Hot Real Estate Market is going to Cool Down this Winter....NEWS

Again winter is around the corner and in the media, economic pundits, started predicting about GTA's real estate market. I am not a economist, I am a REALTOR, I would advise my client to go with the basics, take decision based on your own situation.

Where ever the market goes next month or next year, if you have decided and can afford to buy a home for you, go with positive instinct. Any investment for that matter, you have to give at least 5 years before you can have a good return on that investment. Nothing can grow overnight.

Since 2010, I am following this, so many economist predicted every year, real estate market is on the verge of collapse. Based on those predictions, I advised my clients to stay put on buying their home and each time it turn out to be false. Later my clients end up paying more than they should have paid a couple month ago.

Have a look at the chart below, ever since 1995, average price has gone up consistently.

I don't advocate buying a home. I am here to say, make an informed decision, because you buy home for you, you are the one who is responsible to pay mortgage. You  know your financial and social situation better than anyone. I am a REALTOR, I here to support you and help you to take that decision.

Mihir's Market Matters Report - October 2013

October 2013 Welcome to the October issue of Mihir's Market Matters Report. I hope everyone had a Happy Thanksgiving and are enjoying the last gasp of unusually high temperatures for the Fall season.  Variable Rate Update With recent speculation that the BoC may not raise Prime until 2016, Variable rate mortgages are the best option available. VRMs have traditionally outperformed Fixed rate mortgages over the past 25 years (see chart above, source: Bank of Canada).   Of course, VRMs are not for every client as some want the security of a Fixed Rate. I can help there too. Call me today to discuss all the options. Market Watch 5 year Bond Yield: 1.94% (as of 10/16/13) Prime Rate: 3.00% Qualifying Rate: 5.34%  Bond yields seem to have flattened out after the roller-coaster of the last few weeks. The US government shut down - and it's potential restart - will have an effect on bond yields, so stay tuned to see how this all works out.  Fixed rates are still very good and clients shouldn't be expecting dramatic changes in the short term. BEST RATES AS OF 17th OCTOBER 2013 Variable Rate: 5 years @ Prime - 0.55 or 2.45% 3 years Fixed @ 3.09% QUICK CLOSE SPECIAL - 3.34% FIXED FOR 5 YEARS Regular Rate: 3.49% FIXED FOR 5 YEARS Pre-Approvals: 3.69% FIXED FOR 5 YEARS Thanks Mihir Oza 647-710-7374 Mortgage Agent (License # M11000672) The Mortgage Practice My Motto: Right Advice. First Time, Every Time. Bank of Canada Interest Rate July 17, 2013 1.00 % September 4, 2013 1.00 % October 23, 2013 Next meeting date Source: Bank of Canada Bank Prime Lending Rate July 18, 2013 3.00 % September 5, 2013 3.00 % October 24, 2013 Next meeting date Source: Bank of Canada Conventional Mortgage - 5 Year Rate* August 14, 2013 5.14 % August 28, 2013 5.34 % September 25, 2013 5.34 % Source: Bank of Canada *Determinant for high ratio mortgage variable qualifying rate US Federal Reserve Board Discount Rate* July 31, 2013 0.00 % - 0.25 % September 18, 2013 0.00 % - 0.25 % October 30, 2013 Next meeting date Source: US Federal Reserve *US Federal Reserve has indicated it will now keep this rate until unemployment reaches 6.5% Exchange Rate $CDN($US) August 28, 2013 0.9537 September 11, 2013 0.9695 September 25, 2013 0.9696 Source: Bank of Canada Government of Canada Bonds Bond Type August 28, 2013 September 11, 2013 September 25, 2013 1 year Treasury Bill 1.11% 1.11% 1.07% 3 year Benchmark Bond Yield 1.32% 1.55% 1.42% 5 year Benchmark Bond Yield 1.90% 2.13% 1.89% 10 year Benchmark Bond Yield 2.63% 2.78% 2.57% Source: Bank of Canada Total New Housing Starts (Seasonally adjusted and annualized)  Source: CMHC Housing Now - September 2012 and September 2013. This seasonally adjusted data goes through stages of revision at different times of the year. Average MLS® Resale Price for Local Markets  Source: Canadian Real Estate Association  Canadian Housing Affordability Index Canadian Household Survey The measures are based on a 25% down payment, a 25-year mortgage loan at a five-year fixed rate, andare estimated on a quarterly basis Source TD Economics September 2013

Home Care During Fall and Winter

Fall is in full swing and #Halloween and #Diwali is around the corner. I sure you are feeling that in the air around. For homeowners, it's also about the responsibilities that come with your home - preparing it for the changing seasons and maximizing energy efficiency.

Here's a simple checklist to make sure you're fall-ready:

 Make sure you turn off the back yard and garage water tap

Go to basement and find the water valves for backyard and garage, now is the time to turn them off. Once you turn them off, make sure you open the valve from outside so the water remained in the valve drains out. This will prevent the pipe bursting during the cold winter season.

 Make sure your home is sufficiently insulated
Check your basements, attics and walls to ensure that your home is still properly insulated. Check windows for cracks or opportunities to re-caulk. Just remember, a well insulated home is an energy efficient home - and heating and cooling costs add up quickly!

 Review your heater systems
Proper maintenance of your heater and boiler systems will result in energy savings. Make sure they're clean and operating as they should be. If there are any glitches, repair immediately - this is crucial to energy efficiency in a home during the winter.

 Fall cleaning: your ventilation system
For health and energy reasons, a thorough cleaning of your vents is necessary. Check for obstruction in them - make sure they're clear and clean them. Remember: heat rises. This means in the winter you should have main-leveled vents opened completely to maximize the heat in your home.

 Replace your air filters
Avoid HVAC (heating, ventilation and air-conditioning) system failure by getting new filters. Don't let dirt collected on your old filters slow down - or worse - burn out the motor. Allow clean air to flow throughout your home without any restrictions. Clean air makes your family happy.

CMHC for Home Buyers in Canada!

The housing market in GTA has started moving to become a buyer friendly one. There are so many buyers waiting for this opportunity. I know still the prices are not that affordable and difficult to come up with 20 % down payment to avoid CMHC insurance premium.
Oh...Let me explain you what does it mean by CMHC and how is it helpful to a home buyer.
CMHC stands for? Canadian Mortgage and Housing Corporation.

You might have heard that, you can buy your own dream home with 5 % downpayment and most importantly you are still eligible for banks preferred mortgage rate. Isn't it amazing ? Yes it is amazing our home land Canada always there for its people.

Yes, it is possible through the CMHC insurance. If you don't have 20 % down payment to buy your dream home in Canada, you can purchase insurance from CMHC and then bank lands you money and you can be in your dream home. 
How does it work ?....CMHC takes the buyer under it's huge insurance umbrella, that way CMHC assures the financial institute (bank). And because of that, if due to unavoidable reasons, 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.

Please note that if you have 20% or more toward down payment, you don't need to buy CMHC insurance.

Refer table below for rates you need to pay.

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.†

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 don't hesitate to call me or email me.

Monthly Real Estate Market report for GTA for Sept 2013

Greater Toronto Area REALTORS® reported 7,411 residential sales through the TorontoMLS system in September 2013, representing a 30 per cent increase compared to 5,687 transactions reported in September 2012. Year-to-date, total residential sales reported through TorontoMLS amounted to 68,907 during the first nine months of 2013 – down by one per cent compared to the same period in 201

“It’s great news that households have found that the costs of home ownership, including mortgage payments, remain affordable.  This is why the third quarter was characterized by renewed growth in home sales in the GTA.  We expect to see sales up for the remainder of 2013, as the pent-up demand that resulted from stricter mortgage lending guidelines continues to be satisfied,” said Toronto Real Estate Board President Dianne Usher.

The average selling price for September transactions was $533,797 – up by 6.5 per cent year-over-year.  Through the first three quarters of 2013, the average selling price was $520,118 – up by over four per cent compared to the first nine months of 2012.

 

Diwali Dhamaka - 2013 hosted by Jai Ho Sports Club

Hi Friends,

I would like to extend heartfelt thanks for your support during last Saturday's 'Ratri before Navratri' event organized by Jai Ho Sports Club. As you are aware the Organization (A Not for Profit Organization) strives to provide opportunities to community members access to affordable Sports and Cultural activities in the GTA. 

Take sometime to view some of the pictures from our Garba event. 

https://docs.google.com/folderview?id=0B_UhWnOTteK-VjdWYXBiOF9LVHM&usp=drive_web

I would also like to take this opportunity to invite you all to Diwali Dhamaka - 2013 taking place on Saturday 9th November 2013 in Brampton. I have attached flyer with more details about the event. ONLINE TICKETS AVAILABLE ON https://mycity.sulekha.com/diwali-dhamaka-2013_buy_614551

The Diwali program is intended to fund raise money towards opening FREE YOGA Classes in Peel Region in 2014. 

Venue: Bovaird Banquet & Convention Centre

Unit # 24, 190 Bovaird Drive West, Brampton – L7A 1A2

(Bovaird Drive/Hurontario Street)

Live DJ Music, Dance, Contests, Prizes & Delicious Vegetarian food

TICKET PRICES

EARLY BIRD (Till Sunday 3^rd Nov)                                                                            LAST CALL (From 4^th to 8th Nov)

Under 4: FREE                                                                                                           Under 4: FREE

Ages 4 to 12 yrs: $15                                                                                                  Ages 4 to 12 yrs: $20

12 yrs & above: $20                                                                                                    12 yrs & above: $25

Feel free to call or email me for any further inquiries on tickets or ad/sponsorship packages.

Thanks

Mihir Oza

647-710-7374

Do you want to change your cell phone company ? But you are in 3 years contract right ? Read this

This afternoon, I was reading about newly launched iPhone 5s and 5c. I am not here to advertise iPhone. But personally I like iPhone. So I was planning to change phone, but I signed 3 years contract when I bought my previous iPhone. And still 1 year to go before I complete my term.


Then I recalled something that CRTC (Canadian Radio-television and Telecommunications Commission) announced recently new wireless code. The wireless code addresses several frustrations Canadians are suffering from such as the length of wireless contracts, cancellation fees, roaming charges and other industry practices.

What are you going to get from the new wireless code ? Canadians will be able to

• terminate their wireless contracts after two years without cancellation fees, even if they have signed on for a longer term
• cap extra data charges at $50/month and international data roaming charges at $100/month to prevent bill shock
• have their cellphones unlocked after 90 days, or immediately if they paid for the device in full
• return their cellphones, within 15 days and specific usage limits, if they are unhappy with their service
• accept or decline changes to the key terms of a fixed-term contract (i.e., 2-year), and
• receive a contract that is easy to read and understand

I am sure you are eager to know when is it going to be come in effect ?

From Dec 2nd 2013 it will come in effect, however it may be possible all wireless companies start respecting new policy earlier than the effective date. Check it out and enjoy your new phone, but don't forget me YOUR NEXT DOOR REALTOR !

Ritesh Joshi

647-281-3424

Mihir's Market Matters Report - September 2013

September 2013

Welcome to the September issue of Mihir's Market Matters Report. I hope everyone is enjoying the last couple of days of unusually high temperatures of 2013. Soon we shall be entering the wonderful Fall Color season. 

Over the last month or two the Bond Market has pushed fixed rates up quite high now. However, there are still few lenders who are offering quite competitive interest rates at the current time. 

Is it time to go Variable then Fixed? It certainly is for going variable if you qualify at Bank of Canada qualifying rate of 5.34% on conventional mortgages. In regards to the Mortgage Rates, I am able to offer the best rates in the Industry backed with exceptional customer service. See below for the Best Mortgage Rates which no other Brokerage can give you.

BEST RATES AS OF 11th SEPTEMBER 2013

Variable Rate: 5 years @ Prime - 0.40 or 2.60%

2 years Fixed @ 2.79%

QUICK CLOSE SPECIAL - 3.34% FIXED FOR 5 YEARS

Regular Rate: 3.49% FIXED FOR 5 YEARS

Pre-Approvals: 3.69% FIXED FOR 5 YEARS

Thanks

Mihir Oza

647-710-7374

Mortgage Agent (License # M11000672)

The Mortgage Practice

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

Bank of Canada Interest Rate

July 17, 2013	1.00 %
September 4, 2013	1.00 %
October 23, 2013	Next meeting date

Source: Bank of Canada

---

Bank Prime Lending Rate

July 18, 2013	3.00 %
September 5, 2013	3.00 %

October 24, 2013

Next meeting date

Source: Bank of Canada

---

Conventional Mortgage - 5 Year Rate* 

July 31, 2013	5.14 %
August 14, 2013	5.14 %
August 28, 2013	5.34 %

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

---

US Federal Reserve Board Discount Rate*

June 19, 2013	0.00 % - 0.25 %
July 31, 2013	0.00 % - 0.25 %
September 18, 2013	Next meeting date

Source: US Federal Reserve
*US Federal Reserve has indicated it will now keep this rate until unemployment reaches 6.5%

---

Exchange Rate $CDN($US)

July 31, 2013	0.9735
August 14, 2013	0.9682
August 28, 2013	0.9537

Source: Bank of Canada

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Government of Canada Bonds

Bond Type	July 31, 2013	August 14, 2013	August 28, 2013
1 year Treasury Bill	1.13%	1.12%	1.11%
3 year Benchmark Bond Yield	1.27%	1.33%	1.32%
5 year Benchmark Bond Yield	1.74%	1.89%	1.90%
10 year Benchmark Bond Yield	2.45%	2.62%	2.63%

Source: Bank of Canada

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Average MLS® Resale Price for Local Markets

 Source: Canadian Real Estate Association 

Canadian Housing Affordability Index Standard two-storey

Standard Condominium

The measures are based on a 25% down payment, a 25-year mortgage loan at a five-year fixed rate, andare estimated on a quarterly basis

Source RBC Economics August 2013