Typical costs in a real estate transaction

Good morning,

This link below will outline the "Typical" Real Estate Transaction Costs

These are 'typical' additional costs associated when buying real estate in Ontario - more particularly in Mississauga and the GTA.

Use this link to see your costs involved when buying your home.

Enjoy!

You may sign up to my monthly real estate newsletter using this link: On-Line Real Estate Newsletter sign up

Or you may wish to receive new Power of Sale Listings twice per week.

Please let me know if you have any other questions or if there is anything else I can help you with.

Thank you again for contacting me and I will do my best to help you with your real estate needs,

Mark

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

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MORTGAGE RULES changes by Federal Government

FEDERAL GOVERNMENT CHANGES MORTGAGE RULES

The federal government has announced changes to the rules for government-backed insured mortgages (less than 20 percent down payment) as follows:

All borrowers will be required to meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter terms.

Reduced maximum amount that can be withdrawn in refinancing a government-backed insured mortgage to 90 per cent from 95 per cent of the value of the home.

Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner occupied properties purchased for speculation. Borrowers purchasing owner-occupied residential properties will still be able to access government-backed mortgage insurance with a 5 per cent down payment.



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

RBC is suggesting some caution be exercised with regards to the global economy

The RBC is suggesting some caution be exercised with regards to the global economy. Growth was not as great as expected.

Here is their report:

The consensus view that the global recovery has legs appears to be building after stronger than expected fourth-quarter growth data from some major economies. Dampening the mood among global investors, however, are worries about sovereign debt ratings and uncertainty surrounding the effect of upcoming regulatory reforms.

In most countries, central banks are implementing a gradual withdrawal of stimulus through the unwinding of either liquidity or credit programs. In Australia, the RBA restarted its rate normalization program earlier this week as worries about recent
rate hikes negatively affecting the economy proved to be unfounded. In Canada, the Bank held the policy rate steady and reiterated a commitment to hold it steady until the end of the second quarter of 2010.

It also acknowledged that the economy had strengthened in the final quarter of 2009 and the core inflation rate was running hotter than expected. To our mind, these changes along with the dropping of any reference to further easing signal that the Bank is preparing to start the process of rate normalization this summer.

Caution!

South of the Canadian border, some Fed members exercised a significant degree of caution when discussing the outlook over the past month. FOMC members appear to have gone out of their way to reign in expectations of rate hikes by keeping the focus on the unwinding of liquidity and credit provisions.

The mid-February announcement of a 25 basis point increase in the discount rate was presented as being part of the program toward, “further normalization of the Federal Reserve’s lending facilities.” This sentiment was echoed by the Fed’s Duke who said the discount rate change did not “signal any change in the outlook for monetary policy.” U.S. policymakers have read more here:




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

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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

Bank of Canada prime rate predictions and expectations

Last week, the Bank of Canada decided to leave the bank prime rate at 0.25%

It would be almost expected that the prime interest rate will increase by about 25 to 50 basis points by September and maybe even during their next meeting in July 20 by 25 points and then again in September by 25 points.

The 'experts' are saying will be up a whole 1 percentage by the end of this year.

This means that if your mortgage is coming due sometime this year, you may wish to renew sooner rather than later if you want to lock in at today's rates.

Personally, I am staying short term for the next few years. The reason is that as long as I have a mortgage that is prime minus .25% or so, then the variable rate must increase to at least about 5% before my mortgage rate is equal to the current 3 to 5 year rate. This may take more than 2 or 3 years to happen and I will benefit during that period with a lower rate rather than locking in today.

Even if the prime consumer lending rate increases from the current 2.25% to 4.5% or higher in 2 years from now I am still ahead of the game. If it rises to 5.5% in 3 years, I believe there will be rate specials offered in the marketplace and I will still be able to achieve in the mid to high 4% range in 3 or 4 years from today. This all means that I am still better to stay short and with the variable rate from now for at least the next few years.

You may feel differently, and only time will tell, but I believe that this will save me money in the long run.

All the best!

Mark

First post since blogger migration

This is a test post to see if everything is good after migrating my blog from ftp to Template

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

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Blooger via ftp is changing, this is a test post

Publishing on my blog and manyh others is changing, this post is a test post to see if the old ftp publishing is working and also serves as a marker.

See you soon on the other side!

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

March TREB results for February 2010 - Toronto Real Estate Board figures shows that our real estate market is very strong!

This is the latest press release from the Toronto Real Estate Board and shows that our local market is very strong.


GTA REALTORS® REPORT FEBRUARY RESALE HOUSING MARKET FIGURES
TORONTO, March 3, 2010 –

Greater Toronto REALTORS® reported 7,291 sales through the Multiple Listing Service® (MLS®) in February, representing a 77 per cent increase over February 2009.

The average price for these transactions was up 19 per cent year-over-year to $431,509.

Sales and average price increases represent both increased demand for ownership housing and the base year effect, which involves a comparison of economic recovery this year to a period of economic decline last year.

“Increases in existing home sales and average price were noted across the GTA in low-rise and high-rise home types. Similar rates of growth were experienced in the City of Toronto and surrounding 905 regions,” said TREB President Tom Lebour. “This suggests that first time, move-up and down sizing buyers are all active in the existing home marketplace.”

New listings also increased in February, climbing 24 per cent compared to the same month last year.

“Annual growth in new listings is expected to continue.

New listings growth will start to outstrip sales growth as we move through 2010,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “As the market becomes better supplied, we will see more sustainable single-digit rates of price growth

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

If you are for rent and for sale at same time on MLS, does this hurt you?

Another good question from an intersted reader

Hi Mark,

My question is this;

If a residential property is available for lease or sale, whichever occurs first, and is being handled by a real estate agent, is there a tendency for said agent to hold out and discourage the lease prospect if it occurred first in favour of a potential sale at a later date?

I would greatly appreciate a response from you.

Best Regards,

Frank

Hello Frank,

Good question. There is no easy answer to this question. There are many factors that this would depend upon, including the motivations of your listing agent. I've noticed that the agents showing properties may shy away from properties that are for sale and for lease as they may think the motivation of the seller is less on the sale. Again, there are many factors.

I like and prefer rental listings so it would not matter to me either way. I want to impress the client with my skills renting their property just as much as if I were selling their property.

Thank you,

Mark