Pre-Approved Mortgage
A Pre-Approved mortgage is a Free and No-Obligation deal that lets you know before you go looking for your home or signing an offer to purchase, how much you can afford to borrow based on your qualification and personal credit rating. We’ll arrange for you the most competitive rates with longest rate guarantee period that goes up to 120 days – if rates go higher, your rate will not be affected, and if rates go lower, you get the lower rate. This protection is solely responsible for savings thousands of dollars for many people who obtained a pre-approval and the rates increased afterwards.
Too often in the past, the mortgage was left to the very end, but with our Online Pre-Approval or by simply e-mailing us, we can take care of this important process within hours. Once you are Pre-Approved, you can confidently negotiate an offer on a home. A seller also prefers to negotiate an offer of a purchaser who has been pre-approved. With more lenders, lower rates, and no-cost, no-obligation, make us your choice for your pre-approval.
Conventional Mortgage
A conventional mortgage is a loan that does not exceed 75% of the purchase price or appraised value of the home, whichever is less. This type of mortgage does not have to be insured against default.
High-Ratio Mortgage – CMHC Insured / GE Capital Insured
A high-ratio mortgage is a loan that is above 75% and up to 95% of the purchase price or appraised value of the home, whichever is less. These mortgages must me insured against loss by either Canada Mortgage and Housing Corporation (CMHC), a Federal Government Corporation, or GE Capital, a private insurer. The premiums can be added to the mortgage amount or paid at closing.
Open Mortgages
An open mortgage allows you the flexibility to repay the mortgage at any time without penalty. Open mortgages are available in shorter terms, 6 months or 1 year only, and the interest rate is higher than closed mortgages as much as 1%, or more. They are normally chosen if you are thinking of selling your home, or if you are expecting to pay off the whole mortgage from the sale of a another property, or an inheritance (that would be nice).
Closed Mortgages
A closed mortgage offers the security of fixed payments for terms from 6 months to 10 years. The interest rates are considerably lower than open, and if you are not planning on any one of the above reasons, then choose a closed mortgage. Nowadays, they offer as much as 20% prepayment of the original principal, and that is more than most of us can hope to prepay on a yearly basis. If one wanted to pay off the full mortgage prior to the maturity, a penalty would be charged to break that mortgage. The penalty is usually 3 months interest, or interest rate differential (I.R.D. – please refer to glossary for detailed explanation).
Fixed-Term Mortgages
With a fixed-rate mortgage, the interest rate is set for the term of the mortgage so that the monthly payment of principal and interest remains the same throughout the term. Regardless of whether rates move up or down, you know exactly how much your payments will be and this simplifies your personal budgeting. In a low rate climate, it is a good idea to take a longer term, fixed-rate mortgage for protection from upward fluctuations in interest rates.
The 6 Month Convertible Mortgage
When rates are on their way down, or you may feel that they will in the near future, a 6 month convertible mortgage offers you the short term commitment at fixed payments, with an added advantage that while within the term, the mortgage is fully convertible to a longer term from 1 year to 10 years. At the end of the 6 month period, the mortgage becomes fully open, where one can renew with the existing lender or transfer to another lender. Even though it is offered at many financial institutions, there are differences from one to the next.
Bridge Financing
Bridge financing refers to a special, short-term loan needed to cover the time gap when two properties, both firm sales, are involved and the closing dates don’t match. The property being purchased closes before the one that was sold. There is a small set-up fee charged by the lender to have the bridge loan arranged, plus the cost of the interest as now you are carrying both properties for a short time. The rate charged on the bridge loan is about 2-3% above the bank’s prime.
If you have mortgage questions or any general questions about the Brampton or Georgetown real estate market you can email me at textvic@gmail.com
Did you just sell your Brampton house? Are you wondering what your lawyer will be doing for you and how much the charges will be? For sellers the cost is usually between $600 – $700 (give or take).
Here’s what your lawyer will do to assist you in making the sale of your home hassle-free:
- Do a complete review of the purchase agreement.
- Provide answers to the purchaser’s lawyer regarding title.
- Prepare transfer of title documents.
- Review any mortgage transactions.
- Close the transaction.
- Pay the appropriate commissions.
- Pay any outstanding claims against your property.
- Pay off your mortgage (if necessary).
- Forward the balance of the money from the sale to you.
- Provide a complete statement reporting all transaction.
The market is slowing down. Brampton and Georgetown will no doubt be hit hard as well. Consider yourself lucky if your house has already sold.
For more information on the Brampton or Georgetown real estate market drop me an email.
The advent of the Internet has changed all sorts of businesses and transactions that people go through in the course of their lifetime, and real estate is no exception. The use of the Internet in selling homes has completely changed the way in which real estate transactions are done.
One big part of the shift to an online real estate market is the concept of the virtual tour. It’s a pretty easy idea to understand; a home owner, or their real estate agent, or an individual hired by that real estate agent, shoots pictures or video coverage of the house for sale, including all rooms, the exterior and the interior. These images are then uploaded onto an Internet page where potential buyers can view them.
The virtual tour has several advantages for those wishing to sell their homes. Let’s take a look at them.
Targeted market. A virtual tour can really thin the crowd of potential buyers. Many times people will realize that they are not in the market for a particular home after visiting it the first time, so the seller may not see an offer even though several different potential buyers are scheduled to look through it. It can be frustrating, but when a virtual tour is available people can decide whether or not they like the look of the house on first glance without getting your hopes up. In Brampton there are thousands of homes for sale at anytime. One way to stand out is to have a virtual tour and qualify people before they even come in.
It allows you to showcase your home right away. Some houses, like some people, just don’t photograph well on the exterior, but a look inside will demonstrate value. A virtual tour lets you overcome the handicaps of appearance and season on the outside and show potential customers that your home is meant to be lived in.
No more open houses! Many home sellers and real estate agents malign the open house. It can be very difficult to organize, too many people have access to one’s home, and no one is really sure how well they work. A virtual tour will mean that an open house function of breaking the ice between the prospect and the home served by the idea of an open house is already taken care of, eliminating a major headache. If you live in Brampton and have gone shopping on the weekends you know how many open house signs you see on every intersection. A lot of people after their shopping (who have no intentions of buying a house) decided to visit those open houses. Just because you get a lot of visitors doesn’t mean the open house was a success.
Show the house how you want it. With a virtual tour, you can show off your house how you want it, at its very best condition. No need to clean every time the phone rings until those who have already seen it line up an appointment!
Setting up a virtual tour is a great idea for any home seller. It allows potential buyers to become familiar with a house on the market without the hassle and disappointment that can come with first time showings.
For more information on the Brampton or Georgetown real estate market drop me an email.
Total number of houses sold in October 2008 (in Halton Hills / Georgetown) = 61
Breakdown:
Freehold townhouses = 5
Condo apartments = 0
Condo townhouses = 8
Semi-detacheds = 6
Detacheds = 39
Other types = 3
Total number of houses sold in October 2007 (in Halton Hills / Georgetown) = 102
Total number of houses sold in Brampton in October 2008 = 455
Breakdown of Brampton sales:
Freehold townhouse sales = 50
Condo townhouse sales = 36
Condo apartment sales = 37
Semi-detached sales = 92
Detached houses sales = 235
Other type = 5
Total number of houses sold in Brampton in October 2007 = 601
Your house should always be available for show, even though it may occasionally be inconvenient for you. Let your listing agent put a lock box in a convenient place to make it easy for other agents to show your home to homebuyers. Otherwise, agents will have to schedule appointments, which is an inconvenience. Most will just skip your home to show the house of someone else who is more cooperative.
Most agents will call and give you at least a couple of hours notice before showing your property. If you refuse to let them show it at that time, they will just skip your house. Even if they come back another time, it will probably be with different buyers and you may have just lost a chance to sell your home.
Try Not to be Home
Homebuyers will feel like intruders if you are home when they visit, and they might not be as receptive toward viewing your home. Visit the local coffee house, yogurt shop, or take the kids to the local park. If you absolutely cannot leave, try to remain in an out of they way area of the house and do not move from room to room. Do not volunteer any information, but answer any questions the agent may ask.
When you know someone is coming by to tour your home, turn on all the indoor lights – even during the day. At night, a lit house gives a “homey” impression when viewed from the street. During the daytime, turning on the lights prevents harsh shadows from sunlight and it brightens up any dim areas. Your house looks more homey and cheerful with the lights on.
Do not use scented sprays to prepare for visitors. It is too obvious and many people find the smells of those sprays offensive, not to mention that some may be allergic. If you want to have a pleasant aroma in your house, have a potpourri pot or something natural. Or turn on a stove burner (or the oven) for a moment and put a drop of vanilla extract on it. It will smell like you have been cooking.
If you have pets, make sure your agent puts a notice with your listing in the multiple listing service. The last thing you want is to have your pet running out the front door and getting lost. If you know someone is coming, it would be best to try to take the pets with you while the homebuyers tour your home. If you cannot do that, It is best to keep dogs in a penned area in the back yard. Try to keep indoor cats in a specific room when you expect visitors, and put a sign on the door. Most of the time, an indoor cat will hide when buyers come to view your property, but they may panic and try to escape.
Especially if your kitchen trash can does not have a lid, make sure you empty it every time someone comes to look at your home – even if your trash can is kept under the kitchen sink. Remember that you want to send a positive image about every aspect of your home. Kitchen trash does not send a positive message. You may go through more plastic bags than usual, but it will be worth it.
Not everyone makes his or her bed every day, but when selling a home it is recommended that you develop the habit. Pick up papers, do not leave empty glasses in the family room, keep everything freshly dusted and vacuumed. Try your best to have it look like a model home – a home with furniture but nobody really lives there.
For more information on the Brampton or Georgetown real estate market drop me an email.
For most Canadians, home ownership is as much about financial well being as it is about comfort, security and a sense of pride. Building equity in your own home, while enjoying the experience of being a homeowner, is a priority for millions of Canadians. And now there are more options available to help realize the dream of home ownership. It’s best for buyers to start by understanding their current financial situation.
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New mortgage products, such as extended amortizations, can help make the transition to home ownership. In addition to the traditional 25-year mortgage amortization (the time you’ll take to pay the loan back in full, with interest), there are now 30-, 35- and 40-year amortizations available.
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Extended amortization products can help buyers with good credit become homeowners sooner, but they’re not without some drawbacks.
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A home purchased with a 40-year amortization mortgage will carry significantly higher interest costs over the life of the mortgage than one purchased with a 25-year mortgage, assuming you use the entire amortization period to repay the loan. For example a $250,000 mortgage at 6.5 per cent with monthly payments paid over 40-years will cost $445,177 in interest. If that amortization were 25 years, the consumer would pay $252,368 in interest, a savings of $192,809.
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Extended amortization products should be viewed as a tool to help you become a homeowner sooner. However, there are options available for paying down mortgage debt more quickly than the original amortization period chosen. For example, mortgage loans in Canada generally end after five years, after which time you have the option of choosing a shorter amortization period.
 By doing so, you’d save interest charges and eliminate your mortgage sooner. Similarly, the average Canadian moves every seven years, which ends their mortgage and provides an opportunity to choose a shorter amortization period.
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Also consider that mortgages in Canada offer pre-payment allowances of between 15 per cent to 20 per cent of the original mortgaged amount, usually on an annual basis. Some consumers use their income tax refund from RRSP contributions for this purpose.
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Accelerated payment options are another great tool to reduce mortgage debt. For example, a 40-year amortization period can be cut to about 32 years by moving from a monthly to accelerated bi-weekly payment schedule. If you make additional payments or double-up your mortgage payment throughout the year, you can also significantly reduce the number of years to pay off your mortgage.
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Most Canadians (78 per cent according to a recent survey) are interested in paying their mortgage off as quickly as possible, and using the above strategies will allow you to do just that.
So, if a 40-year amortization is more expensive in the long-term, why choose it at all? Besides lower mortgage payments, there are other reasons why these products may make sense.
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For example, you may purchase a ‘fixer upper’ and keep the extra cash flow available for renovation costs. Once the home is renovated, you can make accelerated payments or choose a 25-year amortization when renewing your mortgage term.
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Similarly, for young professionals who still have student loans to consider, a 40-year amortization may make initial sense. It will allow them to pay down those loans and later pay their mortgage more aggressively after their income level rises and they’re free of that debt.
Home sellers still favor open houses, but many real estate agents say they are a waste of time compared with other marketing methods, according to a new survey.
Agents surveyed by the Real Estate Center shows that less then 8% of houses are sold through open houses. “Whether or not to hold an open house is a concern among agents,” says Jack Harris, research economist with the Real Estate Center. “Agents must be on site for the duration of open houses, which are usually held on weekends, and be prepared to impress potential buyers. Safety is a growing concern because there is no way to know whether a visitor is a serious buyer, just curious or has more sinister motives.”
Today’s marketing tools include the Internet, cable television and low-tech innovations, such as yard signs that transmit radio messages.
The survey, which sampled residential agents, shows that almost all (97 percent) respondents have used public open houses, but only 41 percent say the technique helps sell the home. While 32 percent agree that public open houses attract many potential buyers, 62 percent believe most people attending open houses are not serious buyers. A slight majority (59 percent), however, say open houses are especially important for selling unusual homes.
Nearly three-fourths of sales agents think that open houses are effective in interesting buyers in homes other than the one being shown. Slightly more than half (55 percent) believe open houses help generate new listing contracts. These numbers suggest that open houses may not be a waste of the agent’s time, although they may not benefit the seller. Â
Holding open houses is not the only way agents can attract listings. Survey respondents view referral and community involvement as effective tools, which rank first and second in effectiveness and popularity. Open houses rank third in familiarity but seventh in effectiveness.
One of the keys to selling a listing, especially in highly competitive markets, is for serious buyers to see the home. Yard signs, the Multiple Listing Service (MLS) and referrals are common methods that stand out. Although these methods are not new, agents still feel they are the most effective.
For any questions relating to the Brampton or Georgetown real estate market you can reach me at textvic@gmail.com or (647)834-6834
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