29 Nov

5 MISTAKES FIRST TIME HOME BUYERS MAKE

General

Posted by: Alexander Slobidker

Buying a home might just be the biggest purchase of your life—it’s important to do your homework before jumping in! We have outlined the 5 mistakes First Time Home Buyers commonly make, and how you can avoid them and look like a Home Buying Champ.

1. Shopping Outside Your Budget
It’s always an excellent idea to get pre-approved prior to starting your house hunting. This can give you a clear idea of exactly what your finances are and what you can comfortably afford. Your Mortgage Broker will give you the maximum amount that you can spend on a house but that does not mean that you should spend that full amount. There are additional costs that you need to consider (Property Transfer Tax, Strata Fees, Legal Fees, Moving Costs) and leave room for in your budget. Stretching yourself too thin can lead to you being “House Rich and Cash Poor” something you will want to avoid. Instead, buying a home within your home-buying limit will allow you to be ready for any potential curve balls and to keep your savings on track.

 

2.Forgetting to Budget for Closing Costs
Most first-time buyers know about the down payment, but fail to realize that there are a number of costs associated with closing on a home. These can be substantial and should not be overlooked. They include:

  • Legal and Notary Fees
  • Property Transfer Tax (though, as a First Time Home Buyer, you might be exempt from this cost).
  • Home Inspection fees

There can also be other costs included depending on the type of mortgage and lender you work with (ex. Insurance premiums, broker/lender fees). Check with your broker and get an estimate of what the cost will be once you have your pre-approval completed.

3. Buying a Home on Looks Alone
It can be easy to fall in love with a home the minute you walk into it. Updated kitchen + bathrooms, beautifully redone flooring, new appliances…what’s not to like? But before putting in an offer on the home, be sure to look past the cosmetic upgrades. Ask questions such as:

  1. When was the roof last done?
  2. How old is the furnace?
  3. How old is the water heater?
  4. How old is the house itself? And what upgrades have been done to electrical, plumbing, etc.
  5. When were the windows last updated?

All of these things are necessary pieces to a home and are quite expensive to finance, especially as a first- time buyer. Look for a home that has solid, good bones. Cosmetic upgrades can be made later and are far less of a headache than these bigger upgrades.

4. Skipping the Home Inspection
In a red-hot housing market a new trend is for homebuyers to skip the home inspection. This is one thing we recommend you do not skip! A home inspection can turn up so many unforeseen problems such as water damage, foundational cracks and other potential problems that would be expensive to have to repair down the road. The inspection report will provide you a handy checklist of all the things you should do to make sure your home is in great shape.

5. Not Using a Broker
We compare prices for everything: Cars, TV’s, Clothing… even groceries. So, it makes sense to shop around for your mortgage too! If you are relying solely on your bank to provide you with the best rate you may be missing out on great opportunities that a Dominion Lending Centres mortgage broker can offer you. They can work with you to and multiple lenders to find the sharpest rate and the best product for your lifestyle.

GEOFF LEE

Dominion Lending Centres – Accredited Mortgage Professional
Geoff is part of DLC GLM Mortgage Group based in Vancouver, BC

30 Apr

Industry News – April 30, 2014

Без категории

Posted by: Alexander Slobidker

Industry News
There’s been so much speculation on whether OSFI’s long-awaited B-21 mortgage insurer guidelines will slow the housing market.
 
Well, now that we’ve seen the draft, that seems unlikely. In fact, B-21 is simple, practical and sound policy, and most of the guidelines have already been adopted by lenders and insurers.
 
Click here for full details from CanadianMortgageTrends.com.
 
The Bank of Canada held its benchmark rate steady today, and kept its ‘neutral’ stance on future moves in an as-expected policy statement that had the market, if not economists, stifling yawns.
 
“When in doubt, do nothing, and for the most part, that’s what the Bank of Canada opted to do in today’s monetary policy statement,” said CIBC Economist Avery Shenfeld.
 
Overall, the message was little changed, though the bank cut its growth forecast on the year from 2.5% to 2.3% on the impact of the harsh winter. It also pushed up its call for inflation this year, while at the same time warning about the risks of low inflation.
 
“Somehow, the Bank managed to find a way to sound even more concerned about ‘lowflation’ even as they upgraded the forecast for headline inflation,” said BMO Chief Economist Douglas Porter.
 
Click here for four key takeaways from today’s Bank of Canada monetary policy decision courtesy of the Financial Post.
 
Low mortgage rates tempt, but penalties for breaking them can be high.

You want some of these record low rates on the market but you’re locked into a mortgage. Just break it, right?
 
Not so fast, there’s a key question you need to ask before you commit to break a mortgage: how much will it cost you? Actually, it’s a question you should be asking before you sign up in the first place.
 
Don Hurman, a 64-year-old from Okotoks, AB, learned the hard way when he incurred a $10,000 penalty after selling his house halfway through a five-year mortgage term. Some mortgages let you port the loan to a new home but Hurman was forced to break his and pay what is called the interest rate differential.
 
Click here for the full Financial Post article.
 
The never-ending strength of the Canadian housing market has homeowners switching to renovations at a record pace, according to a new report.
 
Adrienne Warren, an Economist with Scotiabank, says the boost in the reno market has been “fuelled by rising home prices, tight resale market conditions, attractive financing costs and government tax credits.”
 
She says renovation spending has been the fastest growing segment of the market with real renovation outlays increasing at an annual rate of 6% from 2000-2012. This increase was double the 3% of new construction.
 
The spending on renovation has helped push housing prices because it increases the quality of the housing, said the report. That housing is eventually sold at a higher price.
 
Click here to read more form the Financial Post.
 
It’s another good year for do-it-yourself tax filers. Like last year, there aren’t too many personal tax changes – just one really lucrative new tax credit to encourage people to get into the habit of charitable giving.
 
Click here for more details from The Star.
 
It’s that time of year again, with CMP’s most popular issue – the one that gives 75 mortgage professionals a reason to boast – just around the corner.

CMP is now accepting submissions for the Top 75 Brokers and the Small Market Top 20 lists, this year focused on volume numbers for 2013.

Those making the rankings this year will for the first time be announced at a ceremony as part of the CMP Mortgage Summit, set for May 8th at the Toronto Congress Centre.

Click here to fill out the CMP Top 75 survey by this Friday, April 18th to see if you’re among the biggest players in the Canadian mortgage industry.
 
Click here to read more about the Top 75 & Top 20 lists from MortgageBrokerNews.ca.

23 Apr

Industry News

Без категории

Posted by: Alexander Slobidker

Industry News
There’s been so much speculation on whether OSFI’s long-awaited B-21 mortgage insurer guidelines will slow the housing market.
 
Well, now that we’ve seen the draft, that seems unlikely. In fact, B-21 is simple, practical and sound policy, and most of the guidelines have already been adopted by lenders and insurers.
 
Click here for full details from CanadianMortgageTrends.com.
 
The Bank of Canada held its benchmark rate steady today, and kept its ‘neutral’ stance on future moves in an as-expected policy statement that had the market, if not economists, stifling yawns.
 
“When in doubt, do nothing, and for the most part, that’s what the Bank of Canada opted to do in today’s monetary policy statement,” said CIBC Economist Avery Shenfeld.
 
Overall, the message was little changed, though the bank cut its growth forecast on the year from 2.5% to 2.3% on the impact of the harsh winter. It also pushed up its call for inflation this year, while at the same time warning about the risks of low inflation.
 
“Somehow, the Bank managed to find a way to sound even more concerned about ‘lowflation’ even as they upgraded the forecast for headline inflation,” said BMO Chief Economist Douglas Porter.
 
Click here for four key takeaways from today’s Bank of Canada monetary policy decision courtesy of the Financial Post.
 
Low mortgage rates tempt, but penalties for breaking them can be high.

You want some of these record low rates on the market but you’re locked into a mortgage. Just break it, right?
 
Not so fast, there’s a key question you need to ask before you commit to break a mortgage: how much will it cost you? Actually, it’s a question you should be asking before you sign up in the first place.
 
Don Hurman, a 64-year-old from Okotoks, AB, learned the hard way when he incurred a $10,000 penalty after selling his house halfway through a five-year mortgage term. Some mortgages let you port the loan to a new home but Hurman was forced to break his and pay what is called the interest rate differential.
 
Click here for the full Financial Post article.
 
The never-ending strength of the Canadian housing market has homeowners switching to renovations at a record pace, according to a new report.
 
Adrienne Warren, an Economist with Scotiabank, says the boost in the reno market has been “fuelled by rising home prices, tight resale market conditions, attractive financing costs and government tax credits.”
 
She says renovation spending has been the fastest growing segment of the market with real renovation outlays increasing at an annual rate of 6% from 2000-2012. This increase was double the 3% of new construction.
 
The spending on renovation has helped push housing prices because it increases the quality of the housing, said the report. That housing is eventually sold at a higher price.
 
Click here to read more form the Financial Post.
 
It’s another good year for do-it-yourself tax filers. Like last year, there aren’t too many personal tax changes – just one really lucrative new tax credit to encourage people to get into the habit of charitable giving.
 
Click here for more details from The Star.
 
It’s that time of year again, with CMP’s most popular issue – the one that gives 75 mortgage professionals a reason to boast – just around the corner.

CMP is now accepting submissions for the Top 75 Brokers and the Small Market Top 20 lists, this year focused on volume numbers for 2013.

Those making the rankings this year will for the first time be announced at a ceremony as part of the CMP Mortgage Summit, set for May 8th at the Toronto Congress Centre.

Click here to fill out the CMP Top 75 survey by this Friday, April 18th to see if you’re among the biggest players in the Canadian mortgage industry.
 
Click here to read more about the Top 75 & Top 20 lists from MortgageBrokerNews.ca.