Canada’s housing ‘like the fountain of youth’ — for now --Says Financial Post

Read this article on Canadian Real Estate....Why Canadian Real Estate Market is Like Healthy Youth

Click link below to read whole article.

Canada's Housing "like the fountain of youth" says FINANCIAL POST

Get Your Whole Home Ready for Winter

The leaves are falling, there's a nip in the air—which means that winter's not far away. Before the snow flies, use our checklist to make sure your house is winter-ready.

• Shut-off water valves -  Locate water valves for backyard and garage (usually in the basement) and turn off, open outside valve and drain them. This will protect you pipe from bursting.
• Add weatherstripping to doors and windows. Don't let your heat escape through small cracks and gaps-seal drafty spaces using weatherstripping or caulk. Here are more helpful tips on sealing up air leaks in your home.
• Check your insulation. If you're in an older home, you may want to supplement the insulation that's already there, or add insulation to uninsulated walls. This will help keep heat in and moisture out.
• Clean your dryer vent. Inside and out. If you have a gas dryer, unplug it and shut off the gas supply at the appliance shut-off valve. Unhook the tube that leads to the vent and clean out as much lint as you can. If you have a wet/dry vac, tackle your exterior vent as well.
• Inspect your roof and chimney, and do any repairs that are needed. Look for cracked shingles, crumbling masonry and damaged or missing flashing. While you're looking at your chimney, take a look at your fireplace as well—make sure the damper opens and closes easily, and get the chimney cleaned if you haven't already this year.

Greater Toronto Housing Market Video for month of Sept -2011

Market Watch Report Aug 2011

WHY HIRE A REALTOR WHEN YOU BUY BIGGEST DREAM OF LIFE!!

Accelerated Bi-Weekly Mortgage Payments CHECK IT OUT and Please leave comment

Hello Everyone!!!
Last week I had discussion with my colleagues about the confusion about prevails among our client regarding Monthly, Semi-monthly and Bi-weekly mortgage payment.
So I was thinking there must be so many people out there who may have the same questions roaming in their minds…..here is the explanation……
So you've got you're mortgage approval, now the lender gives you the choice of several repayment options. You've heard about the standard monthly payments but what's semi-monthly or accelerated bi-weekly? Which one can save you the most amount in interest and which one can pay your mortgage off sooner?
Here's the down and dirty on the differences..

• Lets use this example:

Mortgage Amount	$100,000
Interest Rate	5
Amortization Period	25 years
Mortgage Payment	$581.60

• Monthly Mortgage Payments

Monthly payments are just that, payments made once per month or 12 payments per year. Based on our example, the total annual mortgage payments are $6,979.20 ($581.60 x 12). Under this repayment option, it will take 25 years to pay off the mortgage in our example.

• Semi-Monthly Mortgage Payments

Semi-monthly means payments are made on the first and the fifteenth of the month. You are making a total of 24 payments in the year. To calculate semi-monthly payments, you take the monthly payment and divide it by 2 ($581.60 / 2 = $290.80). At the end of the year semi-monthly payments still only add up to $6,979.20. ($290.80 x 24), the same as if you made monthly payments of $581.60.
Are there any savings making payments this way? Yes, but very little. The savings come from the fact that your paying down the principal quicker because your making payments twice per month as opposed to once per month.

• Accelerated Bi-Weekly Mortgage Payments

Accelerated bi-weekly mortgage payments are a bit different. The difference between semi-monthly payments and accelerated bi-weekly payments is that semi-monthly payments have 24 payments per year while accelerated bi-weekly payments have 26 payments per year. You are now making payments every two weeks (26 weeks per year) and not twice per month (24 payments per year).
To calculate your accelerated bi-weekly payment, take the monthly mortgage payment, divide it by 2 and multiply it by 26 (every 2 weeks). Using the example, you're total annual mortgage payment is $7,560.80 (($581.60 / 2 = $290.80) x 26)
Essentially you're making one more payment per year ($7,560.80 - $6,979.20 = $581.60). By making accelerated bi-weekly payments, you will be saving money on interest and reducing you're amortization period.

• What happens to my mortgage?

The following chart shows the impact on you're mortgage between monthly payments, semi-monthly payments and accelerated bi-weekly payments.

	Monthly Payment	Semi-monthly	Accelerated Bi-Weekly
Mortgage Amount	$100,000	$100,000	$100,000
Interest Rate	5.00%	5.00%	5.00%
Amortization Period	25 years	25 years	21.43 years
Mortgage Payment	$581.60	$290.80	$290.80
Interest Paid	$74,481.49	$74,301.97	62,044.18
Savings		$179.52	$12,437.31

The saving between monthly payments and semi-monthly payments over 25 years is only $179.52. The largest benefit comes from accelerated bi-weekly payments. In the example, you save $12,437.31 in interest costs and reduce your amortization period from 25 years to 21.43 years.
If you think this has answered your questions…please leave the feedback and question you have about real estate…I would be more than happy to answer you….
YOU CAN REACH ME AT ritesh.realtor@gmail.com…..

Do you Know How Much Property tax in your area ?

      Check it out how much property tax are you paying ?

City	2011 Tax Rate (%)	For value of  $100000 you pay per month
Brampton	1.181834	$98
Mississauga	0.962611	$80
Toronto	0.792922	$66
Markham	0.93208	$78
Richmond Hill	0.955328	$80
Vaughan	0.951958	$79
Milton	0.851644	$71
Oakville	0.957907	$80
Pickering	1.355112	$113
Ajax	1.36443	$114
Whitby	1.38207	$115
Oshawa	1.658715	$138
Stouffville	0.979539	$82
	Prepared for you by Ritesh The Realtor
These are approximate values, for information only.

Housing Market Still Stable : CREA

According to new data released from the Canadian Real Estate Association, housing activity in Canada remained stable in the month of August, which represents the second month in a row.

"The housing market in Canada remained on a firm footing in August when compared to volatile financial markets," said Gary Morse, CREA President. "Through their actions, homebuyers are showing that they remain confident about the stability of the Canadian housing market, and recognize that the continuation of low interest rates represents an excellent opportunity to buy their first home or trade up."

Looking at specific metropolitan centres, Toronto and Ottawa registered a monthly increase in activity, compared with Calgary, Montreal and Vancouver registering slight declines. Year-over-year, actual sales activity nationally rose by 15.8%.

Representing the first time that year-to-date activity has surpassed 2010 levels, 324,030 homes have traded hands, which is also in line with the ten year average.
70% of all local markets were solidly in balanced territory for the month of August, which represents the largest percentage on record. Only 12 markets reported being in buyer’s market position.
The national sales-to-new listings ratio, a measure of market balance, stood at 51.6 per cent in August, unchanged compared to July. The actual (not seasonally adjusted) national average price for homes registered in at $349,916, which marks a 7.7 % increase year-over-year, which was also the lowest price point seen in 2010.
"Once again, economic and financial market headwinds outside Canada are keeping interest rates lower for longer," said Gregory Klump, CREA's Chief Economist. "Those headwinds will likely persist until, and indeed after, fiscal quagmires in the U.S. and Europe are resolved. In the meantime, the Bank of Canada will have ample reason to delay raising interest rates further, which is supportive for the Canadian housing market."
Centres that had been hotbeds for both sales and for price appreciation, that had been having the effect of skewing national prices upwards like Toronto and Vancouver appear to have moderated somewhat, pulling price levels more in line with averages.

Take benefit of lower mortgage rates

Mortgage rate is going to remain low for longer than expected.

Are you taking full advantage of lower rate ?

Have a look at the table below, if you have a variable mortgage rate, I am sure you are not paying more than 2.5 %.

My suggestion to you is try to increase you installment as much as possible allowed by mortgage privileges.

Just assume that instead of keeping mortgage rate steady, Bank of Canada has increased the prime rate to 3.5 %. 

Look at difference in the interest payment and the percentage of your payment goes to principal at 2 % and 4 %. It is 25 % more goes to principal at 2%.

Click on image to zoom it.

WagJag deal for Winter Fertilizer for $19

Hello,

I  thought you would be interested in this deal - it's offered exclusively at WagJag.com and you can learn more below:

$19 for a Fall/Winterization Fertilizer Plus $30 Towards the 'Complete Program' from Hometurf Lawn Care (a $58 Value)

click here to view the deal today!

How Can You Grow Your Lawn Healthy and Weed Free

This time of year is perfect for thickening an established lawn or starting a new one from seed. The cool evening temperatures, heavy dew, regular rain falls and shorter days of September are perfect for seed germination.
How Do You Start?
Rake your lawn with a fan rake where you plan on sowing fresh grass seed (overseeding) and be sure to remove the dead grass and debris that may be in the way.
Next, spread triple mix or lawn soil over the area about 4- to 6-centimetres thick. Spread the seed by hand by letting the seed roll off your index finger while waving your arm back and forth in front of you. Or buy a small, hand held whirly gig to spread your seed evenly.
Rake smooth.
Step the seed into firm contact with the soil.
Water well and apply a fertilizer with slow release nitrogen or a grass seed starter fertilizer (especially helpful for a new lawn).
Water the area well for 6 to 8 weeks, when Mother Nature is not taking care of this for you.
Competing weeds out of existence is not an exercise of spraying anything on your lawn. It is a matter of changing lawn maintenance habits in favour of a healthier lawn.
Complete the Recipe
Cut your lawn 2 ½- to 3-inches high.
Use a mulching lawn mower (and return the nitrogen rich goodness of the grass blades back to the root zone).
Fertilize three times a year with a slow release nitrogen-based product, including a final application just before the snow flies.
The third and final application of lawn fertilizer is the most important one of the year; use a quality national brand formulated for late autumn application. It will provide a boost to your lawn that will produce results early next spring when the grass plants emerge from winter dormancy. Snow mould will be minimized. Your lawn will green up faster (you can always tell the neighbours who have applied fall fertilizer — they are the ones with the greenest lawns in spring).

Land Transfer Tax Rebates (Provincial and Toronto)

Program

First-time buyers of new and re-sale homes are eligible to receive rebates of the provincial and Toronto land transfer taxes. The maximum provincial land transfer tax (LTT) rebate for first-time buyers is $2,000 and the maximum Toronto LTT rebate for first time buyers is $3,725. A FULL rebate of the Toronto land transfer tax is also available for ALL buyers who entered into Agreements of Purchase and Sale prior to December 31, 2007.

Details

Provincial LTT

• Provincial LTT is payable anywhere in Ontario (including Toronto)

• Maximum provincial LTT first-time buyer rebate is $2,000 (equivalent to the provincial LTT payable on a $227,500 property).

• For RESALE homes, the provincial rebate applies only to first-time buyers who entered into Agreements of Purchase and Sale AFTER December 13, 2007.

• First-time buyers of NEWLY CONSTRUCTED HOMES are eligible for the provincial rebate even if they entered into Agreements of Purchase and Sale prior to December 13, 2007.

• The provincial LTT for residential properties is calculated as follows (An easy-to-use calculator is available at www.NoHomeBuyingTax.com):

  • 0.5% of the amount of the purchase price up to and including $55,000, plus

  • 1% of the amount of the purchase price between $55,000 and $250,000, plus

  • 1.5% of the amount of the purchase price between $250,000 and $400,000, plus

  • 2% of the amount of the purchase price above $400,000

Toronto LTT

• Toronto LTT is payable only for properties in the City of Toronto.

  Maximum Toronto LTT first-time buyer rebate is $3,725 (equivalent to the Toronto

• LTT payable on a $400,000 property).

  ANY purchaser who entered into an Agreement of Purchase and Sale prior to
  December 31, 2007 is eligible for a FULL rebate of the Toronto LTT.

• Toronto LTT rebates are in addition to any provincial LTT rebate that the buyer
  qualifies for.

• The Toronto LTT for residential properties is calculated as follows (An easy-to-use calculator is available at www.NoHomeBuyingTax.com):

  • 0.5% of the amount of the purchase price up to and including $55,000, plus

  • 1% of the amount of the purchase price between $55,000 and $400,000, plus

  • 2% of the amount of the purchase price above $400,000

First-Time Buyer Eligibility

To be eligible as a first-time buyer for the provincial LTT rebate and/or Toronto LTT rebate,

• The purchaser must be at least 18 years of age.

• The purchaser must occupy the home as his or her principal residence no later than nine months after the date of the conveyance or disposition.

• The purchaser cannot have previously owned a home, or had any ownership
  interest in a home, anywhere in the world, at any time.

• If the purchaser has a spouse, the spouse cannot have owned a home, or had any ownership interest in a home, anywhere in the world while he or she was the purchaser’s spouse. If this is the case, NO refund is available to either spouse. Note: If a purchaser’s spouse owned an interest in a home BEFORE becoming the purchaser’s spouse, but not while the purchaser’s spouse, the purchaser may be eligible for some rebate.

More Information

Provincial LTT:
Ontario Ministry of Finance:
1-800-263-7965

Toronto LTT:
City of Toronto: 416-338-0338

First time home buyer’s tax credit

Program : First-time home buyers may be eligible for a 15 per-cent income tax credit
for closing costs.

Detail

1. To assist first-time home buyers with the costs related to the purchase of a home.
2. The First-Time Home Buyers’ Credit (FTHBC) provides a 15 percent credit on a maximum of $5,000 of home purchase costs (e.g. legal fees, land transfer taxes, etc.), meaning maximum tax relief of $750.
3. Applicable to first-time buyers purchasing a home closing after January 27, 2009.
4. The FTHBC is claimable for the taxation year in which the home is acquired.
5. An individual will be considered a first-time home buyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years.

Canada Mortgage repayment options….Explanation

Hello Everyone!!!
Last week I had discussion with my colleagues about the confusion about prevails among our client regarding Monthly, Semi-monthly and Bi-weekly mortgage payment.
So I was thinking there must be so many people out there who may have the same questions roaming in their minds…..here is the explanation……
So you've got you're mortgage approval, now the lender gives you the choice of several repayment options. You've heard about the standard monthly payments but what's semi-monthly or accelerated bi-weekly? Which one can save you the most amount in interest and which one can pay your mortgage off sooner?
Here's the down and dirty on the differences..

• Lets use this example:

Mortgage Amount	$100,000
Interest Rate	5
Amortization Period	25 years
Mortgage Payment	$581.60

• Monthly Mortgage Payments

Monthly payments are just that, payments made once per month or 12 payments per year. Based on our example, the total annual mortgage payments are $6,979.20 ($581.60 x 12). Under this repayment option, it will take 25 years to pay off the mortgage in our example.

• Semi-Monthly Mortgage Payments

Semi-monthly means payments are made on the first and the fifteenth of the month. You are making a total of 24 payments in the year. To calculate semi-monthly payments, you take the monthly payment and divide it by 2 ($581.60 / 2 = $290.80). At the end of the year semi-monthly payments still only add up to $6,979.20. ($290.80 x 24), the same as if you made monthly payments of $581.60.
Are there any savings making payments this way? Yes, but very little. The savings come from the fact that your paying down the principal quicker because your making payments twice per month as opposed to once per month.

• Accelerated Bi-Weekly Mortgage Payments

Accelerated bi-weekly mortgage payments are a bit different. The difference between semi-monthly payments and accelerated bi-weekly payments is that semi-monthly payments have 24 payments per year while accelerated bi-weekly payments have 26 payments per year. You are now making payments every two weeks (26 weeks per year) and not twice per month (24 payments per year).
To calculate your accelerated bi-weekly payment, take the monthly mortgage payment, divide it by 2 and multiply it by 26 (every 2 weeks). Using the example, you're total annual mortgage payment is $7,560.80 (($581.60 / 2 = $290.80) x 26)
Essentially you're making one more payment per year ($7,560.80 - $6,979.20 = $581.60). By making accelerated bi-weekly payments, you will be saving money on interest and reducing you're amortization period.

• What happens to my mortgage?

The following chart shows the impact on you're mortgage between monthly payments, semi-monthly payments and accelerated bi-weekly payments.

	Monthly Payment	Semi-monthly	Accelerated Bi-Weekly
Mortgage Amount	$100,000	$100,000	$100,000
Interest Rate	5.00%	5.00%	5.00%
Amortization Period	25 years	25 years	21.43 years
Mortgage Payment	$581.60	$290.80	$290.80
Interest Paid	$74,481.49	$74,301.97	62,044.18
Savings		$179.52	$12,437.31

The saving between monthly payments and semi-monthly payments over 25 years is only $179.52. The largest benefit comes from accelerated bi-weekly payments. In the example, you save $12,437.31 in interest costs and reduce your amortization period from 25 years to 21.43 years.
If you think this has answered your questions…please leave the feedback and question you have about real estate…I would be more than happy to answer you….
YOU CAN REACH ME AT ritesh.realtor@gmail.com…..

What should be considered before decide to buy a BRAND NEW HOME….

New home buyers don't want a used house when only new will do. They don't want to inherit somebody else's worn carpeting, personal taste in kitchen appliances or look at some kid's initials scrawled into once-wet cement that they didn't put there. The home must be brand spanking' new, fresh and clean without so much as a finger print on the walls.

If this describes you, and you have always fantasized about buying a brand new home of your dreams, here are a few tips that can help you to protect yourself -- to make the process a pleasant experience.

The builder's sales agents are paid to represent the builder, regardless of what they may tell you. Many will use high pressure tactics to persuade you to sign the contract. Due to the high volume nature of brand new home sales, lots of builder's agents are paid less than a traditional commission; some earn a salary plus incentives, so turnover is important to their livelihood.

Don't Automatically Use the Builder's Lender

• Builders often prefer their own lender because the builder will be kept fully informed of your personal progress; it's one-stop shopping for a builder. But a builder's lender might not offer you the best deal. Moreover, the builder may own the lending company.
• Consider alternate sources to find a lender. Your own bank or credit union might offer you very attractive rates and terms, based on your banking history with that institution. Your agent may refer you to his or her private list of wholesale lenders.
• Shop around and interview your lender. Find a banker or mortgage broker whom you can trust and with whom you feel comfortable doing business.
• Insist that your lender guarantee its Good Faith Estimate. If the lender balks or makes excuses, go elsewhere, because reputable lenders will honour that request, even though it's not required by law.

Obtain Legal Advice Before Buying a Brand New Home

• Before you sign a purchase contract, talk to a real estate lawyer. Standard purchase agreements are designed to keep everybody out of court, but they don't necessarily contain language that protects the buyer.
• Ask questions about removal of contingencies and your cancellation rights. Make sure you understand your liability and commitments.
• Find out if the materials used by the builder contain chemicals that are hazardous to your health. If your contract contains a warning about health issues, it's probably because it's a valid concern and other buyers have gone to court over it.

Verify Option and Upgrade Pricing

• Determine which options and upgrades you want. Bear in mind that for many builders, the profit margin is highest in upgrades. Some builders can sell a home for almost bare construction cost because they make the bulk of their profit in the upgrades.
• Find out whether your lender will lend on all the options / upgrades you have chosen. If your lender will not finance 100% of your selections, you will be required to pay for it in cash.
• Ask about cancellations and whether you will be held liable for items the builder cannot return to a vendor.
• Some contracts give the builder the right to choose your upgrades if you do not submit your request within a certain period of time.
• To save money, consider which upgrades you could purchase and install yourself after the escrow closes. However, realize that some upgrades such as CAT-V, DSS or security wiring inside the walls are easier to do before construction.

Hire a Home Inspector

• Always, always, always get a home inspection when you buy. And hire a licensed and accredited individual to perform the inspection -- not your dad or your buddy contractor, get a real inspector. Be there for the inspection and ask questions because a new home can contain defects. The HVAC system might be too small or the plumbing could be installed backwards. Construction workers make mistakes. (And let's not even talk about the mustard-stained McDonald's wrappers stuffed in wall cavities.)
• If the inspector calls for further inspection by another professional contractor, find out if the inspector is telling you there could be a serious issue or if the inspector isn't licensed to address that issue.

What expenses you should consider when you move in to a brand new home….

1. Appliances…(Fridge, Stove, Dish washer, Washer-Dryer etc….)
2. Draperies, blind or window coverings..
3. Common upgrades ….such as

• Hardwood floor
• Rough-in
• Paved drive way,
• Back yard fence,
• Double door entry,
• Entry to garage from home,
• 9’ ceiling
• Air Condition

4. Closing expenses such as ..

• Tarion warranty Insurance premium… http://www.tarion.com/home/
• Lawyers fee…
• LAND TRANSFER TAX CALCULATOR
• Municipal levies for school and other services….
• HST….in some cases
• Moving expenses…
• New furniture cost..
• Vacuum machine, Lawn mover, Snow mover….
• Hot water tank rental or one time cost to buy….
• Plants for front yard and back yard….

Some builders includes certain upgrades as standard upgrades so they include some items but not all. Please verify everything before you sign the doted line.

Very Important who want to buy a new home from builder

Hello,

For those who wants to book a brand new home or condominium………

Read the article in following link, which was published in TORONTO STAR on Oct 3^rd 2009.

Under the title heading “DEVIL IS IN THE DETAILS” by a well known Real Estate Lawyer Bob Aaron

http://www.yourhome.ca/homes/columnsblogs/article/703497

Bob Aaron is a Toronto real estate lawyer and board member of the Tarion Warranty Corp. He can be reached at bob@aaron.ca. Visit his website at aaron.ca

HOME BUYER' GUIDE

 

 

CLICK HERE TO SEE HOME BUYER GUIDE

What is CMHC Insurance Premium? How is it helful buying home with 5 % down ?

Hello Everyone,

For last few weeks I am getting some enquiries regarding CMHC insurance premium.....

First of all....What is CMHC stands for? Canadian Mortgage and Housing Corporation.

You might have heard that if you can buy your own dream home with 5 % downpayment and most importantly you pay the same mortgage rate as the person who has 20 % downpayment.
You must be thinking, how is it possible ............?

Yes, it is possible through the CMHC insurance...so those who has 5 % towards downpayment and wants to buy house has to purchase CMHC insurance.....then CMHC takes the buyer under it's huge umbrella. That way CMHC assures the financial institute (bank), that due to unavoidable circumstances the buyer defaults, financial institute(Bank) is not at risk of loosing money. So the bank can easily land money to those buyers at LOW rate.

Loan-to-Value	Premium on Total Loan		Premium on Increase to Loan Amount for Portability and Refinance
	Standard Premium	Self-Employed without 3rd Party Income Validation	Standard Premium	Self-Employed without 3rd Party Income Validation**
Up to and including 65%	0.50%	0.80%	0.50%	1.50%
Up to and including 75%	0.65%	1.00%	2.25%	2.60%
Up to and including 80%	1.00%	1.64%	2.75%	3.85%
Up to and including 85%	1.75%	2.90%	3.50%	5.50%
Up to and including 90%	2.00%	4.75%	4.25%*	7.00%*
Up to and including 95%	2.75%	N/A	4.25%*	*
90.01% to 95% — Non-Traditional Down Payment***	2.90%	N/A	*	N/A
Extended Amortization Surcharges Add 0.20% for every 5 years of amortization beyond the 25 year mortgage amortization period.†

At the other end those buyer's who has 20 % or more toward downpayment, they don't need to buy CMHC Insurance because they put 20 % towards house price so it is low risk investment for banks so bank's easily land them money.

So in our great country of Canada, the goverment is so generous and helpful to those people who has little courage and desire to move in their own dream home.

Hope this article would have answered all the questions you had about CMHC Insurance.

Rate has been given in above table. If you have any questions regarding donot hasitate to call me or email me.
Best regards.

Do you know about smart meter from Toronto hydro ?

If you want to know more please click the link above