Category Archives: Buying a home

The following is a list of costs to consider when analyzing your real estate budget: 1. Selling costs (realtor fees or marketing fees or combo of both if listing on MLS for self. (Yes, you do still have to pay a realtor their commissions if they bring you a buyer, even if you use the $100 listing services, etc.) 2. Land transfer tax on new purchase 3. Mortgage penalties for early cancellation (if any) 4. Insurance (paid up front on new purchase before title transfer) 5. Transfer of utilities 6. Moving costs 7. Renovation of new house before move-in (light or heavy) 8. Carrying of two mortgages during transition 9. Appraisal of new property for financing 10. Real Property Report (or survey) to confirm property conforms to city regulations or title insurance 11. New window coverings (often current won’t work …

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As hard as it’s becoming to shock jaded Torontonians with bidding war antics, one young woman managed it last week when she beat out 17 rivals for a house in Willowdale. The asking price was $759,000; her triumphant bid was $1,180,800. Her prize? A pleasant three-bedroom bungalow that hasn’t had a whole lot of updating since it was built in the 1960s or so. An offer $421,800 above the asking price is a lot to absorb and a reader e-mailed to say that folks in the neighbourhood were all talking about it. Michael Adelson and Sam Samivand of ReMax Realtron, who represented the seller, expected more than asking, but not 56 per cent more. “We thought the market would take it to its logical level – and the market took it to its illogical level,” quipped Mr. Adelson. The house …

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If you are ready to purchase a new home, one of the first things you want to do know is how much am I qualified to borrow. Lenders have restrictions on the amount of money that a lender can borrow that are based on the borrower’s income and current debt. GDSR: Gross Debt Service Ratio and TDSR: Total Debt Service Ratio To determine the amount you are able to borrow a lender will take into account your gross household income, your down payment and your mortgage interest rate. In addition, lenders will also consider your existing assets and liabilities. The rules governing these two factors – Gross Debt Service Ratio (GDSR) and Total Debt Service Ratio (TDSR) — are overseen by Canada Mortgage and Housing Corporation (CMHC). CMHC is Canada’s national housing agency and Canada’s premier provider of mortgage loan …

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Waterfront and mountain properties can make great getaway points and can also be a good investment. Programs are now available which enable Canadians to purchase a vacation home with as little as 5% down and still maintain a very attractive monthly payment. Depending on the intended use and location, some vacation/second home programs offer loans up to $700,000. Please note that most of these programs are not structured for investment, rental pool or timeshares, so rental income will not be included in the qualification process. In addition, there may be additional restrictions on living units, etc., depending on the program qualifications. One of the more desirable aspects of these types of programs is that the property restrictions, again, depending on the use, are greatly restricted. This allows the inclusion of cabins, cottages and other vacation properties that may be usable …

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If you are fortunate enough to have the assets and wherewithal that purchasing an investment property is a possibility, there are many opportunities available to you; however, when making the decision to make this type of investment, you should carefully consider the real estate market where you are looking to buy. Local markets can vary greatly in terms of price, and desirability and you want to make sure you know what you are getting into before you invest. Most gains in this area will be a modest 5-10%, but overtime, even these modest gains will net a fair healthy profit. Most investment buyers desire to put down as small a down payment as possible, but, if you a carrying a large mortgage and property values fall, you could end up carrying a mortgage that is more than what the property …

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Life requires changes and perhaps you are in a situation where your existing home no longer suits your family, your lifestyle or your wallet. Purchasing your second home can be a crucial step to long-term prosperity. As you know, a home can be a wonderful investment that provides enormous financial gains as well as additional benefits, and a good home purchase can truly provide a savings plan that you simply cannot get when you are renting. Whether purchasing your second home means buying a bigger house, acquiring a condominium or simply moving to a new area, as a seasoned home buyer you know the importance of making the right choices now to save you money in the future. As time has gone on, the value of your home has probably gone up, and this gives you access to equity that …

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Should you continue to rent or consider buying your own home? Deciding which is right for you requires careful consideration. While apartment living may have become tiresome, and you may be sick of paying out money to live when you could be investing in a nice home, the freedoms and joys associated with home ownership need to be weighed against the financial costs or gains. The truth is that purchasing a home is probably going to require going into debt. And, it is also going to mean taking all or part of your nest egg and using it to make a down payment. To make a sound financial decision on whether to continue to rent or to buy, the first step is to determine whether you have enough cash on hand to make a down payment of at least 5%. …

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Is This the Right Time for You to Buy? There are really two questions involved in making the decision if the time is right for you to buy. The first thing you may want to consider is whether it is a good time in general to make home purchase. Then you want to take the same principles and apply them to your own life to decide if the time is right for you. In recent months, the real estate market in Canada has been improving after an initial slow down and there is no reason not to expect that the market will continue to improve. Sales of older homes and of new construction are on the rise. The current concern is that interest are starting to climb but although interest rates may not be as low as they have been …

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If you’re considering buying your own home for the first time – congratulations, you are embarking on one of the most satisfying experiences of your lifetime. There is nothing like walking through the doors of your own home and knowing that it is yours. Of course, there are many routes to getting to that point when the key in the lock is yours and navigating the choices can be extremely challenging. The first step though is to thoroughly weigh the pros and cons of owning your own home and deciding if being a home owner is the right choice for you. You should start by asking yourself two essential questions. The first question you need to ask is what can I afford to buy? Owning your own home shouldn’t put a crimp in your current lifestyle, but, unfortunately, many first-time …

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Buying a home requires a huge financial and lifestyle commitment and whether you are a first-time buyer, upgrading to a larger, more expensive home, purchasing a rental home or buying a vacation property, there is always a lot to consider. One of the most difficult to decisions to make is whether this is the right time for you to buy. Making a careful assessment of your current situation can help you make that decision but the answer should also take the current economic circumstances if your community. Here is a partial list of the things you’ll want to consider: the amount you can afford to spend renting versus owning the size of the mortgage payment in relation to your budget interest rate mortgage options Right now, you are probably starting to consider the broad array of mortgage solutions, payment options …

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