Mihir's Market Matters Report - November 2013

November 2013 Welcome to the November issue of Mihir's Market Matters Report. The temperatures are starting to dip now and so are the Fixed Rate Mortgages. Are you planning to move in 2014? Your renewal is coming up in next 4 months? Any plans for debt consolidation? For any mortgage related questions feel free to call or email me on the contact details given below.  BEST RATES AS OF 18th NOVEMBER 2013 Variable Rate: 5 years @ Prime - 0.55 or 2.45% 3 years Fixed @ 2.59% QUICK CLOSE SPECIAL - 3.33% FIXED FOR 5 YEARS Regular Rate: 3.45% FIXED FOR 5 YEARS Pre-Approvals: 3.59% 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 September 4, 2013 1.00 % October 23, 2013 1.00 % December 4, 2013 Next meeting date Source: Bank of Canada Bank Prime Lending Rate September 5, 2013 3.00 % October 24, 2013 3.00 % December 5, 2013 Next meeting date Source: Bank of Canada Conventional Mortgage - 5 Year Rate* August 28, 2013 5.34 % September 25, 2013 5.34 % October 23, 2013 5.34 % Source: Bank of Canada *Determinant for high ratio mortgage variable qualifying rate US Federal Reserve Board Discount Rate* September 18, 2013 0.00 % - 0.25 % October 30, 2013 0.00 % - 0.25 % December 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) September 25, 2013 0.9696 October 9, 2013 0.9621 October 23, 2013 0.9630 Source: Bank of Canada Government of Canada Bonds Bond Type September 25, 2013 October 9, 2013 October 23, 2013 1 year Treasury Bill 1.07% 1.01% 0.99% 3 year Benchmark Bond Yield 1.42% 1.40% 1.28% 5 year Benchmark Bond Yield 1.89% 1.89% 1.73% 10 year Benchmark Bond Yield 2.57% 2.57% 2.43% Source: Bank of Canada   Total New Housing Starts (Seasonally adjusted and annualized)  Source: CMHC Housing Now - October 2012 and October 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  Quarterly Household Survey - Q3 2013  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: Royal LePage Ocotber  2013

Monthly Real Estate Market report for GTA for Oct 2013

Greater Toronto Area REALTORS® reported 8,000 home sales through the TorontoMLS system in October 2013 – up from 6,713 transactions reported in October 2012. Over the same period, new listings on the TorontoMLS system were down. 

“The supply of listings for many home types and price points has either been down year-over-year or at least not up by the same annual rate as sales. 

The average selling price for TorontoMLS sales in October 2013 was $539,058– up by more than seven per cent in comparison to the average price of $502,127 in October 2012. The MLS® Home Price Index (MLS® HPI) Composite Benchmark was up by 4.5 per cent year-over-year. 

“Growth in the average selling price and the MLS® HPI Composite Benchmark will continue through 2014. Inventory levels for ground-oriented home types will be low from a historic perspective and home ownership demand will stay strong as affordability remains in check due to the continuation of accommodative borrowing costs,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis. 

It's again Time To Clock Back to Standard Time, This Sunday Nov 3rd and something more....

It's again Time To Clock Back to Standard Time, This Sunday Nov 3rd. Don't Forget to Change the time.

With the clock back make your house winter ready.

1) Shut-off water valves - Locate water valves for backyard and garage (usually in the basement) and turn of, open outside valve and drain them. This will protect you pipe from bursting.

2) 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.

3) 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.

4)|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.

5) Inspect your roof and chimney, and do any repairs that are needed. Look for cracked shingles, crumbling masonry and damaged or missing flashing. 

6) 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.

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