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.
The Ottawa Citizen published a headline this past weekend that said "The Comeback Kids" in reference to the fact that first time home buyers are starting to return to new home builders.
While resale homes have remained strong and are in fact higher than they were this time a year ago, new home sales plunged by almost 55% during the last quarter of 2008 as compared to 2007. Slowly but surely, that figure is improving.
Drawn by low interest rates, builder and government incentives, new home buyers are flocking back to the model homes. Typically, 35% to 40% of the market for new homes comes from the first-timers and for some builders, the number may be as high as 50%, depending upon the "extras" added which may include very attractive interest rates if the builder has partnered with a lender.
Where are these new home buyers going? Most of the first-timers are going to the suburbs, where homes can cost anywhere from $50,000 to $75,000 lower than within the city. Orleans, Kanata and Barrhaven continue to lure young couples hoping to start families or who already have started. According to the Greater Ottawa Home Builders Association, the average price of townhomes and semi-detached properties was $258,700 in west Ottawa (including Kanata), $255,400 in the south area (such as Barrhaven) and $285,300 in the east (as in Orleans).
Of course, you can generally do better buying a re-sale home. New homes can be a bit like buying a new car, if you're competing with newer models, you don't always get the same price the builder does if you're in the same neighbourhood where building is on-going. It's best to make sure you want to stay in your new construction home at least five years or more to realize the gain from paying down the mortgage and increased costs of new construction.
The economic chain reaction of a home buyer is measurable; from plumbers, electricians, furniture salespeople, decorators, home improvement stores to just about anything else you can think of that happens when a home is bought and one is sold! Real Estate is one large cog in the engine of our local economy and the continued confidence ensures Ottawa is going to be the first out of the downturn to the economy.
When you are in the market to buy a home, your Realtor, lawyer and mortgage broker may talk about "Title Insurance" for your property. With so many other "insurances" being required when you buy a home, it can become quite confusing!
In a nutshell, Title Insurance gives you added protection should someone else claim a legal interest in their property. It also protects you against any loss that might result from municipal work orders, survey issues, certificate of location defects, unpaid taxes by previous owners and a number of other covered title risks such as Title Fraud. Ask your lawyer for a complete list of the risks that are covered.
What is Title Insurance? When you buy a home, you're actually paying for title to the land: essentially, you acquire the right to occupy and use the space. Part of the price paid will be for what is known as "improvement" which is generally the actual house that sits on the land, but the major cost of most property is the land itself. You obtain title to that property when the owner signs the deed (transfer document) over to you. Title is then registered in the government's land registration system.
Before closing, records at the Land Registry Office are "searched" to determine the previous ownership of the property, existing mortgages, liens for outstanding taxes, utility charges, claims from trades,etc., registered against the property. At closing, you reasonably expect the property to be free of such claims, so normally they must be cleared up before closing. For example, the Seller's mortgage will be discharged (paid off) and outstanding expenses (such as taxes, condo fees if applicable and any utility charges) will be paid for (or adjusted for) at closing.
If the title is restricted by rights and claims of others it could cause you to not be able to sell down the road if things aren't cleared up. It could also limit your use and enjoyment of the property (such as in the case of shared driveways or easements) and even bring financial loss. However, such issues may not be discovered or remedied before closing. Title insurance will protect you against these situations.
Do I need Title Insurance? To fully understand what type of protection title insurance can provide you, talk to your lawyer, title insurance company or insurance agent/broker to determine whether or not you should purchase title insurance or if other options exist. Once you get all the facts, you can make an informed decision based on your specific situation and needs.
Who is protected with Title Insurance? Title insurance policies can be issued in favour of a purchaser (on new/resale homes, condos and vacation properties), a lender, or both the purchaser and lender. Lenders will sometimes require title insurance as a condition of making the loan. Title insurance protects purchasers and/or lenders against loss or damage sustained if a claim that is covered under the terms of the policy is made.
What does Title Insurance cover? For a risk to be covered, generally it has to have existed as of the date of the policy. As with any type of insurance policy, certain types of risks might not be covered, for example, native land claims and environmental hazards are normally excluded. Be sure to discuss with your lawyer what risks are covered and what are excluded.
How long is the insurance coverage? Residential title insurance coverage lasts as long as you own the property. Most residential title insurance policies extend coverage to your heirs through a will, to a spouse in the event of a divorce, or to children when the property is transferred from parents to children for nominal consideration.
In the case of title insurance covering a lender, the policy remains in effect as long as the mortgage remains on title. A lender covered under a title insurance policy is insured in the event the lender realizes on its security and suffers actual loss or damage with respect to a risk covered under the policy. Lenders are usually covered up to the principal amount of the mortgage.
The premium for title insurance is paid once (at the time of purchase). Generally speaking, in Canada the purchaser of the property pays for the title insurance, though there can be situations where the seller pays for it. Some policies automatically cover both the purchaser and lender; others will cover both for a small additional fee.
Protection and peace of mind Title insurance can help ensure that a closing is not delayed due to defects in title. And, if an issue relating to title arises with respect to a risk covered under the policy, the title insurance covers the legal fees and expenses associated with defending the insured's title and pays in the event of loss. It is important to keep in mind that title insurance does not replace legal advice when purchasing property.
If your home is important to you, don't overlook this important piece of insurance.
Are you still sitting on the fence about buying your first home? Many people are probably bringing to your attention the fact that interest rates are rising and you're feeling the pressure! Ok, it's true, interest rates are rising, but I don't think the current 3.99% is anything to worry too much about. We bought our first home at an 11.5% interest rate and we've been fine.
There are many questions probably running through your mind. The common ones are "how much can I afford"; "how do I get the best mortgage deal with so many competitive products?"; "should I use an agent or go it myself?" to "should I buy new or resale?".
This will probably be one of the largest financial transactions you undertake for a long time. It's a major decision. However, if you do your research and approach the process with an open mind and confidence, you will end up with something to be very proud of!
Make Sure You Understand the Process. There really shouldn't be anything that is so complicated that someone you trust can't explain to you. This is where Realtors truly come in handy. You can also turn to your accountant or lawyer. It's generally not a good idea to ask relatives for help in understanding legal terms and conditions! Research, learn the lingo and don't be afraid to ask questions!
You are the Most Important Person in the Process. You are the person that is going to make this deal happen! You are selecting a home that meets your criteria; you must determine where your comfort zone is; you must be able to see yourself in this home for the foreseeable future; you need to know what your plans are and only you can make those decisions! Remember the most important part, make sure you get good advice from someone you trust!
Surround Yourself with Professionals. You need a good Realtor, a mortgage specialist and a property lawyer to get you started. You most likely will need a home inspector and some other professionals too. In the end, these people save you time and money. Their knowledge of the community, the importance of the Real Estate transaction to the overall economy (and your personal goals), the intricacies of the process (including the amazing amount of paperwork!), negotiations and protecting your rights must be the most important things these people bring to you to help you reach your goals!
Approach your home buying experience with confidence! With the right people behind you, you will take that first step on the property ladder and never look down!
While you're considering buying that new home, you should also take into account all the things that you will need to do before you to move into it! Here are a few tips to help you plan for this big event!
•1. Call a mover or truck rental company at least two months in advance. Pick up boxes from stores and start stockpiling packing material and tape. Local newspaper offices sometimes have unused ends of newsprint available for packing or crafts - it's much less messy than newspaper.
•2. Make a list of the utility companies you need to contact and decide if you need a change-of-address form from the post office (or can you notify everyone on-line of your new address).
•3. Prepare your family, especially the kids, who can get very stressed http://www.canadianliving.com/family/parenting/kids_feel_stress_too.php by the upheaval of a move. Tell them what to expect so they don't get any surprises and help them adjust to the new surroundings by taking a walk around the neighbourhood.
•4. Separate your essentials - pack a travel bag with necessary items, such as toiletries and a change of clothes. The last thing you need after a hectic day of moving is a lost toothbrush. Don't forget to include a bag with prescriptions and a first aid kit!
•5. Purchase or rent a safe-deposit box for valuable items such as jewellry, legal documents (birth certificates, passports, etc). This way they won't get lost in the shuffle.
•6. Know that once you're in your new place, you shouldn't rush to get every picture and painting up on the wall the week you move in. Instead of unpacking or cleaning up the first night, give yourself a break and enjoy a nice dinner. Go on-line and find the restaurants that deliver or plan to take the family out for a nice break!
Bank of Canada has held true to their last statement that the key lending rate would remain at 0.25%. Bank of Canada has set their next announcement for July 21st. This should leave the Prime rate fixed at 2.25% with many banks.
With fixed rates on the rise, many lenders are moving above the 4% threshold they have stayed below for the last month. The pressure from the Canadian bond market has forced earning spreads for the lenders to below 2%. Many lenders find it difficult to make profit in this territory and have recently been moving their rates up. RBC was first to increase their 5 year posted rate by 0.20% to 5.45%, shortly after the remaining 4 major banks followed. However, there are some rates holding below 4% and if you are considering buying or refinancing it could be worth a call to your Mortgage Agent as we may not see fixed rates this low again.
However, if you aren't lucky enough to lock in to one of the great fixed rates due to your mortgage renewing later this year or early next year, you may want to turn to variable rates. Many lenders have begun to make their variable rate products more attractive to potential mortgagees. The lowest we've seen is 2.65% or Prime - 0.40%.
If you're planning on putting your home on the market soon, here are some designer tips to help you show off your home through a celebration of spring!
•· Remove old curtains to let the light flow in. Install glass shelves, and show off an arrangement of colored glass bottles and vases, set closely together, to create an artistic and beautiful privacy screen.
•· Replace heavy lampshades with lighter styles featuring pleats or folds in creamy silks, or recover an old shade with a cheerful, bright chintz. Replace white light bulbs with lavender or pink ones for a natural, soft glow.
•· Arrange a simple vase of forsythia, quince, plum or other shrub branches. Clip stems and place them in lukewarm water. Try to find branches at least a foot long, gently mist, and watch the colorful blooms burst far ahead of schedule.
•· Inexpensive terracotta pots painted white and planted with paper whites, hyacinths and tulips add cheerful color. Set in groups on a coffee table.
•· Add green topiaries in different shapes, and place a vase of pussy willows - a classic harbinger of spring - in the center of your design. Sprinkle natural, colored round stones or colored glass pebbles around your pots. For greater impact, group plants together.
•· If you have deeply set windowsills, set a window box directly on the sill. Explore antique and secondhand shops for a small wire garden table, and use it as a base for your box. Place it directly under a window, where plants will thrive in the light.
•· Before you fill your box with soil and plants, line it with plastic to prevent leakage. Or set plants in the box individually, placing each pot on a small tray or plate to catch drips.
•· Splurge on extra-soft, 250-count Egyptian cotton sheets. An all-white sheet set feels refreshing and restful.
•· For an instant facelift, add textured fabric bedspread or old-fashioned patchwork quilt. Drape a spread over a round table for an instant table skirt.
•· For an instant change, find a fresh fabric you adore and use it to re-cover dining room chair seats, or your favorite single chair. Many chairs have seats that are easily removed with a screwdriver. Remove seat, measure, and cut fabric into a shape large enough to tuck edges under. Use a staple gun to attach silk around the seat.
•· Take the smallest room and make the biggest change. For example, transform the look of a tiny powder room by painting walls creamy ivory or soft white, switching weighty curtains to simple sheers, and hanging a gold mirror over your vanity.
•· If you're lucky enough to have hardwood floors under your area rugs, why not roll up those heavy things and store them until next fall? Replace with colorful rag rugs for an American or French country look. Put down a sisal rug and watch how it completely changes the room. Many carpet stores offer huge sales in January and February.
Outdoor Space is important!
In the short Ottawa summers, your outdoor living space becomes important! It creates an extra room and expands the feel of spaciousness of the home; people can picture themselves entertaining outside in a well planned space. Don't choose a design based just on what is in style. Take a cue from your home's architecture: look at the lines of your home - the simplicity or the complexity of them - and make decisions on whether you want to contrast or complement them.
If your house architecture is very busy, you might want to contrast it with patio furniture that is extremely elegant.
Conversely, you can take a modern house with sleek lines and complement it with Asian-style furniture because of the cleanliness of lines. You can mix cross culture styles when you use the same aesthetic in all your pieces.
Be aware of just how big - or small - your furniture will be outside. Scale can be tricky. A big chunky Craftsman-style house would not be complemented by small, fussy Victorian wrought-iron patio furniture when wood would be a better choice.
You should consider your outdoor furniture as an extension of your home's interior decoration and make a seamless transition from indoors to outdoors.
Buying your first home can be quite a challenge. This can be especially true for 20-somethings who may be fresh out of school and may lack the savings needed for a downpayment or the income needed to qualify for a big enough mortgage. Still, owning a home, as opposed to renting, is a much better financial option in the long-run. So, maybe it shouldn't come as too much of a surprise that there are a growing number of young, single people teaming up to jointly buy a home together.
The catch-phrase for this emerging type of venture is "co-hos", short for ‘communal homeowners'. Carolyn Ireland, wrote an interesting article on this subject in The Globe and Mail. The central appeal of buying a home with a friend is that by teaming up, homebuyers are able to afford a much nicer property. Plus, of course, there is the benefit of building equity in the home as opposed to simply paying rent. Forming a partnership and being accountable to someone else, can also help build financial discipline.
Clearly, in order to make this type of arrangement work, the partners need to get along. More importantly however, they should have a written plan that describes how they will deal with regularly occurring issues (such as mortgage and utility payments) and special scenarios (such as if one of the partners moves out). Having a written agreement can save headaches down the road. Personal and work situations can change quickly, sometimes making it necessary to move, so having a plan for the property is very important.
Have you had any experiences with a "co-ho"? If so, please let us know via the comment section below!
If you're one of the ones still sitting on the fence allowing yourself to be bombarded by dreary economic news, it's time you started to think about the positives of owning your own home! Stability is one of the bigger reasons and if you've got a down payment, reasonable credit score and have been in the same job for about a year, there really aren't many reasons to not jump off that fence and secure your future!
Building equity through the regular mortgage payments increases your borrowing power down the road. Eventually, owning your own home is actually cheaper than renting! If you're worried about job loss, keep in mind that it's much easier to evict you for non-payment of rent than it is for banks to foreclose on you in Canada! There is also job loss protection that comes with certain mortgages and/or insurance policies that keeps your investment safe. If you're worried about your job, you may want to look into it. So, what's holding you back?
Get over your fear!
1- Stop listening to the negative and concentrate on the positive! Historically low mortgage rates, lower prices and more selection of homes are the hallmarks of spring 2009.
2- Overcome your fear of failing, you have to live somewhere, right? You're building someone else's wealth when you're renting.
3- Find a good real estate agent. He or she will be able to show you many options you may not have thought about!
4 - Family and friends are well-meaning but rarely understand the complexities of Real Estate. Their opinions might not be based in fact; that's why you turn to the professionals! � How to come up with the down payment?
Your Mortgage Broker will probably help you with a plan, once you've established what mortgage payment you are going to be comfortable with. He or she will likely suggest some of the following as ways to save up that down payment (or increase it while you're looking for that new home!)
Have some money transferred to a separate savings account every week (opened that TFSA yet?).
RRSPs give you some tax sheltered ways of coming up with cash.
Pay off your credit cards or consolidate them to reduce your debt and the interest you're paying.
Consider a part-time job with that pay cheque going directly into that savings account.
Some relatives might be interested in helping, don't be afraid to ask!
Do you have investments you could liquidate? Put the proceeds into the savings account.
Your Mortgage Agent and your Realtor make up a dynamic team that can get you into your own home as soon as you are ready! Don't be afraid to climb onto the first rung of the property ladder!
According to Canwest News Service, the continued recession means that for the second consecutive year, Mom will be taking a hit on Mother’s Day!
U.S. consumers will spend $123.89 on average on Mother’s Day, down more than 10 percent from a year ago, according to a survey released on Thursday by the National Retail Federation.Generally speaking, Canadians are similar in their spending habits.
Market research company BIGresearch reports that, in their survey conducted between March 31 and April 7, 2009 (8,667 consumer participants), there has been a decline to $138.63 in 2008 from $139.14 in 2007 in spending on Mother’s Day.
Around 66.8 percent or people will buy flowers for their mothers and 54.8 percent say they’re planning on treating Mom to dinner or brunch, according to the survey.
Spending on that special outing is expected to total $2.7 billion, with jewelry spending coming in next at $2.3 billion, they added.
Where are people likely to shop for Mom? About 30 percent of those surveyed said they would purchase a gift from a discount store, while 27.2 percent said they would go to their favorite department store. Also, 33 percent said they would go to a specialty store like a florist, gift shop or electronics store.
The survey of 8,667 consumers was conducted March 31 through April 7 of this year.Things have certainly rebounded in the past month since the survey and Ottawa hasn’t been as hard hit as the rest of the country, economically speaking.So come on, if you’ve got a bit of extra cash, use your mom as the excuse you need to contribute a little economic “stimulus” into the retail scene.She’ll love you no matter what, but extra brownie points are always worth it!
Ottawa Mortgages - www.OttawaMortgageSolutions.com (The Mortgage Group – Mortgage Brokerage). Refinancing or Renewing your Ottawa mortgage? First Time Home Buyer mortgage? Real Estate Investor mortgage? Commercial Mortgage? Debt consolidation? Let us show you how to save money! Access to over 40 Canadian mortgage lenders and great mortgage rates! Our experienced mobile Mortgage Agents are available to coach you through your mortgage experience. We negotiate on your behalf to save you money. Check out our Ottawa Mortgage Blog at www.OttawaMortgageBlog.com. Call us now – 1-877-933-8383 or email info@OttawaMortgageSolutions.com.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Buying your first home can be quite a challenge. This can be especially true for 20-somethings who may be fresh out of school and may lack the savings needed for a downpayment or the income needed to qualify for a big enough mortgage. Still, owning a home, as opposed to renting, is a much better financial option in the long-run. So, maybe it shouldn't come as too much of a surprise that there are a growing number of young, single people teaming up to jointly buy a home together.
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