Not About Real Estate - Embrace All Equally!

Twinkies and Root Beer

A little boy wanted t meet God. He knew it was a long trip to where God lived, so he packed his suitcase with Twinkies and a six-pack of Root Beer and he started his journey. 

When he had gone about three blocks, he met an elderly man. The man was sitting in the park just feeding some pigeons.

The boy sat down next to him and opened his suitcase. He was about to take a drink from his root beer when he noticed that the man looked hungry, so he offered him a Twinkie.

The man gratefully accepted it and smiled at boy. His smile was so pleasant that the boy wanted to see it again, so he offered him a root beer. 

Again the man smiled at him. The boy was delighted! They sat there all afternoon eating and smiling, but they never said a word. 

As it grew dark, the boy realized how tired he was and he got up to leave, but before he had gone more than a few steps, he turned around, ran back to the man, and gave him a hug. The man gave him his biggest smile ever.

When the boy opened the door to his own house a short time later, his mother was surprised by the look of joy on his face, She asked him, 

"What did you do today that made you so happy?"

"He replied, "I had lunch with God." But before mother could respond, he added, "You know what? God's got the most beautiful smile I've ever seen!"

Meanwhile, the elderly man, also radiant with joy, returned to his home. His son was stunned by the look of peace on his face and he asked,

"Dad, what did you do today that made you so happy?"

He replied, "I ate Twinkies in the park with God." However, before his son responded, he added, "You know, he's much younger than I expected"

Too often we underestimate the power of touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. People come to our lives for a reason, a season, or a lifetime.

Embrace all equally!

(Unknown Author)

Katia Melnikova

BUYING OR RENOVATING? IN SEARCH OF KITCHEN APPLIANCES?

I have been conducting an Open House this past weekend at a luxury, custom built home at 418 Elm Road in prestige Cricket Club neighbourhood. And a guest walked in inquiring: "What kind of appliances brand is Thermador?"

We all know Maile, Bosch, GE, Siemens, with different features and models. So I decided to dig for for more than "just another type of appliances" answer! And here is what I've found:

"the luxury appliance brand that pioneered the world’s first wall ovens and gas cooktops for the North American kitchen, introduces its latest kitchen advancement that will again enable the culinary enthusiast to cook beyond convention"

Are you thinking about renovating or upgrading your kitchen and stalk with selecting kitchen appliances?

Click here to read about Thermador.

Katia Melnikova

CLOSING AND RELATED COSTS

Closing costs are the legal, administrative and disbursement fees associated with buying a home. Understanding these fees will help you budget more accurately. Remember these are additional costs over and above the price of the home.

How much land transfer tax will you have to pay?

The land transfer tax is a one time tax levied by your province when you purchase a property. The tax is based on a percentage of the purchase price of the property, and varies from province to province. Some municipalities also charge a land transfer tax (for example Toronto)

Have you budgeted for the associated legal costs?

Legal costs cover your lawyer's fees or in Quebec, your notary's fees. These may include:

• Reviewing the terms of the offer
• Conducting a title search on the property 
• Registering a new title
• Obtaining relevant documents, such as surveys and evidence of liens on the property
• Checking the statement of adjustments for taxes, utility and fuel bills, and other costs that have been pre-paid by the seller at the date of closing

Do you have a home inspection?

A home inspector assesses a property's condition and can tell you if something is not working properly, needs to be changed, or is unsafe. They may be able to identify where there have been problems in the past, such as a leaking basement or termite damage.

What other costs can you expect?

• Interest adjustments between date of closing and first mortgage payment
• GST/HST on a new home or a home that's been extensively renovated
• Service charges from utility companies for hook-ups on electricity, gas, internet and telephone services
• Appraisal fees 
• Moving costs
• Packing and cleaning costs
• Storage costs if you must leave your current residence before you are able to move into you new home 
• Furniture and appliances
• Real estate commissions

Katia Melnikova

(Source: Homebuyers' road map)

MAKING AN OFFER

After seeing many different homes, you have finally found one worthy an offer! What are the next steps?

What is an offer?

An offer is a formal, legal agreement to purchase a home and is legally binding once accepted by the seller. Offers to purchase a home can be made conditional on factors such as financing or a home inspection. If any of the conditions are not met, you can change or cancel the offer, even if the seller already accepted it.

Do you have money ready?

You will need to present a deposit along with your offer. The amount varies based on the home's purchase price and the market.

Do you have up-to-date identification?

The federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) requires REALTORS to identify clients involved in the buying and selling real estate. REALTORS need to record your name,  address, date of birth and occupation for their files which are kept for at least five years. They need to see valid government-issued ID.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) provides more information about the Act on its website: www.fintrac-canfe.gc.ca

Katia Melnikova

(Source: Homebuyers' Road Map)

RESEARCH GOVERNMENT PROGRAMS

The federal government has assistance programs to help homebuyers. Research government program requirements to see if you are eligible.

Research Government Programs

First-Time Home Buyers' Tax Credit - a $5,000 non-refundable income tax credit on a qualifying home. The credit provides up to $750 in tax relief to assist first-time buyers with purchase costs. For more information, check the Canada Revenue Agency's (CRA):
www.cra-arc.gc.ca

Home Buyers' Plan - a one-time withdrawal up to $25,000 from a Registered Retirement Savings Plan (RRSP) by the first time home buyers to help purchase or build a home. Generally, you have to repay all withdrawals from your RRSP within 15 years. For more details, visit CRA's website at:
www.cra-arc.gc.ca

CMHC Green Home program - when you use CMHC - insured financing to buy or build an energy-saving renovations, you may qualify for a premium refund of 10% on your mortgage default insurance and a premium refund for a longer amortization period (if applicable). Check out CMHC's website for more information:
www.cmhc.ca

Government programs can change over time For the most up-to-date information, refer to Service Canada's website:
www.servicecanada.gc.ca

Katia Melnikova

(Source: Homebuyers' Road Map)

MORTGAGE DEFAULT INSURANCE

When you buy a home with less than a 20% down payment, the mortgage needs to be insured against default. This type of insurance protects the mortgage lender in case you are not able to make your mortgage payments. It does not protect you.

Mortgage Default Insurance

Are you planning to purchase property with less than a 20% down payment?

If yes, you require mortgage default insurance which generally adds 0.5% to 3% to the cost of the mortgage depending on the total amount borrowed.

Mortgage default insurance enables you to purchase a home with a minimum down payment of 5% (10% for multi-unit dwellings) with interest rates comparable to those of a conventional mortgage.

Major providers of mortgage default insurance include Canada Mortgage and Housing Corporation (CMHC), Genworth Financial Canada, and Canada Guaranty Mortgage Insurance Company.

(Source: Homebuyers' Road Map)

CONSIDER MORTGAGE OPTIONS

A mortgage is a loan, generally used to buy a property. How much you pay depends on how much you borrow (the principal), the loan's interest rate, and how long you take to it back (the amortization period).

Do not be afraid to negotiate interest rates and mortgage terms with different lenders. They are offering you a product and talking to more than one lender helps you to make an informed decision.

What type of mortgage is best for you?

• Fixed rate mortgages: Your interest rate is locked in for a specific period called a term. Your payments stay the same for the mortgage's term so you will not pay more if interest rates increase over time.

• Variable rate mortgages: Rate of interest you pay may change if rates go up or down.

• Conventional mortgages: Require a down payment of more than 20% of the property's value. You are not required to get mortgage mortgage default insurance with a conventional mortgage.

• Closed mortgages: The mortgage cannot be paid off early without paying a prepayment charge.

• Open mortgages: A mortgage that can be paid off at any time during the term, without having to pay charge. Ther interest rate for an open mortgage may be higher than for a closed mortgage with the same term. 

What mortgage features are best for you?

• Portable mortgages: If you sell your existing home, you can transfer your mortgage to you new home while keeping your existing interest rate. You may be able to avoid prepayment charges by porting your mortgage.

• Prepayment privileges: You can make lump-sum prepayments or increase your monthly payments without having to pay a charge. This can help you pay off your mortgage quicker and save on interest charges.

How often can you make your payments?

• By switching from monthly payments t accelerated weekly or biweekly payments, you can pay off your mortgage faster. Explore your options for mortgage payments and see how much interest you could save by using FCAC's Mortgage  Calculator Tool at: Mortgage Calculator Tool

Katia Melnikova


(Source: Homebuyers' Road Map)

ASSESS FINANSIAL READINESS

Assess your present household budget and your annual income to determine if you are eligible for a mortgage and how much you can comfortably afford.

What do lenders require?

Mortgage lenders use two calculations to help determine your eligibility for a mortgage - your Gross Debt Service (GDS) ratio and your Total Debt Service (TDS) ratio.

Your GDS ratio is the percentage of your gross monthly income used for mortgage payments, taxes and heating costs or - if you are buying a condominium - half of the monthly maintenance fees. As a general rule of thumb, you GDS ratio should not be more than 32% of your gross monthly income.

Your TDS ratio is the percentage of gross monthly income required to cover monthly housing costs, plus all your other debt payments, such as car loans or leases, credit card payments, lines of credit payments and any other debt. Generally, your TDS ratio should not be more than 40% of your gross monthly income.

Have you been pre-approved?

Getting pre-approved for a mortgage before looking at properties gives you a more realistic expectation of what you can afford. However, keep in mind that the pre-approved amounts can overestimate what you can actually afford to pay.
Click here for mortgage calculator.

Pre-approval does not guarantee you will be approved once you actually apply apply if market conditions, interest rates, or your personal circumstances change.

Do you know your credit rating?

Order a copy of your credit report to make sure it does not contain any errors because lenders will check it before approving you for a mortgage. A credit report is a summary of your financial history and shows whether or not you have had any problems in the past paying off debts.

The Financial Consumer Agency of Canada (FCAC), a federal government agency, has tips on how to order your credit report for free and how to improve your credit rating.
Visit FCAC's website at:
www.itpaystoknow.gc.ca

Katia Melnikova

(Source: Homebuyers' Road Map)

FINDING A HOME

Finding your perfect home can be a long process. Your REALTOR will help identify the right type of home for you and continually research new listings in neighbourhoods that meet your needs.

Where do you want to live?

• Urban, suburban or country?
• Will you need to commute? Do you need access to public transit? How much will commuting cost?
• Are there schools nearby? How will your children get there?

What type of home do you prefer?

• Single-family detached homes stand alone on their own lot.
• Single-family semi-detached homes are joined on one side to another home.
• Duplex contain two single-family homes, one above the other.
• Row houses (townhouses) are several single-family units, located next to one another and joined by common homes. 
• Other types of homes include stacked townhouses, link or carriage homes, condominiums and co-op apartments.

What are the types of ownership?

Freehold

You own the land and the house and are responsible for everything inside and outside of the home.

Condominium ownership

You own your unit and share ownership of common spaces. The condominium association is responsible for upkeep of the building and common interior elements, such as halls, elevators, parking garages and the grounds. You pay a monthly fee to the condominium association to cover maintenance costs. The fee varies but can often include utilities, TV services and taxes. You may also have to buy or rent your parking space.

Condos often have strict rules regarding noise, use of common areas and renovations to units. Be aware of your condo's rules before putting in an offer. 

Co-operatives

Similar to condos but instead of owning your unit, you own shares in the entire building or complex with other residents. Co-op residents pay for maintenance and repairs through monthly fees and  are subject to the rules and regulations of the co-op board.

Be aware that if you decide to sell or rent your shares, the co-op board has the right to reject your prospective buyer or tenant. Reading the co-op's rules before making an offer is a prudent practice.

Check out my website www.BedfordParkHomes.com to receive various tips on purchsing or selling real estate.

   (Source: Homebuyers' Road Map)                                                                                                                                                                                                               

                                                                                                                                                                                           

Join TREB’s New Campaign to Repeal the Toronto Land Transfer Tax

Campaign to Repeal the Toronto Land Transfer Tax

On June 5th, 2012 Toronto Real Estate Board has launched a renewed campaign to achieve the repeal of the Toronto Land Transfer Tax. 

Your participation in the campaign is very crucial and will make a difference! 

Please visit this site for information why and how you can help:    www.LetsGetThisRightToronto.ca.

Katia Melnikova

NAVIGATING WITH REALTOR

                                                 Navigating With A REALTOR


The home buying process can be fun and great experience when you choose to work with a Real Estate professional.
So what is that the licensed Real Estate professional can help you with:

• Navigate the home buying process and paperwork from start to finish, ensuring everything flows smoothly without any surprises

• Find the right home, in the neighbourhood you want, at a price you can afford.

• Compare your property with similar properties that have sold over the past year.

• Get a feel for the neighbourhood including schools, parks and other amenities.

•  Find out if you are eligible for government homeownership incentive programs.

•  Assess mortgage products and different types of lenders to see what fits your needs.

•  Negotiate purchase price and contract terms, such as date of possession, required repairs, included furnishings or equipment.

•  Direct you through complex contracts.

•  Find qualified industry professionals such real estate lawyers, home appraisers and home inspectors.

• Plan for closing costs and other related expenses.

     Click here for more information.

(Source: Homebuyers' Road Map)

TREB Market Watch - June 2013