in January! You may not want to think to think about winter just yet, but homeowners who have been taking advantage of the better weather to be prepared will be nice and snuggly in their homes and not dealing with any disasters that may befall others who are not so prepared. Think about the fable of the ant and the grasshopper…
Here’s a checklist of some things you can do to help keep your home warm and dry this winter:
· Have your furnace checked by a professional every year. There are few worse things than having the furnace fail on a day when the wind chill makes it feel like minus fifty. Some companies have annual maintenance plans that you can sign up for, these can include their loaning you space heaters if parts aren’t readily available for your furnance.
· Change the furnace filter monthly (or per the manufacturer’s instructions) to keep that furnace running well. Also, vacuum out the ducts and if you have baseboard heaters, vacuum those as well to get rid of dust buildup and stray insects (which smell pretty awful when burnt).
· If you use a humidifier during the winter months to combat the dryness induced by heating your home, don’t forget to clean it thoroughly before using it. The moisture left from last season may have promoted mould growth – the last thing you want to do is disperse it through the air in your home! Same idea with the dehumidifier you may have used during Ottawa’s humid summers; make sure it’s clean and dry before storing it.
· Remove window screens to promote better airflow and prevent condensation from building up on the glass (this can happen easily in kitchens and bathrooms) and to prevent them from blowing away into your neighbours’ yards during those March winds.
· Check the window seals for drafts, and install weather-stripping if necessary to seal out chilly air and keep your heat from escaping. If you’re not going to be opening certain windows (say in the basement), consider the window sealing kits available at hardware stores.
· If you have a wood-burning fireplace, get the chimney cleaned before using it for the first time. Birds’ nests and animal remains make for a smoky and unpleasant fire experience!
· Clean out your gutters and downspouts around the eavestroughing so that rain can flow freely away from your home and not collect and freeze near your foundation, which can lead to cracks and leaks.
· Don’t forget to disconnect your garden hose and bring it inside for the winter. Turn off the interior taps that feed the hose hookups, and then open the outside taps to clear any remaining water from the lines so that it doesn’t freeze there and expand, causing damage.
· If you have a central air conditioning unit, cover it with a piece of wood or waterproof fabric such as a tarp, weighed down with something heavy, to keep it free of snow and ice. If there are a lot of critters in your area who might want a sheltered place to overwinter, make sure the tarp or cover doesn’t completely reach the ground.
· Now’s the time to store away the patio furniture and umbrellas to keep them looking fresh for next year’s enjoyment. There are many furniture covers available in the stores or you could even use garbage bags taped together. Remember, if you leave them outside, make sure they’re not too comfortable for rodents.
· If you have delicate trees and shrubs in your garden, wrap them in burlap or plastic or use wood covers to keep snow and ice from building up and damaging them.
· If you’ve been using planters or pots for gardening, make sure you empty them and turn them upside down. Melting and re-freezing snow can make the urns crack as the water expands.
With good preparation, your home should keep you warm, dry and comfortable all winter long. For more home maintenance tips for every season, visit the Canada Mortgage and Housing Corporation’s website at www.cmhc-schl.gc.ca.
Filed under: Home Buyer | 3 Comments
If you’ve been starting your search to buy a home, you’ve probably encountered numerous web-sites and read many articles about what the process involves. Realtors®, Mortgage Brokers, Lawyers, Inspectors and others involved in the transaction use1 hundreds of common terms that could make up a language of their own. Here are some home buying terms that you will most likely encounter when you purchase your home.
Amenities
These are things that can enhance and add to the value or desirability to the property. Common amenities include swimming pools, professional landscaping, gourmet kitchens and so on.
Amortization
This is a schedule that outlines your loan payments for the duration of the home buying loan. It details how much of each monthly payment goes toward the principal and how much goes toward the loan interest. Initially, the bulk of your payments will be applied toward the interest.
Appraisal
An estimate of the value of property, made by a qualified professional called an “appraiser”. This is usually ordered by the Lender when they are assessing your mortgage application against the property you have chosen.
Bungalow
Usually a one-storey house, with our without a basement.
Breach
Violation of an obligation in a contract.
Broker
A real estate professional who has acquired a higher level of training and experience than a sales representative. A minimum number of classes must be taken along with passing a provincial exam to acquire a broker’s license. Generally they are a legal representative or a proprietor of the office. Brokers usually charge a fee or receive a commission for their services. Realtors® act on behalf of their Broker.
Building Code
A set of stringent laws that control the construction of buildings, design, materials and other similar factors.
Condominium
A large property complex that is divided into individual units and sold. Ownership usually includes a non-exclusive interest in certain “common properties” (such as parks, green space, lobbies, amenities, etc) controlled by the condominium management.
Close
The final procedure in a home sale in which documents are signed and recorded. This is the time when the ownership of the property is transferred.
Closing Costs
Expenses in addition to the purchase price for buying and selling a property. This includes things such as legal fees, title insurance, document registration, etc.
CMA
Comparative (or Competitive) Market Analysis. A CMA is a report that shows prices of properties that are comparable to a subject property and that were recently sold, are currently on the market or were on the market, but not sold within the listing period.
Conventional Mortgage
A first mortgage issued for up to 75% of the property’s appraised value or purchase price, whichever is lower.
Counter Offer
An offer made by the seller back to the buyer altering one or several terms and/or conditions of the offer as originally written.
Deed
A legal document that conveys (transfers) ownership of a property to a buyer.
Deposit
Along with an offer, buyers can make a deposit on the home to demonstrate the seriousness of the offer. When an earnest money deposit is made, it is held by the selling brokerage until closing. It is then added to the down payment.
FSBO, For Sale By Owner
This term refers to property that is being sold without a Realtor®. FSBO is also used to refer to the home owner who is selling the property.
Foreclosure
The process after home buying is complete by which a lender repossesses and resells a property after the owner has defaulted.
Investment Real Estate
Real estate that generates income or is otherwise intended for investment purposes rather than as a primary residence. It is common for investors to own multiple pieces of real estate, one of which serves as a primary residence, while the others are used to generate rental income and profits through price appreciation. The tax implications for investment real estate are often different than those for residential real estate.
Land
Property or real estate, not including buildings or equipment that does not occur naturally. Depending on the title, land ownership may also give the holder the rights to all natural resources on the land. These may include water, plants, human and animal life, fossils, soil, minerals, electromagnetic features, geographical location, and geophysical occurrences.
Land Value
The total value of the land, including any upgrades or improvements to the land.
Land Transfer Tax
Payment to the provincial government for transferring property from the seller to the buyer.
Lien
This is a legal claim that keeps the property from being sold until the lien is paid off.
MLS - Multiple Listing Service
An organization that collects, compiles, and distributes information about properties listed for sale by its members, who are real estate brokers. Membership isn’t open to the general public, although selected MLS data may be sold to real estate listing websites. MLS’s can be local or regional.
Real Estate Agent
A common term for a person with a provincial license to represent a buyer or a seller in a real estate transaction in exchange for commission. Most agents work for a real estate broker or realtor. The proper term for this is REALTOR®.
Title Insurance
An insurance policy that protects a lender’s or owner’s interest in real estate property from assorted types of unexpected or fraudulent claims of ownership. It’s customary for the buyer to pay for the lender’s title insurance policy.
Zoning
Government (usually municipal) laws that control the use of land within a jurisdiction.
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The Ottawa Glebe Community Association (GCA) is hosting an event this Saturday (November 7) that should of interest to anyone who is looking to “Green” their homes.
Here is a description of the Envirofair from the GCA website:
This latest iteration of the EnviroFair is intended to give you solutions to keep at least some of all that expensive heat in your home this winter. Be sure to put the “Greening Your Home” edition of the EnviroFair on your Saturday, November 7, 2009 calendar. The EnviroFair takes place at St. Giles Church, corner Bank and First.
Councilor Clive Doucet opens the EnviroFair at 9:00. Keynote speaker is David Chernushenko. always thought-provoking, David’s latest film, “Powerful: Energy for Everyone” will be shown. Throughout the day we will run 45 minute seminars on solar hot water, geothermal installation, photovoltaic installation, demand water heating, the Ontario Green Energy Act and wind power. The early afternoon features a panel of MPP Yasir Naqvi who will speak about Ontario’s Green Energy Act, David Miller, City of Ottawa, who will discuss the implications of the Green Energy Act in equipping inner city houses with new technologies. Franklin Menendez will walk you through the application of energy audits, and a local resident who will talk about his experience refitting his house. There will be time for questions. This October Glebe Report includes a take-with-you programme to help you plan which seminars to attend.
We will have Bridgehead coffee and local caterer Graham Beecroft will sell lunch goodies to keep the hunger at bay as you digest the information at 30 display tables. Many local businesses will show you ways to significantly reduce your environmental footprint. The City will have information on its refit programs as well as the new green bin programme to be rolled out later this year. Ottawa based companies will show and answer questions about solar panels, demand water heaters, heating solutions suited to smaller lots and insulation for the stone foundations of older homes.
Click here for a detailed agenda of the day’s events.
Enjoy the show!
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With interest rates still at record lows, many of our clients are finding that it’s the perfect time to purchase a home, or refinance and unlock built-in equity.
Starting November 1st, we’ve made doing business with The Mortgage Group even better! How?
We know what you’re thinking: what’s the catch? Quite simply, there isn’t one. Upon closing we’ll give you our $500 gift. But HURRY! We must close everything by December 31st for you to be eligible for the gift.
Do you know a friend or family member who is looking at purchasing a home, or refinancing?
Refinancing can be a great way of unlocking equity if you’re looking to:
- Lower your monthly payments
- Go on a dream vacation
- Do home renovations
- Pay for your children’s education
- Get cash for Christmas
- …and much more
To see how refinancing can save you cash, click here.
HURRY! THIS IS A LIMITED TIME OFFER! We will give these bonuses to the first ten clients who close before December 31st.
Here are the details of our Visa Gift Card promotion: We are offering these incentives for mortgage transactions that are at least $150,000 in size. To qualify for the $500 Visa gift card, your mortgage transaction must be fully closed and complete by the end of 2009. To qualify for the $100 Visa Gift Card, your referrals must be new clients to our company, and must complete their mortgage transaction by the end of 2009. Incentive will be paid to the first ten customers who complete their transactions with us by December 31st, 2009.
Filed under: Home Buyer, Mortgage Agent, Mortgage Information, Ottawa Real Estate, Real Estate Investment | Submit A Comment
The following is fantastic contribution written by Ottawa Interior Decorator Rosemary Valeriani.
Once you decide to sell your home it becomes a product, and as such you must compete with other products on the market. To have an edge on competitors you must present your home to potential buyers in the best possible way. It is recognized that staged homes sell faster and at higher prices. When selling your home, first impressions are lasting impressions. There are no second chances!
Most people makeup their minds in only 5 minutes about whether they like a house. On any give day, potential buyers have a list of properties to visit as long as their arm. When they enter a house for sale, they are not expecting to find “the one”. They are looking for a reason to cross that house off their list! This could be anything from an unmade bed to a leaky faucet. The seller needs a marketing tool that will set their home apart from competing houses for sale on the block. That marketing tool is home staging.
Make your home open-house ready by following these quick tips:
Curb Appeal – Make sure the outside of your home is inviting. Clean up the front and back yard
De-personalize – Home buyers want to walk into their future, not into your past, remove all personal items
Scents – Air out the house, light aromatic candles, add air fresheners or fresh flowers
Repairs – Fix necessary repairs and leave the impression on buyers that you have taken good care of your home
Clutter – Remove additional furniture and items in the home to make it look more spacious
Accessorizing – Dress to impress! Stage your home as if you were inviting special guests over
Lighting – Leave a light on in the rooms. This makes the room inviting, Use dimmers if possible. Keep curtains and blinds open and make sure windows are clean.
——-
Rosemary Valeriani is a professional decorating consultant and the sole proprietor of SoHome Interior Decorating, based in the Ottawa area.
She has diplomas in both Professional Design & Decorating and Staging For Designers from the Sheffield School of Interior Design, and is also on the Board of Directors for the Canadian Decorators Association of Canada (CDECA).
Rosemary Valeriani
SoHome Interior Decorating
www.Sohome.ca
Filed under: Home Buyer, Mortgage Information | Submit A Comment
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