TREB MARKET WATCH JUNE 2014, SATURDAY NEWS - JUST LISTED: TORONTO, PEEL, HALTON, DURHAM, YORK

Tight market conditions and more competition between buyers are driving prices up. There were 10,180 Homes Sold in June 15% more compare to June 2013. The average Sale price in June in GTA was $568,953 compare to June last year that was $529,614 (over 7% price growth).

 Click on a link to watch full Toronto Real Estate Report for June 2014 on Youtube TREB MARKET WATCH JUNE 2014

THINKING OF BUYING OR CURIOUS WHAT GOT LISTED (3 days on the market) IN YOUR NEIGHBOURHOOD 

Click on links below (Freehold Homes)

TORONTO AREA (200 of 291)*

PEEL (200 of 279)*

HALTON

DURHAM

YORK (200 of 300)*

Contact Melnikova Team via 416-222-2600 to book a showing

*Due to system's limit to 200 listings per single order contact Melnikova Team regarding specific district for complete listing information

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

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)