OttawaMortgageBlog.com

Get a Mortgage by the end of 2009 and I'll give you $500

Chris Grimes (The Mortgage Group) — Sat, 31 Oct 2009 23:08:54 -0700

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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.

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This email was sent by The Mortgage Group. 2788 St-Joseph Boulevard, Lower Unit, Ottawa, Ontario, K4C 1G5

It’s the right time to buy

Chris Grimes (The Mortgage Group) — Sat, 29 Aug 2009 20:09:16 -0700

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.

Understanding Title Insurance

Chris Grimes (The Mortgage Group) — Sat, 29 Aug 2009 20:08:07 -0700

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.

If you'd like more information, click on this link from the insurers at http://www.firstcanadiantitle.com/portal/server.pt?open=514&objID=3810&parentname=CommunityPage&parentid=0&mode=2&in_hi_userid=3675&cached=true First Canadian Title.

Still sitting on the fence?

Chris Grimes (The Mortgage Group) — Sat, 29 Aug 2009 20:06:40 -0700

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!

Here are a few tips to keep in mind and if you want more, check out http://www.cmhc-schl.gc.ca/en/co/buho/hostst/hostst_005.cfm CMHC's web-site:

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!

Planning the Big Move

Chris Grimes (The Mortgage Group) — Sat, 29 Aug 2009 20:05:08 -0700

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!

What’s going on with rates?

Chris Grimes (The Mortgage Group) — Sat, 29 Aug 2009 20:03:33 -0700

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 21^st. 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%.

Spring Selling!

Chris Grimes (The Mortgage Group) — Sat, 29 Aug 2009 20:02:07 -0700

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.

Teaming up to Buy that 1st Home

Chris Grimes (The Mortgage Group) — Sat, 29 Aug 2009 20:00:35 -0700

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!

Taking the plunge into homeownership

Chris Grimes (The Mortgage Group) — Sat, 29 Aug 2009 19:59:04 -0700

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!
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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!

How Mothers can help save the economy…

Chris Grimes (The Mortgage Group) — Thu, 07 May 2009 21:01:44 -0700

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!

An up-date on the Ottawa Real Estate Market!

Chris Grimes (The Mortgage Group) — Thu, 07 May 2009 20:58:59 -0700

The Ottawa Real Estate market is off to a great start this spring! While more of a balanced market, home sales are actually up by 7.2% over March of 2008. The price has decreased slightly to $286,888 as an average price (remember, that’s only the average!).

When you look at the market just this year, we’re already up 47% in sales volume from February! The most popular housing style right now? Bungalows and two-storeys. Condos are actually down by 8%; may have been a bit of a saturation issue with all the new construction coming to fruition. We’re still considered one of the best places to invest for Real Estate – the rental market is becoming tighter and tighter. According to Rick Snell of the Ottawa Real Estate Board, “No matter what goes on in the economy, good real estate will still be in demand.” With over 50% of our population in the services sector (government, high tech, hospital and educational institutions) we have been somewhat insulated from the downturns affecting manufacturing sectors.

Ottawa also continues to hold steady bucking the negative trends of the rest of Canada. We are one of only five Canadian cities expected to grow in the coming year. The federal government has been doing it’s part in keeping us financially healthy; one quarter of our population works for them! They expect that number to increase by 1.8% this year and 3% next year. People are already coming to our city for that security.

While it was a little slow getting started, the market is increasing at an incredible rate. Those low, low interest rates and government incentives are working to keep the economic engine running. Talk to your mortgage broker; there’s no reason you shouldn’t be climbing the property ladder this year!

Mortgage Supporting Documents

Chris Grimes (The Mortgage Group) — Thu, 07 May 2009 20:56:03 -0700

Income verification, down payment confirmation, employment verification, MLS listings, purchase and sales agreement, signed mortgage documents, appraisal – these are required before a lender will fund a mortgage. But what do they mean by income confirmation?

Income verification is required to prove you annual income - you will need at least 2 documents to substantiate what you stated on your mortgage application. Typically your last 2 Notice of Assessments (NOA), a current paystub, or a letter from your employer will suffice.

Down payment confirmation will vary depending on where the funds are coming from. If they are from your own resources – defined as “applicant savings, RRSP withdrawal, funds borrowed against proven assets, sweat equity (<50% of minimum required equity), land unencumbered, proceeds from sale of another property, non-repayable gift from immediate relative, equity grant (non-repayable from federal, provincial or municipal agency) – then you will be required to show your bank statements verifying the savings have been in your account for at least 90 days. If the funds are in an RRSP or other investment account, typically a recent investment summary will be acceptable.

Employment verification is required to prove that you are gainfully employed without any probation. Normally, a letter of employment will be sufficient, however occasionally a lender will contact your employer to verify your employment.

When available an MLS listing will help the lender get an understanding of your home and can sometimes avoid a further expense of an appraisal. Your REALTOR® will have this available for you to provide to your Mortgage Agent.

The purchase and sale agreement is necessary to verify that you have actually purchased a property. This document is important as it helps fraud prevention as well as verify the details of your home.

These documents are all important and required to obtain a mortgage, but would not get you the financing without the signed mortgage documents. Your Mortgage Agent will have you sign a Mortgage Application, a Disclosure to Borrower Statement and a Mortgage Commitment. The Disclosure to Borrower Statement outlines the cost of borrowing and any conflicts of interest that may exist between the Mortgagee and the Mortgage Agent. The Mortgage Commitment will outline all the details of your mortgage including the payment, interest rate term, amortization, and mortgage privileges and your responsibilities.

Obtaining your mortgage shouldn’t be daunting, it should be simple and stress free and your Mortgage Agent can help explain what you are signing and providing to obtain your mortgage.

Mark Carney Discusses the Economy

Chris Grimes (The Mortgage Group) — Thu, 07 May 2009 20:53:26 -0700

Click to here to watch Mark Carney, Governor of the Bank of Canada discuss the economy, interest rates and his view on the outlook for Canada. He was in CBC studio Sunday evening being interviewed by Evan Solomon.

Ottawa Asbestos Prevention and Tips for Healthier Home

Chris Grimes (The Mortgage Group) — Thu, 16 Apr 2009 11:23:12 -0700

Citizens & homeowners of Canada are familiar with problems associated with asbestos. Highly touted for its fire, heat and versatile qualities, asbestos was used in construction applications throughout the 20th century. Health hazards related to asbestos have affected millions worldwide.

If you are a potential Ottawa homebuyer are seeking to remodel an older home, exposure can cause many health concerns for you and your family. This does not mean home owners or those involved in real estate should be frightened because asbestos exposure is easily prevented by taking simple precautions. There are now many green insulation alternatives that make the use of asbestos no longer necessary.

Often appearing in roof shingles, popcorn ceilings, piping and insulation,asbestos exposure can cause a debilitating lung ailment known as mesothelioma. This asbestos-related illness is one of the hardest for physicians to diagnose for a variety of reasons. The disease typically has a latency period lasting anywhere from 20 to 50 years when it has already reached its later stage of development. This also affects accurate mesothelioma prognosis for patients.

The amount of asbestos-related incidents throughout the world has resulted in mesothelioma lawyer firms advocating and protecting victim’s individual rights. Many are unaware to the wrongdoings done in the contraction of diseases associated with asbestos.

The French speaking Canadian province, Quebec, is the main producer of asbestos in the country and has countered attempts at blacklisting the substance. The asbestos industry has conducted false research and propaganda in continuing the exportation of the product. Asbestos was used hundreds of thousands of products throughout the world. With the consistent growth in technology and public awareness, there are currently a number of products which replace the need for asbestos.

Homeowners should not disturb any suspected asbestos themselves as this makes its fibers airborne. The inspection and removal of toxic substances must be performed by licensed abatement contractors who are trained in handling dangerous materials. Health Canada Organization offers assistance and information in the prevention, disposal and removal of asbestos. They are federally responsible for helping citizens maintain and improve health at home and the work place.

Once you are asbestos free, green alternatives should be seriously considered such as cellulose, cotton Fiber and lcynene. In the United States, the U.S. Environmental Program states that the use of recycled building materials can reduce energy costs from 25 percent annually. These eco-friendly alternatives allow for a clean, healthy home, free of health damaging materials.

Article provided by the Mesothelioma Cancer Center

First Time Home Buyer?

Chris Grimes (The Mortgage Group) — Thu, 16 Apr 2009 11:11:43 -0700

Thousands of homes are sold each year in the Ottawa area. There’s no shortage of housing options, but with so many choices from Stittsville to Barrhaven, the challenge becomes finding the property which best meets your needs.

The housing market is complicated because the stock of homes for sale is always in flux. Even if you could have a complete list of every home for sale at a given moment in a given community, such a list would become quickly obsolete as new homes become available and listed properties are sold.

In effect, Buyers are looking at a dynamic market. So it is important to know as much as possible about the choices in preferred markets, and the way to do that is by working closely with a local REALTOR® who is familiar with local markets and current Real Estate trends. Also, your Sales Representative should have access to all homes on the market, including those that have not yet been advertised.

A home is more than just a collection of bedrooms and bathrooms. Several properties - each with four bedrooms, three baths, and the same price - may well have radically different designs, commuting distances, lot sizes, tax costs, interior dimensions, exterior finishes, neighbourhoods, etc. A home in Alta Vista can be much different from a home in Nepean.

First, list the features and benefits you want in a home. Consider such things as pricing, location, size, amenities (extras such as a pool or extra-large kitchen) and design (one floor or two, colonial or modern, etc.).

Next, determine your priorities. If you can’t get a home at your price with all the features you want, then what features are most important? For instance, would you trade fewer bedrooms for a larger kitchen? A longer commute for a bigger lot and lower cost?

Last, consider your future needs. If you’ll need a larger home later on, maybe now is the time to buy a bigger house rather than moving or expanding in the future.

Know what your want and target your search in preparation for working with a REALTOR®. Real Estate statistics show that a high percentage of buyers now research their options online and elsewhere for about six months on average before consulting a REALTOR®.

Basic targeting measures, such as general location and affordability, can help you refine your search and focus on homes that offer the most desirable features.

Target your desired neighbourhood. All neighbourhoods and communities have a unique character and value. One community may be well known for historic homes (such as in Rockliffe Park) while Kanata offers suburban living and Centretown gives easy access to downtown office.

Lenders will work with you to get you back on track

Chris Grimes (The Mortgage Group) — Thu, 16 Apr 2009 11:10:29 -0700

As we previously stated there will be help if you are having financial difficulty. CMHC has launched an awareness campaign today to help those that have hit some financial stress in their lives. Be it through loss of job or loss of net worth due to the slumping economy. CMHC has been working with lenders to give as many flexible options to their clients to ensure that Canadians can keep their homes. However, it is up to you to contact your lender as soon as you feel you may fall behind in your mortgage payments. Here are four options available by most lenders that can assist you in keeping your mortgage payments up-to-date.

1. Skip a payment - Most mortgages will already offer this privilege. It allows you to skip a payment once a year

2. Extend amortization – Extending the length of repayment term can reduce your mortgage payment

3. Current missed payment – Any currently missed payments could be added to the mortgage balance and which will allow you to pay them off over the life of the mortgage and get you back on track

4. Special mortgage arrangement –If you speak to your lender they may be able to reduce your current mortgage payment on a temporary basis. In a situation where you have been recently laid-off your lender may allow you to make partial payments until you find a new employment

The important information to remember is that as soon as you think that you are hitting some financial trouble that you contact your lender immediately. They will do what they can to work with you and help you get back on track.

If you wonder why they would be willing to do help you – for them it’s good business – nobody wants people to lose their homes.

There will be help from your bank!

Chris Grimes (The Mortgage Group) — Thu, 16 Apr 2009 11:09:32 -0700

Inevitably with our current economic recession there has been an increase in personal bankruptcies and an increase in the request for employment insurance. Statscan reported that in January 200 employment insurance benefits was up 22.8% in January from February 2008. They also stated personal bankruptcies was up 14.9 percent. Most of these numbers were felt in Ontario, British Columbia and Alberta. The unemployment rate is currently 7.2% which is the highest it has been since 2004.

The risk to banks and lending institutions in times like these are the increase in defaults on personal mortgages. In effort to ease the pressure on the banks, the government and the consumer, CMHC is working with the 5 major banks to modify its current loans. CMHC is set to release these measures later this week. Stay tuned to various media outlets and their website www.chmc.ca.

What we hear is that CMHC is trying to curb a potential fallout similar to the United States. I am sure over the few months you have heard the common phrase – we’re not as bad as the U.S. – but is that true or are we just a few months behind. CMHC and the banks are being very proactive in this situation and will attempt to work with lenders to manipulate mortgages to keep the customers solvent during these tough times.

· converting a variable interest rate mortgage to a fixed rate to protect the borrower from a sudden interest rate increase

· offering a temporary short-term deferral of payments

· offering payment flexibilities

· extending the term, or amortization, to lower the monthly required payment

· negotiating a special, unique, payment arrangement, or adding already missed payments to the mortgage balance

The Globe and Mail reports that some banks are already seeing an uptick in the number of homeowners seeking more flexible mortgage arrangements. “There are more people talking to us about how we can help, and in some cases it may be because they are facing difficulties,” said Wendy Hannam, executive vice-president of personal banking and distribution at Bank of Nova Scotia.

The good news is that the industry is acting to prevent a fallout. They seem to understand the pressure that consumers are under and are willing to work to keep owners in their homes.

Speak to your Mortgage Agent about different options that may be available to you.

Get ready for the Buying Boom – Spring is here!

Chris Grimes (The Mortgage Group) — Thu, 16 Apr 2009 11:08:45 -0700

Buyers are out there, but they’re nervous about making an offer because of the confusion surrounding the real estate market. With all the differing opinions and viewpoints on the economy, it’s a little difficult to know which news is the right news. Saying things are better here than south of the border doesn’t necessarily make people feel any better; things are so bad there that there’s really no comparison!

What Buyers need to be aware of is that the spring Real Estate market is traditionally the strongest for activity in Ottawa and this year won’t be any different, in fact, it may be very strong! When you factor in unbelievably low interest rates, strong immigration, realistic housing prices, home buyers credits galore and a strong job market, we’re already seeing the effects of the government stimulus. It’s still a balanced market and perhaps it’s swung towards a little more of a Buyer’s market; but that can change as the First Time Home Buyers start flooding the market, as they’re expected to.

There are many benefits to this balanced Real Estate market but it’s still essential that you do your research and gather knowledge. Working with a local REALTOR®, whose expertise and experience can interpret and guide you through the information, can be essential to your success in buying a home that is right for you in this changed market.

Planning is one of the keys to making the home buying process easier and more understandable. With research and planning, you’ll be able to anticipate requests from lenders, lawyers and other professionals, and you’ll move more easily through the home buying process. You want to also be working with a REALTOR® who will provide you with valuable contacts in the Ottawa real estate market.

Whether or not you are one of those First Time Home Buyers or a person moving up or down the property ladder, you need to ask why you want to buy. Do you need to move, or is buying an option and not a requirement? What property features do you want that you do not have now? Do you have a purchasing time frame? Do you want to live in Kanata or Orleans? With all the tax breaks available, is a property in need of a bit of fixing up a better bargain?

Whatever your answers, the more you know about the real estate marketplace, the more likely you are to effectively define and achieve your real estate goals.

Once you get an idea of what you want in a home, it is very helpful and practical to talk to an experienced REALTOR® who knows the local markets, current market conditions and the many facets of the complex business of real estate. A representative can answer your questions, give you a realistic picture of the market and help you clarify your real estate goals.

Thinking about renovating?

Chris Grimes (The Mortgage Group) — Thu, 16 Apr 2009 11:06:43 -0700

Have those home reno tax credits got you thinking? The eco-audits are another bonus; you can get up to $10,000 back in rebates for the large items. In addition to those credits, how about the historically low interest rates you can get for a home equity line or refinance to pay for them? It’s a win-win situation for all of us!

However, before you start, make sure you have the right contractor for the job! The industry is full of fly-by-night “contractors”, those that want the money up front for the work before they’re finished, offer you a “deal” if you pay in cash (avoiding GST is one excuse they use) or who seem to want to talk you into goods or services you don’t need. Here are some tips to finding the “right” contractor:

Make sure you get quotes from at least three contractors; make sure they have permanent addresses in your area
The lowest bid is not always the best; you need to compare materials, quantity, brand, size and colour
Make sure the contractor has insurance (personal liability and WSIB coverage for anyone working for them), licensing and only sub-contracts to qualified people if subs are required
Ask for references and be sure you check them out
Contact the Better Business Bureau and ask what their rating is
If there are sub-trades being used, who will be responsible for the overall job?
Make sure all warranties are in writing
Do not allow yourself to be pressured into signing a contract; take your time, review the document and familiarize yourself with Ontario’s cooling off period
Never pay the full amount of a job up-front; a deposit is normally all that is needed to start work with a reputable contractor
Don’t pay for the job in cash; use cheques or money orders (credit cards where applicable)

If you’d like more information about the Home Renovation Tax Credit, go to www.cra-arc.gc.ca or give them a call at 1-800-622-6232.

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How to calculate your Mortgage Payment - Can you afford it! (Part 2)

In Part (1) I outlined how to calculate the effective interest rate that is charged on semi-annual compounded mortgages. Today I am going to show you how you can determine if you can afford your mortgage payment and how much your monthly payment will be.

In order to determine whether or not you can afford a mortgage, you must calculate your Gross Debt Service Ratio (GDS) and your Total Debt Service Ratio (TDS). The GDS is calculated as a percentage of annual income required to cover housing cost; the formula for this calculation is (Principal + Interest + Property Taxes + Heating + ½ Condo Fee)/Total Income. The TDS is calculated as percentage of annual income to cover housing costs + any other current debts. Typically when determining if you can afford your mortgage the GDS and TDS cannot exceed 32% and 40%, respectively.

Calculating GDS and TDS

GDS = (P+I+T+H)/Total Income

TDS = ((P+I+T+H) + All other Debt)/Total Income

Principal = P

Interest = I

Property Taxes = T

Heating Costs = H

How much can you afford based on the TDS

(Numbers are per month)

Income = $8,000

Heat = $75

Taxes = $200

Car Payments = $900

Credit Card Payment = $400

Line of Credit = $200

Total Affordable Mortgage Payment = (40% x Income) – (heat +property taxes + debts)

Total Affordable Mortgage Payment = (0.40 x $8,000) – ($75 + $200 + $900 + $400 + $200)

Total Affordable Mortgage Payment = $3,200 - $1,775

Total Affordable Mortgage Payment = $1,425 per month

For part 1 click here

How to calculate your Mortgage Payment – A two part series (Part 1)

Chris Grimes (The Mortgage Group) — Thu, 16 Apr 2009 11:05:45 -0700

Quite often we are asked to calculate payments or we are asked why the payment is different from the one I calculated online? Or have you ever wondered why the cost of borrowing rate is higher than the rate you thought you were locked-in at. Well normally there is a simple answer. In Canada, interest charged on mortgages is determined using a semi-annual interest calculation. Click here for an Excel based Canadian mortgage calculator, or to learn how to do these calculations by hand see below. I will write a two part article this week on how to calculate your mortgage payment by hand. Here is how to calculate the effective interest rate:-

The first thing to realize is that there are three types of interest calculations:- simple interest, compound interest and effective interest.

Simple Interest – The cost of borrowing money, calculated by applying the interest rate to the original principal amount only. In contrast to compound interest, interest is not charged on interest.

(Simple Interest = P x i x n)

Compound Interest – Interest charged not only on the principal sum but also on interest amounts charged, but not paid, in preceding periods that accumulate as new principal.

Effective Interest – The actual rate that the borrower must pay on a loan after the effects of compounding are considered. It is also known as the true rate. It differs from the nominal interest rate.

(Efffective Interst = (1+(i/m)^m- 1)

Mortgage interest is always compounded semi-annually in Canada. In the US this is not the case, mortgage interest is compounded annually.

To Calculate Mortgage Payments and Interest Rates you will need the following information:

1. Nominal or Annual Interest Rate (I)

2. Compounding Periods per Year

3. Effective Annual Rate

4. Mortgage Amount (Present Value)

5. Future Value of the Mortgage

6. Total Number of Compounding Periods (# of years x # of periods per year)

7. Payment per compounding period

Calculating the Effective Interest Rate

Annual Interest Rate = 7%

Mortgage Amount = $150,000

Since mortgage interest is calculated on a semi-annual basis there are 2 compounding periods:

1. Calculate the Semi-Annual Interest Rate

Semi-Annual Interest Rate = Annual Interest Rate/2

Semi-Annual Interest Rate = 3.5% (7%/2)

2. Calculate the Interest for the First Period

Interest = Mortgage Amount * Semi-Annual Rate

Interest = $150,000*3.5%

Interest = $5,250

Add interest to the original total mortgage amount

$150,000+$5,250=$155,250 (New Mortgage Amount)

3. Calculate the Interest for the Second Period

Interest=New Mortgage Amount*Semi-Annual Rate

Interest=$155,250*3.5%

Interest=$5,433.75

4. Calculate the Total Interest

Add interest from the first period to the second period

Total Interest = $5,250+$5,433.75

Total Interest = $10,683.75

5. Calculate the Effective Interest Rate

Effective Interest Rate = Total Interest/Original Mortgage Amount

Effective Interest Rate = $10,683.75/$150,000

Effective Interest Rate = 7.12%

Stayed tuned for how to calculate your Mortgage Payment and future blogs on determining mortgage affordability.

The clock’s moved ahead, the sun is hanging around longer, and the forecast predicts rain instead of snow… Spring Cleaning you say!

Chris Grimes (The Mortgage Group) — Thu, 16 Apr 2009 11:04:57 -0700

With less than two weeks till the official “First day of spring” there are many maintenance activities that you can do to your home that will help protect your investment and may even save you money. Here are some Spring Maintenance tips that CMHC (Canadian Mortgage and Housing Corporation) offers……

Spring

1. After consulting your hot water tank owner’s manual, carefully test the temperature and pressure relief valve to ensure it is not stuck. Caution: This test may release hot water that can cause burns.

2. Check and clean or replace furnace air filters each month during the heating season. Ventilation system, for example heat recovery ventilator, filters should be checked every two months.

3. Have fireplace or woodstove and chimney cleaned and serviced as needed.

4. Shut down and clean furnace humidifier, and close the furnace humidifier damper on units with central air conditioning.

5. Check air conditioning system and have serviced every two or three years.

6. Clean or replace air conditioning filter (if applicable).

7. Check dehumidifier and clean if necessary.

8. Turn OFF gas furnace and fireplace pilot lights where possible.

9. Have well water tested for quality. It is recommended that you test for bacteria every six months.

10. Check smoke, carbon monoxide and security alarms and replace batteries.

11. Clean windows, screens and hardware, and replace storm windows with screens. Check screens first and repair or replace if needed.

12. Open valve to outside hose connection after all danger of frost has passed.

13. Examine the foundation walls for cracks, leaks or signs of moisture, and repair as required. Repair and paint fences as necessary.

14. Ensure sump pump is operating properly before the spring thaw sets in. Ensure discharge pipe is connected and allows water to drain away from the foundation.

15. Re-level any exterior steps or decks which moved due to frost or settling.

16. Check eaves troughs and downspouts for loose joints and secure attachment to your home, clear any obstructions, and ensure water flows away from your foundation.

17. Clear all drainage ditches and culverts of debris.

18. Undertake spring landscape maintenance and, if necessary, fertilize young trees.

Granny Flats and In-Law Suites help pay the mortgage

Chris Grimes (The Mortgage Group) — Thu, 16 Apr 2009 11:03:59 -0700

Patrick Langston reported in a recent Ottawa Citizen column that “interest in (granny suites) will continue to grow as the population ages and the recession forces families to look for new revenue sources.” According to Stan Wilder, Policy Planner for the City of Ottawa, the concept of the “granny flats” is embraced by the city as it promotes one of the city’s goals of “aging in place” for our senior residents. In the same “Homes” Section of the paper, the Citizen’s Homes Editor, Sheila Brady, featured a young family who invited the woman’s younger sister to share separate living quarters in their large home. According to the article, “They count themselves lucky because there is no way they could have afforded to buy two separate homes…”

Help with financing the mortgage is the way to go for many extended families. In fact, if you’re adding a secondary suite to accommodate a low-income senior or an adult with a disability, CMHC has a Residential Rehabilitation Assistance Program (RRAP) that offers up to $24,000 in a forgivable loan for construction of the suite. Some units may be eligible for the GST rebate as well.

Adding the secondary living suite AFTER you’ve bought is the cheaper way to go. Development charges can double with new construction but there’s no fee to add the suite to an existing home. Prices generally start around $20,000 and you MUST make sure you have all the necessary permits. Garden suites are also becoming popular, but mostly in the country where there’s land available to put the suite in the backyard. Townhomes and row houses are not allowed secondary units in the city of Ottawa nor are homes in the old Village of Rockcliffe (don’t panic if you have an illegal unit; get your permits under the municipality’s grandfather clause).

Speak to your mortgage agent about financing options for construction to an existing dwelling. Refinancing is becoming very popular right now in this time of historically low interest rates; it may be a good idea to add the cost at renewal or even use a home equity line of credit.

If you’re thinking this may be the way to go, check out the City of Ottawa’s “Home within a home” downloadable brochure. There is loads of other information out there; give me a shout if you would like more and I’d be happy to get it for you!

Great News for First-Time Home Buyers…..

Chris Grimes (The Mortgage Group) — Thu, 16 Apr 2009 11:02:43 -0700

Under the RRSP Home Buyers Plan a first-time home buyer can now withdraw tax free from a Registered Retirement Savings plan to purchase or build a new home up to $25,000 ($50,000 per couple); this is up from $20,000. Under this plan participants must begin repayment two years after withdrawing the funds. The withdrawal amount is completely repaid over a period of 15 years interest free. You may also participate in the Home Buyers Plan more than once as long as you repaid your previous withdrawal in full and within the prescribed time period. As the March 1^st RRSP deadline is approaching one point to remember is your RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw them under the HBP.

For more information you can go to www.cra-arc.gc.ca

Budget 2009

Chris Grimes (The Mortgage Group) — Thu, 16 Apr 2009 11:01:40 -0700

In one of the most anticipated budgets in Canadian history the Harper Government made good on its promise. Finance Minister Jim Flaherty toned down on their first attempt at a budget, and followed the guidelines set out by the G20 to spend heavily and provide tax cuts to help spur on the economy. Did they do enough? We’ll see over the next 12 months.

However, one thing is for sure - their commitment to improve the housing market is at the forefront of this budget. Here are some highlights

· Home Renovation Credit – Up to $1350 tax credit for renovation spending from $1,000 to $10,000 (This is a temporary credit until February 1^st, 2010)

o This credit can be doubled if the renovation qualifies under the ECOEnergy Retrofit Program or the Medical Expense Tax Credit

· First Time Home Buyer Credit – 15% non refundable tax credit for up to $750

· Home Buyer’s Plan Increase – An increase of $5000 to the Home Buyer’s Plan now allows for a withdrawal of $25000

· Mortgage Buybacks – Government will purchase an additional $50 Billion in insured mortgages

These measures should help the growing housing market in Canada. Now the test will be whether or not the Ignatieff led Liberals will accept and pass the budget next week. The Bloc Quebecois and NDP have already said they plan to oppose the budget.

Even more reasons to secure your unsecured…

Chris Grimes (The Mortgage Group) — Thu, 16 Apr 2009 11:00:17 -0700

TD announced this past week that they will be introducing a $35 inactivity fee on all their unused lines of credit. This fee will be introduced in April. But it doesn’t stop there, for those who do use their credit lines, TD will raise the borrowing rate by an additional 0.5%, moving the rate to 4.4% above prime. Currently with prime at 3.00%, the new borrowing rate will be 7.4%. Still a decent rate when compared to many auto loans and credit cards however, if compared to a secured line of credit, ie. Home Equity Line of Credit (HELOC) the rate is Prime + 1% (4%). On an average $25,000 balance on a credit line compared to a HELOC the savings would be $70 per month.

TD isn’t the only bank to be increasing their unsecured credit lines. BMO has planned to increase their rates by one full percent on March 4 on all of their credit lines. As of now the other major banks have not decided whether they will increase their lending rates.

This increase was just days after all the major banks decided to pass on the 50 basis point drop from the Bank of Canada rate drop announcement on January 20^th. The drop has decreased all posted mortgage rates and HELOC rates. But for those without the equity in a home, it would appear the banks have pushed their declining profit on to you, even though they believe they are still within fair lending rates. Paul Gammal from BMO stated ” From our survey of the market, our personal-line-of-credit offering is competitive and, in fact, favourable, compared to some of our major competitors.”

With these new charges and increases in rates it may be time to access some of the equity in your home. With a HELOC you can have the same flexibility and benefits of an unsecured line of credit but with a lower rate and no additional charges.