What are the Advantages of Using a Mortgage Broker?

 Finding the right home may seem like the hard part of a real estate transaction, but in reality, getting the best financing can be much harder. This is partially because we have so many options nowadays for mortgage loans and so many places to find them. A mortgage broker or your local bank can often lay out your options clearly. They will be armed with what you want in terms of the loan terms, ideal rate, targeted monthly payments, and the like. If you're smart, you will talk to them before you decide on purchasing your home so you really know your price range.

Using a mortgage broker is by far the best way to go about finding and arranging the very best mortgage to suit your specific needs. Trust in a specialist that knows how to package your application, what pitfalls to look out for, and how to protect your interests when dealing with the banks. Sure, you might get the same rate that a broker could get for you, but what you won’t get is all the facts about the mortgage that you have shopped for.

A mortgage broker/specialist helps you navigate around those banks with mortgages that appear to be the best deal out there, but fall short of your expectations. Brokered mortgages may not be as “flashy” on the exterior, but they will have all the “nuts and bolts” built into them to protect you from unforeseeable circumstances that often arise.

The benefits of using a professional mortgage broker include:

Reduce your stress and frustration. There are dozens of lenders from which to choose, so why not let an expert handle the application process for you? These days the forms and other data that are required for a loan application can be quite complicated, so it is wise to hand the entire process over to a professional.

Fewer complications. A seasoned mortgage professional will have years of experience, and that will help him or her navigate the tricky loan application waters that lie ahead. Let a broker’s know-how work to your benefit.

Help you get the best deal possible. Although you may be tempted to apply for the mortgage on your own, by hiring a professional you are assured of getting the best interest rate, the best payment plan, and the best deal in general.

Save your time. The most valuable of all commodities. A broker has the experience to make sure you get the best package for your individual needs and saves you valuable time.

Real personalization. Since the mortgage broker works for you (not the lenders),  he/she offers you unbiased advice and helps you select the mortgage that's absolutely right for you. You get the personal service you just cannot get from a bank.

Service at no cost. Not only will a broker obtain the best mortgage rate for you, broker services cost you nothing.

How Smart is Your Home?

 

Smart home products are quickly catching on with consumers ranging from front doors that unlock as you come up the walkway, robot lawnmowers that keep your grass trimmed, remote-controlled thermostats and lighting, to home monitoring cameras. What was once science fiction, or conveniences seen on the TV show The Jetsons, “Smart” technology has become today's reality.

This new trend has widespread implications for those people thinking about selling their homes or shopping for a new home. A 2015 Real Estate Survey showed that 81% of homeowners are more likely to purchase a home with Smart home technology installed. According to the survey, 33% of agents said homes with Smart technology sold faster than those without.

What does Smart home technology look like today?
Any device in your home that uses electricity can be put on your home network and at your command. Whether you give the command by voice, remote control, tablet, or Smartphone, the home reacts. The main idea for Smart homes is that we’re building intelligent living spaces that take care of us instead of the opposite.

Smart home technology isn’t just a new gimmick, it is a practical way to make your home greener, saving you time and money without lifting a finger. A few examples include:

1. Home Automation
What if your home could sense when you were awake and adjust the lights or thermostat accordingly? What if your baby monitor alerted you to your baby’s sleep activity and comfort level? And what if your refrigerator could detect when you’re low on groceries and then send your car a reminder to go to the grocery store?

It’s hardly a far-fetched thing today. Wireless Smart home technologies such as Nest and Zigbee have made it easier than ever to automate your home or control aspects of it from a Smartphone or tablet.

Nest, for instance, works with compatible Smart appliances— including Philips HUE lighting and Logitech remotes—to set your home on autopilot. Observe any room without getting up from the couch with easy-to-install cameras; set your remote control to also warm up your living room when you settle in for movie night; or even get updates on your pet’s eating habits while you’re at work.

2. Home security systems
The next most popular type of Smart home technology that people currently have installed in their homes according to the survey is Smart home security. In addition to traditional systems, these may include video monitors inside and outside the house that you can view on a Smartphone from anywhere you happen to be.

3- Home entertainments systems
No Smart home would be complete without the right entertainment system to complement your lifestyle. A Smart home has you covered, from a superior 4K TV experience with a billion colours, to in-wall sound bars and outdoor speakers.

The Smart home industry is moving forward
While we all likely have more than a few Internet-connected devices already in our homes—whether it’s a Wi-Fi-enabled game console, a Smart TV, or a connected security solution—these are piecemeal solutions. A truly Smart home is one that connects multiple systems into one system and collects and responds to data.

The Smart home industry is still moving forward, many companies are already pouring millions of dollars into developing technologies that seamlessly integrate our digital and physical worlds within our cars and homes and we are about to see the fruits of this movement in the near future.

Life Insurance or Mortgage Insurance: Which is Better for You?

When buying a home or renewing a mortgage, many people think they are obligated to sign up for their financial institution's mortgage life insurance. Don't rush into buying your bank's insurance policy until you've looked at all the possibilities. You could end up saving money and getting added life insurance coverage at the same time by purchasing a term life insurance policy instead.

What is mortgage life insurance?
Mortgage life insurance, also known as mortgage insurance or creditor insurance, is offered by most banks and lending institutions. It is a life insurance policy that pays the balance of your mortgage to the lending institution if a person listed on the mortgage passes away.

How does term life insurance cover your mortgage?
When you purchase a term life insurance policy, you take into account all the money your family will need in case you are not around to help out. This includes your mortgage payments.

Mortgage life insurance vs. term life insurance
Life insurance gives you more options and greater control over your mortgage protection. Compare these advantages to what happens when your mortgage lender insures your mortgage:

Mortgage Insurance	Life insurance
Your insurance covers only your mortgage balance.	You can choose from different types of insurance (i.e. term or permanent) with a death benefit to cover more than just your mortgage.
Even though your mortgage debt reduces over time, your premiums remain level.	Your coverage amount does not decrease over time unless you choose to change it.
If you die, only the outstanding balance on your mortgage is paid off.	If you die, the death benefit is paid to your beneficiary who can use it as they see fit, not just to pay off your mortgage.
The mortgage lender is automatically the beneficiary.	You name the beneficiary.
If you take your mortgage to another company, you may lose your existing mortgage insurance and may be required to re-qualify for new mortgage insurance.	If you take your mortgage to another company you keep your existing insurance, so you don't have to re-qualify.
You lose all your coverage when your mortgage is repaid, assumed or in default.	As long as premiums are paid your coverage remains in place, even if your mortgage is repaid, assumed, or in default.
You have no flexibility to change your coverage as your needs change.	If you decide you need coverage only until your mortgage is repaid but later realize you require coverage for other needs, you can convert your insurance to a permanent plan.

Extra coverage with term life insurance
A term life insurance policy gives you added coverage and flexibility over a mortgage life insurance policy;

• One major disadvantage of insurance purchased through the bank is the ownership of the policy. The bank owns “your” policy and has complete control over it. The bank also happens to be the beneficiary of your life insurance policy. That means you have no say in who gets the death benefit or what the death benefit is used for. When you die the bank is going to use the proceeds to pay off the mortgage.

  However, with term life insurance your family receives any payout from your term life policy directly. It may be more advantageous for your surviving spouse or children to use the proceeds to invest and simply continue to pay the monthly mortgage payments. This would be most appropriate if the current mortgage interest rate is much lower than the current investment rates of return available. They could simply invest the proceeds and use the investment income to pay part or all of the mortgage payments on a monthly basis.

• Mortgage insurance policies only cover the amount of your mortgage you owe to the bank. As you pay down your mortgage, your coverage amount decreases with it. This is called a reducing balance. With a term life insurance policy, you have a constant level of coverage for the whole term and are getting better value for your monthly payments.

• With mortgage life insurance, you have to reapply any time you switch lending institutions. But with term life insurance, unless you want to increase your coverage or terminate your plan, your policy is automatically renewed up to age 80 with no medical questions asked.

Shop, compare, and save
Depending on your age and health, the premiums on mortgage life insurance can be much higher than what you would pay for a term life insurance policy. Take the time to shop around for life insurance. Compare the cost of a term life insurance policy to a mortgage insurance policy. Chances are you'll find a term life insurance policy will have lower yearly premiums and offer more coverage and flexibility than a mortgage insurance policy.

While getting mortgage insurance through your lender is convenient, a term life insurance policy might be the way to go if you're looking to save money.

How to Deal with Home Inspection Issues when Buying a Home

The home inspection is a critical component of the home-buying process. It also is one of the most common conditions made with buying offers. It is not unusual that a home inspection comes out with one or more issues that the inspector identifies on his report. The inspector might find a leak in the roof or a broken window that needs replacing.

How do you deal with these issues? Should you pass on a property that you otherwise like?

First of all, you should be clear on the realities of selling or buying a home. No home is perfect, and an honest inspector is very likely to find some issues with the home. This is normal.

Just because the home inspector discovered a deficiency doesn’t necessarily mean you shouldn’t purchase the home. Many issues that arise after a home inspection are not deal breakers. You should, however, bring the issue up with the seller.  Your REALTOR® will do that on your behalf and look after your interests.

In many circumstances, your agent will be able to negotiate an agreement that is satisfactory to everyone involved. This will usually be in the form of a reduction in the sale price to cover some or all of the costs of the repair, or a requirement to have the seller get the repairs done before you move in.

Otherwise, if major problems are discovered that should be fixed then this is a different story and may be the reason why you decide not to purchase a home.

So, what are the deal breakers of a home inspection? That depends entirely on you. What is and is not a deal breaker depends on each person's preferences and needs. For example, an inspection that identifies damaged floor joists might be a deciding factor for one person who feels the problem is too expensive or time-consuming to fix.

However, the same trouble with joists might be absolutely acceptable for another client who has the resources to fix the issue. A home inspector does not tell a customer whether or not to buy a house. Rather, it's his or her job to provide all the available information so that home buyers (or sellers) can make the right decision for them.

How you handle the negotiations that follow can make a big difference in how much you give on your end and the level of stress you experience from the process. You may decide that the repairs are beyond your tolerance for renovations and you may choose to walk away from the transaction.

While finding unexpected issues with your otherwise “dream home” may be upsetting, the home inspection information will go a long way in helping you make an informed buying decision. Chances are you can still get the home and have any issues dealt with to your satisfaction.

Strong Listing Activity in July as Sellers Come off the Sidelines - Inventory of Homes Continues to Trend Upward

In July, there were 607 homes sold through the Multiple Listing Service® (MLS®) System of the Waterloo Region Association of REALTORS® (WRAR), representing an increase of 10.4 per cent compared to the previous year and a decline of 21.6 per cent compared to the previous 5-year average for the month.

“The Waterloo Region residential real estate market experienced some growth in terms of unit sales and supply in July, with home prices showing moderate fluctuations,” says Bell. “Despite the Bank of Canada’s most recent interest rate hike, we saw more sellers coming off the sidelines with new listing activity reaching its second highest level for the month of July in over a decade.”

Total residential sales in July included 364 detached (up 8.3 per cent from July 2022), and 120 townhouses (up 7.1 per cent). Sales also included 74 condominium units (up 15.6 per cent) and 44 semi-detached homes (up 22.2 per cent).

In July, the average sale price for all residential properties in Waterloo Region was $795,778. This represents a 5.8 per cent increase compared to July 2022 and a 5.2 per cent decrease compared to June 2023.

• The average price of a detached home was $920,635. This represents an 8.8 per cent increase from July 2022 and a decrease of 8.4 per cent compared to June 2023.
• The average sale price for a townhouse was $670,283. This represents a 4.4 per cent increase from July 2022 and an increase of 0.5 per cent compared to June 2023.
• The average sale price for an apartment-style condominium was $496,757. This represents a decrease of 4.8 per cent from July 2022 and an increase of 5.6 per cent compared to June 2023.
• The average sale price for a semi was $665,328. This represents an increase of 0.6 per cent compared to July 2022 and a decrease of 3.8 per cent compared to June 2023.

“In this ever-evolving market, demand persists despite the changing landscape. Increased listing activity is certainly welcomed to help offset the lack of supply and pent-up demand,” says Bell. “Working with a local REALTOR® is vital in navigating these shifting influences during the homebuying and selling process. Waterloo Region properties remain highly sought-after due to our diverse economy and desirable community, solidifying us in a competitive market.”

There were 1,194 new listings added to the MLS® System in Waterloo Region last month, an increase of 1.4 per cent compared to July of last year and a 10.8 per cent increase compared to the previous ten-year average for July.

The total number of homes available for sale in active status at the end of July was 1,107, a decrease of 14.8 per cent compared to July of last year and 22.6 per cent below the previous ten-year average of 1431 listings for July.

There were 2.0 months of inventory at the end of July, up slightly from the end of June and in line with the previous 10-year average. The number of months of inventory represents how long it would take to sell off current inventories at the current sales rate.  

The average number of days to sell in July was 16, compared to 18 days in July 2022. The previous 5-year average is 18 days. 

View our HPI tool here to learn more: https://wrar.ca/hpi/

Choosing the RIGHT Patio Furniture

Patio furniture can greatly enhance your outdoor living space.  By choosing your patio furniture wisely you will not only create a great outdoor ambiance but will also extend your inside décor to the patio and backyard.  

Choosing patio furniture should not be a hard decision. There are many types of outdoor furniture to choose from.  Taking a walk through a home improvement store, a patio furniture store, or a garden centre during the spring and summer months will remind you of the many types and styles of furniture that are available.  Since there are so many options, selecting outdoor patio furniture or accessories to suit your decorating style should be a breeze.

Several factors should be taken into consideration: price, style, and landscaping:

When it comes to price, you need to examine your budget carefully. While it’s true you get what you pay for, it is possible to get an excellent deal for a high-quality product. Your comfortable patio furniture should not be a place where you skimp on money because it is an investment that will last for years to come. It is important to remember though, price doesn’t always equate to quality.

There are several different styles of comfortable patio furniture and what you choose will depend on your personal taste. Outdoor furniture is most commonly made out of wood, metal, plastic, wicker, or a combination thereof. Choose a style you like that fits your budget. Focus mostly on the cushions themselves–some sets may not come with them–because this is where your comfort is going to come from. Some sets may offer more comfortable cushions than others. Who wants to sit on the bare furniture? When you choose the material, consider the climate you live in and how well it will hold against the elements.

Depending on the number of people you wish to seat and the available space, you will need to choose something suitable from the many outdoor furniture sets on the market. It's a good idea to choose something that has matching seats, benches, and canopies if you want a coordinated look. For some people, outdoor tables may be all that is required, either because they already have other outdoor furniture and simply want to accommodate more people or because they want to have additional table space for all the extra food, drinks, and tableware that goes with outdoor entertaining.

You should measure and plan where you will put the furniture to ensure you have room for the entire set, including an umbrella to provide shade.

Finally, it is important to remember that most outdoor furniture requires maintenance.  It may require re-staining, steam-cleaning, or covering during harsh weather periods.  Be sure to know what maintenance your outdoor furniture requires as this will add to the cost of the furniture over the long run.

Real Estate Terms Everyone Should Know

Buying or selling real estate can be a tricky process. There are hundreds of commonly used terms that could make up a language of their own. Here are some home-buying terms that you will most likely encounter when you purchase your home.

Amenities
Features that enhance and add to the value or desirability of real estate. Common amenities include swimming pools, professional landscaping, a gourmet kitchen, and so on.

Amortization
This is a schedule that outlines your loan payments for the duration of the home-buying loan. It details how much of each monthly payment goes toward the principal and how much goes toward the loan interest. Initially, the bulk of your payments will be applied toward the interest.

Appraisal
An estimate of the value of property is made by a qualified professional called an “appraiser”.

Bungalow
A one-story house, cottage, or cabin.

Breach
Violation of an obligation in a contract.

Broker
A real estate professional who has acquired a higher level of training and experience than a sales agent. A minimum number of classes must be taken along with passing a state exam to acquire a broker’s license. Generally, they are a legal representative or a proprietor of the office. Brokers usually charge a fee or receive a commission for their services.

Building Code
A set of stringent laws that control the construction of buildings, design, materials, and other similar factors.

Condominium
A large property complex that is divided into individual units and sold. Ownership usually includes a non-exclusive interest in certain "common properties" controlled by the condominium management.

Close
The final procedure in a home sale in which documents are signed and recorded. This is the time when the ownership of the property is transferred.

Closing Costs
Expenses in addition to the purchase price for buying and selling a property.

CMA
Comparative Market Analysis. A CMA is a report that shows prices of properties that are comparable to a subject property and that were recently sold, are currently on the market, or were on the market, but not sold within the listing period.

Conventional Mortgage
A first mortgage is issued for up to 75% of the property’s appraised value or purchase price, whichever is lower.

Counter Offer
An offer made by the seller back to the buyer alters one or several terms and/or conditions of the offer as originally written.

Deed
A legal document that conveys (transfers) ownership of a property to a buyer.

Earnest Money
Along with an offer, buyers can make a deposit on the home to demonstrate the seriousness of the offer. When an earnest money deposit is made, it is held by an escrow until closing. It is then added to the down payment.

Escrow
Funds held before closing by a third party, usually including the earnest money deposit. Future taxes and homeowners insurance, held by the mortgage company after closing, are also considered escrow.

FSBO, For Sale By Owner
This term refers to property that is being sold without a real estate agent. FSBO is also used to refer to the homeowner who is selling the property.

Foreclosure
The process after home buying is complete by which a lender repossesses and resells a property after the owner has defaulted.

Investment Real Estate
Real estate that generates income or is otherwise intended for investment purposes rather than as a primary residence. It is common for investors to own multiple pieces of real estate, one of which serves as a primary residence, while the others are used to generate rental income and profits through price appreciation. The tax implications for investment real estate are often different than those for residential real estate.

Land
Property or real estate, not including buildings or equipment does not occur naturally. Depending on the title, land ownership may also give the holder the rights to all natural resources on the land. These may include water, plants, human and animal life, fossils, soil, minerals, electromagnetic features, geographical location, and geophysical occurrences.

Land Value
The total value of the land, including any upgrades or improvements to the land.

Land Transfer Tax
Payment to the provincial government for transferring property from the seller to the buyer.

Lien
This is a legal claim that keeps the property from being sold until the lien is paid off.

MLS - Multiple Listing Service
An organization that collects, compiles, and distributes information about properties listed for sale by its members, who are real estate brokers. Membership isn’t open to the general public, although selected MLS data may be sold to real estate listing websites. MLS’s can be local or regional.

Real Estate Agent
A person with a state/provincial license to represent a buyer or a seller in a real estate transaction in exchange for a commission. Most agents work for a real estate broker or realtor.

Title Insurance
An insurance policy that protects a lender’s or owner’s interest in real estate property from assorted types of unexpected or fraudulent claims of ownership. It’s customary for the buyer to pay for the lender’s title insurance policy.

Zoning
Government (usually municipal) laws that control the use of land within a jurisdiction.