Co-ownership property purchase and financing

Did you know...co-ownership properties can be financed through some mortgage lenders?

The banks are generally not interested in placing mortgages on this type of property; however, some mortgage brokers can assist buyers in arranging a mortgage at competitive rates.

The following general guidelines apply:

• 30% down payment required
• Application fee $250
• Verifiable income
• 32% GDS / 42% TDS
• Extended amortization available (no surcharge)
• Choice of payment frequency
• Prepayment privileges available
  

If you are considering a co-ownership property purchase, please let me know and I will have my mortgage contact check to see if that particular property is on the lender's approved list of properties.

As usual, please let me know how I can help you!

read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

How to do a final walk through before your closing date

This is a good article about what to look at just before you close on yoru purchase

You're just about to close on the purchase of a new house.


But before you do, you'd be wise to conduct a final walkthroughof the property. Here's how.


Bring your contract with you so you can reference it regarding items excluded from and included in the sale.

Assuming a home inspection was performed, these things would have been checked, but you'll want to make sure their condition hasn't since changed.

You'll also want your paperwork handy to remind you of what repairs, if any, the seller was to have made, as this is the time to confi rm they've indeed been done.

Inspect for any damage done to the house when the previous residents moved out (on fl oors and around door frames, especially), as well as damage that may have been hidden from sight by furniture, rugs or artwork during
previous visits you made to the house.

Ensure the seller hasn't left anything behind they shouldn't have, like trash or unwanted furniture. On the other hand, confi rm all items the seller agreed to include in the sale (appliances, window treatments, lighting, etc.) are still there and haven't been substituted.

Get copies of invoices and any warranties relating to the work performed.

Test appliances and heating and air-conditioning systems, if possible: flush toilets; turn taps, light fi xtures, exhaust fans and garbage disposals on and off; open and close windows and doors.

Go through the house from attic to basement, room by room.

In addition to the interior, don't forget to include the house's garage, backyard and any storage sheds that might be on the property as you conduct your fi nal walk-through.

RBC reports lower inflation equals lower interest rates

RBC is reporting that since the inflation figures are lower than expected, this gives the bank of Canada more room to lower interest rates to help the economy.

Should be interesting to see what the next rate announcement holds!

Lower inflation gives central banks room to manoeuvre

The slowing pace of growth in the world economy and falling commodity prices have led to a sharp reduction in inflation forecasts. Inflation rates in Canada, the United States, the United Kingdom and Eurozone countries are forecast to fall to 0.5% to 2% range after hovering between 3.5% to 5.5% this summer.

The prospect that inflation pressures will continue to abate has opened the door for central banks to skew policy to tackling the problem of a sustained slowing in economic growth by cutting interest rates.

After a co-ordinated 50 basis-point rate cut on October 8, central banks of all four countries continued to ease independently. While some central banks are near the end of the rate-cutting cycle, there is more scope for the ECB and the Bank of England to ease monetary policy further in an attempt to limit the downward pressure on their economies and temper the effect of tight credit conditions. Central banks have also continued

Rough ride ahead for Canada reports RBC

RBC is reporting that Canada's economy is in for a rough ride in 2009

A rocky road for Canada

This drop in the inflation rate will be tempered by the fact that the GST cut introduced in January 2008 will fallout of the annual inflation calculation starting in January 2009.

Projected weak U.S. growth and moderately tight credit conditions will likely see Canada's economy contract in both the fourth quarter of 2008 and the first quarter of 2009.

Canada's economy is forecast to eke out a mild 0.6% gain this year, down from our previous forecast for a 0.9% increase and to decelerate modestly such that no growth is expected in 2009, significantly slower than our prior forecast of 1.5%.

A moderate, although sustained, recovery is expected in the second half of next year as these restraining factors ease. We forecast that the price of oil price will increase modestly next year from today's level, although prices are likely to remain below 2008's average rate.

The weaker pace of growth and falling commodity prices have lessened concerns about price pressures and we now forecast that the inflation rate will average 0.8% next year, down from the 2.3% expected for 2008.

US economy is slipping further

RBC has reported that the US economy is slipping deeper into recession

U.S. economy slipping off the brink

The U.S. economy contracted by one-half of one percentage point in the third quarter with consumer spending declining at the steepest pace in 28 years and business spending softening. Export growth slowed and the widespread weakening in global economic activity sets up for a further deterioration in the fourth quarter of this year.

With these conditions persisting early in the fourth quarter, we expect an even heftier decline in real GDP in that quarter.

The tightening in lending standards that is making borrowing more difficult and expensive is setting the stage for consumer and business spending to contract further. Consumers are also facing deteriorating balance sheets and growing job losses.

This would mark two consecutive quarters of declining activity, although the National Bureau of Economic Research (NBER) did not bother to wait and has already indicated that the U.S. recession commenced December of last year on the basis of weakening labour markets since the start of 2008.

RBC reports Housing downturn — Canadian-style

This is a report from RBC about the housing slump that we are currently experiencing here in Canada.

It appears that our markets have softened considerably and it will be interesting to see what happens with our real estate markets over the next few months.

I hope this finds you healthy and happy,
Mark

Housing downturn — Canadian-style

Canadians have watched with amazement for nearly two years now at the collapse of the housing sector in the United States, the United Kingdom and other countries that experienced overvalued housing prices with the sense that markets in this country stand on much more solid ground. After all, the sub-prime business never represented more than a marginal phenomenon here;

Canadian households, while carrying heavier debt loads than in the past, were not financially overstretched; Canadian banks emerged islands of stability amid the global financial storm; incomes remained well supported by steady job creation and a strong domestic economy; and the influence of speculation — especially on new construction — was deemed to be subdued.

-Then, late in 2007, red-hot Alberta markets began to slide, followed earlier this year by British Columbia's markets. Most recently, Saskatchewan, last year's hotspot, and areas in Ontario joined the weakening trend.

All of a sudden, Canada no longer appeared immune to a generalized housing downturn. In fact, the souring of economic conditions, eroding consumer confidence and, in some instances, past excesses are creating a downdraft that the majority of Canada's housing markets will be hard-pressed to resist.

-However, high home ownership costs are not unique to western Canada. RBC's affordability measures lie above long-run averages in all provinces and across all housing segments, which suggests that the downdraft will be felt widely.

-Still, the extent of "unaffordability" varies substantially by province, with measures running as high as 48% above average in the B.C. standard townhouse segment and as low as 6% above average in the Quebec detached bungalow segment. Overall, British Columbia, Saskatchewan and Alberta remain the least affordable markets in Canada (relative to their respective historical norms).

-As a sluggish economy threatens income growth and makes households much more skittish about major financial commitments, issues of affordability are coming to the fore. Much of the market correction taking place in British Columbia, Alberta and, now, parts of Saskatchewan can be traced to very poor affordability levels in those provinces.

-While the Canadian housing sector is undoubtedly entering a cyclical downturn, the risk of experiencing a U.S.-style meltdown is remote. The supportive factors mentioned above are still mostly in play and should provide enough backing to prevent markets from spiraling down even as the Canadian economy slips into recession.

Canadians will not experience the same market meltdown that the US has experienced

This is a nice summary of why we will not experience the same market meltdown that the US has experienced.
Enjoy,
Mark

The Canadian economy continues to thrive with a high employment rate, a strong dollar and a relatively low cost of borrowing.

In fact,more first-time purchasers are expected to take advantage of the reasonably low mortgage rates, longer amortization periods and subsequently more affordable monthly mortgage payments.

If you've been holding off making a move, wondering if Canada will follow in the turmoil of the U.S. real estate market, rest assured that the problems stemming from the U.S. "subprime meltdown" do not necessarily apply to the Canadian real estate market.

For one thing, the mortgage products offered in Canada are different than those offered to our neighbours to the south. In addition, our subprime market is just a small part of our mortgage market, so the extent of any problems within that market do not affect our overall economy as in the United States.

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

RBC reports that it's certain that Ontario will slip into recession

RBC is reporting that the Ontario economy is slipping into a recession. There seems to be no doubt about it as we are rounding the corner into another year.

See what they say about the Ontario contractions below, interesting!

Mark

Ontario — Slipping into recession

Hopes of escaping the recession vortex are disappearing fast in Ontario. Earlier

strength in the domestic economy is diminishing as consumer and business

sentiment sours and is no longer able to offset the drag from the struggling

external trade sector that is being exacerbated by the worsening of conditions

south of the border. Ontario's economy is now forecast to contract by 0.2% in

2008 and 1.4% in 2009 (revised lower from zero and 0.4%, respectively), which

would represent the worst performance since the early 1990s recession. Moreover,

downside risks will remain significant in the face of the tremendous uncertainty

surrounding its key auto industry and persistent recession in U.S. housing.

While we are assuming further declines in motor vehicle production in the

province, the outcome of the drama enveloping the "Detroit Three" automakers

is unknown and could have more serious repercussions than currently anticipated.

Ontario is among the North American jurisdictions with the most at stake

in the rescue negotiations between these companies and the U.S. and Canadian

governments.

The latest employment data unequivocally show that job prospects in the province

are quickly deteriorating. Although the record 66,000 job loss in November

likely exaggerates the weakness, we expect employment to decline in 2009 (by

0.9%) for the first time since 1992. Accordingly, Ontario's unemployment rate is

forecast to climb to an average of 8.3% from 6.5% in 2008. As concerns about the

economy and job prospects mount, households will be more cautious in their

spending. This will slow growth in retail sales and cut into demand for housing.

Housing starts in 2009 are forecast to drop to their lowest level in 10 years in the

province.

In 2010, Ontario economy's will benefit from strengthening U.S. demand as

forceful fiscal and monetary stimulus succeed in setting the U.S. economy onto

a recovery course. Similar factors will also boost demand on this side of the

border. These factors will contribute to returning Ontario's real GDP into positive

growth territory, forecast at 2.5%.

CMHC report on New Home Market

This is the latest report by CMHC regarding the new homes market, there is a dichotomy!

This is likely my final post for 2008. I wish you a Happy New Year and all the best to you and your family in 2009.

Thank you,

Mark

New Home Market

Housing Starts Moderate

The seasonally-adjusted annual rate (SAAR) of total housing starts dipped below trend in November for the Toronto Census Metropolitan Area (CMA).

In response to higher home prices, comparatively less expensive high-rise home types have been increasingly popular.

Total home starts on an unadjusted basis were almost 25 per cent above last year’s level for the January through November period. Condominium apartment starts remained the driver – up by over 130 per cent.

Starts for all low-rise housing types were down compared to the same period last year, while apartment starts were up.

The dichotomy between high-rise and low-rise home construction remained in place year to- date through November.

New Real Estate and World Economy

Some personal thoughts as we end a miserable econonic year for the stock markets and the economy in general.

We are into a new type of world economy

The US still leads but is no longer the force it once was, so not all follow US lead anymore

Greed will always prevail, so gold should be good for short run, there will be another disaster in the future that will cause a spike and that may be the time to unload

This is why the stock markets fluctuate 10% in a day and nobody blinks an eye anymore

Real estate does not follow 7 year cycles any longer, we just finished a 13 year cycle here in Toronto, interest rates are at historic lows, inflation is low, oil is low, wages are still too high

The future is indeed uncertain, the US will NOT go bankrupt and we will be out of this mess by mid 2010, the problem is that we have not hit bottom yet and there is $uch more pain to come

We've had these cycles before, we must hit despair before we can have hope

Obama will brighten things a little and give us hope

As for precious metals I think that zirconia looks just as nice as diamonds!

Enjoy the winter and all the best to you and your family in the New Year!
Mark

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