Renting

Pros
• No Long Term Commitment
• No responsibility for upkeep and maintenance
• Flexible, you can move more readily if changing jobs or geographic locations

Cons
• You are paying someone else to own the property and you will never build equity
• If you have a bad landlord, you may have to live with either fighting for getting repairs done, dealing with bad, noisy neighbours or living with the discomfort.
• No real privacy – Very few rentals have property or backyards
• Although you do not go into debt, you are paying higher rent per month than a mortgage depending on your down payment and Mortgage Rates
• Not a long term buy you are usually required to sign a lease and that could mean no matter what transpires, you are still required by law to pay rent.
• You are pretty much dependent on your landlord for the comfort of living in your home.
• Most rentals are buildings, so that means you live around more people and odds are higher that you have noisy or disruptive neighbors.
• No Tax advantages, your landlord gets any tax breaks
• Your landlord can decide to sell the property and that is without your permission or getting your opinion. They may sell to another person or company who still allows you to live there, but they may not. At that point you the only have a certain amount of time and you have to move (time depends on the laws, if it’s a month to month or a lease and if proper notice is given)

Purchasing

Pros
• Homes for sale are generally nicer with better surroundings and more upscale than rentals.
• You are a home owner and there is pride in ownership
• Owning a home is security and peace of mind on many levels such as your home is all yours, or your building equity.
• Could be investment for your future and your children’s future.
• Although winning is a long term commitment, in the end you have your own home and equity.
• Privacy – Most homeowners enjoy the freedom of privacy, either with their own backyards and/or houses, you can freely make changes
• You are in control of your surroundings
• Short term pain for long term gain.

Cons
• If you have not planned for future events and changing markets, you could lose your home and your investment
• You will be in debt
• Repairs and maintenance are your responsibility, which means your time and money.
• If for some reason you need to move or cannot afford the home, you are responsible for the sale of the home and the costs associated.

In determining coming to the decision to rent or buy a home, we urge you to expand on this list. The list of the pros and cons we have given is a guide and we cannot make the decision and for example, you may have a long list of cons, but there could be just one pro that is what your heart and mind are set on. It is a good idea to be realistic in what you can afford and think it through.

Purchasing a home can be a great investment for your future, but you need to make some sound financial decisions. Ratesheet.ca has Mortgage Calculators that assist you in planning financially before you even start looking for your home or consult a mortgage broker. One Calculator we have for you that would be a great start is our Rent vs. Buy calculator to determine what are the financial advantages and disadvantages. There are strategies to pay off your home quicker, so after gathering all the evidence and have decided to investigate purchasing a home, Ratesheet.ca can assist by connecting you to a local Mortgage Brokers with our Comprehensive Mortgage Quote system and they will be able to address any questions or concerns you may and get you the best mortgage rates.

Whether you have made the decision to purchase or are more at peace with your decision not to purchase at this time, we hope we have assisted in a small way with putting your mind at rest.

Please note: due to the Victoria Day Holiday, our Ratesheet Green Monday Blog is being posted today.

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Get Your Loan in Gear

One of the first things you need to do is get your loan ready. Check out some of our mortgage calculators and see what is the best option in obtaining a Mortgage. Getting approved has to be where you start as it’s the most important part of purchasing a home. Shop for a Mortgage Broker who will answer all your questions, get you the best rates and have you best interests in mind. Once you have shopped the Best Mortgage Rates and found something that works for you, it’s time to really start looking for a great realtor and the perfect home.

Consider Your Realtor Carefully

It’s important to select your realtor very carefully when you’re house hunting. This professional plays a powerful part in making sure your home is bought for a great price and that you are protected throughout the process. Even if you have the very best mortgage rates you can wind up with trouble getting a home you love unless you are armed with an excellent realtor. Take the time to interview several before you start house hunting.

Take Your Time

Purchasing a home is not a rush decision. And there are many reasons you might feel rushed but remember picking out the home should never be done in a hurry. Before you put an offer in on a home you want to look at many other homes, even though you have found one you love. When you’ve narrowed your choice down to 3, make a list of pro’s and con’s of each home. Visit the homes at different times of the day, talk to neighbours, visit schools, don’t be a afraid to ask questions; this is a major purchase and your home and you want to be as informed as possible.

We hope you find the home of your dreams!

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Jim Murphy of CAAMP (Canadian Association of Accredited Mortgage Professionals) sent out an Industry update May 15, 2013 encouraging members to join CAAMP in its effort to curb further constraints by sending comments to their local MPs.

In his communication, Jim Murphy stated since mid-2012 housing resales in Canada are down by 9%, sales in new housing in several cities is at a record low, new construction is rapidly declining and the growth of mortgage credit has slowed dramatically. The CAAMP has been in contact with the Department of Finance and the OSFI concerning the elimination of 30 year amortizations for conventional mortgages and made recommendations to examine measures to support first time buyers impacted by regulatory changes instead of further restrictions on uninsured mortgage products. He has spoken to the federal government with concerns on the impact of the budget on the Asset Back Commercial Paper market which is vital to non-deposit taking lenders and the importance of choice for Canadian Consumers.

If you wish to assist CAAMP in the effort to curb further constraints, contact your local Member of Parliament.

The post CAAMP Industry Update on Conventional Mortgages appeared first on Ratesheet.ca Best Mortgage Rates, Mortgage Rates Canada, Mortgage Calculator.

Mortgage brokers will discuss with you the current mortgage rates. If you are planning on staying in your home between 5 and 7 years you may want to consider fixed mortgage rates. The fixed mortgage rate typically spans anywhere from 15 to 30 years and the rate remains the same throughout the life of the loan. This can be really helpful when budgeting your payments since they will be the same every month. If you want the lowest payment you should consider the 30 year fixed mortgage rates. However, many people want to be done paying for their home in a shorter amount of time and go for the higher monthly payment to be done in 15 years. They will also spend less money on interest and more to the principle. If this is a possibility, you may want to consider the 15 or 20 year fixed mortgage rate.

Having to consider a fluctuating market may be another reason many people choose fixed mortgage rates. There is peace of mind in knowing that the rate will never go up.

You want to shop around as even with fixed mortgage rates there can be considerable differences as mortgage lenders and businesses try and remain competitive. Finding the perfect home loan takes a little bit of effort, but sitting with a mortgage broker and discussing all your options is the best way to start.

The post Peace of Mind with a Fixed Mortgage Rate appeared first on Ratesheet.ca Best Mortgage Rates, Mortgage Rates Canada, Mortgage Calculator.

Question: What is an “SPP offer”?
Answer: An “SPP offer” is real estate agent lingo referring to an offer to purchase for a property that is contingent upon the purchaser selling his or her current property first.

Question: True or False? Only SPP offers can have an “escape clause” written into them.
Answer: False. There is a common misconception that the escape clause (which allows another offer to bump the SPP offer), can only be used with an SPP offer. In fact, an escape clause can be used with any type of conditional offer. Furthermore, an SPP offer does not have to contain an escape clause if all parties are in agreement.

Question: What does the term “lis pendens” refer to?
Answer: According to the website law.com, the term “lis pendens “ …is Latin for ‘a suit pending,’ a written notice that a lawsuit has been filed which concerns the title to real property or some interest in that real property.

Question: What is “Negligent Misrepresentation”?
Answer: “Negligent Misrepresentation” refers to the situation whereby a real estate agent innocently misrepresents the facts about a property (when they should have known the true facts – based upon assumed expertise). If an agent is found to have engaged in Negligent Misrepresentation then that Agent can be sued and held responsible for the misrepresentation, even though it was not intentional.

Question: Can real estate companies band together to set fixed commission rates?
Answer: No. The Competition Act makes it illegal for real estate companies to get together with other real estate companies to set fixed commission rates.

Question: When looking to purchase a home, do I need to get a home inspection?
Answer: It may be a requirement to get an inspection as the home is subject to the Mortgage Lenders approval. Always get referrals from your family, friends and mortgage broker or lender for reputable Home Inspectors.

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The post Canadian Real Estate Trivia (Part II) appeared first on Ratesheet.ca Best Mortgage Rates, Mortgage Rates Canada, Mortgage Calculator.

Check Your Credit Report

If you have a good credit rating (or score), make a conscious effort to maintain your score, but if it’s not so good, consult a financial advisor or credit counselor and learn ways to improve your credit rating. You can ask for a free copy of your credit file by mail with the two credit bureaus in Canada, Equifax Canada and TransUnion Canada or for a small fee you can request online. The better your credit rating/score, the better the mortgage rate.

Pay Your Debts Down

During the process, which can take some time, you’ll want to continue putting all your money aside and paying things down as quickly as you can. This may mean doing something like setting up a savings jar and every time you use a money saving method such as using a coupon or getting items on sale, put the money saved in the jar at home. At the end of the month deposit that money to your account and use it to pay down your debt.

Don’t Switch Jobs

When you’re looking for the best mortgage rates you have to present an image. Now is not the right time to switch from that job you’ve had for years wait until you get the loan and the home before you make that move.

Stay Motivated

When all the paperwork gets ridiculous, take a little time to shop some of the dream homes out there to stay motivated to make the move. You might find you need that little extra push when it gets down to preparing to obtain a mortgage.

The post How to Prepare Before Obtaining a Mortgage appeared first on Ratesheet.ca Best Mortgage Rates, Mortgage Rates Canada, Mortgage Calculator.

Question: How has the definition of a “first time buyer” been expanded lately?
Answer: A “first-time buyer” initially allowed for a person or persons to buy a home with just five percent down. It has recently been changed to include the following; a) purchasers who lost equity in their home and no longer have ten percent down, b) purchasers who had to relocate for job reasons, and c) purchasers who have either ended a joint family ownership or have split with a spouse.

Question: What does CMHC stands for?
Answer: CMHC is an acronym for the Canada Mortgage and Housing Corporation. The Canada Mortgage and Housing Corporation is a Government of Canada organization which is designed to assist with the repair of existing homes and the purchase of homes.

Question: True or False? The square footage of a house is measured from the outside walls of the house and only includes living area that is above grade.
Answer: True. However, real estate agents may use the term “total finished living area” to refer to the square footage of the house (both above grade and below grade).

Question: What does the term “semi-ensuite” refer to?
Answer: A semi-ensuite refers to a bathroom which has both a door to the master bedroom and a door to the main living area.

Question: True or False? The best time to look for a home is before I get pre-approved for a mortgage.
Answer: False, the best time to look for a home would be after you find out home much home you can afford. Ratesheet has mortgage calculators to assist you in starting the process.

In our next post for Ratesheet’s Roundtable Thursday, we will take a look at some more Canadian real estate trivia.

The post Canadian Real Estate Trivia (Part I) appeared first on Ratesheet.ca Best Mortgage Rates, Mortgage Rates Canada, Mortgage Calculator.

Cash Back Mortgage – A good option for the first time homebuyer that is looking for some cash to make renovations, pay closing costs or even in some cases, buy furniture, but lack the funds as all available cash is going towards your down payment. Cash back gets you a percentage of your mortgage right away so you have funds available to use as required. Please be aware that in exchange, you may have a higher interest rate and some restrictions may apply, so speak with your Mortgage Broker or Bank regarding various options available to you and what the pros and cons are for this option.

Zero Down Mortgage? Zero down is a thing of the past as 100% financing is no longer available, but in very few cases it may be possible to borrow from family, use your power line or line of credit or borrow from a financial institution. Please note these are not typical and you need to speak to a mortgage professional about all the options available to you.

The post What is Flex Down versus Cash Back and what about Zero Down? appeared first on Ratesheet.ca Best Mortgage Rates, Mortgage Rates Canada, Mortgage Calculator.

iToolPro Systems Inc. is proud to announce the launch of the Ratesheet.ca Website with a fresh new look plus great features. Ratesheet.ca is a leading Mortgage Rates Comparison Website which connects users shopping for best mortgage rates with Mortgage Brokers in their area using a Comprehensive Mortgage Quote system.

The team has worked for months to create a fresh look and bring to life some incredible features to assist mortgage brokers boost their business. New features include; Easier Mortgage Rate Search, Map Search to assist users locate Brokers by using an interactive map, an Enhanced Broker search and also other convenient features such as various Mortgage calculators.

Vik Palan, president of iToolPro stated, “This is just the beginning; we have lots more planned for the coming months and we wish to thank all the users and Mortgage Brokers for their wonderful support.”

If you are looking for a Mortgage and want to Compare Mortgage Rates or Find a Mortgage Broker in your area, the website address is Ratesheet.ca and we’d love to hear from you.

For Media information contact Purvi Palan, Vice President of Operations at 1.888.500.9514 X 715 or email purvi.palan(at)itoolpro(dot)com

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As of last September, net migration in Ontario had fallen by 20 per cent year-over-year to below 60,000 new residents, says a CMHC review of GTA housing activity released Thursday.

That’s the lowest levels of net migration since the late 1990s and about 40 per cent less than the 110,000 or so people who migrated to the province annually, most of them to the Toronto region, about a decade ago, says Shaun Hildebrand, CMHC’s housing analyst for Toronto.

“Over time, that can have a drag on home sales activity as fewer people move into the region, impacting the pool of potential buyers,” says Hildebrand.

The GTA housing market has been softening since last spring, with sales down 16 per cent by year end over the fourth quarter of 2011.

While prices declined almost one per cent in the fourth quarter of 2012 — the biggest decline in four years, according to CMHC — house prices were up seven per cent overall in 2011, thanks to the strength of the market earlier in the year, the report says.

On the up side of downward migration was a close to a 50 per cent increase last year in the number of “non-permanent residents” coming to the GTA, most of them foreign students who have been helping drive the demand for rental accommodation, and condo purchases, close to schools in downtown Toronto, the report notes.

While Hildebrand expects some uptick in net migration this year given strong employment growth in the GTA, it’s unlikely to return to levels anywhere near 110,000, he says.

That could be a wake-up call for residential developers who have been pressing the province and suburban municipalities to open up more GTA land for development, citing what would appear to be an outdated notion that the region gets about 100,000 new residents a year.

Source:http://www.thestar.com/business/real_estate/2013/01/31/drop_in_net_migration_to_gta_contributing_to_softening_housing_market_cmhc.html

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