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Remarkable Real Estate Recovery
The Niagara Real Estate Market has recovered remarkably. We had a fabulous April and are looking forward to it continuing up until the end of the first half of 2010. There are lots of things to do in Niagara as our weather warms - I have included information about the Royal LePage Shelter Foundation Garage Sale here. I have also tried to answer some of the questions I have had lately about the HST, interest rates rising and new mortgage qualifications. Please call or email if you have need of a realtor! Helping You is What I Do! |
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3 Level Sidesplit Reduced to $219,900.00
Great 3 Level Sidesplit with 3+1 bedrooms, 2 bathrooms, basement walk-out and tons of renovations in the last few years. North St. Catharines location off Scott Street. Take a look at this and other listings currently for sale at www.SallyDollar.com and click on this featured property.
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| Niagara Residential Real Estate Market Shows a Remarkable Recovery in the 1st Quarter
 The single family residential resale market in the Niagara Region for the 1st quarter has surpassed 2009 levels by 38.5%.
Area Unit Sales 2010 Increase Over 2009
Fort Erie 87 19.2%
Fonthill/
Pelham 51 88.9%
Lincoln 63 70.3%
NOTL 55 120.0%
Niagara Falls 246 43.9%
Port Colborne 78 69.6%
St. Catharines 357 21.4%
Thorold 80 33.3%
Welland 174 32.8%
The Average Sale price of a single family home rose to $219,189 from the $193,308 reported for the same period in 2009. House prices were up across all key housing types surveyed by Royal LePage Niagara with the average price of a Detached Bungalow rising 6.3 percent to $192,628, while standard two-storey homes rose 2.8 percent to $200,352 and standard condominium townhouses increased 3.5 percent to $182,462. The Niagara Region has not experienced the roller coaster effect seen in some of the Major markets where prices dropped sharply then rose dramatically to levels that exceeded the pre-recessionary prices (Toronto, Vancouver and Victoria). The rise in interest rates may have some impact on the 1st time Buyer market but we expect sales activity to continue to rise throughout the 2nd quarter.
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| HST Transition Rules (Effective July 1st) & New Mortgage Rules (now in Effect)
 The provincial government has provided rules/guidance on how it will transition to the
implementation of the proposed Harmonized Sales Tax.
· The HST is NOT YET IN EFFECT. The HST will come into effect beginning on July 1,
2010; however, note transition rules below.
· HST will not apply on the purchase price of re-sale homes.
· HST would apply to services such as moving cost, legal fees, home inspection fees, and
REALTOR® commissions.
· HST will apply to the purchase price of newly constructed homes. However, the
Province is proposing a rebate so that new homes across all price ranges would receive a
75 per cent rebate of the provincial portion of the single sales tax on the first $400,000.
For new homes under $400,000, this would mean, on average, no additional tax amount
compared to the current system.
Transitional Rules for New Housing
· Generally, sales of new homes under written agreements of purchase and sale entered
into on or before June 18, 2009 would not be subject to the provincial portion of the
single sales tax, even if both ownership and possession are transferred on or after July 1,
2010.
· The tax would also not apply to sales of new homes under written agreements of
purchase and sale entered into after June 18, 2009 where ownership or possession is
transferred before July 1, 2010.
Additional Transitional Rules
After June 30, 2010, HST will generally apply. An exception to this rule would be
where ownership of the property is transferred before July 2010 or the invoice
relates to services provided before July 2010.
· With regard to the sale of non-residential property, HST is due where both possession
and ownership of non-residential property occurs on or after July 1, 2010.
More Detail
Additional detail on the transition rules is available at the provincial government web site here or
by calling the provincial government enquiry line at 1-800-337-7222.
NEW MORTGAGE RULES
QUALIFICATION RATE
The biggest rule change affects borrowers who put down less than 20% and want a variable or 1- to 4-year fixed term.
Yesterday you might have qualified for a high-ratio $250,000variable-rate mortgage with a 3.84% qualifying rate (give or take).
Today, lenders will demand you qualify with a 5.85% rate (soon to be 6.10% ).
That means your income needs to be roughly 25% higher today than it did yesterday to be
approved for the same variable or 1- to 4-year fixed mortgage!
Most of the big banks are applying the new posted qualifying rate to all variable and 1- to 4-year fixed terms, regardless of LTV! Many smaller lender's are only using it on high-ratio mortgages. That's a distinct advantage for them.
By the way, if you're interested in a 5- to 10-year mortgage, nothing changes. The qualification
rate will still be based on the rate you're quoted.
REFINANCES
Insured refinances will be limited to 90% loan-to-value.
2ND HOMES
Second homes now qualify for high-ratio insured financing if, and only if, they have no more
than one unit.
RENTAL FINANCING
People buying rental properties now have to put down 20% (instead of 5% last week) to get
insured financing.
You can put down less than 20% but you'll generally need to use an uninsured lender, which
means higher interest rates.
In short:
· When a subject property or owner-occupied property generates rent:
o 50% of gross rent is added to the borrower's income
o Property taxes and heat are excluded from TDS calculations.
· For non-owner occupied rental properties:
o 100% of net rental income is added to the borrower's gross income
o The mortgage payment, property taxes, and heat are excluded from TDS
calculations.
Net rental income:
o A 2-year average of rents is required to establish net rental income
Net rental income is proven via the borrower's T776 Statement of Real Estate
Rentals OR lenders can use their own guidelines to validate rental income
o Net rental income can be grossed up 15% if the borrower takes deductions for
depreciation or amortization, or rental-related self-employed income.
Consult a mortgage professional to confirm how these guidelines apply in your situation.
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* Assumes a 3.84% three-year qualifying rate as of April 18, five percent down, a 35-year
amortization, 1% of property value for property taxes, $85 a month for heat, insurance premiums
included, no condo fees, no other monthly debt obligations, and a 680 credit score
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| Royal LePage Niagara 2nd Annual Garage Sale for Shelter!
 Presented By: Royal LePage Niagara Real Estate Centre
Saturday, May 15th, 2010 From: 8:00 am - 1:00 pm - See you there, I am volunteering!
On Saturday, May 15th 2010, Royal LePage offices across Canada will come together to host the 2nd annual National Garage Sale for Shelter, with 100% of proceeds going to help women and children living with abuse.
Members of the community are encouraged to get involved by donating gently used items to their local Royal LePage office. All earnings will be given back to the local shelter and violence prevention programs in the community where the sale is held.
In its first year, the National Garage Sale for Shelter raised over $120,000! This year, with the help of the community and TD Canada Trust (National Presenting Sponsor), Atlas Van Lines Canada (In-kind Moving and Transportation Sponsor) and Advance Commission Company of Canada (Major Event Sponsor), we're poised to raise more money and awareness than ever!
Donations Accepted (at these locations, as well as 368 King Street, Port Colborne)
St. Catharines -16 Hiscott Street- 905.688.4561
Beamsville - 4520 Ontario Street- 905.563.7775
Welland 637 Niagara Street - 905.734.4545
Monday - Friday 9am - 4pm, from April 26th to May 14th
Saleable Household Items, Furniture, Appliances
Please NO Clothing or Shoes
NO Computer or Printer Components
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| I can help you with every aspect of buying or selling your home because Im experienced, because Im professional & because I care. Don't forget to share my experience and tools with your friends & family - I would love to help them through the experience, step by step, as well. |
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| All offices are independently owned and operated, except those offices marked as "Royal LePage Real Estate Services Ltd." Not intended to solicit currently listed properties. The above information is from sources believed reliable, however, no responsibility is assumed for the accuracy of this information.
©2010 Brookfield Real Estate Services Fund.
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