Showing posts with label buying. Show all posts
Showing posts with label buying. Show all posts

Friday, February 24, 2023

Bank of Canada current interest rate



In January 2023 the Bank of Canada raised it's benchmark interest rate again, this time to 4.50%

Bank of Canada raises borrowing costs for seventh time in a row amid stubbornly high inflation. The Central bank has been raising rates aggressively to rein in sky-high inflation.

Since March of 2022, the central bank has raised its key interest rate six consecutive times, bringing it from 0.25 per cent to 4.50 per cent.

The Bank of Canada hiked its trendsetting interest rate by 1/2 percentage point on Wednesday.

The current rate is 4.50%

The Bank Prime rate for most lenders now stands at 6.70%
Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Sunday, January 01, 2023

See current POS properties across the GTA below




Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Wednesday, June 01, 2022

Bank of Canada increases prime rate 0.5% on June 1, 2022 Prime now 1.5%

The Bank of Canada raised its key interest rate by half a percentage point to 1.5% on Wednesday June 1, 2022

Bank Prime lending rates are now 3.7%

It's the 3rd half-point hike this calendar year in an attempt to slow our soaring inflation. 


This is a great article about the future of real estate in the GTA and how interest rates may be one of the factors that affect the real estate marketplace


Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Wednesday, April 13, 2022

Bank of Canada raises its key interest rate by 0.5% to 1%

Bank of Canada raises its key interest rate by half a percentage point to 1% on WEDNESDAY, APRIL 13, 2022

Bank Prime lending rates are now 3.2%

It's the first half-point hike in more than two decades amid soaring inflation. 


This is a great article about the future of real estate in the GTA and how interest rates may be one of the factors that affect the real estate marketplace, or read below:

Toronto Real Estate forecast 2022, April 11, 2022 
Wednesday, April 13⋅7:00 – 8:00am

Toronto real estate forecast 2022
by Corben Grant on 11 Apr 2022

After a hectic two years, in both real estate and the world at large, we have made it 2022 and it seems we are now entering yet another new phase. Though the world is slowly returning to normal, those paying attention to the real estate market are left wondering – what exactly does “normal” look like? How will things play out following the unprecedented market conditions of the last two years?

In Toronto, one of Canada's largest real estate markets, thousands of investors are now trying to anticipate what the future will hold and others are wondering if now is the time to buy in.

Telling the future is understandably a difficult and ultimately futile practice. However, there are many informed analysts who can at least give a pretty good guess. By looking at past market conditions, upcoming economic and legislative changes, and a bit of guesswork, it’s possible to make a more informed forecast.

In this article, we will explore what the 2022 Toronto real estate market could look like.

Current statistics
Before we get into the future of the market, we should probably understand how it stands now. All data in the following section is sourced from the Toronto Regional Real Estate Board's (TRREB) most recent market statistics from March 2022.

In March of 2022, the Toronto real estate market continued at an active pace though in some key areas it showed some signs of balancing. Overall, it was marked as the third-best March on record and the second-best first quarter on record.

Housing prices down from February 2022
The average overall price across the GTA and for all housing types was $1,299,894. This marks one of the first decreases in price seen in quite a while, down from $1,334,544 in February. This also goes against the seasonal trend that would tend to see prices begin to rise into the spring market. Despite the month-over-month dip, price growth still remained in the double digits on a year-over-year basis, up from $1,097,351 in March of 2021.



Detached homes sold at an average price of $1,920,018 and $1,632,832 in Toronto and the GTA respectively, both down from the previous month for a combined average of $1,697,396. Prices weren't down across the board, however, as the condo market notably saw marginal price gains from last month.

Both listings and sales were lower than the high records of March 2021, though they were up from the previous month. Supply on the market remained at around just one month.

An anomaly or a sign of things to come?
This last month then presented a moderately more balanced market for Toronto, though we are far from out of the woods yet. What remains to be seen is if this is a temporary off month or the start of a longer trend in the market.

TRREB Chief Market Analyst Jason Mercer is quoted in the release as saying that though competition among buyers remains strong in most segments, the city did “experience more balance in the first quarter of 2022 compared to last year. If this trend continues, it is possible that the pace of price growth could moderate as we move through the year.”

What 2022 will hold for the Toronto housing market
There are years where housing markets are fairly easy to predict with some accuracy as was the case for some of the pre-pandemic years in Toronto. However, the last two years have proven that unexpected events are very real and major disruptions can happen out of nowhere.

2022 is looking to be another year of unpredictable changes in the market. With the world recovering gradually from a global pandemic, the reinvigoration of the Canadian economy, rising interest rates, and new legislation coming into effect to cool the real estate market, there will be no shortage of potential shake-ups this year.

Each of these new factors will naturally have its own effects, but the combined effect of all the changes together becomes increasingly difficult to call. In the next section, we will look at some of the new changes expected for this year and how they can affect the housing market.

Rising interest rates
One of the biggest changes that are essentially guaranteed to play a role in the market this year is the interest rate increase from the bank of Canada.

Many reaped the benefits of record low rates in 2020-2021
During the depths of the pandemic, the Bank of Canada kept its prime interest rate at a record low level in order to aid the economy in getting through difficult times. While it may have helped the economy, the low-interest rates also played a part in driving up prices in Canada's real estate market, as well as growing inflation. With such low interest rates, buyers were able to afford higher mortgages so prices began to grow.

Multiple interest rate hikes predicted for this year
Now, the central bank has begun to raise interest rates, with a first hike occurring in March and at least a few more predicted for the rest of the year. The impact of gradually increasing rates on the Canadian housing market won't be instantaneous, but we should see effects sooner than later. As interest rates rise, more potential buyers will fail to qualify for loans, lowering the demand on the market. Those who do qualify will need to look for lower-priced homes. The hope is that this will cool the market somewhat.

New legislation in the Toronto real estate market
Housing concerns have been on the top of the agenda across nearly all party lines in Canadian politics for the last number of years and new legislation on both the provincial and federal levels are set to be put in place this year to curb the rampant housing market.

Non-Resident Speculation Tax
Recently, the province announced an increase to the Non-Resident Speculation Tax and a widening of its applicable area. The result is that any foreigners looking to buy homes in Toronto will be forced to pay a tax of 20%. This should reduce some demand on the market and allow Canadian residents a chance to buy homes with less competition.



Foreign Homebuyers Ban
On the federal level, the liberal government is set to take an even stricter stance, with a proposal to ban almost all foreign purchases for up to two years. This would all but erase completion from foreign buyers and reduce a lot of competition for homes. The matter of foreign buyers is contentious as there is still plenty of domestic demand for homes that will keep prices elevated, however, reduced competition is nonetheless welcome.

New housing supply initiatives
The Ontario government is also moving forward with plans to increase housing supply in coming years by streamlining development processes, with hopes to build 1.5 million new homes in the next 10 years. This should serve to combat the low housing supply that has plagued the market in recent years.

Toronto Vacant Homes Tax
Finally, Toronto itself has a newly instated Vacant Homes Tax coming into effect that hopes to bring more houses to the market. Such a tax has been effective in Vancouver to reduce the overall number of vacant homes, relieving some pressure on both the resale and rental markets.

In combination, these new laws should reduce demand and competition, while increasing the housing supply. While it is unlikely to cause a significant drop in house prices, it will allow for the market to cool and balance and help to ease the incredibly strong seller's market seen in recent years.

Economic recovery
Another aspect that can come into play for the housing market is an overall move towards a stronger Canadian economy in the recovery from the pandemic recession. As supply chain conditions begin to improve, this can have positive effects on the price of new-home development. Reigning inflation will also help ease financial burdens on Canadians and growing rates of employment and income will allow more Canadians to enter the market.

Unexpected events
One thing that recent times have made abundantly clear is that you never know what is around the corner. Even our best predictions will fail nine times out of 10 times to foresee the most unexpected events.

The two biggest causes of uncertainty right now come from the continued presence of COVID
15 minutes before
Mark Argentino


Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Monday, March 07, 2022

The Bank of Canada increased the prime rate by 1/4% in March 2022 and now is 0.50%

The Bank of Canada increased the prime rate by 1/4% in March 2022 and now is 0.50%

The Bank Prime rate for most lenders now stands at 2.70%  

This is the first change in the prime rate since April of 2020


Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: Info@mississauga4sale.com
Website: Mississauga4Sale.com

Monday, May 09, 2016

Annual real estate cycle for Toronto and the GTA in Ontario over the past 20 years

Greeting from Fabulous Mississauga!

The graph below clearly shows the pattern of the annual real estate cycle for Toronto, the GTA in Ontario over the past 20 years.

 
This graph shows the cycle of how average price increases in the late winter and early spring, decreases during the summer months, increases again in the fall (but usually not as high as the highest price in the spring) and then decreases again over the  early winter months. The cycle repeats itself with near certainty, year after year and has done so since at least 1995.  When will this regular price increase stop? Nobody knows for sure, but it's a very interesting trend to see the seasonal fluctuations in home prices.

The only period that didn't show this regular increase was late 2008 to early 2009 during the Global Financial Crisis when housing prices fell more than 50% in some markets in the USA and elsewhere.  We only experienced a small downward 'blip' in our prices and then the steady increase began again in the spring of 2009

The graph below shows average single family residential prices of homes for the Toronto Real Estate Board.  Or, maybe you would like to see the average prices of single family residential homes since 1985








I hope this finds you Happy and Healthy!
All the Best!
Mark
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

BUS 905-828-3434
FAX 905-828-2829  CELL 416-520-1577
mark@mississauga4sale.com

Mississauga4Sale.com


Friday, May 06, 2016

Graph showing TREB Historical Average Price Data

Greeting from Fabulous Mississauga!

Below is a Graph showing TREB Historical Average Price Data

  • The graph below shows a graph of sales price data obtained directly from the Toronto Real Estate Board showing the average selling price of single family homes from 1985 to date in our GTA marketplace.
  • Note the historical trends for spring and fall price increases, where spring typically has a larger increase compared to the fall.
  • The benchmark for changes in price is chosen to be the average price of homes at the last height of the market, which was $273,698 in 1989







I hope this finds you Happy and Healthy!
All the Best!
Mark
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

BUS 905-828-3434
FAX 905-828-2829  CELL 416-520-1577
mark@mississauga4sale.com

Mississauga4Sale.com


Thursday, May 05, 2016

You can save money when comparing the 1 year and 5 year mortgage interest rates

Hello from Fabulous Mississauga!

Interest rates are always on people's minds.


A very interesting relationship is between the 1 year and 5 year mortgage interest rates compared over time. 

People often ask me if they should choose the short term rates or lock in for the long term rates with their mortgage. 

The answer is not simple and often depends upon your personal situation and your risk tolerance, read more about locking in your mortgage for the long or short term

The graph below shows you the difference between the 1 year rate and the 5 year rate. The wider the gap, the more opportunity for you to save money by having a short term mortgage.  This may give you some insight into what you may wish to do by comparing the difference between the short and long term rates over the past decade or so and how the difference fluctuates.



I hope this finds you Happy and Healthy!
All the Best!
Mark
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

BUS 905-828-3434
FAX 905-828-2829  CELL 416-520-1577
mark@mississauga4sale.com

Mississauga4Sale.com


Sunday, January 24, 2016

Bank of Canada leaves key interest rate unchanged at 1/2%

Greetings from Fabulous Mississauga!
The Bank of Canada leaves key interest rate unchanged at 1/2% most anticipated interest rate announcement was on January 20, 2016 and the decision was that the Bank of Canada will be maintaining its overnight rate at 0.5%.  This means there will be no changes to prime rate. 
What does this mean to you, the consumer?  It's likely the major banks in Canada will leave their prime rates that they charge you at 2.70%
The last increase of the prime rate was September 2010 and this the longest stretch of no increase in history. 
Economists have been predicting that the prime rate will remain unchanged until sometime in 2016 and some even longer than that.  There are others who are predicting no change for 5 years or longer.
Many have been predicting the prime rate will increase 'next year' every year for the past 5 years now.
Personally, I believe that the low interest rates that we are currently experiencing are generational.  What I mean is that I predict we will see rates at or near their current levels up to about 5% for the next 15 years.  It's already been 5 years of low interest rates and it will likely remain this way for the next 15, a total of 20 years, a full generation!  That's my prediction.

You can still find discounts on variable rate mortgages as low as prime -0.5% with most banks offering about prime -0.10%. 
You can find 5 year fixed mortgages as low as 2.6% and even slightly lower sometimes.

I hope this finds you Happy and Healthy!
All the Best!
Mark
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

BUS 905-828-3434
FAX 905-828-2829  CELL 416-520-1577
mark@mississauga4sale.com

Mississauga4Sale.com


Monday, March 02, 2015

When is the best time to sell your home in the GTA?

Hello,

I just read this article below that was sent to me by a client.

It contains great information about when to sell your home.

I've written about this in the past and you can read my thoughts about this subject at this link:


Enjoy!
Mark

Like everything in life, there are always exceptions to the rules.


Personally, I like these exceptions, as nothing is predictable – especially selling a house.

Still, it's good to know the basics, do your homework and factor in the required timelines.

Statistics show that spring is the best time to sell a house. You may read conflicting reports that will say March to May, or they may lump in April and July in to those calculations. However, with the recent real estate climate in the GTA, there really isn't a bad time. What you're selling can influence the time of year you choose to sell.

If you're listing a resale home, in order to buy a new home, you have to realistically factor in the closing date and, perhaps, add-on a bit of wiggle room. If you're listing a condominium or have to give the appropriate two-month notice to a landlord, you may not have to worry about the time of year as it relates to children starting school- unless the children are yours.

Starting a new school year at the beginning of September, and ensuring that kids can finish up the year at their old school, is one of the most important concerns for parents of school-age children. In this scenario, the family would prefer to move during the summer months, so count back and consider the following.

If your home is located in a family-friendly area, close to schools, shopping, etc., a new family will want to relocate during July or August.

Count back three months, as most offers ask for a 90-day closing. With this in mind, you'll want to have signed a deal by April. Again, if you're situated in the GTA, chances are that your home won't be on the market for long. But if you live in a rural area, or have a character property that’s quite different from the norm, you'll need to build in more selling time.

There are some advantages to listing your house earlier in the calendar year, rather than waiting for spring. Because the summer scenario is so popular, most people list their homes around April, which means there’s more competition. If you list your home in February, you may have other advantages.

During the winter months there's a lower supply of houses on the market. Also, maintaining your property requires less work on the outside at this time of year, since you don't have to tend gardens and keep the grass cut. Many of my clients have experienced a successful rate of return when they list in February.

Those people who are looking to buy in September or October may be looking for a better deal after the peak months have passed. Some agents will tell you that your house will sell quicker and closer to the asking price, if you list between Halloween and the New-year.

Homes look their best in the late summer and early fall. Gardens are mature, lawns (depending upon the weather) may be lush, and with a hint of autumn tingeing the air and the leaves, fireplaces can be lit and the ambiance created by indoor, and outdoor, lighting - all help to enhance the curbside appeal. Still, there are no hard and fast rules.

If you're selling and buying, it's always a juggle, so try not to have all your balls in the air at once.

Have a plan, and choose the timing that's right for you and your family.


I hope this finds you Happy and Healthy!
All the Best!
Mark
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

BUS 905-828-3434
FAX 905-828-2829  CELL 416-520-1577
mark@mississauga4sale.comMississauga4Sale.com
  • Thinking of selling your home in the next 3 to 6 months?  Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
    www.mississauga4sale.com/internet-evaluation.htm
  • Power of Sales and Foreclosureswww.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm
  • If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
    www.mississauga4sale.com/popupquestion.htm
  • See seasonal housing patternswww.mississauga4sale.com/TREBprice.htm
  • Would you like me to send you a desk or wall Calendar?
    www.mississauga4sale.com/Calendar-Order-Form.htm
 


Thursday, October 23, 2014

Location, Location, Location what does it mean when purchasing real estate?

You will find the information very helpful when you are purchasing your real estate

You have heard about the importance of location, but what really does that mean?  The article below will explain what location, location, location in real estate is all about.

Enjoy,
Mark

Location, Location, Location

You've probably heard this adage many times, but what does it mean?

Location of the property you are contemplating to purchase is one of the most important aspects of consideration when establishing the value of a property.  

For example, two identical homes can be priced and valued very far apart the only difference in many cases is the location of each home.  How can this be?

The following information about location would affect both how much you pay for a home and subsequent resale value of the home, so buyer beware of these items.


  • Distance to work. How long will the rush hour commute take? House prices generally decrease as the distance for the hub-of-activity increases.
  • Recreational facilities. Parks. playgrounds, baseball diamonds, community centres, arenas, swimming pools and soccer fields help establish ambience and a community-based neighbourhood.
  • Schools. Which schools service an area is often a high priority.
  • Shopping. Large malls serve an entire community. Intermediate sized plazas are accessed by commuters and pedestrians.
  • Support services. Everyone needs a doctor. dentist and a pharmacy. Day care cent res and religious facilities also rank high.
  • Transportation. Public transit and mature road networks are more readily available in built up and established area. Projected start dates for transit routes or road construction are only educated guesses.
  • Lot size. Street frontage is important but don't overlook depth.
  • Parking and garage.
  • Corner lots. To avoid creating a tunnel like appearance, corner lots are wider than normal, meaning more grass to cut, more sidewalk to clear of snow and ice, more fencing to erect without a neighbour to share the cost.
  • Side of the street. Homes on the west side receive morning sun at the front and afternoon sun in the back. South side homes bask in the sun at the rear, ideal for backyard enthusiasts.
  • Other factors. What street hardware (sidewalk, fire hydrant, overhead street lamp, traffic signs, hydro transformer box, super mailbox, etc.) is located on or near the lot?


Potential deterrents

Negative factors can include gas stations. railways tracks, airports, commercial developments, cemeteries, industrial parks and major highways.

Positive attributes in close proximity can sometimes become drawbacks. For example being near a school is important but would you want a school next door or across the street?

Other considerations

After narrowing your choice of community and neighbourhood, focus on these factors:

I hope these points help you with your next purchase.

 I wish you all the best with your purchase,
Mark

Monday, October 13, 2014

Are Mortgage Interest Rates going up to down and should you buy hold and sell investment real estate?

I received an email from a reader and thought I would share the question and my answer with you.

The question from Aijaz was:


I love your site.
Thanks for keeping the data up to date.
Lots of good data on it.

Question. Do u think with interest rates going up possibly mid 2015.
This will cause a correction in pricing.

What is your opinion on the over value of canadas house pricing.
Some forecasters saying 20% drop in pricing.

Are you currently on the Buy, hold, or sell model for investment property?

My answer was:


Hello Aijaz

Thank you for your email and kind comments.

You are asking very good questions.  Unfortunately, nobody can predict the future but these are my thoughts and opinion.

I can see the prime rate rising to 3.25 and maybe 3.5% by the end of next year, at the earliest.  Even if/when this happens, the banks will raise their rates only slightly, I don't see them keeping in step with the Bank of Canada Rate. 

Rates will only rise to keep inflation in check.  I don't think that rates will cause a correction in pricing.  Yes, slightly fewer people will be able to enter the real estate market due to a price increase, but I don't feel this will have a large impact on our resale market.

I believe that it will be some other event or combination of events that will cause our real estate market to have a correction.  Our rise in prices has been unprecedented and nearly constantly upward since 1995.  Logic says this cannot continue forever.  Eventually the market increase in prices will slow and possibly retreat.  When this will happen is anyone's guess.  My opinion is that we will have a gradual slowdown of the market prices in late 2015 and into 2016, maybe only a 2 or 3% increase over that period rather compared to previous year over year increases of 4 to 10%  You have to compare figures from the same period previous year as prices fluctuate during the year and you need to watch the month over month trend to get a handle on real estate prices.  Year over year increases are what I am referring to.

Even if rates increase 0.5 or 1% we are still in extremely low interest rate period compared to last 50 years.  I think that these low rates will be with us until at least 2020 and possibly longer.  There is no reason for the rates to rise to 8% or higher and if they did, the economy would have great difficulty absorbing this shock and may crumble and correct as you and many are suggesting.  I feel this is a generational phenomenon, low rates may be with us for 20 years. Rates have been exceptionally low since 2009 and I see rates staying in this very low range well into the 2020's

Our real estate market, similar to the stock market, can have a major correction in a very short period of time.  Our TSX stock market has dropped (corrected - good grief I don't like that word, as it's a drop/loss/fall, not really a correction) nearly 10% since the high in mid September.  In a similar way, if buyers stop paying the prices that sellers are asking and the real estate market softens then we can easily have a correction in the average price of 10% or $60,000 on the current average price of nearly $600,000  It would take about 2 to 4 months for this correction to happen.

I am always of the mindset to buy and hold for the longer term, at least 5 years and more like 10 to 20 or longer.  Buy real estate, hold, reduce original amortization to 20 years, use bi-weekly accelerated payments, pay yourself by making up the $100 to $300 per month shortfall with your savings and let the tenants pay off your investment properties in 15 to 20 years.  Then you can enjoy the income in your later years.

I hope this helps.

If you have more questions, please let me know.

Happy Thanksgiving to you and your family!
Mark



Tuesday, March 11, 2014

CMHC Premiums for home purchase will rise as of May 1

Hello!
 
Part of my job as your realtor is to keep you informed and help you make the best decisions for yourself.
 
Of course, saving money is paramount, so….
 
I wanted you to know about changes that will make it more expensive for anyone buying a home with less than 20% down payment.
In Canada, lenders typically require Buyers with less than a 20% downpayment to pay for mortgage insurance, offered by the Canada Mortgage and Housing Corporation (CMHC).  
The size of the premium is calculated as a percentage of the mortgage and based on the amount of the downpayment - the higher the downpayment, the lower the premium.
On Friday February 28th, CMHC announced that they are increasing CMHC premiums as of May 1st, 2014.
Since most people add the cost of CMHC insurance to their mortgage and pay it over 25 years, the net impact of this increase is estimated to be $5 a month for the average Buyer, however it is important to look at the real-dollar impact of the CMHC increase:
  • For a $250,000 mortgage, a Buyer with 5% down will now be paying an additional $1,000.
  • For a $450,000 mortgage, a Buyer with 5% down will now be paying an additional $$1,800.
  • For a $250,000 mortgage, a Buyer with 15% down will be paying an additional $125.
If you like math, here's the formula for how CMHC Insurance premiums are calculated:

What the Premium Increase Means to the Average Toronto Buyer:

  • The higher your downpayment, the less CMHC insurance premium you will have to pay.
  • To avoid the increased fee, make sure that your lender submits a request for CMHC insurance for you prior to May 1, 2014.
  • The closing date on your new home is irrelevant, but you'll need to have an Agreement of Purchase and Sale in place and have your mortgage in process by May 1, 2014.
What am I really saying?  If you have a 5% downpayment and want to save a couple of thousand dollars, buy a home before May 1st. 
I hope this finds you Happy and Healthy!
All the Best!
Mark
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

BUS 905-828-3434
FAX 905-828-2829  CELL 416-520-1577
mark@mississauga4sale.comMississauga4Sale.com
  • Thinking of selling your home in the next 3 to 6 months?  Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
    www.mississauga4sale.com/internet-evaluation.htm
  • Power of Sales and Foreclosureswww.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm
  • If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
    www.mississauga4sale.com/popupquestion.htm
  • See seasonal housing patternswww.mississauga4sale.com/TREBprice.htm
  • Would you like me to send you a desk or wall Calendar?
    www.mississauga4sale.com/Calendar-Order-Form.htm
 
 

Friday, April 19, 2013

BIG DECISIONS when buying a home in Mississauga Real Estate

BIG DECISIONS

In life one of the most important decisions we ever make is about buying or selling your home.

It's a big step that's filled with excitement and anxiety.

You want to be sure that the choices you make are the right ones. That's where we make all the difference - a professional with the insight and experience to help make the most of your options.

When it comes to life's big decisions it's reassuring to have an expert on your side
Please send me an email if you are interested in "teaming up"

Mark







Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Wednesday, April 17, 2013

TRANSITION VERSUS TRANSACTION when buying a home in Mississauga Real Estate

TRANSITION VERSUS TRANSACTION

Buying or selling a home is far more than just a transaction.

It's often at the heart of a major life transition - buying your first home, requiring a larger home because you're starting a family, or downsizing to simplify your life.

That's where we really help - we know the joys and the anxieties that are part of life's big changes and we're experts at handling all of the details so you can focus on what really matters

If you are interested in buying in the near future, please send me an email and we will "team up"!

Mark




Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Tuesday, April 16, 2013

KNOWLEDGE IS PROTECTION when buying a home in Mississauga Real Estate

KNOWLEDGE IS PROTECTION

When it comes to buying or selling a home things may not always be as they appear.

That's where I will be an invaluable guide. Wey have our fingers on the pulse and know the questions to ask, the places to probe and what to look for so you get the whole picture about the property and the community.

With me by your side you can make an informed decision - complementing what you see with what we know.

Please send me an email if you are interested in "teaming up"

Mark



Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Wednesday, March 13, 2013

4th quarter 2012 Average prices for condominium units based upon the number of bedrooms in the Mississauga City

Toronto Real Estate Board (TREB) Average Prices and Graph
This chart below shows the average prices for condominium units based upon the number of bedrooms in the Mississauga City Centre breakdown for the 4th Quarter of 2012






















For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Friday, May 20, 2011

RE: zero down payment

I was just asked this question:



Hi Mark

I was just on the website Mississauga 4sale and was reading that RBC may
offer zero down payments for new homes, Is this still the case?
V.




Hi V,

This plan was only available for a very short period of time, about 7 months and then the government removed it from options. 5% downpayment is the minimum now.

Read more at this page:
http://www.mississauga4sale.com/Zero-Down-Payment.htm
Please let me know if you have any other questions or require further information.

Thank you,

Mark


Thursday, April 21, 2011

Lunacy - Is the Real Estate market heated up in Mississauga?

Currently, Real estate sales in Mississauga are very heated

Daniel's is opening their phase 3 stacked townhome complex at Winston Churchill and Eglinton. I've been told that people began lining up on Monday April 18th for a chance to purchase one of these new townhomes.

There are many similar type stacked townhomes currently on the resale market, but these are for brand new units.

These units don't go on sale until Saturday morning May 5th, so people will be standing in line almost 3 weeks and will begin living in a tent for about 2 weeks starting April 25th for the opportunity to buy a townhouse - lunacy!


Or maybe I'm wrong and standing in line for 2 to 3 weeks is the norm.

All the best!
Mark


PS: Are you worried about what option you should choose for your mortgage, read which is best here:
http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm