Tag Archives: Home Ownership

Create Value In Your Home

With regards to return on your investment in a home renovation, people always want to know exactly what improvements will raise the value of their property by far the most. The easy answer is, revenue suite, however there are more tactics along with makeovers that have good dollar for dollar return also.

Thinking long-term as well as beating the market industry via well planned house makeovers can produce an increased return. You cannot assume all refurbishments however, will certainly produce precisely the same price. Listed below are the most notable five home refurbishments for return on your investment:

1. Developing accommodations suite
Thinking long-term as a home owner who will choose to improve the overall value of their residence, while probably living mortgage loan free, an income suite, or rental suite has the maximum return on your investment ( ROI ) of all refurbishments for home owners to think about. Actually, the Return on investment of creating accommodations suite can often be 150% to 250%.
2. Painting
Appears simple right? Affordable and easy to complete, painting typically offers a return on your investment of 100%. Choosing natural tones and being attentive to details tend to be key in this chance to further improve your home, and get your money back.
3. Kitchen and Bathroom Renovations
Despite the fact that these are bigger undertakings, bathrooms and kitchens have the possibility to deliver a return on investment between 75% and 100%. The more bathrooms you’ve got in the home the better, and a vibrant, spacious kitchen with a well planned design as well as newer home appliances can get you value for your money.
4. Updated Flooring
Similar to painting, new flooring surfaces will surely have an immediate visible impact and produce fresh life into a house. On average, brand new flooring surfaces can generate in between 70% to 90% return on your investment (ROI). Don’t think you’ll want to spend a fortune on this either. Laminate flooring is tough, simple to put in, and looks fantastic.
5. Doors as well as Lighting
New door hardware and light fixtures may immediately refresh and produce additional value to your home. Generally, custom light fixtures and door hardware bring a return on investment of 60% to 75%. In most cases, these types of improvements should be concentrated in kitchens and eating areas where you have a chance to invigorate an area that will create immediate atmosphere.

Investing in the suitable home makeovers will help lower your monthly payment and enhance the valuation of your property. Get in touch with the investment specialists at FamilyLending.ca today to learn how to take advantage of the value of your property.

 

Things to Consider Before Buying a House

Buying a home is a big investment – both financially and emotionally. Make sure you’re properly prepared by considering the following things prior to submitting a purchase offer.

Your Credit Rating
If you aren’t aware of your credit rating, now is the perfect time to do a little investigating. Making sure your finances are in order is probably the most important step you’ll need to take prior to purchasing a home. Your credit report will play an important role in the mortgage approval process, plus it will also help determine many of your mortgage terms, including the all important interest rate.

Mortgage Types
There are numerous laws and options associated with mortgages. While you don’t need to know all the ins and outs of the mortgage process (there are lawyers for that!) it is important that you understand the different options available to you. From fixed rates to variable arrangements, there are lots of things to consider when deciding on a lender. A professional mortgage broker can help you narrow down your options, but ultimately it’s up to you to determine which lender is best for your needs.

Mortgage Pre-Approval

Being pre-approved for a mortgage can be a huge advantage to any home buyer. Not only does a mortgage pre-approval allow you to better understand and set your budget, it also gives you an advantage when putting in an offer on a property. Sellers have a tendency to favour offers accompanied by proof that a buyer has a mortgage pre-approval from their bank or lender. This shows there is one less obstacle in the transaction process, and could give you the edge to successfully purchasing the home or property you want.

Needs, Wants, and Real Estate Agents

Before you even start looking for homes, sit down and create a well-defined list of needs and wants. Clearly knowing what you need in a home, what you want, and what you get within your budget, will help you and your realtor find an ideal property. Speaking of realtors; before hiring a real estate agent, take the time to understand the particular duties, loyalties, and roles a real estate agent should, and will play in the home buying process

How to Find Your Home

Today, the most obvious tool available in the home search adventure is the internet. There are dozens of quality home search websites in North America that will put photos, amenities, and prices at your fingertips. Just because the Internet is convenient, doesn’t mean you should neglect “old fashioned” methods like driving to visit neighbourhoods, flipping through newspaper ads and classifieds, or grabbing a local real estate magazine.

Time to Make an Offer

One of the most stressful moments for any home buyer is putting in an offer. You’ve got a mortgage pre-approval, you’ve found a home you love; now it’s time to put your money on the table, and sign the papers. As a standard feature to any offer, it’s important to include a home inspection. This protects you against any hidden issues with the structure and construction of a home. Similarly, when it comes to navigating what can often be a long and confusing contract, be sure to have the paperwork checked over by your real estate agent and a lawyer.

Buying a home can be a long and stress-filled event, but if you follow these tips, and do your research before buying a home, you’ll be well prepared, and find a property that meets your unique needs and wants.

Call the Knowledgeable Staff at FamilyLending.ca today to learn more 866-941-6678

Chantielle Kennedy writer for FamilyLending.ca

First Time Home Buyer Mistakes to Avoid

Not Knowing What You Can Afford
What the banks say you can afford, isn’t necessarily what you should spend on your first home. If you don’t already have a budget for your home hunt, now’s the time to start planning. The mortgage brokers at FamilyLending.ca recommend making a list of all of your monthly expenses (excluding rent, of course). Subtract this total from your monthly pay and you’ll have a better understanding of what you can spend on your home every month. You can also use the free mortgage calculators from FamilyLending.ca to help crunch some numbers and chart out your new home expenses.

Skipping Mortgage Pre-Approval
When it comes to setting the budget for your first home, make sure to talk to your mortgage broker about pre-approval. A mortgage pre-approval will help you better understand the expenses associated with your home purchase and could improve your ability to bargain for a property.

 

Forgetting to Consider Expenses

Many first-time home buyers are unaware of the expenses that come along with owning a home. Homeowners are responsible for property taxes, insurance, and unexpected maintenance costs. These expenses can add up quickly and overwhelm underprepared individuals.

 

Being Overly Picky

Having a first-time home buyer wish list is great, but don’t be disappointed when you’re unable to find a property that meets all of your requirements. Compromise is often necessary when you’re looking for a starter home, so remember to be flexible when you’re comparing properties.

Settling Too Soon
While compromise is necessary, it’s worth noting that you should never compromise on important aspects of your property search. Settling for a so-so property may be acceptable for the short-term, but what about your long-term goals and needs?

Shunning DIY Projects
First-time home buyers are often quick to rule out purchasing an older home due to cosmetic issues or dated decor. If you find an older home that meets all of the big ticket items on your list (location, size, layout), don’t let the physical appearance set you off. It’s easy to change out fixtures and tear down wallpaper.

Falling for Finishes
First-time home buyers are better off looking for a home they can add value to, rather than paying more for a home whose full potential has already been realized. This will ensure a bump in equity later on down the real estate ladder.

Bypassing the Inspection
First-time home buyers should never, ever forgo a home inspection. You need to know what kind of shape your property is in and whether or not there are any major issues hidden just below the surface.

Going it Alone
If you’re serious about buying a home, the mortgage brokers at FamilyLending.ca highly recommend hiring a professional real estate agent to aid in your search. Realtors are held to the ethical rule that they must act in your best interest, helping you find the perfect property for your unique needs.

Forgetting About the Future
Purchasing a home is a big financial commitment. Make sure you’re able to handle the expense and budget for the future properly. For more first-time home buyer advice, contact the mortgage brokers and financial experts at FamilyLending.ca today.

Rolling the Dice, Fixed vs. ARM ( Adjustable Rate Mortgage)

Rolling the dice is perfectly acceptable when you’re in a casino in Las Vegas. I know from first-hand experience that playing “craps” in Vegas can be a rush. For those of you who may not be familiar with the rules or finer points of “craps”, and would like to give it a try next time you’re in Vegas, DO NOT ATTEMPT TO PLAY UNLESS YOU UNDERSTAND ALL RULES!  Now that you’ve rolled your eyes and are thinking thanks for enlightening me Bozic, the fact is many do play without understanding all the rules. Why? Because that’s where the action is and where all the noise is coming from. The noise draws you to the table, and when you get there you think I want some of this. You find yourself placing bets, not even understanding what your odd’s are. You might even start mimicking the bets being placed by other gamblers at the “craps” table. You look down at the table and you’ve got all your bets covered. Come on shooter, make this a magical role. Then you hear the most dreaded words at a “craps” table, seven out…seven out. For those uninitiated that means all your chips are gone! That’s when you start thinking if you only had played blackjack instead you could have played for much longer. But that’s gambling and it’s a part of the experience. That’s okay for Vegas but maybe not so much so when choosing between a fixed rate mortgage and an ARM.

 

The reality is that many borrowers are rolling the dice today. I’m setting aside those borrowers that can withstand the rate variances, and have the stomach to ride out an ARM for 60 months. I just wonder about borrowers who truly don’t understand the rules of the game. I wonder if some borrowers are placing mortgage bets based on what their neighbor or co-worker did with respect to their mortgages. Maybe borrowers are being influenced today by advertising. The 50/50 mortgage is getting a lot of airplay today, and that product was designed for those that wanted to play it safe or safer. Maybe it’s all about today and they’ll worry about tomorrow, whenever tomorrow comes. Maybe all of the above plays a part in the decision-making process but the biggest influence is the brokers personal bias.

 

All I know is that at some point in the not too distant future rates are going up. The warnings and predictions have been there for all to see for some time now. For example, Bank of Canada Governor Mark Carney recently said the following, “Low interest rates today do not necessarily mean low rates tomorrow,” warned Carney. “Risk reversals, when they happen, can be fierce; the greater the complacency, the more brutal the reckoning.” There’s no ambiguity there, and I’m thinking he might be one of those people “in the know”. The way I look at it any five year mortgage, under 4%, is free money. It’s also 60 months of peace of mind for the borrower. I can’t help but think if borrower’s get squeezed by a rate hike, and then they ask you how did this happen, irrespective of the facts all they will hear is, seven out…seven out.

Until next time

Cheers

Boris Bozic.
Contact FamilyLending.ca for more information.

First-time Home Buyer Help: Mortgage Pre-Approvals and Down Payment Options

 

First-time Home Buyer Help: Mortgage Pre-approvals and Down Payment Options

Purchasing your first home can be a stressful experience. From listings to viewings, paperwork to inspections, there are a lot of things that first-time home buyers need to think about prior to making an offer on a potential home. Luckily, the mortgage brokers at FamilyLending.ca are here to help make your first time-home buying experience as easy as possible. This includes providing you with expert financial advice and assistance on the FamilyLending.ca blog. Today on the blog, we’ll help you understand the importance of mortgage pre-approval, as well as discuss the different types of down payment options available to first-time home buyers.

The Many Benefits of Mortgage Pre-approval

Securing a mortgage pre-approval is an important first step before purchasing your new home. Taking the time to obtain a pre-approval will demonstrate to sellers and realtors that you are a serious buyer, and could potentially help you during purchase negotiations.

A mortgage pre-approval will also help you set a realistic budget for your house hunt. This is because a mortgage pre-approval will tell you exactly how much money you can spend on your new home and what your mortgage payments will be. A mortgage pre-approval also allows you to lock in your interest rate for up to 120 days. With interest rates on the rise, it’s only logical that first-time home buyers should complete the mortgage pre-approval process as soon as possible.

Get A Mortgage Pre-Approval Now

Securing a mortgage pre-approval is easier than you think. The mortgage brokers at FamilyLending.ca can help get you pre-approved today – simply fill out our online mortgage pre-approval questionnaire to get the ball rolling.

Deciding on a Down Payment

There are many different down payment offers available to first-time home buyers. The following are three popular down payment options:

  • A Conventional Mortgage A conventional mortgage requires a down payment of at least 20% and involves either a fixed or variable interest rate. Conventional mortgages are the most affordable option since they don’t have to be insured against default.
  • Low Down Payment Insured Mortgage Don’t have a large down payment, but still want to buy a house? Then consider applying for a low down payment insured mortgage. Many lenders now offered this type of financing for both new and resale homes. These mortgages have a much lower down payment requirement than conventional mortgages – some are as low as 5%! The one big drawback to low down payment mortgages is that they must be insured to cover potential default of payment. These insurance premiums can be quite high, resulting in a higher carrying cost than that of a conventional mortgage.
  • Cash Back Mortgage

There are options where you may receive a Cash Back option to your mortgage. This type of mortgage allows the buyer to have as little as the closing costs and 1% down payment. They tend to carry a little higher interest rate (about 1 % higher than best rates). There are other options than using cash back mortgages and best to consult with your mortgage broker.

 

  • Using Your RRSP as a Down Payment The federal government’s Home Buyer’s Plan allows first-time home buyers to use up to $25,000 per person in RRSP savings for a down payment on a home. This means that a couple can pull a total of $50,000 from their RRSP to help fund their first home. This withdrawal is not taxable, provided you repay it within a 15-year period. To qualify, the funds you plan to use must have been in your RRSP for at least 90 days.

Talk to our Agents at Family Lending Financial for any of your RRSP questions or needs today!

Mortgage pre-approvals and down payment decisions are just a few of the factors you’ll have to consider when purchasing your first home. For more first-time home buyer help, consult with a FamilyLending.ca  mortgage broker.

At FamilyLending.ca we do more than help with your financing, we make the whole home hunting process easier.

 

Chantielle Kennedy writer for Familylending.ca