Tag Archives: Tips

Making An Offer To Purchase A Home

As a first-time homebuyer, this is actually the moment you’ve been anticipating. You have discovered a home you love, and today it is time to make a proposal to buy. With all the investment going into this home, it’s a wise idea to leave the construction of your Offer to buy, also referred to as a legal contract of Purchase and Sale, up to your attorney and real estate agent.

Preparing an Offer to Purchase, or Agreement associated with Purchase and Sale, has to be done with proper care, as it is a legal document and also sets the cornerstone for the acquisition of your newhome.

The following are just some of the things you will probably need to consider when composing the Offer to Purchase:

• Your name, the name of the seller, and the accurate address of the purchase property or home. Don’t forget, this needs to be your legitimate name, as an Offer to Purchase is really a legalized document.

• Price offered and also the quantity of deposit you will place down.

• Closing particular date – In the offer to buy, the actual finishing time usually happens 30 to 60 days after the contract has been decided upon, and indicates the day you’ll take ownership of the property. Taking possession and also the “closing date” within an Offer to Purchase also symbolizes the day an individual, as the brand new owner, will be responsible for all maintenance, utilities, property taxes and insurance coverage on the house.

• A request for a current land survey of the home

• Null and Void Time – Each and every Offer to buy must expire. A null and void time is the time allocated for any vendor to take into consideration and reply to your current offer.

• Conditions on the property – Most Offers to Buy include conditions which include mortgage financing, inspection reports, as well as inclusions.

Making a proposal to Purchase often suggests the end to the long process is near. But try not to count your chickens before they hatch! It’s not uncommon to undergo a stage of settlement following your initial Offer to buy. Following this give and take goes away; you’ll be left with the excitement of a new home and the responsibility of a mortgage payment. With regard to help preparing for this financial commitment, get in touch with the mortgage brokers at FamilyLending.ca.

 

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.

 

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.

The Costs of Closing on a Home

Did you know that in addition to the downpayment and mortgage, you’re also responsible for any miscellaneous closing costs associated with your home purchase? These fees can vary in price, but all must be paid prior to taking possession of your home. If you’re currently in the market for a new home, now’s the time to consider these hidden costs so that you can incorporate any additional expenses into your budget.

 Eight Closing Costs to Keep an Eye On

1) Appraisal Fee
Your mortgage lender or mortgage default insurer may require you to provide a property appraisal prior to lending you mortgage monies. This appraisal will determine whether the selling price of your new home is reasonable based on current market conditions. Home appraisals can cost anywhere from $300 to $500, depending on where in Canada you’re purchasing the property.

 2) Sales Tax
If you’re planning to purchase a newly constructed home, or a home that has been substantially renovated, make sure you remember to factor in the HST or GST on top of the list price. Resale homes are not taxable. Luckily, most provinces have HST/GST rebates in place to help first-time home buyers recover some of these costs.

3) Home Inspection Fee
If you’re making an offer on a home, make sure that it’s conditional on the findings of a professional home inspector. Hiring an inspector is voluntary, but highly recommended. An inspection will help uncover any unexpected (and costly!) issues with your potential new home. Home inspections costs between $300 and $500.

4) Property Insurance
Property and content insurance protects your home and possessions against fire, theft, and weather-related damage. Insurance payments, like your mortgage payments, are ongoing so it’s crucial that you keep this cost in mind when building your budget.

5) Land Transfer Tax
The land transfer tax is based on the amount of money you paid for the land. What’s more, municipalities impose a yearly tax on land within their municipal boundaries.

6) Legal Costs
There are a number of legalities that you’ll need to cover when closing on your home. This could include notary services for conducting a title search, registration fees, and the preparation of your mortgage. These fees are normally well over $500, depending on the lawyer you hire.

7) Mortgage Life Insurance
This special type of insurance is separate from your property insurance and your mortgage payments. It is put in place to cover the cost of your mortgage in the event of death or severe illness.

8) Mortgage Default Insurance
If you’ve qualified for a high-ratio mortgage, (this is normally the case for home buyers with less than a 20% downpayment), chances are good that you’ll require mortgage default insurance from your lender. The cost is usually added onto your monthly mortgage payment and rates range from 1% to 3.25%.

Start building your home buying budget today. Consult with a FamilyLending.ca mortgage broker to learn more about these and other unexpected closing costs.

Chantielle Kennedy writer for Familylending.ca

Mortgage Rates Stay Low – But For How Long?

 

Bank of Canada Governor, Mark Carney, confirmed on Wednesday that he has no immediate intentions to raise mortgage rates; however, Carney did confirm that “some” of the stimulus currently bolstering the system would be “eventually withdrawn.”

 Carney made these statements following the release of fresh data from the Canadian Real Estate Association stating that some of Canada’s urban housing markets are grossly overvalued. Even though the pace of Canadian home sales is currently in line with the 10 year-average, prices are continuing to escalate, rising a staggering 8.6% nationally during the month of May. Home prices are surging in cities like Vancouver, Toronto, and Montreal, which has Carney worried about unfounded excess.

 Factors Affecting the Surge

While Carney has been careful to avoid referring to the current housing market as a bubble, the signs all point to impending problems. Elevated levels of ‘multiples’ inventories, increased development, and heavy investor demand are three of the factors currently driving housing and condo prices through the roof. Unfortunately, information from Statistics Canada doesn’t support the current spike in demand. Recent stats show that the average Canadian families’ income (including earnings, investments, and private pensions) fell 3.2% in 2009, making it the first significant drop in market income since the early 1990’s. So who exactly is driving the demand for investment properties? Realtors point to an influx of foreign investment interest, specifically from Asian nations.

 Finding the Silver Lining

While many potential home buyers see the rise in home prices as an impediment to homeownership, it isn’t all bad news. Even though home prices are skyrocketing, mortgage rates have remained at historic lows… for now, at least. These lows can’t last forever, and if Carney’s comments are any indication of future increases, home buyers can expect hikes to come fast and furious once they hit. As long as mortgage rates stay low, Carney warns that Canadian financial authorities will remain vigilant and ready to move at the first sign of any imbalance.

 How to Take Advantage of Low Mortgage Rates

Borrowers with strong credit and stable jobs are in a prime position to save big by refinancing their mortgage in order to take advantage of record lows. While the low rates have sparked a surge in refinancing activity, many homeowners are oblivious to the fact that they could be saving more money on their mortgage. Homeowners throughout the country can begin their journey to lower mortgage payments online by answering a quick and easy mortgage pre-approval questionnaire. If you’re a first-time home buyer looking to purchase your first piece of real estate, don’t wait to secure your mortgage rate. The rate you see tomorrow could be three times higher than the current offer.

 As with any market, it pays to act fast. Now’s the time to review the up-to-date rates and refinance your mortgage.

 Chantielle Kennedy writer for FamilyLending.ca