Market update Toronto

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MY HABITAT FOR HUMANITY PROJECTS
SELLERS - just 10 of the things I'll do for you
BUYERS - just 10 of the things I'll do for you
First Time Buyers - everything you need to know
NEW MORTGAGE RULES

HABITAT FOR HUMANITY - MY SECOND PROJECT

January 2012, I am am just back from India, in Kerala, south/west of the country. With my team + the local masons, we worked very hard under the burning sun, building a solid brick house in a beautiful site in the mountain.

The soil was challenging and the cement bricks very heavy but the joy of the future home owners was our reward, along with fresh coconuts and tea.

Last year at the same time, I was in Kenya with another team of Canadians, where we built a little clay brick house also in the mountain. Found memories, blisters in my hands, great learning experiences.

SELLERS – JUST 10 of the things

I’ll do when listing your property:

Visit with you all comparable houses or condos for sale in the area, to make precise comparison and establish together what the best possible price for your property should be.
Create a profile in my MLS for you to monitor all activity in the area (sales, termination of listings, re-listing etc)

Help you prepare the property for the sale: de-clutter, clean, decorate.

Pay for our professional photographer, for feature sheets, for a virtual tour. Good photography is a major selling feature.

For a house: have floor plan and pre-sale inspection done.

List property in MLS with a very carefully written description. The words chosen to describe a property are very important; they have to create the desire to see it, to own it.
The listing will be posted as well as a variety of websites. Coldwell Banker international reaches potential buyers all over the world.

Have a For Sale sign installed. Many buyers discover the property thanks to the exterior sign.

Send a personal invitation to all realtors in my large list of contacts

Host an open house for agents.

Host public open houses on weekends

Monitor daily all activity (showing, inspections), get feed back from every agent who has been into the unit and report to you constantly.

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BUYERS – JUST 10 of the things

I’ll do to help you find your dream home:

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Meet you to discuss in detail what kind of home would fit your needs, the neighbourhoods where you would like to live, the budget and all aspects of the process of buying a home.

Help you get pre-approved for a mortgage.

Create a profile in my MLS matching your dreams and budget, so new listings will be sent to you automatically as soon as the properties arrive on the market. Answer all questions you might have about any for sale property.

Organize tours of homes, drive you to each location and visit all the properties you wish to see.

Help you calculate the monthly cost of any given property, find information on the schools and neighbourhood of the homes that you like

Research and send you detailed information on the history of any given property (previous owners, last sale, tax assessment, etc)

Research and send you comparables to the houses or condos you like in order to establish the true value of the properties

Write your offer, explain all the legal documents of the transaction, and negotiate on your behalf to get you the best possible deal.

Assist you all along once your offer has been accepted by the seller: set up a house inspection, get insurance, find a lawyer, organize your move.

Send you any contacts you might need: contractors, electricians, painters, etc. There is no time limit, I’ll always be there for you!

FIRST TIME BUYERS

EVERYTHING YOU ALWAYS WANTED TO KNOW BUT WERE AFRAID TO ASK

This is a little starting note I give to my first time buyers, please feel free to use it and pass it over to your friends

How much money do I need?

To buy a house or a condo, you’ll need some savings for a down payment (5% of purchase price is the minimum, it is better to have 10% or more) first time buyers can use RRSP money, ask your mortgage broker.
Other savings: you’ll need approximately 2,5% of the purchase price for closing costs: land transfer taxes + lawyers fees + title insurance.
If you are a first time buyer, you’ll be exempted of Municipal Land Transfer Tax (up to a purchase of $400,000) and get a $2,000 rebate on the Provincial tax

Example of closing costs:

Condo purchase price : $350,000

Land Transfer Tax :

Provincial $3,725.00 – first time buyers (2,000) = $1,725.00
Municipal $3,225.00 – first time buyers $0 up to $400,000
Lawyer fees: approx $750 + HST
Title insurance (once in your ownership time) $300 for condo, $450 for house + HST TOTAL closing costs in this example: $2,911.50

How do we start looking for a home?

First get pre-approved for a mortgage so you’ll know exactly what your budget is. You can do that at your own bank or financial institution. I also highly recommend Joanna Lang at Scotia Bank joannam.lang@scotiabank.com 416 834-1590
Once we’ll have determined the neighbourhoods and price range, I’ll preset a profile (Prospect Match) in my system that will send you listings automatically, as properties arrive on the market, with copy to me. We can have as many profiles as you wish, circling different neighbourhoods. Look at the listings that are sent to you if possible every day, ask me for more information and showings when you are interested.

I found the property I want to buy, now what?

I will write all the legal documents, make sure you understand what you are signing. You’ll need to have the money in the bank to make a certified cheque or bank draft (5% of the listed price) as a deposit. This cheque, in the name of the listing brokerage, will go in a trust account until closing date. The offer may be accepted as such, but more likely will be counter-signed by the seller, with changes, you may sign back again and so on back and forth, until we have an deal.
I’ll be there for you all along until closing (and beyond): home inspection, Status certificate, finding contractors, electricians, painters, roofers etc.

NEW MORTGAGE RULES:

The Canadian government has made two major changes to the rules governing mortgage loans. They are as follows:

If you buy a home with a down payment inferior to 20% of the purchase price, you will no longer be able to repay your mortgage loan over a period of time as long as 35 years. An amortization of 30 years will be the maximum allowed.
Most of the banks are now cutting the amortization to 30 years on all their products, even conventional mortgages –mortgages with a down payment of 20% or more. This rule starts on March 18, 2011.

Example of the impact of a shorter amortization:

Let’s take a loan of $435,000 at a 3.95% annual rate of interest, amortized over 35 years. The monthly payment is $1,905.
Let’s take the same loan, at the same rate, amortized over 30 years. The monthly payment is $2,053, an increase of $148 per month. However, the total saving in interests is $61,209.

When refinancing a mortgage on the home you already own, the maximum amount you will be able to borrow will be no more than 85% of the home’s value. Until then it was 90%.