What is Mortgage Loan Inusurance and Why You Need It

Mortgage loan insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price of a home. Mortgage loan insurance helps protect lenders against mortgage default, and enables consumers to purchase homes with a minimum down payment of 5% — with interest rates comparable to those with a 20% down payment.

If you want to buy a house using a down payment of less than 20% of the purchase price, you are required to pay for mortgage loan insurance (officially referred to as mortgage default insurance). You are essentially buying it on behalf of the lender because if you default on your mortgage, the insurer will reimburse the lender for your loan and most associated costs. The amount you are charged increases as your down payment decreases and your cost generally ranges from 1% to 4% of your purchase price. You are allowed to add the fee to your mortgage but you have to pay the associated PST upfront, as part of your closing costs.

CMHC has programs for self-employed applicants, new immigrants and a whole host of other groups. Your mortgage loan insurance is fully transferable to a different lender if you find a better deal at renewal. If you want to increase your original loan amount at some point in the future, you only have to pay an insurance fee on the additional amount borrowed.

Mortgage loan insurance is not to be confused with mortgage life insurance which guarantees that your remaining mortgage at the time of your death will not be a burden to your estate.

The minimum down payment requirement for mortgage loan insurance depends on the purchase price of the home. For a purchase price of $500,000 or less, the minimum down payment is 5%. When the purchase price is above $500,000, the minimum down payment is 5% for the first $500,000 and 10% for the remaining portion. Mortgage loan insurance is available only for properties with a purchase price or as-improved/renovated value below $1,000,000.

The CMHC program is run by the Government of Canada. Having a centralized policy for high-ratio underwriting risk has given the government a reasonable amount of control over our residential market. Given the US example of what happens when lending runs without control, maybe that’s not entirely a bad thing. Especially when you consider that since CMHC started assuming the risk for high-ratio mortgages, it has opened up home ownership to a wide range of middle-class Canadians and was an important catalyst for the democratization of Canadian credit. Since that time (1954), our home ownership levels have been rising steadily and are now among the highest in the world.

Contact me today for a Free Home Value Report or for answers to all your real estate questions at www.kimlouie.net!

Reduce the Stress of Moving!

Moving can be a very stressful time for many of us. A move carried out in haste can bring about several unnecessary problems. However, there are many ways to reduce the stress of moving allowing you to actually enjoy the moment. Here are a few tips to help plan for your move.







Get organized
Much of the stress people feel during a move comes from not knowing what or when things need to be done. Make a list of all the tasks you need to do, and assign dates for each task, allowing yourself enough days to complete every item on your list.

Reduce your load
Get rid of household items that you no longer need. Hold a garage sale and leave books with friends, the local library or sell them to a used bookstore. Anything you can't sell, give to a local charity.

Name the boxes
Label each box with the name of the corresponding room. You can write directly on the box or to make it even easier, print out large computer labels and stick them on the boxes. Do not put everything together in one room, which would make finding items very difficult. If you have special items such as art, antiques, wine collections, equipment, make sure you have special packing materials for these items.

Confirm the dates
Confirm the move date with your moving company. Give them clear directions to your new home and make sure they put your belongings in the correct rooms as per the box labels. If there are parking or access restrictions to your new home, arrange for the required permission in advance.
Make arrangements for the gas and electric utilities, telephone and cable to be turned off at your old home and to be connected at your new home on or before your moving day.

This is also a good time to do some online research on your new community. Make notes about restaurants and other places in the area.

Keep children busy
Try to keep children occupied by having colouring books or other toys readily available to fill the children's time while the movers are bringing items into the home. Older children may enjoy the excitement of moving and can help as far as possible, both during the planning, movement or unloading itself.

At your new home
Begin by opening boxes that you will need first, such as ones that contain necessities like paper towels, trash bags and light bulbs. Take care of the bathroom and bedrooms first, and then move on to the kitchen and other living spaces. Keep a trash bag in every room, so packing materials can be discarded as you go.

Take it easy
Even if you're the most organized mover, things can go wrong. You need to be flexible and allow yourself some extra breathing room to deal with these problems as they arise.

Return to your task list and timeline and work in some extra days if you can. Allowing for some wiggle room will ensure that you can adjust and feel calm even when chaos abounds.

Contact me today for a Free Home Value Report or for answers to all your real estate questions at www.kimlouie.net!

Things to Consider When Renovating Your Bathroom

Bathrooms are one of the most used and abused rooms in your home, yet they are also a serene and relaxing retreat to escape for a few moments each day. With that in mind, it is important for your bathroom to be functional, beautiful and enjoyable.

Studies have shown that renovating the main bathroom in a home has an estimated payback of 60% to 65% when the home is resold. But it can cost well over $5,000 to complete, not to mention the significant inconvenience.

Fortunately, there are many quick and inexpensive solutions to make updating your bathroom a simple day or weekend project.




Determine your design style

To make your bathroom your own, first determine how you want your bathroom to work and how you want to feel while you are in your space. Secondly, decide if you are someone who likes to frequently change your decorations to follow seasons or trends, or if you prefer a classic style that involves little or no updating.

Personalize with paint
Painting is an easy and inexpensive way to make a dramatic and instant impact on a room. When choosing a paint colour, find one that is going to inspire you, make you happy and create a desired mood.

Dark dramatic colours are great for those who are not up for frequent changes. However, neutrals, available in light, medium and dark tones, are the most accepting of colours, which is ideal for those who want to continually add the latest colour trends or seasonal decorations.

Freshen up
Replace your grey and mouldy old shower curtain with a nice new one. Plastic or fabric shower curtains are inexpensive to buy, incredibly easy to change, and provide a great way of adding a splash of colour to dull décor. Something as simple as hanging a clean new shower curtain can have a big impact on your bathroom’s appearance.

If you’re willing to spend a bit more, replacing your shower curtain with a glass shower door or screen is a great way to add the wow factor. Frameless shower doors made from tempered glass are ideal for a sleek, modern look, whereas those with a chrome, brass or gold plated frame can look stunning in a more traditional themed bathroom. Be practical when choosing a shower door and think about how it will open. A folding door that opens outward looks grand and elegant, but is likely to bang into your sink or toilet if you have a small bathroom. If your shower is above your bathtub, a space-saving sliding door is a good choice.

Install a new vanity cabinet
Bathroom vanities come in all sorts of different styles to suit bathrooms of all themes, from decorative furniture styles to minimalist contemporary designs. Bath vanities usually consist of a base storage cabinet with an inlaid sink on top. They are great for making the most of a small room and provide useful storage space. An attractive bathroom vanity will be a focal point of your bathroom and can work wonders at giving the whole room a stylish new look.

Replace your existing bathroom cabinets or simply paint the doors for a quick and simple makeover. Wall mounted bathroom cabinets tend to attract our attention as they are at eye level, and a tatty or old-fashioned cabinet can really tarnish a bathroom’s appearance. Wall cabinets come in a huge range of sizes and styles, from wooden ones made from cherry, walnut or oak to those with hand painted, distressed or laminated finishes. In a small room, having a mirror on a cabinet door is not only useful, but can help create an illusion of space.

Add a classy mirror
Be particular and stylish here. If storage is not a concern, forgo the medicine cabinet. Don't limit yourself to traditional bathroom mirrors that are found everywhere. There are endless possibilities for creating an interesting new look with an elegant mirror.

Finish your look with coordinating finishes
One of the easiest ways to create a professionally designed look in your bathroom is to coordinate the metal finishes. Get rid of ugly or worn out taps on your sink and bath. Often there is no need to go to the hassle and expense of fitting a new bathroom suite. Simply installing stylish new bathroom faucets can give a tired bathroom an instant lift. Bath and sink faucets come in a surprisingly large variety of styles and finishes, from brass plated Victorian styles for period homes to sleek looking chrome for the contemporary bathroom.
Coordinating the finish throughout a room is a great way to pull it together. Be sure not to stop with the faucet -- change your drawer pulls, knobs, towel bars, faucets, showerheads, accessories and even your framed artwork. Not everything needs to be exactly the same finish, but be sure the tonal colours are relatively the same hue.

Add accessories and personality
Accessories are a great way to pull together a bathroom design as well as showcase your personality and individuality. Adding complementary or contrasting colour towels, bathmats and shower curtains can brighten up your bathroom and create a finished and cohesive look. In addition, accessories such as toothbrush and cup holders, towel bars and soap dishes available in coordinating finishes to match your faucets can add not only style, but additional storage solutions to avoid clutter.

Lighten up
Light is an important element in the bathroom, yet it is one of the biggest mistakes homeowners make. Most bathrooms are equipped with fluorescent lighting fixtures, which give off an unattractive blue tint to people and surroundings. Change out the fluorescent lighting and swap with halogen, which is the closest to natural sunlight. An additional way to add light is to add a mirror, since it’s like adding a window to a room. Even if you do have a window, position a mirror opposite the window. The natural light will reflect off the mirror and flood the room with bright white light in addition to expanding the visual plane to give the illusion of expanded space.

Contact me for a Free Home Value Report or for answers to all your real estate questions at www.kimlouie.net!

Whether you are decorating your house to sell, or planning on staying where you are, it's time to freshen up that bathroom you've always hated with a whole new look.

Small increase in sales in February, but huge rise in average home prices due to buyer demand

KITCHENER-WATERLOO, ON (March 3, 2017) ––There were 474 residential sales in February through the Multiple Listing System (MLS^® System) of the Kitchener-Waterloo Association of REALTORS^® (KWAR), an increase of 4.2 percent  compared to February 2016.

“Sales in February were well above what we would see in a typical February,” says James Craig, President of the KWAR.  The 10-year average for residential sales in Kitchener-Waterloo and area for February is 405 units. “Last month’s sales would have been much higher still were it not for the fact that we continue to have a real shortage of listings.”

Residential sales in February included 299 detached homes (up 5.7 percent compared to February 2016), 107 condominium units (up 3.9 percent) which include any property regardless of style (i.e. semis, townhomes, apartment, detached etc.). Sales also included 32 semi-detached homes (down 3 percent) and 31 freehold townhouses (up 3.3 percent).

A lack of listings to satisfy the strong consumer demand is fuelling multiple offers often resulting in sale prices above the actual asking price, which pushed the total residential average sale price in February up 27.5% compared to the same month last year to $463,355.

Detached homes sold for an average price of $549,691 an increase of 30.7 percent, while the average sale price for an apartment style condominium was $246,736, an increase of 8.8 percent. Townhomes and semis sold for an average of $388,721 (up 20.6 percent) and $369,624 (up 31 percent) respectively.

Which Home Type is Right for You?

With an endless supply of different types of homes available for purchase—from condos to townhouses to fully-detached homes—deciding on what type of home to purchase can be confusing.  The type of home you buy will depend on your lifestyle and budget. You will also need to think about your current and future needs before you start searching for a home.




Size requirements.
Is the house the right size for your needs and does it have the right combination of bedrooms, bathrooms and other living areas?

Lifestyles. 
Do you plan to have children? Do you have teenagers who will be moving away soon? Are you close to retirement? Will you need a home that can accommodate different stages of life? Can the home grow with you over the next 5 to 10 years? Find a home that can grow and change with your needs. If you don't plan to be in the home for a long period of time, then certain aspects of the home may not concern you, such as extended stairs or location from other amenities.

Your budget.
Budgeting is also an important part of preparing yourself for the purchase of a home. Once you have the money available to make your home purchase a reality, you should weigh the following options to help decide what type of home is right for you.

Condo.
A condo makes a great first home because it typically costs less than a townhouse or a detached home, which translates into a smaller down payment. But there are, however, monthly maintenance fees you must take into consideration when budgeting for a condo. Condos are also ideal for those who do not want to maintain a lawn or worry about clearing snow away from walkways and driveways.

Townhouse.
Townhouses are typically vertical in design and some even come with attached garages. They blend the privacy of a single-family home with the benefits of the exterior condo maintenance, which is usually done by the homeowners’ association. Many townhouses are built in what are called planned unit developments (PUD), clustered communities that have areas for residential and commercial use, and public areas such as schools, parks and the like.

If condo life is not your style and you’re not looking for a big yard to maintain, a townhouse may be your best home purchase option.  A townhouse costs less than a fully-detached home and results in cheaper property taxes as well.

Many townhouses also come with monthly maintenance fees unless they are freehold townhouses. In situations where you pay a monthly fee, however, you won’t have to worry about outdoor maintenance or snow removal.

Detached home. If it’s privacy you’re seeking as well as a larger yard, a detached home is your ideal choice. Still, prices can vary drastically based on such variables as to whether you’re seeking a spot in the city, a place in the suburbs, or a more rural location.

Other considerations
The size of the property is an important thing to consider before you head out shopping. While everyone has their dream home in mind, this is not always a practical purchase choice, especially if this is your first home purchase.

When it comes to location, think about which area or neighbourhood you’d like to make your purchase, and which home features are absolutely essential, including what you can live without and what aspects are entirely out of the question.

Take a look at real estate ads for the area(s) you’re interested in to see what’s on the market and the price ranges. Also drive around a few neighbourhoods and see what’s for sale or visit Open Houses. This can help crystallize what you want or don’t want in a home.

By making your first purchase modest and affordable, you will be putting money towards a mortgage that will build equity in that home. And once you’ve paid down a significant portion of that first home’s mortgage, you will then have more money to put towards an upgrade into your dream home.

Contact me today for a Free Home Value Report or to answer any real estate questions at www.kimlouie.net!