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

Is Your Home Winter Ready ?

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 un-insulated 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.

Best Mortgage Rate

BEST RATES as of 10th OCTOBER 2012

5 years fixed @ 2.99%

3 years variable @ Prime - 0.35%

5 years variable @ Prime - 0.20%

Mihir Oza

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

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

HGTV seeks Home Owner for New TV Show

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Best regards,

Ritesh JoshiYour Next Door Realtor

www.riteshtherealtor.com

647-281-3424

Affordable Home Ownership in Region of Peel

What is the Affordable Home Ownership Program?

For Limited time Region of Peel has again started Affordable Home Ownership Program. This program is First Come First Serve Basis
So if you are looking forward to buy your dream home in Region Of Peel (Brampton, Mississauga and Caledon)

The Region of Peel’s Home in Peel Affordable Ownership Program is designed to provide low-to-moderate income residents who are currently renting a unit with the opportunity to qualify for down payment loan assistance.

This program will assist eligible applicants who have a total gross (pre-tax) household income of $80,000 or less to purchase a home in the Region of Peel (Brampton, Caledon or Mississauga) that does not exceed a purchase price of $280,000.

Participant Eligibility

• Applicants must be 18 years of age or older
• Applicants must not own or have an interest in another residential property in Canada or elsewhere
• The home must be the sole and principal residence of the purchaser
• The applicant must currently be renting and looking to buy a sole and principal residence
• The applicant must have a total gross (pre-tax) household income not exceeding $80,000
• The applicant must be able to obtain a mortgage pre-approval from a Canada Mortgage and Housing Corporation (CMHC) approved and insured lender and must submit it with their application
• Participants may not include anticipated rental income from a portion of the property in order to obtain a mortgage
• The applicant must be able to pay all additional closing costs
• The applicant must supply all necessary documentation to the Region of Peel

Eligible Homes

Due to unpredictability of closing dates, new homes will not be eligible for purchase under the Home in Peel program.

Participants may purchase:

• resale detached homes
• semi-detached
• row homes
• town (condominium or freehold) stacked homes
• high-rise condominium units

Duplex, triplex or mobile homes do not qualify as eligible homes under the Home in Peel program.

For a home to be eligible, it must be modest in size relative to the community, in terms of floor area and amenities, as determined by the province or the service manager.

The maximum house price for program participants in the Region of Peel is$280,000.

The Down Payment Loan

The down payment assistance will be up to $15,000.

Repaying the Loan

The down payment loan is for a 20-year period and no interest is charged if:

• The home remains the sole and principal residence of the owner. The home is not to be rented, leased or sold in the 20-year period.
• On the 20th anniversary date of the agreement, the loan is automatically forgiven provided there has been no default.

Repayment of the loan is required when:

• The home ceases to become the sole and principal residence of the owner.
• The home is sold before the 20-year affordability period.

If during the 20 year affordability period, the property is resold, transferred, or otherwise disposed, and an appreciation in value is incurred, the purchaser will be required to pay back to the Region of Peel the loan and 5% of the appreciation.

If the home is sold for less than the original purchase price, the owner does not pay appreciation and the principal is forgiven (the sale must be at fair market value and must be an arm’s length transaction).

Other Costs for the Purchaser

The purchaser is expected to pay the following:

• Closing costs
• Inspection of the home prior to firm offer of purchase and sale
• Lawyer’s fees
• Land Transfer Tax

What is Needed to Qualify for the Home in Peel Program?

Interested applicants must complete the application form (PDF 333 KB, 8 pages) and provide all supporting documentation and return it to the Region of Peel.

As funding for this program is limited, participants are selected on a first-come, first-serve basis. Once an application is received, a letter confirming eligibility will be sent within 15 business days. There is no wait list for this program; once all funding has been allocated, all remaining applicants will be notified by letter that the program has ended.

Check Real Estate Price Growth In Your Area

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Best regards,

Ritesh JoshiYour Next Door Realtor

www.riteshtherealtor.com

647-281-3424

GTA REALTORS(R) RELEASE MONTHLY RESALE HOUSING FIGURES FOR SEPTEMBER 2012

Greater Toronto Area (GTA) REALTORS® reported 5,879 transactions through the TorontoMLS system in September 2012. The average selling price for these transactions was $503,662, representing an increase of more than 8.5 per cent compared to last year.

The number of transactions was down by 21 per cent in comparison to September 2011. 

"While sales have been lower due to stricter mortgage lending guidelines, we continue to see substantial competition between buyers. The months of inventory trend remains low from a historic perspective, which explains the strong price increases we are experiencing," said Toronto Real Estate Board President Ann Hannah.

September average selling prices were up compared to last year for all major home types. 

"Barring a major change to the consensus economic outlook, home price growth is expected to continue through 2013. Based on inventory levels, price growth will be strongest for low-rise home types, including single-detached and semi-detached houses and town homes," said TREB's Senior Manager of Market Analysis, Jason Mercer.

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Best regards,

Ritesh JoshiYour Next Door Realtor

www.riteshtherealtor.com

647-281-3424