Tag Archives: Home Ownership

For Sale By Owner – How Does This Change The Home Buying Process?

The DIY guide for selling and buying a for sale by owner property

When it comes to selling your home, a growing number of people are opting for the do it yourself approach.

The private sale of homes is becoming relatively common thanks to advances in Internet technology and an increase in For Sale By Owner (FSBO) companies.

If you are successful in making the sale, you could save yourself a real estate commissions of 3-5 percent.

How For Sale By Owner Works

Generally, private sellers will make use of one of the various For Sale By Owner network websites. These companies will provide different service plans to assist you in selling your home. Standard plans consist of exposure through their website, lawn signs, and a personalized consultation with sales representation. The premium plans provide additional advertising support (i.e. in local papers, or real estate magazines), and they perform a competitive market analysis.

According to research studies, 45 % of Canadians would consider bypassing real estate agents to sell privately with the guidance of a real estate lawyer. A good lawyer can make all the difference for a private seller.

This system also weighs heavily on the communication between the seller and their lawyer. A lawyer is best equipped to manage situations of legal concerns.

Considering Selling Your Home Privately?

When it comes to deciding whether to try and sell your home without the services of a real estate professional, consider the following:

The Pros

Pros and Cons

Pros and Cons

  • You could possibly save thousands of dollars in commission fees.
  • You’ll be able to maintain control over all aspects of the sale.
  • You’ll have the flexibility to show the house at your own convenience.
  • You have the opportunity to highlight, from your experience, everything your home has to offer to prospective best mortgage rate home buyers.
  • More buyers are internet savvy and are familiar with private sales sites, as well as online auctions and complimentary classified websites.
  • If you pass some of the savings onto the buyer you open up your reach to buyers at lower price points.

The Cons

  • Prospective buyers might not find your home.
  • Real estate agents understand the market and what price points will sell.
  • Upfront advertising costs, without any guarantee of visibility.
  • Potential low mortgage rate buyers have to call you.
  • No one to prepare agreements or advise you on negotiating.
  • You might have to negotiate a commission for the real estate agent of a potential buyer.

The Safety of an Agent
For many, a real estate agent is the most comfortable choice when making such a substantial transaction. They can guide you through the process and negotiate the sale on your behalf.

Essentially, only you can make the decision if the service of an agent is worth the fee.

Hot Real Estate Market: Tips For Buyers

Don’t get burned by a hot market

Know Your Budget

Budget

Budget

It’s a risk for any buyer to get in over their head with too high of a best mortgage rate investment. Remember to consider all costs related to buying a home and owning a home. You will need to make the mortgage payments, pay the utilities, do household repairs, etc.

Know Your Budget for the Future

Interest rates are at a low; inevitably, they will rise. Before you sign a deal, calculate the amount you would be paying a month for your Canadian mortgage rate if rates rose by 2 or 3 percent.

Separate from the Pack

A number of houses attract a large group of buyers and provoke a bidding war. Search for a house that is a 15-minute walk to transit, needs some renovation work, has a shared driveway, or another feature that most buyers might avoid.

Know Your Needs

Make a list of what you truly need. Also, make a separate list for wants. Remember: you can only make a house bigger if you have enough land (and money). While you can always renovate, you can’t fundamentally change a home’s layout or its location.

Stay Cool

Choose an agent who can help you navigate bidding wars and the best low mortgage rate. Make a pact with your partner to keep your price range and must-have items in mind at all times.

Be patient and wait for the right house or the right offer to come your way!

How Accelerated Payments Can Fast Track Your Financial Freedom

Fast track your mortgage with these easy tips.

There are options available to help you enjoy a mortgage-free lifestyle sooner rather than later.

Mortgage Payment

Mortgage Payment

Let’s look at the Different Types of Mortgage Repayment Options

  • Monthly Mortgage Payments
    • The traditional mortgage payment; where the payments are made monthly on the same day each month.
  • Bi-Weekly Mortgage Payments
    • You make payments every second week on the same day.
  • Bi-Weekly Rapid Mortgage Payments
    • Also referred to as accelerated bi-weekly mortgage payments every two weeks and allow you to pay off your mortgage quicker by making an extra payment annually.
  • Weekly Mortgage Payments
    • Making an equal payment each week throughout the month.
  • Weekly Rapid Mortgage Payments
    • Similar to bi-weekly rapid best mortgage rate payments– you make slightly larger payments which in total is an extra payment being made throughout the year.

How does this save me money on my mortgage?

Paying off your low mortgage rate using either a bi-weekly rapid, or a weekly rapid payment schedule can save you interest. For instance, you would end up making 26 ‘half’ payments, the equivalent to 13 ‘full’ payments.

Being mortgage free five years sooner may be a reality!

Accelerated Payments are NOT for everyone

While accelerated Canadian mortgage rate payments prove to pay off your mortgage a lot sooner than traditional monthly payments and can save you thousands of dollars, it may not be for everyone.

With accelerated mortgage payments, you are quite literally accelerating to a future of living mortgage free and enjoying financial freedom.

How to Calculate How Much You Can Afford

Know what you can afford – get a mortgage pre-approval.

When it pertains to securing a mortgage, people would like to be aware of the amount of money they are able to borrow. The following are a few quick formulas to assist you to determine exactly what you are able to afford.

Loan to Value (LTV)

calculator isolate on White Background

Calculate

Lenders will only allow you to borrow a certain amount of the property value. This borrowing amount is known as the Loan to Value or LTV. LTV (%) = (the amount of mortgage loan) / (the value of the property).

You may borrow as much as 80 % of your property value (80 % LTV) without fretting about low mortgage rate default insurance fees, or as much as 95 % with default insurance fees. Whether you are obligated to pay CMHC or not, your mortgage rate loan insurance depends on your LTV.

Total Debt Service (TDS) Number

Your TDS number is the percentage of your gross annual income that is required to cover payments associated with your new home, plus costs linked with your other debts.

TDS = (Home expenses + Car Loans + Credit Card Debts + Other Loans) / Gross Income.

Your total debt service number (TDS) should not exceed 40 %. This provides you with a cushion in the event of a financial emergency.

Gross Debt Service (GDS) Number

Your GDS number is the percentage of gross annual income necessitated to cover payments connected with housing, including best mortgage rate payments, interest, property taxes, and heating.

GDS =(Annual Mortgage Payments + Property Taxes + Interest + Condo Fees + Heating) / Gross Annual Income.

Your gross debt service number (GDS) should not surpass 32 %.

Are calculations not your forte? Contact a mortgage broker today for personalized help.

 

How to Know When You’re Ready to Purchase a Home

Think you are ready to be a homeowner? Here’s exactly how you can tell!

1) You have a budget

First Time Home Owner

First Time Home Owner

Factor in homeowner’s insurance coverage, property tax, fees, upkeep costs, and the best available home mortgage rate.

2) You have a sizeable down payment.

Generally, you’ll need a down payment worth 20 % of the house price.

3) You have a reliable source of income.

Getting a home is a long-term financial dedication, so you’ll require a steady income to cover those month-to-month mortgage payments.

4) You have an emergency savings fund.

If you have enough money to cover three to six months of your living expenses, you’re one step closer to being prepared.

5) You have your financial obligations under control.

Lenders like to ensure you’ll have more than enough money each month to pay your living expenses. Before they’ll give you a low mortgage rate, they take a look at your debt-to-income ratio.

6) Your credit report is in good condition.

You don’t have to have best credit to become a homeowner; however a good history can help you lower the interest payments on your Canadian mortgage rate.

7) You can make a long-term commitment.

Are you prepared to stay put for a minimum of three to five years? Normally, that’s how long you’ll have to keep the house in order to recoup your trading expenses.

8) You are prepared to become your own property owner.

Don’t buy simply because you can. You have to ensure you’re ready.