Posts for Home Buyer
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.
Filed under: Home Buyer, Mortgage Information | Submit A Comment
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!
Filed under: Green Ottawa, Home Buyer | Submit A Comment
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.
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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
For Sale By Owner (FSBO) companies are springing up all over the place. It’s getting difficult to determine which one to look at as there are so many! Unlike the MLS offered to the buying public, Buyers looking to buy a home privately need to search many different sites. The other problem, as well, is that the site may have homes listed for all across Canada, making themselves look as though they have more listings than they do for a particular area.
The solid truth is that 85% of home buyers use a Realtor. 87% of buyers start their search on the internet and having one site to choose from is obviously much easier in our busy lives! Further, one thing FSBO sites fail to disclose is how much is not included in their services.
Rachel Naud of the Canadian Real Estate magazine outlined what you get when you hire the right Realtor in her September article.
“When you hire a Realtor, you’re also investing in the wealth of knowledge he or she has in regards to the business of buying and selling homes.” Naud wrote. She went on to explain that a Realtor does NOT work 9-5; their “devotion and commitment to selling houses reaches far beyond the for-sale sign.” The need to constantly keep up-to-date with new studies, learning about new trends, selling techniques and trends is paramount to a Realtors continued success in the industry. There are rules, regulations and codes that must be adhered to; continuing educational requirements are set out the various provincial governing bodies.
“Realtors are responsible for constantly upgrading their knowledge and skills in order to maintain their status within their respective boards.” In Ottawa, Realtors belong to the Canadian Real Estate Association (CREA), the Ontario Real Estate Association (OREA) and their local board, the Ottawa Real Estate Board (OREB). The Real Estate Council of Ontario (RECO) administers licenses and deals with legal issues. Realtors are also accountable to the broker of the company they chose as their employer.
People don’t always appreciate the time commitment a Realtor puts in on their behalf. A Realtor must have the right skills and tools available seven days a week for as many hours as it takes. They need to know proper pricing, how to teach a Seller to prepare their home for sale, how to teach a Buyer to recognize the right property, qualifying people (using contacts if required), negotiation skills, working with inspectors and ensuring they are qualified, appraisals, financing and other legal issues that may come up.
A Realtor knows the right professional photographers, home stagers, website generators and has financing contacts who may help entice the right buyer for a home sale.
They do research for out-of-town buyers, verify zoning and environmental issues, become very familiar with market values and connections. How many FSBO properties are being sold with the amount of experience a Realtor has? A FSBO might be selling his/her 2nd or 3rd house; a Realtor might be selling it as their 400th transaction!
Another thing to consider, according to Naud, the median home price for sellers is $211,000 vs $153,000 for a FSBO. Realtors help keep neighbourhood values!
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According to a new report by Scotia Economics, Canadian Immigrants are quickly catching up to Canadian born residents in numbers for home ownership.
According to Adrienne Warren, Senior Economist at Scotia, “Homeownership tends to increase the longer one has lived in Canada, with the majority of new arrivals first settling in rental accommodation.” Also according to Warren, over-time these new immigrants start moving into home ownership rates close to that of the Canadian-born population. For example, in 2006, almost 72% of new comers to Canada owned their own homes, (up from 68% in 2001). In comparison, Canadian-born was 75% vs 73% during that same time frame.
The biggest increase seems to be among those who have lived in Canada less than 10 years, partly supported by strong labour markets here and a good mix of skills our newcomers are contributing to our country; notably in engineering, construction and skilled trades.
Of the one million-plus immigrants who came to Canada during the 2001 to 2006 period, 69% settled in our 3 biggest urban areas – Vancouver, Toronto and Montreal. A further 28% settled in smaller areas such as Ottawa, Edmonton, Calgary, Winnipeg, Kitchener and Hamilton. Only about 3% decided to live outside the urban boundaries (rural).
Warren went on to say that with our aging population and low fertility rates, “….longer term household formation and housing needs will be largely determined by immigration.” Most of our population growth is predicted to be almost entirely by immigration by 2030, up from the 60% to 65% it is now.
What does that mean for Canada? As our newcomers arrive, they help our investors with their rental needs. As the transition from being tenants to homeowners, they will be driving the housing demand more and more, keeping our prices and employment in new construction flourishing!
Welcome to Canada!
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So, you’ve bought your new home! The hard work begins all over again – you’ve got to move into it now! Moving can be an expensive proposition even if you try to do it yourself We’ve all heard the horror stories about rounding up friends to help and then they don’t show! Sometimes, a professional moving company can seem like a very good deal when you’re faced with how much “stuff” you actually own.
Just like all the other expenses you’ve budgeted for, moving expenses should be among them. When planning your moving budget, it is very important to keep a handle on where the money’s going. Try to include things such as purchasing boxes (they may not always be available free in good condition!), bubble wrap, packing tape, markers, colour coding system and other miscellaneous items.
Here are some tips to help:
Professional or not? Decide if you will hire a professional moving company or you will do it yourself. If you are hiring a mover, collect quotes from at least three different professional moving companies and include the highest quote in your budget.
Estimate the value of your belongings. This will help you evaluate if you need more insurance because the default insurance offered by movers might not be sufficient for you. Along with added insurance, find out if you require extra services. Call your insurance company, they have terrific templates for this sort of thing.
Reduce your load. Get rid of household items that you no longer need. Hold a garage sale and leave books with friends, the local library or sell them to a used bookstore. Anything you can’t sell, give to a local charity. Weight equals money. The less weight, the less money. It’s that simple.
Pack it yourself. Packing services performed by the mover are expensive and could amount to 25% of the moving cost. Even if you don’t want to pack it all yourself, you can always do a partial pack, and have the movers handle the rest. For example, items that are non-breakable (such as linen, bedding and seasonal clothing) can be packed easily without the risk of damage.
Save on packing materials. Luggage and carrying bags are perfect for packing sheets, towels and clothing. Also, the bottoms of wardrobe boxes are great for bulky, lightweight items. Newspaper is not always the best material; sometimes bubble wrap is worth the little extra expense. Bubble wrap is recyclable and you don’t have to re-wash everything you packed! Besides, it’s a great stress reliever to pop the bubbles!
Drive your own moving truck
Did you know you can rent your own truck and hire movers to help load up and unload? Check on-line for the companies in Ottawa that offer this service.
5. Recruit help from friends or family
If you have friends or family in the area that you know you can count on, get them to help you load up and/or unload Make it a fun event. Order some food, and make it a moving party. If you recruit people for “shifts” instead of all at once, you’ll have a better chance of success. If they know you’re organized, they will probably be more inclined to show up!
Avoid the busy season. If you are using a full service moving company, avoid June, July, and August as these are the most expensive months to move because of demand for moving services. Also, try to plan your move during the middle of the month—rates are higher at the beginning and the end because of the large number of apartment leases with month-end dates. If you can be flexible with your move-in times, you can also save money because the moving company can combine shipments.
Get organized. Time is Money. Color-code boxes according to the room they belong in so they all end up in the same place, saving time for both you and your mover. Make sure you post a chart right at the entrance way for people to consult and put the corresponding colour on the door of the room the boxes are going to.
Avoid storage costs by moving into your new property immediately and make sure that you have payment ready for when the truck arrives. Any delay could result in storage-in-transit fees if your things have to be stored until they can be unloaded and after the move is paid in full.
Make sure you are insured. Your existing homeowner’s insurance policy might cover your move so you don’t have to buy additional moving protection.
Your move may be tax-deductible. Keep all receipts and visit the Canada Revenue Agency’s website for specific details about which moving expenses you can claim, or consult a professional accountant to maximize your tax return. Sometimes, moving to be closer to work is a tax deductible expense.
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According to the Ottawa Real Estate Board’s President, Rick Snell, “Ottawa’s resale housing market had another strong month in July and strong sales in the past few months have brought year-to-date sales to 2.6 per cent higher than in 2008.”
Ottawa is experiencing something the rest of the country doesn’t appear to – a Sellers’ Market! With high demand and a very low inventory of listings, multiple offers are happening again in our marketplace in certain neighbourhoods. Price are also increasing, although not in double-digit figures as before.
The average sale price of residential properties in Ottawa was $322,795. This is an increase of 1.2 per cent over the same month last year. Condos have fared somewhat better, probably in part due to their new affordability – they have increased by 2.9 per cent to an average of $216,826. Combined, the new average figure of a residential & condo for Ottawa is now at $300,016, which represents an overall increase of 1.7%.
One thing to bear in mind is that it is still taking slightly longer than last year for a home to sell. In 2008, the average residential property sold within 35 days; this year, it’s taking 38 days on average, which is an increase of 7.8%. For condos, it took an average of 27 days to sell last year and this year, it is averaging 37 days on market for an increase of 37.1%.
It is becoming apparent that Ottawa is indeed experiencing a “Location, location, location” phenomenon. Certain areas are selling like the proverbial hotcakes and others have returned to taking a more traditional amount of time to sell.
The fall market is expected to be very healthy. People who have been waiting until the recession was officially declared “over” are realizing that the low interest rates offered by the Bank of Canada aren’t going to stay this way forever! People continue to flock into our City for jobs and are looking for places to live; investors are still reaping the rewards of this influx!
Filed under: Home Buyer, Ottawa Real Estate | Submit A Comment
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