There are two indicators in the current housing market that point to the fact that it is still a good time to purchase a home or condo.

Inspite of an anticipate hike in interest rates, they remain relatively low.  It is now widely believed that low interest rates both on Variable rates and Fixed rates should remain for a while yet.  It is still possible to secure a fixed term mortgage under 4% and variable rates at 2.25%

This spring the price of houses soared with still fewer than normal listings coming available for buyers who were in the mood to purchase before mortgage committments expired.  But by summer, there were plenty of listings as sellers started to worry about the consequences of the HST.  Increased availablilty of listings changed the market from a Seller's market to a much more balanced market, and sellers now have adjusted their expections.

Low interest rates and more moderate home pricing than we saw earlier in the year make this an ideal time to purchase but there are a lot of other factors that may help you make the decision sooner rather than later...

While mortgage rates are low, there are no guarantees that they will stay low.  Lower rates mean that you can afford to purchase more home.  At 4% you can effectively borrow $100,000 for at a cost of $521/month.  Not too long ago, a 5.5% mortgage was considered to be a great deal and would have cost you $610/month per $100K.  

What you can afford will be determined in part by the cost of the home you want to buy but most importantly what it costs to carry that home.    

To help stimulate the housing market, the government has provided some additional incentives for first time buyers.  These include a tax credit of $750, a $2000 rebate on Land Transfer Tax and increased the maximum RRSP withdrawal to $25,000.  A new home buyer is considered to be a person who has never owned a property.  It also applies to the spouse of the purchaser.

If you are currently renting, I invite you to take the test to determine if you should be seriously considering a purchase.  You will find all the information to help you make the decision on my hope page.

Have questions?  Contact me at 905-275-9400.  I am never too busy to answer any questions you may have.

The first thing every serious buyer needs to do is establish a relationship with a Real Estate Agent.  Your agent will represent you as a Buyer Agent and is legally obligated to provide you the duty of utmost care, integrity, confidentiality and loyalty.  Since there is no charge to you for this service why trust the biggest purchase of your life to someone who is not bound to protect your interests?

Agents that you talk with at Open Houses, Model Homes or Suites or call regarding advertised listings all work for the Seller and their primary duty is to protect the interests of the Seller.  Your agent works for you and will protect your interests.
Since you will be working very closely with your Realtor, try and find one who has the ability to listen to your needs and the patience to work with you until you find the home that meets your expectations. Whether you are a First time home buyer or an experienced home buyer, you need an agent who will provide you with the details to make an informed decision and a plan to find your home.    

Guaranteed Service

You and your needs are my primary concern.   My team includes a full range of professionals who we are all committed to helping you navigate the home buying process.  From assisting you in securing the best possible mortgage to ensuring worry free ownership, you can rely on my guaranteed services.

Buying an older home?

While a house inspection will point out any issue of concern visible at the time of inspection, what happens if after you purchase, your appliances break down or the air conditioner breaks down? For your peace of mind, I will provide an insurance policy to protect you against such unforseen expenses occuring within the 1st two years of ownership.

Purchasing a New Condo?

Buying a condo is complicated.  Why go it alone when you can have your own personal Buyer Agent accompany you to any new site without any cost to you?  

Ready to start your plan to purchase? Contact me, I can help!

The reality for many buyers is that they end up purchasing a home that they either paid too much for or that in a few years no longer meets their needs. Proper planning and taking the time to gain knowledge of the real estate market will increases your opportunity to make an educated choice when it comes time to make the purchasing decision.

Step 1    Choose an Agent.    

Step 2    Get a mortgage commitment.  I can help.    

Step 3    Your needs and wants list should extend 5 years.    

Step 4     As your agent I would identify matching listings  

Step 5     We tour listings to fine tune "needs and wants."  

Step 6      Review listings of homes I send daily and inspect the best
  
Step 7     We find it - it's perfect!      

Step 8     The Offer Process Begins.  I will protect your interests.      

Step 9    I present your offer and negotiate on your behalf    

Congratulations! When the conditions are all met and you can start packing.  Now your team goes to work for you.  Your mortgage broker gives an approval for the mortgage, I will make arrangements for a house inspection, and if you do not have one, put you in touch with a Real Estate Lawyer.  If the house you love needs a little TLC or some updating, I have contractors that I can recommend along with movers and even cleaning services.    

Ask about my Guaranteed Buyer Serivices

To get started on your plan to purchase contact me. I can help!

Condos have a lot to offer in terms of security and maintenance but unlike buying a house, purchasing a condo unit means that you are sharing your property with other owners.  Before rushing out to buy a Condominium you need to understand that all Condos have Rules and Regulations which means that some things you take for granted in a freehold (no shared ownership) dwelling may be restricted.

Things that you need to consider before buying a Condo.


If you have a pet, you will need to know if Fido can move in too.

If you love to BBQ, don't count on being able to do this on your balcony. If you purchase a unit with a terrace, it may be allowed, but generally most buildings do not allow any BBQ's on the balcony.

If you like to conserve energy, some condo's share the cost of hydro and/or gas which means that you are paying for somebody else's inefficiency.  Check what is included in the maintenance fees for what utilities are shared.

Are you going to use the facilities that you are paying to maintain?

Where will you wash your car? Some buildings do have a car wash area.

There is a parking spot but no garage - can you live without one?  Storage units are generally small and you will need it for seasonal storage.

Buying A Condo Town?  

Consider the number of stairs you will need to navigate to get to your bedroom, or move between rooms   Will my condo fees include access to amenities in a neighbouring complex?

Living by the Rules

The Rules for every condominium are set out in the Rules and Regulations as decided by the Condominium Corporation.  If you are buying a resale unit, you will be able to review all rules before you purchase in documents contained in the Status Report.  If you are purchasing a new condo, make sure the rules are clearly set out before you sign any agreement.

You have probably heard the ads on the radio the newspaper and on-line with lots of hype on a new building release inviting you to register to purchase a unit.  

The truth is, the majority of units, and undoubtedly the best units are sold at the Broker event which is held before any remaining units go on the market.  

Most big name builders such as Amacon, Daniels, Monarch, and Empire all give Agents and their guests, the first chance to purchase units at these events.  

To ensure the success of these events, the builder generally offers a generous discount.  When the sales office opens to the public, not only are the best units already gone but pricing has already gone up.  

Important!!


If you miss the Pre-sale and decide to go straight to the Sales Office,  take an agent with you to any sales office and always have a lawyer read through any contract with a builder before you sign it!


Food for Thought

While buying new is great for buyers and investors who have time to wait for their building to be completed here are some things you need to consider when deciding to purchase in a new construction building: .  

While the builder may give a tentative date for possession, delays do occur.

If you currently own another home you need to consider what the market will be like in a year or two when the building is scheduled for completion. Will it take longer than 3 months to sell?
If I sell my house even with a long possession and the building is delayed, where will I live while I wait for my unit to close?
If I wait to sell my house until the building is ready for possession, can I afford to carry both until I sell my existing home?  We know today's cost for bridge financing, but what if it goes up?
If the market is slow, you may have to sell your home for less than you might have in a good market.  You are actually buying your unit in today's market and hoping that you will be selling your current home in a similar or better market.  

Although some builders have model suites, are you comfortable buying from a plan?  

Bring a tape measure to the model suite and compare measurements to the plans ... The space always seems so much bigger on the plan
New buildings tend to offer smaller spaces.  It is important that you can feel comfortable in 500 or 800 square feet, as the majority of units are in this range.  You need to check out other units of similar sizes that are already on the market.

Will your furniture fit - is there room for a king size bed, a double or just a futon?

Since the building is not up it is hard to tell exactly what the view will be like

Do the bathrooms offer easy access from the bedrooms?

Is there enough cupboard space and storage?

Will the parking space be convenient?

The list price is just the starting price  

There are extras - these can run up the price significantly
$1000 floor premium can add up if you want to be on the 50th floor
Lockers and parking can be extras - you need to check the fine print
Most units have standard finishes but if you want something a little better or more your style it will cost more.

If I If I don't like it I can sell it.

Yes, but will you get your investment back?
For you to sell and get your investment back you need to consider, the cost of selling (real estate fees, legal fees) and those purchase costs (land transfer tax, legal fees) not to mention the cost of packing and moving and any improvements you made like window coverings.  The value of your investment will need to yield as much as 8-10% to recover your costs if you do not like your new home.
If the market does not increase by 8% by the time you take possession, you may have to sell at a loss.

What if my circumstances change in the next few years while waiting for my unit?

Unless you have an agreement in place with the builder to Assign the Agreement of Purchase, you will have to complete the purchase or face the possibility of loosing your deposit.  Since the builder will require you to put 15-20% down, this money will be held by the Builder until the unit closes.  The potential for you to raise more money for a deposit on a second home is probably NOT an option.

If you are considering purchasing a new unit from a Builder's plan, let me show you some existing units that would be comparable to the space you are interested in purchasing. Then be my guest at the next Agent Pre-Sale Event.  Buy before the sales office opens to the public and get first choice of suites at special prices.    

Simply put, buying a resale unit falls into the principal of What You See Is What You Get, in a time frame that works for you.  There should be no surprises.

You will also be buying and selling within the same market which protects you from buying in an up market and then having to sell in a down market.  You set the time when you want to move and can co-ordinate the date to suit your needs.  The purchase 99% of the time will close without delays.  But just in case, as your Agent. I would provide you with closing insurance to protect you from any unforeseen expenses if closing is delayed.
Reserve Fund

One of the most important aspects of purchasing a resale condominium is ensuring that there is a healthy Reserve Fund.  This is a contingency fund to finance major repairs and keep the building in good shape. Every condominium is required to have a professional study of the projected costs for such maintenance and a portion of the monthly maintenance fee is allocated to the Reserve fund and kept in a separate account.  If major repairs are required, they are paid from the Reserve fund.  

In the event that an emergency or unexpected cost arises, that cannot be covered from the Reserve Fund, the Board may require each owner to pay a Special Assessment.  This could run in the several thousands of dollars, depending on the nature of the repair and how many units are paying for the repairs.  

It is important that a buyer has the opportunity to review the health of the Reserve Fund before purchasing.  This is so important that your offer to purchase should always have a condition that allows the Buyer's Lawyer to review the financial statements contained in the Status Certificate before the offer is finalized.  If anything shows up in the report, you can be released from the purchase.  Failure to check this out thoroughly could be very costly.

Status Certificate

When your agent asks for a Status Certificate, it includes the information on the Balance Sheet for the Condominium which includes the Reserve Fund information.  It also contains information on other things that need to be reviewed before deciding whether or not you want to purchase a unit in the complex such as insurance on the building and if there are any lawsuits filed against the complex.  You will also receive a copy of the by-laws and any Rules and Regulations that you should know about before you buy - such as restrictions for pets.

Why Do Older Buildings Have Higher Maintenance Fees?  

Firstly, older buildings tend to have larger square footage and the larger the space the larger the fee. Secondly, the law requires all buildings to have a Reserve Fund sufficient to cover ongoing maintenance for the foreseeable future plus unexpected expenses.  In some older buildings a required study of estimated future costs for on-going maintenance uncovered the need to increase the Reserve Funds in order to ensure there would be sufficient funds in the future.  The concept is to put a little more money into the Reserve Fund today to reduce the possibility having to pay a potentially large special assessment in the future.  

The options for mortgages available can be very confusing for most mortgage shoppers. Terms for mortgages vary between variable and fixed rate, 6-month terms to 10 year terms. Taking a variable or floating rate mortgage can have savings. Typically the shorter the term or guarantee of the rate, the lower the rate will be. This does not always happen, depending on the market place and the economy, but history has shown that short-term rates tend to be lower than long-term rates. The up side of variable rate is the strong potential for interest rate savings. The down side is the fact that you are accepting the interest rate risk without a guarantee. If you are considering a variable rate mortgage you need to look at your own risk tolerance, and your cash flow available to deal with potential increased payment. Considering projections of rates and where we see interest rates heading can also be important in this decision. Make sure you talk to an expert when you are making this decision.

As mentioned above, when you put a 25% down payment on your purchase you can avoid the CMHC premium. More importantly the larger the down payment, the lower the amount of interest you will pay over the life of your mortgage. It is important to note that it may not be wise to stretch yourself to increase your down payment and end up borrowing on credit cards or a line of credit at a higher rate.

When you require a mortgage for more than 75% of the purchase price of a property, that mortgage must be insured by Canada Mortgage and Housing (CMHC) or GE Mortgage insurance. The premium charged by these company`s decreases as the down payment increases. When you finance your property at 95%, a premium of 2.75% is added to the mortgage. By increasing the down payment to 10% of the purchase price the premium can be reduced to 2.5%. If you can put down 25%, you can avoid any additional insurance fee. Depending on your situation there are ways that you can structure this financing to avoid the CMHC or GE insurance premium.