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DID YOU KNOW...
If you’re thinking of selling your home, or you simply want to spruce it up, exterior renovations can significantly increase its value and curb appeal. Aside from more expensive undertakings such as new roofing and siding, there are some projects you can take on yourself, such as creating attractive flower beds or purchasing a new front door. With each project completion, you will be happier with your home, and increase its appeal to buyers when it comes time to sell!
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MORTGAGE MATTERS
If you’re interested in the details surrounding Canada’s mortgage industry, TD Securities has put together a primer on this subject that’s well worth a read. Canada’s mortgage market has attracted an understandable surge of interest in recent years, motivated by the housing sector’s relatively successful navigation of the global credit crisis, says the report, Canadian Mortgage Market Primer. The report addresses that interest by providing a detailed overview of the key building blocks of Canada’s housing market, the mortgage market, the mortgage insurance system, mortgage-backed securities, the Canada Mortgage Bond (CMB) program, and the Canada Mortgage and Housing Corporation (CMHC).
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HOMEOWNER TIPS
Saving Energy:
There are some small things you can do to save energy around your home. For instance, when replacing hard-to-reach light bulbs, such as exterior porch lights, switch to energy-efficient compact florescent bulbs. You won’t have to change them for several years! You can also use your window coverings to help warm or cool your home. The less energy you use, the less impact you have on the environment. Finally, install and use a programmable thermostat. For every 1°C you lower your thermostat, you can save 2% on your heating bill. A reduction of 3°C at night and when you are away during the day provides optimal savings and can reduce your GHGs by half a tonne.
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Welcome to the July issue of the Real Estate Journal, which is designed to help you make a more informed decision the next time you’re buying or selling a property!
This month’s edition discusses the importance of looking beyond your “perfect” new place to call home, as well as details mortgage portability options. Please feel free to ask questions or offer feedback regarding anything outlined below via phone or e-mail.
Thanks again for your continued support and referrals!
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If you’re in the market to purchase your first home or relocate to a new home, it’s easy to get caught up in the home-buying process and forget some of the details. The clock is ticking, rates have nowhere to go but up and you’ve found the perfect home on the perfect street. Nothing left now but to make an offer, right?
Well, while location definitely matters, if you’re not careful and observant when making your new home choice, you could end up in a great location and still purchase a money pit.
After all, in many cases, those anxious to sell their home have been known to make a few cosmetic adjustments or staging tricks to hide the areas where their house may require a little extra care or even some serious repairs.
Pay special attention to and mention to your home inspector (if you reach that point) if you come across anything that seems out of the norm, including:
1. Freshly painted basements. We all know that basements are often prone to leaks. If you notice that a basement has recently been painted – particularly the floor of an unfinished
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basement – make sure you ask why this was done. Also take a look around the outside perimeters of the home to see if there are other telltale signs of a possible basement leak.
2. Strong smells. Your senses are your first and one of your best methods of avoiding deception. Mould smells like mould. It’s easy to hide the visual signs of mould with paint, but it’s a hard smell to mask. Don’t be afraid to sniff around any area that makes you feel uneasy.
3. Suspicious piles and large plants. If something looks out of place, ask about it. A pile of bricks stacked against the side of the house could just be a pile of bricks, but it could also be a way of hiding a cracked foundation. The same holds true for a large plant or tree located in an odd area.
One of the benefits of working with a qualified real estate professional is that we know what to look for in a home to ensure you’re not buying a money pit. If you see anything that doesn’t feel right, let’s discuss it. Follow your gut. Even after you’ve been through a home, answers to your questions and concerns are just a phone call or e-mail away!
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Selling your current home and moving into a new one can be stressful enough, let alone worrying about your current mortgage and whether you’re able to carry it over to your new home.
Porting enables you to move to another property without having to lose your existing interest rate, mortgage balance and term. And, better yet, the ability to port also saves you money by avoiding early discharge penalties.
It’s important to note, however, that not all mortgages are portable. When it comes to fixed-rate mortgage products, you usually have a portability option. Lenders often use a “blended” system where your current mortgage rate stays the same on the mortgage amount ported over to the new property and the new balance is calculated using the current interest rate.
With variable-rate mortgages, on the other hand, porting is usually not available. As such, upon breaking your existing mortgage, a three-month interest penalty will be charged. This charge may or may not be reimbursed with your new mortgage.
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Porting Conditions
While porting typically ensures no penalty will be charged when you sell your existing property and buy a new one, some conditions that may apply include:
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Some lenders allow you to port your mortgage, but your sale and purchase have to happen on the same day. Other lenders offer a week to do this, some a month, and others up to three months.
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Some lenders don’t allow a changed term or force you into a longer term as part of agreeing to port your mortgage.
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Some lenders will, in fact, reimburse your entire penalty whether you are a fixed or variable borrower if you simply get a new mortgage with the same lender – replacing the one being discharged. Additionally, some lenders will even allow you to move into a brand new term of your choice and start fresh.
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There are instances where it’s better to pay a penalty at the time of selling and get into a new term at a brand new rate that could save back your penalty over the course of the new term.
While this may sound like a complicated subject, your mortgage professional or lender will be able to explain all of your available options.
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