Mortgage rates are closely tied to the Bank of Canada Rates - and it appears as though there won't be any mortgage rate increases this quarter as the Bank of Canada's announcement this morning should not include a rate hike.
This article from Property Wire outlines the reasons for no change.
"It is almost that time again, when eyes will turn towards Mark Carney and the Bank of Canada to see if interest rates will stay put again this time around.
The next announcement, slated for Tuesday May 31, comes at an interesting time. Throughout the first part of this year, it was widely believed that interest rates had stayed as low as they could, and for as long as they could, and the prediction was that rates would begin to creep up as early as this spring.
However, as with many predications, several things were not foreseen in the forecasting.
What has happened most notably in advance of this latest announcement- was unpredicted behaviour on a number of fronts. Consumer prices across many categories have been rising rapidly (although fell slightly below expectations last month), but are clearly displaying an upward trend. Inflation, while still manageable, is running a little too high to be ignored as a factor as well.
So, rates will rise at some point, but given the existence of some volatile conditions in the market, and fears that a rate hike will erode an already tenuous hold on affordability due to rising prices, the question is, is that time now?
According to a survey done by Reuters last week, forecasters predict that a rate hike will not happen until Q3 2011. It is widely believed that rates will go up to 1.25% in the third quarter from the current 1%. Almost unanimously, the forecasters polled agreed that the announcement on May 31 will be a rate hold- again.
Supporting these findings, three of the major banks have also indicated that they don’t expect to see rate hikes until the fall either.
If all of this comes to pass, it is good news for the Canadian housing market. The time-limited offer of ultra-low interest rates will get extended. Coupled with the fact that this will end at some time contributes to a sense of urgency as well.
How does this translate into daily business for Real Estate and for the Mortgage professions? Propertywire.ca asked some members of the community.
Tara Gibson, Mortgage Broker, TAG Financial - Mortgage Alliance TAG Mortgages, agrees that rates will remain steady for the time being, but thinks that an increase could come as early as the summer. “In my opinion, our strong dollar is enough to predict that we won’t see an increase in interest rates this time; more likely in July. The question is, will discounts on Prime change with the lenders? I think we may start seeing this compress a bit soon enough; in fact, some lenders have already started to close the gap. Many clients are currently choosing to go with a variable rate; simple case of supply and demand, prices go up with increased demand.”
“Despite all the pressure to see interest rates increase, industry experts believe that the Bank of Canada and lenders will increase rates at a slow rate. Advice to borrowers, if you want a variable, get in on the rate holds before we see more lenders change the discount! Further to that and much more important, global uncertainty is only postponing the inevitable, rates WILL go up so make sure you are fully prepared to handle the change when you go to renew your mortgage in 5 or 10 years!"
Trish Pigott,Broker/Owner, Primex Mortgages agrees too that status quo will be the order of the day on Tuesday. “I'm sure they are going to remain steady and unchanged. The majority of economists were predicting July as our next increase but they are now changing that until September and even some as early as next year. With our global economy in the state it’s in, I can't see it changing much until the rest of the world stabilizes.”
Pigott feels too, that the current environment in prime for creating business opportunities: “I think it's great for the consumers’ buying decision, as it's a general mentality to purchase when rates are low. My personal opinion is that we, as brokers, have to continue to create business and marketing strategies despite a rising or changing rate market. There is so much opportunity if we focus on servicing our existing database and capture their referrals along with staying consistent in our efforts to drive business. If we work hard despite the market, the business will be there.” "
Find relevant information on real estate, from household tips to market conditions and statistics. Contact me for a FREE Home Value Report!
Tuesday, May 31, 2011
Friday, May 27, 2011
What is the cost of NOT implementing Light Rail Transit? Current BACKLOG of required road maintenance is $590 Million
Did you know the average cost to resurface a road in the city (which is regular maintenance) is over $500,000 per kilometre!?!
The majority of opponents to light rait transit (LRT) use cost as the main argument against implementation. Here is a great article in today's Record that discusses the overwhelming road maintenance costs (which doesn't even address new road building) facing this region's city's. As noted in the articl, the cost to widen Weber Street from College to Guelph is estimated at $56 million - there was no referendum on that.
The majority of opponents to light rait transit (LRT) use cost as the main argument against implementation. Here is a great article in today's Record that discusses the overwhelming road maintenance costs (which doesn't even address new road building) facing this region's city's. As noted in the articl, the cost to widen Weber Street from College to Guelph is estimated at $56 million - there was no referendum on that.
Would cost $590M to fix backlog of maintenance across Waterloo Region — and more needed work is added every year
Pot holes A pothole on Otto Street remains unrepaired. Our municipal governments cannot keep up with the cost of maintaining the roads. Bringing all roads up to current standards in the three cities would cost about $455 million.
Record staff
WATERLOO REGION — The network of local streets and major roads is expanded every year even though the municipal governments cannot afford to maintain what already exists.
It would cost more than $490 million to clear the backlog of road maintenance now on the books in Kitchener, Waterloo and Cambridge. In addition to that, the outstanding road maintenance in the three townships would cost more than $100 million.
In today’s dollars it will cost about $467,000 per kilometre to resurface an existing two-lane road in a rural area. That increases to $506,000 per kilometre in urban areas.
If a road is not resurfaced every 15 to 17 years, its base becomes damaged by water that freezes and expands and the repair costs increase dramatically to about $1.6 million per kilometre.
Big figures such as these are the driving force behind new policies that aim to reduce the need for more roads. There is increasing recognition the current approach is not good for either municipal finances or the environment.
“That’s why we took the approach in our new transportation master plan of minimizing future road expansion,” said Chris Hodgson, a transportation engineer and project manager in Waterloo.
In Waterloo, the backlog of road repairs is about $170 million.
But the policies that aim to reduce the need for new roads are not always popular with elected councillors. Spending on sidewalks, cycling lanes and multi-use trails are regularly dropped at budget time. Plans for rapid transit in this region sparked a loud and passionate debate.
“Staff can only make recommendations and the rest is down to the decision-makers about where they want the money to be spent,” Hodgson said.
In Kitchener, the local streets need $85 million in work.
City councillors in Kitchener recently cut the $200,000 for implementing a cycling master plan. The new cycling plan was adopted only last year. The old plan sat on a shelf for more than 10 years because it was never supported by councillors.
Kitchener councillors also killed the recommendation to hire someone to head up transportation-demand management. For years city staff tried to get such a person hired to get more people walking, cycling and riding transit.
During the budget talks earlier this year, Jeff Willmer, Kitchener’s head of planning and development, explained why city staff want to move in that direction.
“This responds to many public-policy objectives for personal health, community health, environmental health and investment,” Willmer said.
Reducing the number of vehicles coming into the downtown, Willmer said, reduces the need for more parking and frees up land for development, both residential and employment.
The Region of Waterloo is responsible for the major roads in the area and they need about $265 million in work.
“It’s not for new infrastructure, it’s for maintaining what we already have,” said Robert Gallivan, the region’s manager of transportation development.
He said if the federal government wrote a cheque to clear that backlog of work, the very next year about $35 million would still be needed just to maintain the rest of the network.
“It’s not something that ends, it is something you have to do forever,” Gallivan said.
But regional councillors also gutted funding recommendations for the construction of bicycle lanes and trails in recent years. At the same time, the region’s plans for a higher order of transit sparked a heated debate.
City councillors in Cambridge are facing a $25-million price tag to bring all local streets up to current standards.
The cost of maintaining the local and regional network exceeds by far the estimated cost to local taxpayers for the region’s proposed rapid-transit system, which is $265 million.
Cambridge city council voted to oppose the region’s plans for a system of light-rail trains in Kitchener and Waterloo with fast buses into Cambridge. And Waterloo Mayor Brenda Halloran wants a referendum on the region’s $818-million plans for light-rail and rapid buses.
Jeff Casello, a University of Waterloo professor who studies urban transportation, said it is easier for politicians to support spending on roads rather than sustainable options.
“It is a chicken-and-egg problem,” Casello said.
“If you look at what the volume of traffic is now by cycling, walking or transit, relative to car travel, the numbers are pretty small,” Casello said. “So when you are going through the budgeting process and you are thinking: ‘What can I cut here?’ — the impacts of cutting a cycling program are smaller in the short term.”
But once a cycling network is expanded to the point where meaningful numbers of people use it every day then politicians will find it harder to cut funds for it.
“The motivation has always been to cut new ribbons, to build new projects, because you can stand next to them, but the maintenance and operation costs get overlooked and that’s really true with roads,” Casello said.
“The money generated in gas revenues certainly does not cover the costs of operating the roadways,” he said.
The widening of Weber Street between College and Guelph streets, will cost an estimated $52 million.
“There is no call for a referendum on that,” Casello said.
It would cost more than $490 million to clear the backlog of road maintenance now on the books in Kitchener, Waterloo and Cambridge. In addition to that, the outstanding road maintenance in the three townships would cost more than $100 million.
In today’s dollars it will cost about $467,000 per kilometre to resurface an existing two-lane road in a rural area. That increases to $506,000 per kilometre in urban areas.
If a road is not resurfaced every 15 to 17 years, its base becomes damaged by water that freezes and expands and the repair costs increase dramatically to about $1.6 million per kilometre.
Big figures such as these are the driving force behind new policies that aim to reduce the need for more roads. There is increasing recognition the current approach is not good for either municipal finances or the environment.
“That’s why we took the approach in our new transportation master plan of minimizing future road expansion,” said Chris Hodgson, a transportation engineer and project manager in Waterloo.
In Waterloo, the backlog of road repairs is about $170 million.
But the policies that aim to reduce the need for new roads are not always popular with elected councillors. Spending on sidewalks, cycling lanes and multi-use trails are regularly dropped at budget time. Plans for rapid transit in this region sparked a loud and passionate debate.
“Staff can only make recommendations and the rest is down to the decision-makers about where they want the money to be spent,” Hodgson said.
In Kitchener, the local streets need $85 million in work.
City councillors in Kitchener recently cut the $200,000 for implementing a cycling master plan. The new cycling plan was adopted only last year. The old plan sat on a shelf for more than 10 years because it was never supported by councillors.
Kitchener councillors also killed the recommendation to hire someone to head up transportation-demand management. For years city staff tried to get such a person hired to get more people walking, cycling and riding transit.
During the budget talks earlier this year, Jeff Willmer, Kitchener’s head of planning and development, explained why city staff want to move in that direction.
“This responds to many public-policy objectives for personal health, community health, environmental health and investment,” Willmer said.
Reducing the number of vehicles coming into the downtown, Willmer said, reduces the need for more parking and frees up land for development, both residential and employment.
The Region of Waterloo is responsible for the major roads in the area and they need about $265 million in work.
“It’s not for new infrastructure, it’s for maintaining what we already have,” said Robert Gallivan, the region’s manager of transportation development.
He said if the federal government wrote a cheque to clear that backlog of work, the very next year about $35 million would still be needed just to maintain the rest of the network.
“It’s not something that ends, it is something you have to do forever,” Gallivan said.
But regional councillors also gutted funding recommendations for the construction of bicycle lanes and trails in recent years. At the same time, the region’s plans for a higher order of transit sparked a heated debate.
City councillors in Cambridge are facing a $25-million price tag to bring all local streets up to current standards.
The cost of maintaining the local and regional network exceeds by far the estimated cost to local taxpayers for the region’s proposed rapid-transit system, which is $265 million.
Cambridge city council voted to oppose the region’s plans for a system of light-rail trains in Kitchener and Waterloo with fast buses into Cambridge. And Waterloo Mayor Brenda Halloran wants a referendum on the region’s $818-million plans for light-rail and rapid buses.
Jeff Casello, a University of Waterloo professor who studies urban transportation, said it is easier for politicians to support spending on roads rather than sustainable options.
“It is a chicken-and-egg problem,” Casello said.
“If you look at what the volume of traffic is now by cycling, walking or transit, relative to car travel, the numbers are pretty small,” Casello said. “So when you are going through the budgeting process and you are thinking: ‘What can I cut here?’ — the impacts of cutting a cycling program are smaller in the short term.”
But once a cycling network is expanded to the point where meaningful numbers of people use it every day then politicians will find it harder to cut funds for it.
“The motivation has always been to cut new ribbons, to build new projects, because you can stand next to them, but the maintenance and operation costs get overlooked and that’s really true with roads,” Casello said.
“The money generated in gas revenues certainly does not cover the costs of operating the roadways,” he said.
The widening of Weber Street between College and Guelph streets, will cost an estimated $52 million.
“There is no call for a referendum on that,” Casello said.
Wednesday, May 25, 2011
Let real estate help with University expenses
Many Canadian parents who have a son or daughter going away to University this Fall are already thinking about all the expenses this will involve. While there may not be much that most parents can do about the high cost of tuition, books or travel, there’s one major college expense that you may be able to turn to your advantage.
Rather than paying rent at a student residence for three or four years, you could buy a rental property and turn that expense into a source of income. If you buy a property near the campus, you could rent rooms to other students and your child could potentially live there rent free. With financing rates at near historic lows, it’s a great time to invest in real estate. If you buy smart, you may be able to recover all or most of the cost of your child’s college housing expense. You might even be able to generate enough positive revenue to offset some of the other expenses of a college education. Best of all, if house prices continue their upward climb, in just a few years you could potentially realize a profit on the equity you have built up in the property.
Whether your real estate needs are nearby or in another community, you can start the process right there at home. I can counsel you on what to look for and what to avoid. There are also several unique Coldwell Banker online resources to help you in your search, including the Home Price Comparison Index available at www.coldwellbanker.ca and On Location, the first real estate channel on YouTube™. Through my connections in the financial sector, I can even help you pre-qualify for a mortgage, so you’ll know in advance exactly how much house you can afford. And when you’re ready to start looking, I can personally show you properties near at hand, or if you’re looking for a property out of town, I can put you in touch with an experienced real estate professional who’ll show you suitable properties in your target area.
Why not take advantage of the opportunities that are available in today’s market and use it to help offset the high cost of a University education? If you’d like to talk about your options, please give me a call. It could be the most important call you’ll ever make!
Wednesday, May 18, 2011
A Few Home Energy Saving Ideas
Energy costs can take a big bite out of any homeowner’s budget, so you need to know how to be energy-wise. Here are a couple quick and easy ways to cut your energy bills with a minimum of time and effort.
I would be more than happy to discuss the various incentive programs offered.
Old appliances may also be draining more power than you might think. Did you know that a refrigerator is one the biggest energy users in the house? So, if you have an old appliance that needs repair, don’t just look at the cost of fixing it, also think about how much energy it uses. Today’s newer appliances are far more energy efficient than their predecessors, so buying used appliances or repairing an old unit may not be the bargain that you think it is!
One of the biggest energy expenses is your home heating bill, so let’s start there. You can significantly reduce your energy costs by installing a thermostat with an automatic timer that allows you to set the temperature back by a few degrees at bedtime, and returns the temperature to a more comfortable level before you get up. After all, why heat the whole house, when an extra quilt will keep you toasty and warm for a lot less money? On the flip side, when the temperatures ramp up, pre-set timers can reduce air conditioning costs too.
Similarly, if you have a room that isn’t used every day, such as a guest room or workshop, consider shutting the air register, and closing the door until you plan to use the space. Your furnace or air conditioning system won’t have to work so hard and you’ll pocket the savings while the rest of your home environment stays in the comfort zone.
You can also reduce the effect of ambient solar heating in summer and heat loss in winter with lined draperies or installing window blinds. Adding weather-stripping to seal drafts around doors can also result in big energy savings.
Insulation is an energy saver that works hard for you all year long. A one-time investment keeps your home cooler in summer and warmer in winter and the cost of installation can be recaptured in energy savings. Many local utilities and government bodies offer special incentives or rebates to help offset the cost of energy-saving improvements, so be sure to investigate what options are available in your market.
The cost of making your attic insulation R-50 with blown in insulation is very reasonable.
I would be more than happy to discuss the various incentive programs offered.
Old appliances may also be draining more power than you might think. Did you know that a refrigerator is one the biggest energy users in the house? So, if you have an old appliance that needs repair, don’t just look at the cost of fixing it, also think about how much energy it uses. Today’s newer appliances are far more energy efficient than their predecessors, so buying used appliances or repairing an old unit may not be the bargain that you think it is!
These few simple suggestions could reduce your energy consumption noticeably. If you have any other ideas, please email them to me so I can use them in future blogs.
Sunday, May 15, 2011
Did You Receive a WRITTEN Guarantee from Your REALTOR (that isn't followed by "fine print")?
In today’s marketplace, buyers and seller are constantly being inundated with advertising claims from a number of real estate brands, many of which sound very similar from one company to the next. The consumer is left wondering whether there really is a difference between real estate companies.
That was a key reason why Coldwell Banker developed Ultimate Service®. While other brands or real estate professionals may talk about quantity – how many homes they’ve sold, or other such numbers -- Coldwell Banker focuses on quality. The quality of service that Coldwell Banker professionals deliver to home buyers and sellers across Canada through a unique program called Ultimate Service.
It all starts with listening. Every customer and every transaction is different. Only by listening to the customer and truly understanding their individual needs, can you deliver a value proposition that will meet those needs.
There are three distinct steps to the Ultimate Service marketing process:
-- First, we listen to the customer
-- Second, -- together with the customer -- we develop a customized service plan to meet their needs…and then commit to that service plan, in writing. We offer a signed pledge to customer satisfaction in the form of our Buyer and Seller service guarantees
-- And finally, we give our customers an opportunity to evaluate our service in the form of customer satisfaction surveys.
The satisfaction surveys benefit the consumer in two ways. First of all, it helps us to continually evaluate and refine their service. Only by constantly improving can you ensure that your service stays ahead of your customers’ expectations.
But there’s another way that our survey benefits the consumer - it offers them a proven track record of our performance. In fact, Coldwell Banker Canada has just earned a 98% overall satisfaction rating from Canadian Home Buyers and Sellers. And what’s more, we’ve now done it for 13 years in a row!
Our Ultimate Service claim is unique in the real estate industry. Why? Because it’s based on what real, live customers had to say about the service experience delivered by their Coldwell Banker agent.
Our 98% satisfaction rating – which was tabulated by an independent third party company – was based on the responses of over 50,000 Canadian home buyers and sellers. No other company in real estate can make that claim.
When you choose Coldwell Banker, you don’t have to take our word for it that we provide outstanding service – just ask our customers!
If you are considering buying or selling real estate, please contact me as a first step to determine the best strategy to achieve the goals you want.
That was a key reason why Coldwell Banker developed Ultimate Service®. While other brands or real estate professionals may talk about quantity – how many homes they’ve sold, or other such numbers -- Coldwell Banker focuses on quality. The quality of service that Coldwell Banker professionals deliver to home buyers and sellers across Canada through a unique program called Ultimate Service.
It all starts with listening. Every customer and every transaction is different. Only by listening to the customer and truly understanding their individual needs, can you deliver a value proposition that will meet those needs.
There are three distinct steps to the Ultimate Service marketing process:
-- First, we listen to the customer
-- Second, -- together with the customer -- we develop a customized service plan to meet their needs…and then commit to that service plan, in writing. We offer a signed pledge to customer satisfaction in the form of our Buyer and Seller service guarantees
-- And finally, we give our customers an opportunity to evaluate our service in the form of customer satisfaction surveys.
The satisfaction surveys benefit the consumer in two ways. First of all, it helps us to continually evaluate and refine their service. Only by constantly improving can you ensure that your service stays ahead of your customers’ expectations.
But there’s another way that our survey benefits the consumer - it offers them a proven track record of our performance. In fact, Coldwell Banker Canada has just earned a 98% overall satisfaction rating from Canadian Home Buyers and Sellers. And what’s more, we’ve now done it for 13 years in a row!
Our Ultimate Service claim is unique in the real estate industry. Why? Because it’s based on what real, live customers had to say about the service experience delivered by their Coldwell Banker agent.
Our 98% satisfaction rating – which was tabulated by an independent third party company – was based on the responses of over 50,000 Canadian home buyers and sellers. No other company in real estate can make that claim.
When you choose Coldwell Banker, you don’t have to take our word for it that we provide outstanding service – just ask our customers!
If you are considering buying or selling real estate, please contact me as a first step to determine the best strategy to achieve the goals you want.
Thursday, May 12, 2011
City of Waterloo's Rental Housing By-law is now official
The City of Waterloo's attempt to regulate rental housing by adopting a by-law was approved by City Council on May 9th.
Highlights include:
- Bedroom limits for class A or B homes increased from three to four.
- Class E licenses have been extended to 36 months (originally 18 months).
- Police checks will be required of all landlords, and renewed every five years thereafter (instead of yearly).
- Block licensing available for some townhomes held under a single ownership.
- All landlords will need to complete an online education session.
- Existing lodging houses will be grandfathered.
- Council directed staff to return with a revised funding model based on the changes on bedroom limits.
The full by-law can be found at this link: http://www.kwar.ca/rental/RentalBy-law2011-047.pdf
Contact me if you would like a full rundown of the by-law and its ramifications for home owners.
Highlights include:
- Bedroom limits for class A or B homes increased from three to four.
- Class E licenses have been extended to 36 months (originally 18 months).
- Police checks will be required of all landlords, and renewed every five years thereafter (instead of yearly).
- Block licensing available for some townhomes held under a single ownership.
- All landlords will need to complete an online education session.
- Existing lodging houses will be grandfathered.
- Council directed staff to return with a revised funding model based on the changes on bedroom limits.
The full by-law can be found at this link: http://www.kwar.ca/rental/RentalBy-law2011-047.pdf
Contact me if you would like a full rundown of the by-law and its ramifications for home owners.
Saturday, May 7, 2011
"Hidden" fees in the cost of purchasing a home - did YOUR REALTOR advise you?
Besides the minimum 5% downpayment required to purchase and home, there are several other costs that can come up - it is important for REALTORs to discuss this with their buyer clients so that they can budget and are aware of what their total purchase costs will actually be.
They include:
Mortgage insurance -- If you have a high-ratio mortgage, the government requires that it be insured against default and that you pay the cost of insurance. The cost to you ranges from .51 to 2.90 per cent of the mortgage amount and is added to the mortgage principal.
Property and title insurance - Besides high-ratio mortgage insurance, mortgage lenders require your client to have property insurance in place. This insurance covers the cost of replacing the structure of your home and the premiums depend on the value of your home, according to CMHC. The lender may also recommend title insurance. For a home worth $500,000, the cost would be about $350
Appraisal fee -- While it’s beneficial to know how much any prospective house your client is looking at is worth in order to negotiate price, home appraisals are also used to protect the lender’s interests. It’s likely a lender will ask for a recognized appraisal in order to complete a mortgage. Usually, the cost of an appraisal ranges from $250 to $350. However, some lenders will pay for the appraisal fees to get the business.
Home inspection -- an independent look at the house and property can cost in the $350-500 range for most single-family homes. Home inspections are recommended to identify if there are any other potentially costly expenses – issues not visible to the naked eye – that may impact the costs and upkeep of the home.
Property survey -- always a good idea, but not always carried out. A land surveyor can make sure the buyer is getting the property they think they are buying. A surveyor can properly install property markers on the corners of the lot. With those, the buyer will precisely know the boundaries.
Water testing -- for properties not on a municipal water system, most - if not all - financing institutions require the water source to be tested to ensure it meets standards for human consumption. Some areas also have compounds in the water the prospective buyer may wish to know about.
Status certificate fee -- When making an offer to purchase a condominium, it’s a good idea to ensure an offer is conditional upon obtaining and having time to review an Status certificate. This fee (not applicable in Quebec) applies when buying a condominium or strata unit and could cost up to $100.
Land transfer tax -- Land transfer tax is specific to each province and is a percentage of the purchase price, usually 0.5%. However, provinces such as Alberta and Saskatchewan have no land transfer tax, while others offer a full or partial exemption for first-time buyers.
Legal Fees -- A lawyer will help protect your clients legal interests and negotiate the terms of any offers made. Legal costs will depend on the complexity of the transaction and the lawyer’s experience.
Prepaid property tax or utility bills -- If a closing date is mid month, a seller may have already prepaid taxes or utility bills. Buyers should be prepared to reimburse the seller for prepaid property tax and utility bills should they request it.
Mortgage application fee --Some lenders may charge a fee to process your mortgage application. However, with the highly competitive nature of the mortgage industry, many will waive the fee entirely, especially if you have other accounts with them.
Mortgage broker's fee -- If you use a mortgage broker to find you a lender, you may be charged a fee which is payable at the time of closing when the mortgage transaction is complete. In many cases, brokers are paid directly by the lenders, so you should ask the mortgage broker about who pays the fee.
Contact me if you want a complete rundown of the purchase process and want a dedicated REALTOR to protect your interests.
They include:
Mortgage insurance -- If you have a high-ratio mortgage, the government requires that it be insured against default and that you pay the cost of insurance. The cost to you ranges from .51 to 2.90 per cent of the mortgage amount and is added to the mortgage principal.
Property and title insurance - Besides high-ratio mortgage insurance, mortgage lenders require your client to have property insurance in place. This insurance covers the cost of replacing the structure of your home and the premiums depend on the value of your home, according to CMHC. The lender may also recommend title insurance. For a home worth $500,000, the cost would be about $350
Appraisal fee -- While it’s beneficial to know how much any prospective house your client is looking at is worth in order to negotiate price, home appraisals are also used to protect the lender’s interests. It’s likely a lender will ask for a recognized appraisal in order to complete a mortgage. Usually, the cost of an appraisal ranges from $250 to $350. However, some lenders will pay for the appraisal fees to get the business.
Home inspection -- an independent look at the house and property can cost in the $350-500 range for most single-family homes. Home inspections are recommended to identify if there are any other potentially costly expenses – issues not visible to the naked eye – that may impact the costs and upkeep of the home.
Property survey -- always a good idea, but not always carried out. A land surveyor can make sure the buyer is getting the property they think they are buying. A surveyor can properly install property markers on the corners of the lot. With those, the buyer will precisely know the boundaries.
Water testing -- for properties not on a municipal water system, most - if not all - financing institutions require the water source to be tested to ensure it meets standards for human consumption. Some areas also have compounds in the water the prospective buyer may wish to know about.
Status certificate fee -- When making an offer to purchase a condominium, it’s a good idea to ensure an offer is conditional upon obtaining and having time to review an Status certificate. This fee (not applicable in Quebec) applies when buying a condominium or strata unit and could cost up to $100.
Land transfer tax -- Land transfer tax is specific to each province and is a percentage of the purchase price, usually 0.5%. However, provinces such as Alberta and Saskatchewan have no land transfer tax, while others offer a full or partial exemption for first-time buyers.
Legal Fees -- A lawyer will help protect your clients legal interests and negotiate the terms of any offers made. Legal costs will depend on the complexity of the transaction and the lawyer’s experience.
Prepaid property tax or utility bills -- If a closing date is mid month, a seller may have already prepaid taxes or utility bills. Buyers should be prepared to reimburse the seller for prepaid property tax and utility bills should they request it.
Mortgage application fee --Some lenders may charge a fee to process your mortgage application. However, with the highly competitive nature of the mortgage industry, many will waive the fee entirely, especially if you have other accounts with them.
Mortgage broker's fee -- If you use a mortgage broker to find you a lender, you may be charged a fee which is payable at the time of closing when the mortgage transaction is complete. In many cases, brokers are paid directly by the lenders, so you should ask the mortgage broker about who pays the fee.
Contact me if you want a complete rundown of the purchase process and want a dedicated REALTOR to protect your interests.
Thursday, May 5, 2011
Mixed signals on support for rapid transit in Kitchener-Waterloo
How do you feel about the Light Rail Transit issue?
This article from the May 4th Waterloo Record discusses a very important issue on which anyone who is following it has very strong opinions. There are many serious implications for the future of the Waterloo Region and I think it is important for everyone to understand all the issues and have an informed opinion.
By Philip Walker, Record...
WATERLOO REGION — Tim Mollison looks at 38-per-cent public support for trains — and sees victory for light rail transit.
Ruth Haworth looks at 38-per-cent public support for trains — and sees opposition to light rail transit.
They were reacting to a Record poll showing a community deeply divided over an $818-million plan to put electric trains on streets in Kitchener and Waterloo.
The opinion poll reveals 38 per cent of residents support trains, 32 per cent want rapid buses, and 30 per cent support road upgrades without rapid buses or trains.
“We’re very glad to see this, because what this says is light rail would win a referendum in this community,” said Mollison, spokesperson for the pro-rail Tri-Cities Transport Action Group.
Mollison argues the poll shows trains are supported by a plurality of residents. That’s how voters elect governments, he said. Whoever gets most votes wins.
Haworth argues the poll shows the majority of residents do not want trains, so politicians are on the wrong track.
“It shows that we need a referendum,” said Haworth, spokesperson for the anti-rail Taxpayers for Sensible Transit.
“We have a proposal before us to put trains on the streets. And it seems that people are against it.”
The poll of 1,036 adults is the first to gauge public sentiment about the rapid transit proposal in a scientific way. It was conducted by Metroline Research Group and is considered accurate to within 3.1 percentage points, 19 times out of 20.
Regional council must vote in June to confirm rail transit as an urban redevelopment scheme, meant to persuade investors to build homes and workplaces in central neighbourhoods.
Politicians parsed results to see support and opposition.
“It encourages me,” said Kitchener Mayor Carl Zehr, who intends to vote for rail transit. “It strengthens the view that most people are looking into the future on this.”
Zehr interprets poll results to show that two out of three residents support rapid transit in some form. He believes trains are the better choice, more costly at first but cheaper in the long run.
Ridership “won’t be there right away, the way it needs to become,” Zehr said.
“But we’re building for people who haven’t yet been converted, and who have yet to move into this community, because we’re going to have another 200,000 people.”
Coun. Geoff Lorentz of Kitchener said poll results reflect growing opposition to trains. “People are starting to get worried,” he said.
Lorentz argues trains will cost a lot, are no faster than buses, will limit drivers to right-ins and right-outs, and will displace traffic into residential neighbourhoods. “We don’t have the critical mass to make this work,” he said.
Waterloo Mayor Brenda Halloran is not surprised by what the poll found.
“I think the poll really captured exactly how the community is feeling, and the division that is within the community,” she said.
Coun. Sean Strickland of Waterloo sees “pretty strong support for (light rail transit)” in the poll. He plans to vote for rapid transit in some form.
Strickland points to the “fairly high percentage” of residents who do not support rapid buses or trains. “It tells me we need to do some more education about what the future of our community is really going to look like,” he said.
Coun. Jim Wideman of Kitchener was surprised to see 30 per cent willing to go without rapid transit. He argues this will lead to high local costs and social disruptions, as roads are expanded through neighbourhoods, without senior government funding to help pay the bills.
“This is likely going to be one of the toughest decisions that I will be making as a politician,” said Wideman, who intends to vote for rapid transit in some form. “At the end of the day, I think this is the time to show leadership.”
Retired transportation professor John Shortreed figures the poll confirms public opposition to rail transit.
“That’s a very clear outcome, that 62 per cent of the people favour other solutions other than (light rail transit),” said Shortreed, a leading critic of the rail transit plan.
Metroline surveyed adults by telephone, on land lines and cellphones. The sample was controlled to reflect community demographics based on the 2006 census. Results reflect public opinion at the time residents were polled.
Public opinion on the rail transit proposal remained divided at a public consultation session held in Waterloo Wednesday evening.
“I really like the idea,” said Waterloo resident Louise McLaren. “I think it’s more cost-effective in the long run.”
Her children are already daily Grand River Transit users. “The buses are already filling up. They’re just clogging up our streets,” said Billy McLaren.
“It’s only going to get busier,” added his sister, Erin. “Light rail transit gives you that solid base.”
Some critical of the plan see the cost as too prohibitive, and too great a burden on taxpayers.
“Tax-wise, it’s too expensive,” said George Sommerstorfer of Waterloo. “People who are retired, on the Canada Pension Plan, can barely make ends meet as it is.”
But Mark Kompter said funding available from the federal and provincial governments should be taken advantage of while it’s being offered. “I’m sure it’s on a time limit,” he said. “I’d say now is the best time.”
Karen Hilling said the whole concept is based on an outdated belief that businesses need to be attracted to a downtown core.
“In pioneer days, the village was the centre of commerce and social activity. However, with the increase in global communication, business can happen any time and anywhere.”
In a letter Hilling sent to regional and municipal councils, she urged politicians to remember their mandate to represent their constituents.
“I think that some politicians have been blinded by the allure of shiny trains and new buildings,” she said. “Waterloo Region is not Toronto or Calgary. We do not have a strong sense of identity with the city core.”
Jim Huxted of Kitchener said he feels that planners are wearing light rail blinders. “They haven’t really shown us if buses could work.”
Huxted, like others, has concerns that the system would be underused. “I think they have to develop the ridership before they can be spending the money we’d be spending on light rail,” he said.
“We’ve got three downtowns, not just one,” Huxted said. “The population base in each downtown doesn’t even come close to other cities with a rapid transit system.”
A similar public session was also held Wednesday at regional headquarters in Kitchener.
The rail transit plan
A proposal approved in principle calls for electric trains on dedicated lanes in Kitchener and Waterloo, running between the Conestoga and Fairview Park malls. Buses driving in mixed traffic with features to speed past congestion would run to the Ainslie Street terminal in Cambridge.
Total estimated travel time at over 72 minutes would roughly match today’s express buses.
Senior governments have committed up to $565 million. This leaves local taxpayers with a bill of up to $253 million for a system to launch in 2017.
Regional taxes could increase 10.5 per cent over seven years to launch trains and pay for partial bus upgrades. By 2018 an average home assessed at $254,000 today could be paying an extra $196 a year in property taxes.
Politicians hope to ease the local tax impact in part by seeking provincial approval to shift more transit costs onto development fees.
Have your say
More public consultation sessions are underway. You can drop in between 3 p.m. and 8 p.m. in Waterloo, Kitchener and Cambridge and between 4 p.m. and 7 p.m. in townships.
Thursday May 5 at the Cambridge Centre for the Arts, 60 Dickson St., in Cambridge and at the First United Church, 16 William St. W., in Waterloo.
Tuesday May 10 at the United Kingdom Club, 35 International Village Dr., in Cambridge and at the Kitchener Gospel Temple, 9 Conway Dr., in Kitchener.
Thursday May 12 at the Ayr Fire Hall, 501 Scott St. in Ayr, North Dumfries Township and at St. Agatha Community Centre, 1791 Erb’s Rd., in St. Agatha, Wilmot Township.
Wednesday May 18 at St. Clements Community Centre, 1 Green St., in St. Clements, Wellesley Township.
This article from the May 4th Waterloo Record discusses a very important issue on which anyone who is following it has very strong opinions. There are many serious implications for the future of the Waterloo Region and I think it is important for everyone to understand all the issues and have an informed opinion.
By Philip Walker, Record...
WATERLOO REGION — Tim Mollison looks at 38-per-cent public support for trains — and sees victory for light rail transit.
Ruth Haworth looks at 38-per-cent public support for trains — and sees opposition to light rail transit.
They were reacting to a Record poll showing a community deeply divided over an $818-million plan to put electric trains on streets in Kitchener and Waterloo.
The opinion poll reveals 38 per cent of residents support trains, 32 per cent want rapid buses, and 30 per cent support road upgrades without rapid buses or trains.
“We’re very glad to see this, because what this says is light rail would win a referendum in this community,” said Mollison, spokesperson for the pro-rail Tri-Cities Transport Action Group.
Mollison argues the poll shows trains are supported by a plurality of residents. That’s how voters elect governments, he said. Whoever gets most votes wins.
Haworth argues the poll shows the majority of residents do not want trains, so politicians are on the wrong track.
“It shows that we need a referendum,” said Haworth, spokesperson for the anti-rail Taxpayers for Sensible Transit.
“We have a proposal before us to put trains on the streets. And it seems that people are against it.”
The poll of 1,036 adults is the first to gauge public sentiment about the rapid transit proposal in a scientific way. It was conducted by Metroline Research Group and is considered accurate to within 3.1 percentage points, 19 times out of 20.
Regional council must vote in June to confirm rail transit as an urban redevelopment scheme, meant to persuade investors to build homes and workplaces in central neighbourhoods.
Politicians parsed results to see support and opposition.
“It encourages me,” said Kitchener Mayor Carl Zehr, who intends to vote for rail transit. “It strengthens the view that most people are looking into the future on this.”
Zehr interprets poll results to show that two out of three residents support rapid transit in some form. He believes trains are the better choice, more costly at first but cheaper in the long run.
Ridership “won’t be there right away, the way it needs to become,” Zehr said.
“But we’re building for people who haven’t yet been converted, and who have yet to move into this community, because we’re going to have another 200,000 people.”
Coun. Geoff Lorentz of Kitchener said poll results reflect growing opposition to trains. “People are starting to get worried,” he said.
Lorentz argues trains will cost a lot, are no faster than buses, will limit drivers to right-ins and right-outs, and will displace traffic into residential neighbourhoods. “We don’t have the critical mass to make this work,” he said.
Waterloo Mayor Brenda Halloran is not surprised by what the poll found.
“I think the poll really captured exactly how the community is feeling, and the division that is within the community,” she said.
Coun. Sean Strickland of Waterloo sees “pretty strong support for (light rail transit)” in the poll. He plans to vote for rapid transit in some form.
Strickland points to the “fairly high percentage” of residents who do not support rapid buses or trains. “It tells me we need to do some more education about what the future of our community is really going to look like,” he said.
Coun. Jim Wideman of Kitchener was surprised to see 30 per cent willing to go without rapid transit. He argues this will lead to high local costs and social disruptions, as roads are expanded through neighbourhoods, without senior government funding to help pay the bills.
“This is likely going to be one of the toughest decisions that I will be making as a politician,” said Wideman, who intends to vote for rapid transit in some form. “At the end of the day, I think this is the time to show leadership.”
Retired transportation professor John Shortreed figures the poll confirms public opposition to rail transit.
“That’s a very clear outcome, that 62 per cent of the people favour other solutions other than (light rail transit),” said Shortreed, a leading critic of the rail transit plan.
Metroline surveyed adults by telephone, on land lines and cellphones. The sample was controlled to reflect community demographics based on the 2006 census. Results reflect public opinion at the time residents were polled.
Public opinion on the rail transit proposal remained divided at a public consultation session held in Waterloo Wednesday evening.
“I really like the idea,” said Waterloo resident Louise McLaren. “I think it’s more cost-effective in the long run.”
Her children are already daily Grand River Transit users. “The buses are already filling up. They’re just clogging up our streets,” said Billy McLaren.
“It’s only going to get busier,” added his sister, Erin. “Light rail transit gives you that solid base.”
Some critical of the plan see the cost as too prohibitive, and too great a burden on taxpayers.
“Tax-wise, it’s too expensive,” said George Sommerstorfer of Waterloo. “People who are retired, on the Canada Pension Plan, can barely make ends meet as it is.”
But Mark Kompter said funding available from the federal and provincial governments should be taken advantage of while it’s being offered. “I’m sure it’s on a time limit,” he said. “I’d say now is the best time.”
Karen Hilling said the whole concept is based on an outdated belief that businesses need to be attracted to a downtown core.
“In pioneer days, the village was the centre of commerce and social activity. However, with the increase in global communication, business can happen any time and anywhere.”
In a letter Hilling sent to regional and municipal councils, she urged politicians to remember their mandate to represent their constituents.
“I think that some politicians have been blinded by the allure of shiny trains and new buildings,” she said. “Waterloo Region is not Toronto or Calgary. We do not have a strong sense of identity with the city core.”
Jim Huxted of Kitchener said he feels that planners are wearing light rail blinders. “They haven’t really shown us if buses could work.”
Huxted, like others, has concerns that the system would be underused. “I think they have to develop the ridership before they can be spending the money we’d be spending on light rail,” he said.
“We’ve got three downtowns, not just one,” Huxted said. “The population base in each downtown doesn’t even come close to other cities with a rapid transit system.”
A similar public session was also held Wednesday at regional headquarters in Kitchener.
The rail transit plan
A proposal approved in principle calls for electric trains on dedicated lanes in Kitchener and Waterloo, running between the Conestoga and Fairview Park malls. Buses driving in mixed traffic with features to speed past congestion would run to the Ainslie Street terminal in Cambridge.
Total estimated travel time at over 72 minutes would roughly match today’s express buses.
Senior governments have committed up to $565 million. This leaves local taxpayers with a bill of up to $253 million for a system to launch in 2017.
Regional taxes could increase 10.5 per cent over seven years to launch trains and pay for partial bus upgrades. By 2018 an average home assessed at $254,000 today could be paying an extra $196 a year in property taxes.
Politicians hope to ease the local tax impact in part by seeking provincial approval to shift more transit costs onto development fees.
Have your say
More public consultation sessions are underway. You can drop in between 3 p.m. and 8 p.m. in Waterloo, Kitchener and Cambridge and between 4 p.m. and 7 p.m. in townships.
Thursday May 5 at the Cambridge Centre for the Arts, 60 Dickson St., in Cambridge and at the First United Church, 16 William St. W., in Waterloo.
Tuesday May 10 at the United Kingdom Club, 35 International Village Dr., in Cambridge and at the Kitchener Gospel Temple, 9 Conway Dr., in Kitchener.
Thursday May 12 at the Ayr Fire Hall, 501 Scott St. in Ayr, North Dumfries Township and at St. Agatha Community Centre, 1791 Erb’s Rd., in St. Agatha, Wilmot Township.
Wednesday May 18 at St. Clements Community Centre, 1 Green St., in St. Clements, Wellesley Township.
Wednesday, May 4, 2011
Look to the Future when home buying
With today’s interest rates at near record lows, many people are recognizing that a mortgage payment on a house can actually be comparable to what they would spend on renting an apartment or home. Perhaps you’re one of them and are ready to take a step up the property ladder.
For most people, buying a home is the most significant financial investment they’ll ever make, and there’s a lot of planning that goes into a successful transition. With that in mind, here are a few tips to help buyers navigate the home buying process:
Consider future needs
Look ahead and anticipate what your family may look like just a few years from now. If you’re a single buyer, you may someday add a ‘significant other’ to your household. If you’re a young couple, you may be planning on children. Or you may already have children whose needs will change within just the next few years. As they get older, perhaps your children will need a bedroom of their own, or some private play space. Though additional space may not be needed immediately, it’s important to consider potential future plans for a home. Keep in mind that there is no such thing as the "perfect" house. Instead, determine what’s essential for the near future – number of bedrooms, approximate square footage, community, etc. But be cautious. Look to future needs but don’t overextend yourself buying space you may not ever need.
Remember resale
Purchasing a home is a great long-term investment. However, there are many reasons home buyers may need to move again, such as relocating for a job or a major lifestyle change. Think about the length of time that the home may be owned and during your search, also consider the potential resale value of prospective properties you are viewing. I can help by sharing such valuable information as the average price of resale homes in the area, how long each property has been on the market and what features increase – or detract – from a home’s value and appeal.
Plan for maintenance and repair costs
Owning a home is a rewarding experience. However, along with a set of house keys come certain responsibilities for upkeep. A leaky faucet and unkempt lawn won’t take care of themselves, so be sure to include future repairs and maintenance in your household budget. Keep in mind that certain properties such as condominiums and town homes require less exterior maintenance and might be a good option for those who find the idea of maintaining a yard a bit daunting and need to maintain a set budget without unexpected expenditures.
Want to know more about the home buying and selling process? Contact me for the inside scoop on your market.
For most people, buying a home is the most significant financial investment they’ll ever make, and there’s a lot of planning that goes into a successful transition. With that in mind, here are a few tips to help buyers navigate the home buying process:
Consider future needs
Look ahead and anticipate what your family may look like just a few years from now. If you’re a single buyer, you may someday add a ‘significant other’ to your household. If you’re a young couple, you may be planning on children. Or you may already have children whose needs will change within just the next few years. As they get older, perhaps your children will need a bedroom of their own, or some private play space. Though additional space may not be needed immediately, it’s important to consider potential future plans for a home. Keep in mind that there is no such thing as the "perfect" house. Instead, determine what’s essential for the near future – number of bedrooms, approximate square footage, community, etc. But be cautious. Look to future needs but don’t overextend yourself buying space you may not ever need.
Remember resale
Purchasing a home is a great long-term investment. However, there are many reasons home buyers may need to move again, such as relocating for a job or a major lifestyle change. Think about the length of time that the home may be owned and during your search, also consider the potential resale value of prospective properties you are viewing. I can help by sharing such valuable information as the average price of resale homes in the area, how long each property has been on the market and what features increase – or detract – from a home’s value and appeal.
Plan for maintenance and repair costs
Owning a home is a rewarding experience. However, along with a set of house keys come certain responsibilities for upkeep. A leaky faucet and unkempt lawn won’t take care of themselves, so be sure to include future repairs and maintenance in your household budget. Keep in mind that certain properties such as condominiums and town homes require less exterior maintenance and might be a good option for those who find the idea of maintaining a yard a bit daunting and need to maintain a set budget without unexpected expenditures.
Want to know more about the home buying and selling process? Contact me for the inside scoop on your market.
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