Mihir's Market Matters Report

December 2012 Welcome to the December issue of Mihir's Market Matters Report. I would like to take this opportunity in Wishing you All the best for the holiday season.  Banks today lowered Mortgage rates on most of their products. Have a look at a quick snapshot of the Best Rates as of 6th December 2012. 5 years fixed @ 2.89% 3 years Variable @ Prime - 0.35%  3 years fixed @ 2.69% Feel free to call or email me to discuss on your Mortgage, refinancing, debt consolidation or investment needs. Mihir Oza 647-710-7374 Mortgage Agent (License # M11000672) Verico The Mortgage Practice My Motto: Right Advice. First Time, Every Time. Bank of Canada Interest Rate October 23, 2012 1.00 % December 4, 2012 1.00 % January 23, 2013 Next meeting date Source: Bank of Canada Bank Prime Lending Rate October 24, 2012 3.00 % December 5, 2012 3.00 % January 24, 2013 Next meeting date Source: Bank of Canada Conventional Mortgage - 5 Year Rate*  September 26, 2012 5.24 % October 17, 2012 5.24 % November 21, 2012 5.24 % Source: Bank of Canada *Determinant for high ratio mortgage variable qualifying rate US Federal Reserve Board Discount Rate* September 12, 2012 0.00 % - 0.25 % October 24, 2012 0.00 % - 0.25 % December 11, 2012 Next meeting date Source: US Federal Reserve *US Federal Reserve has indicated it will keep this rate until Q4 2014 Exchange Rate $CDN($US) October 29, 2012 .9992 November 14, 2012 .9962 November 30, 2012 1.006 Source: Bank of Canada Government of Canada Bonds Bond Type October 24, 2012 November 7, 2012 November 21, 2012 1 year Treasury Bill 1.09% 1.06% 1.07% 3 year Benchmark Bond Yield 1.21% 1.16% 1.19% 5 year Benchmark Bond Yield 1.39% 1.32% 1.34% 10 year Benchmark Bond Yield 1.84% 1.74% 1.76% Source: Bank of Canada Total New Housing Starts (Seasonally adjusted and annualized) Province August 2012 August 2011 September 2012 September 2011 October 2012 October 2011 Newfoundland/Labrador 3,900 3,500 3,900 3,500 3,500 3,500 PEI 1,100 900 1,400 1,300 800 900 Nova Scotia 6,800 3,700 6,100 6,100 8,300 3,300 New Brunswick 3,400 2,800 6,400 5,000 2,900 3,900 Quebec 46,900 41,100 49,600 57,800 41,400 44,500 Ontario 88,000 67,000 72,000 65,600 67,800 73,500 Manitoba 9,300 4,900 8,500 4,500 6,600 7,600 Saskatchewan 9,800 5,800 13,300 9,100 10,500 8,400 Alberta 29,300 29,100 33,300 24,900 33,100 31,600 British Columbia 30,400 25,800 29,500 29,800 29,200 30,400 CANADA 228,800 184,600 224,000 207,600 204,100 207,600 Source: CMHC Housing Now - November 2011 and November 2012. This seasonally adjusted data goes through stages of revision at different times of the year. Average MLS® Resale Price for Local Markets  City October 2011 October 2012 Halifax $ 257,414 $ 262,061 Saint John $ 161,691  $ 163,963 Quebec $ 253,914 $ 259,607 Montreal $ 320,165 $ 330,777 Ottawa $ 339,802 $ 347,581 Toronto $ 478,137 $ 503,479 Hamilton/Burlington $ 329,802 $ 367,490 Winnipeg $ 244,506 $ 259,433 Saskatoon $ 312,384 $ 327,182 Regina $ 282,313 $ 297,688 Calgary $ 398,924 $ 418,721 Edmonton $ 320,306 $ 327,880 Vancouver $ 767,225 $ 736,732 Victoria $ 475,742 $ 464,360 Source: Canadian Real Estate Association   Quarterly House Price Survey

Source: RBC Quarterly Housing Affordability Index, November 2012
Our standard RBC Housing Affordability Measure captures the proportion of median pre-tax household income required to service the cost of a mortgage on an existing housing unit at going market prices, including principal and interest, property taxes and utilities; the modified measure used here includes the cost of servicing a mortgage, but excludes property taxes and utilities due to data constraint in the smaller CMAs. This measure is based on a 25% down payment, a 25-year mortgage loan at a five-year fixed rate and is estimated on a quarterly basis. The higher measure, the more difficult it is to afford a house.

What neighbourhood is right for me? Interactive real estate series (1 of 4)

STOP Mississauga LTT

STOP Mississauga LTT


Mississauga may impose a municipal land transfer tax. This could cost the buyer of an average detached Mississauga home over $10,000, upfront. Speak out:

You don't need a REALTOR to Buy Your Dream Home, Yes If You....

Do You Need A REALTOR to Buy Your Dream Home ? Answer is NO, If you know following,

- Apart from your regular job and life, you are willing to call a listing agent of each property to arrange to see houses that may or may not work for you.
- You are experienced enough to buy property in your area, and understand the contract terms and conditions.

- You are comfortable to deal with the issues come along buying a property.
- You know a mortgage lender (if needed), a good, licensed home inspector and a realty lawyer to close your deal.

- You can handle the stress of dealing with the purchase & repairs such as Roof Shingles, Furnace age, Cracks on the basement wall,
- You are capable enough to negotiate with seller without taking everything personally, and handle the resulting paperwork and deadlines with your lender and title company.
- You can review and understand the closing statement and deal with correcting any inconsistencies, then

Go ahead and do it yourself. You may be okay. But, why would you want to? I could fix my own plumbing, if I owned the tools and learned how, but I would call a plumber...unless it was something minor. I have enough to do with my own job and family needs.

And don't forget, the commission is paid by the seller to the listing agent. The listing agent will share the commission w/a buyer's agent. If there is no buyer's agent, the listing agent will keep the commission the seller has agreed to pay. So, it probably isn't going to save you money in any event.

But go ahead. You don't REALLY need a REALTOR, do you? Or you do?

The Choice is Yours, Because It's Your Home, Why do you need a REALTOR ?

The Choice is Yours, Because It's Your Home, Why do you need a REALTOR ?

Are you planning to sell your dream home, 

1) in which you spent the golden time ? 

2) where you raised your kids? 

3) where you celebrated so many holiday, did so many parties and what not ?
 

You may be planning to list on market yourself. 

Definitely a good plan if you,

- understand the process and the legal documents required in a sale 

- know what to fix in a home before you put on market

- know if home buyer's home inspector going check you attic, check you roof shingle, furnace, cracks on basement wall or window caulking.

- know you need to transfer or discharge a mortgage and whether or not you have already purchased a new property and is financing two homes simultaneously

- know that the average time it takes to sell a home in your area.

- know that the home likes your sold for what price.

- know home seller get anxious to sell home after it is on market after 45 day and end up selling it at lower price.

If you don't know any of above point, don't even try to list your home yourself you may burn yourself. Especially when market is getting slower and slower everyday.

Why a REALTOR ?

- Realtor has insight and expertise beyond the market that can help owners best position their home 

- Help you through the stressful time of trying to sell their home.

- Realtor know your area and price in your area for home like yours

- Realtor can market your property on website, MLS, Blogger, Facebook you name it.

Mihir's Market Matters Report

November 2012

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Welcome to the November issue of Mihir's Market Matters Report. Its the first day at work on standard time so everyone please drive extra carefully as you head out home today evening. 

There has been no major movements still on Mortgage rates as they continue to remain historically low these days. The 2.99% fixed for 5 years is back but has got certain limitations on it. Feel free to email me or call on 647-710-7374 to know which Mortgage product is best for your needs.

Snapshot of Best available rates as of 5th NOVEMBER 2012.
3 years - (2.79%)
5 years - (2.99%)
10 years - (3.99%)

Variable - 5 years (Prime - 0.20%) & for 3 years (Prime - 0.35%)

Mihir Oza

647-710-7374
Mortgage Agent (License # M11000672)
Verico The Mortgage Practice

My Motto: Right Advice. First Time, Every Time. 

Bank of Canada Interest Rate

September 5, 2012	1.00 %
October 23, 2012	1.00 %
December 4, 2012	Next meeting date

Source: Bank of Canada

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Bank Prime Lending Rate

September 6, 2012	3.00 %
October 24, 2012	3.00 %
December 5, 2012	Next meeting date

Source: Bank of Canada

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Conventional Mortgage - 5 Year Rate*

September 12, 2012	5.24 %
September 26, 2012	5.24 %
October 17, 2012	5.24 %

Source: Bank of Canada
*Determinant for high ratio mortgage variable qualifying rate

 

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US Federal Reserve Board Discount Rate*

September 12, 2012	0.00 % - 0.25 %
October 24, 2012	0.00 % - 0.25 %
December 11, 2012	Next meeting date

Source: US Federal Reserve
*US Federal Reserve has indicated it will keep this rate until Q4 2014

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Exchange Rate $CDN($US)

September 26, 2012	1.015
October 10, 2012	1.019
October 29, 2012	.9992

Source: Bank of Canada

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Government of Canada Bonds

Bond Type	September 26, 2012	October 10, 2012	October 24, 2012
1 year Treasury Bill	1.09%	1.12%	1.09%
3 year Benchmark Bond Yield	1.16%	1.22%	1.21%
5 year Benchmark Bond Yield	1.31%	1.36%	1.39%
10 year Benchmark Bond Yield	1.75%	1.79%	1.84%

Source: Bank of Canada

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Total New Housing Starts (Seasonally adjusted and annualized)

Province	July 2012	July 2011	August 2012	August 2011	September 2012	September 2011
Newfoundland/Labrador	4,600	4,100	4,060	3,500	3,900	3,500
PEI	1,300	1,200	1,100	900	1,400	1,300
Nova Scotia	3,000	5,700	6,800	3,700	6,100	6,100
New Brunswick	3,300	6,000	3,400	2,800	6,500	5,000
Quebec	53,800	45,600	47,300	41,100	50,300	57,800
Ontario	74,800	75,200	88,300	67,000	72,400	65,600
Manitoba	6,600	7,400	9,300	4,900	8,500	4,500
Saskatchewan	7,900	5,600	9,800	5,800	13,200	9,100
Alberta	33,400	24,300	29,400	29,100	33,400	24,900
British Columbia	25,900	30,000	30,400	25,800	29,500	29,800
CANADA	214,500	205,100	229,800	184,600	225,300	207,600

Source: CMHC Housing Now - October 2011 and October 2012. This seasonally adjusted data goes through stages of revision at different times of the year.

 

GTA Monthly Resale Report for October 2012

 Greater Toronto Area REALTORS® reported 6,896 transactions through the TorontoMLS system in October 2012 – a decrease of 7.1 per cent compared to October 2011.  

"Sales have decreased in the second half of this year compared to 2011, especially since the onset of stricter mortgage lending guidelines at the beginning of July.  

The prospect of higher monthly mortgage payments due to the reduced maximum amortization period has prompted some households to delay their home purchase," said Toronto Real Estate Board (TREB) President Ann Hannah.  

The average selling price for October transactions was $503,479 – up 6.2 per cent compared to October 2011.  The MLS® Home Price Index composite benchmark price, which allows for an apples-to-apples comparison in terms of home attributes, was up by 5.1 per cent.  

"We continue to see price increases well above the rate of inflation.  Active listings have remained low from a historic perspective, so substantial competition between buyers still exists, especially for low-rise homes," said Jason Mercer, TREB's Senior Manager of Market Analysis.  

  

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Best regards,

Ritesh JoshiYour Next Door Realtor

www.riteshtherealtor.com

647-281-3424

Are You Ready To FALL BACK ONE HOUR TONIGHT ?

Turn your clocks back one hour this weekend.
Daylight saving time ends November 4th at 2 a.m.

The weekend most Canadians fall back one hour is also the ideal time to tackle seasonal safety projects. A lot of the routine maintenance on your home and car should be done twice a year, so what better time to start checking items off your "to-do" list?

 

 

 

 

 At the same time better you look at following things around your house,
 

• Replace the batteries in your smoke and carbon monoxide detectors, and test both devices to make sure they are in working order.
  
  Tip: Don't toss the batteries; there may still be juice in them. They can be used in children's toys, media players or electronic devices. Squeeze out every drop of power, then recycle them.
• Clean gutters and downspouts to keep debris from accumulating. This is especially important now that the leaves are falling.
• Make an appointment to have your furnace cleaned and inspected by a qualified technician so it is working properly and efficiently all winter.
• Bring out of hiding, all the winter gear you'll need to clear your walk, like shovels, sand and salt.
• Have your chimney cleaned so your fireplace will be ready for use.
• Go through your medicine cabinet for expired medication. Your pharmacist should be able to either take your old medications or provide you with information about where to dispose of them.
• Inventory your home's first aid kit and replace items that are expired, or replenish items like bandages that may be running low.
• Switch your incandescent lights to compact fluorescent lights (CFLs). Although initially more expensive, CFLs save you money in the long run; they use 75% less electricity and can last up to 10 times longer.

How development charges affecting home buyers in Region of Peel

Region of Peel increased development charge by 99 % that means home buyer pays extra $18,000 for newly built home in Brampton, Mississauga and Caledon.

Of course the development charges need to be paid by the builder. Region of Peel is arguing that, developers should pay their fair share. 
What do you think ? Developers are doing business, of course they are not paying that money out of their pocket, they are going to charge you. What a home buyer should do in this situation ?

• If you are planning to buy home in region of Peel, first consult your bank, and get qualification for that extra $18000.
• Other option is to buy a resale home, in the area you are interested in.
• Down size is other option you can look at. e.g. Instead of 4 bedroom go for 3 bedroom or from detached home to semi-detached home.

http://www.thestar.com/news/gta/article/1261086--peel-development-charge-increase-means-homebuyers-pay-extra-18-000

Accelerated Bi-Weekly Mortgage Payments

Do you know there are several type of mortgage repayment frequencies ?

You might have 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? 

• 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.
-Semi-monthly means payments are made on the 1st and the 15th of  each month. You are making a total of 24 payments in the year.
-Based on our example, 
-Monthly payments works like -  $6,979.20 ($581.60 x 12).
-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.  
-Under this repayments option, it will take 25 years to pay off the mortgage in our example.

• 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
• 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

 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 - 647-281-3424

New Time-Of-Use Hydro rates from November 1st 2012 onward in Ontario