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 ?
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Landlord and Tenant Property Insurance Reminder

This is a reminder for Tenant Property Insurance

 

Hello!

 

If you are an owner of a condominium townhouse or a high-rise condominium, you too want to make sure that your insurance on your investment property is active.  The reason you need insurance is because the tenants package only covers the tenants contents and the condo insurance typically only covers to middle of the exterior walls.  As an owner, you need insurance to cover your appliances, flooring, walls, drywall, cabinets, bathrooms etc. in the event of a loss.

 

Also, if your loss in your unit or property creates a loss in other units adjacent to your unit then you need insurance for that too.  This can get very expensive. 

 

If you are a tenant, you need to read this below! 

 

I recently heard that a small fire this past New Years' Eve in the bedroom of a condominium townhouse created a huge personal and financial loss for the tenant living in the property.  The reason for the loss was the tenants insurance policy had expired and the tenant did not renew the insurance for another year because the tenant wanted to save about $225. 

 

This tenant is now out of pocket over $25000, had to move somewhere temporary for 3 months which cost additional money and the tenant lost all her belongings and furniture due to this oversight!

 

This email is not meant to scare you, it's a friendly reminder for you. 

 

If you are a tenant you must confirm that your insurance policy is currently active and keep your tenants package for your personal property and legal liability insurance policy in full force and active.

 

If there is a fire or flood and you lose some or all of your belongings you need your own insurance coverage and policy.  Also, if you cause the fire or flood and if this loss creates damage or a loss in other units or properties adjacent to your unit or property then you need insurance for that too.  This can get very expensive. 

 

Please verify your insurance policy is active and that you have a tenants insurance package that covers your contents and at least $1million liability insurance that is current and active. 

 

Thank you, 

Mark

 

 

Clocks Spring Ahead this weekend - Reminder to test Smoke Alarms

Hello!

 

This weekend we change our clocks and move them ahead one hour this Saturday after midnight.

 

This is also a reminder for everyone to replace the battery in any battery operated CO or smoke/CO2 detector where you live and to check the proper operation of all detectors and operate as they should.

 

You are supposed to be doing this on a monthly basis, but this is a good time to test if you have not been doing this monthly testing.

                                                                                                                                                                                      

Please test each CO and smoke/CO2 detectors and make sure it works properly when you press the test button.

 

Also, please check the date on the CO detectors and the smoke/CO2 detectors manufacture date.  Most are good for 7 years, some for 10.  If any of the detectors are expired you should replace them with a new detector, this is very important for your safety.

 

Also, please don't forget to change your air filter for the furnace.  This will not only improve your air quality in the house, but also reduce your gas and electricity bills by allowing the air to circulate more freely.

 

Thank you,

Mark

 

GTA and Mississauga real estate market Toronto Real Estate Board for sale figures from last month

Hello from Beautiful Mississauga!

 

Below is the latest report from the Toronto Real Estate Board for sale figures from last month

 

Summary:

 

• prices in February 2014 were up 8.6% to $553,193 compared to same month last year
• volume of sales were up 2.1% compared to the same period last year

 

See the full report below and more figures and graphs at this page of my site:

 

http://www.mississauga4sale.com/TREBprice.htm

 

All the best!
Mark

 

 

 

GREATER TORONTO REALTORS® REPORT LATEST MONTLY RESALE HOUSING MARKET FIGURES

 

TORONTO, March 5, 2014 – Toronto Real Estate Board President Dianne Usher announced that February 2014 home sales reported by Greater Toronto Area REALTORS® were up by 2.1 per cent compared to the same period last year. Total February sales amounted to 5,731 compared to 5,613 last year.

 

“Despite the continuation of inclement weather in February, we did see a moderate uptick in sales activity last month. The sales increase was largely driven by resale condominium apartments. New listings of resale condominium apartments were up on a year-over-year basis, giving buyers ample choice. This is in contrast to the listings situation for singles, semis and townhomes, where supply continued to be constrained. Some would-be buyers had difficulty finding a home that met their needs,” said Ms. Usher.

 

“If we see renewed growth in listings for low-rise home types, the pace of sales growth will accelerate as we move through the year,” Ms. Usher continued.

 

The average selling price for February 2014 sales was up by 8.6 per cent to $553,193, compared to the average of $509,396 reported for February 2013. The MLS® Home Price Index (HPI) Composite Benchmark was up by 7.3 per cent year-over-year.

 

“While the strong price growth experienced over the last year should prompt an improvement in the supply of listings, sellers’ market conditions will continue to prevail this year. Home prices, on average, will trend upwards at a pace well-above the rate of inflation. The impact of strong price growth on affordability will be mitigated by low borrowing costs,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

 

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

 

 

February Report Residential Real Estate Market in the GTA TREB report for January 2014

Below is the report from TREB for the January 2014 Residential Real Estate Market in the GTA

 

January 2014 Sales volumes were down 2.2% compared to January 2013

January 2014 Average price was $526,528 up by more than 9% from $482,080 in January 2013

 

The full report is below

Mark

 

 

GREATER TORONTO REALTORS® REPORT LATEST MONTLY RESALE MARKET FIGURES

 

TORONTO, February 5, 2014 –

 

Home ownership in the Greater Toronto Area remains affordable and there are many people looking to purchase a home.

 

In January, the number of homes listed for sale was down quite strongly compared to last year, which means that it was difficult for some buyers to find a home.

 

Greater Toronto Area REALTORS® reported 4,135 sales through the TorontoMLS system in January 2014. This result was down by 2.2 per cent in comparison to January 2013. New listings entered into the system were down over the same period by 16.6 per cent to 8,822.

 

“Looking forward, it is possible that strong price growth, and therefore an increase in home equity, will act as a trigger for more households to list their homes for sale. This is especially the case for households whose life styles are changing, including those with an expanding family looking for a larger home or empty nesters looking to downsize,” said Dianne Usher, President, Toronto Real Estate Board.

 

The average selling price for January 2014 sales was $526,528 – up by more than nine per cent compared to $482,080 in January 2013.

 

“The pace of price growth will remain strong in 2014. Similar to last year, competition between buyers for singles, semis and town homes in the City of Toronto and surrounding regions will continue to exert upward pressure on selling prices. At the same time, mortgage rates will remain near historic lows, so despite strong price growth, home ownership will remain affordable for the average household in the GTA,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

 

 

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

 

 

Ontario Apartment Vacancy Rates are up slightly according to CMHC

The Ontario Apartment Vacancy Rates are up slightly according to CMHC from early 2013

According to Canada Mortgage and Housing Corporation’s (CMHC) Spring 2013 Rental Market Survey, Ontario vacancy rates edged higher to 2.6 per cent in April 2013, up from 2.3 per cent in the spring of 2012.

With the universe of purpose-built rental units remaining unchanged, demand factors were entirely at play impacting vacancy rates this spring. Vacancy rates moved higher for bachelor (2.7%), 1-bedroom (2.7%) and 2- bedroom (2.5%) apartment units while remaining stable for three bedroom (2.2%) units.

See the image below for vacancy rates across the province

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

Predictions for Toronto GTA and Mississauga Real Estate market in 2014

Predicting the future is not for everyone.

I only like to predict about 2 to 3 weeks into the future with any certainty. Anything beyond that becomes speculation based upon trends, current conditions and human sentiment. Thus, I can speculate for you for 2014.

It would appear that our real estate market is poised to have another positive year regarding prices and sales volumes.

Interest rates are low, inventories are generally low (except the condo market) and there continues to be pent-up demand for real estate in the GTA

I don't see our condo market softening too much more than it currently is. I believe we are in for another 'normal' year for real estate this year.

With that said, unless we see an improvement in the condo market around Square One, our local condominium marketplace could sag in the first quarter. We won't know the direction until about March or April.

The December results are not out and it was a 'normal' December, slow, but typical.

January 2014 (now) is not beginning with a boom, but it could also be the ice cold temperatures - we are all hoping for some improvement in the weather and the real estate market in the coming weeks!

See a graph of how the market performs throughout the year, up in spring, down in summer, up in fall, down in winter, but always on the upslope:

http://www.mississauga4sale.com/TREBavg1995date.htm

See this graph on how steep the increase has been of late:

http://www.mississauga4sale.com/TREBprice.htm#graph

or view only the graph:

http://www.mississauga4sale.com/avgprices.JPG

I wish you all the best in 2014!

Thank you,

Mark



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

* 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 Foreclosures
www.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 patterns
www.mississauga4sale.com/TREBprice.htm
* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Bank of Canada Keeps Prime rate at 1% again!

The Bank of Canada announced today that they are keeping the prime lending
rate at 1%

The Bank said that the reasons for this are:



* inflation is below 2%

* global growth is expected to rise in the next 2 years

* growth in Canada has been improved, but slower than anticipated

* economy is expected to gradually grow towards capacity over next two years

* inflation is expected to remain below target for some time, thus downside risks to inflation have grown in importance and keeping the rate as is will help keep inflation low

The Bank of Canada Prime rate has been at 1% since late 2010, over 3 years

I hope this finds you well,

Mark





This is the full release:



Highlights from the bank of Canada Rate announcement:



Ottawa -

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

Inflation in Canada has moved further below the 2 per cent target, owing largely to significant excess supply in the economy and heightened competition in the retail sector. The path for inflation is now expected to be lower than previously anticipated for most of the projection period. The Bank expects inflation to return to the 2 per cent target in about two years, as the effects of retail competition issipate and excess capacity is absorbed.

Global growth is expected to strengthen over the next two years, rising from 2.9 per cent in 2013 to 3.4 per cent in 2014 and 3.7 per cent in 2015. The United States will lead this acceleration, aided by diminishing fiscal drag, accommodative monetary policy and stronger household balance sheets. The improving U.S. outlook is affecting global bond, equity, and currency markets. Growth in other regions is evolving largely as projected in the Bank's October Monetary Policy Report (MPR). Global trade growth plunged after 2011, but is poised to recover as global demand strengthens.

In Canada, growth improved in the second half of 2013. However, there have been few signs of the anticipated rebalancing towards exports and business investment. Stronger U.S. demand, as well as the recent depreciation of the Canadian dollar, should help to boost exports and, in turn, business
confidence and investment. Meanwhile, recent data have been consistent with the Bank's expectation of a soft landing in the housing market and a stabilization of household indebtedness relative to income.

Real GDP growth is projected to pick up from 1.8 per cent in 2013 to 2.5 per cent in both 2014 and 2015. This implies that the economy will return gradually to capacity over the next two years.

Although the fundamental drivers of growth and future inflation appear to be strengthening, inflation is expected to remain well below target for some time, and therefore the downside risks to inflation have grown in importance. At the same time, risks associated with elevated household imbalances have not materially changed. Weighing these considerations, the Bank judges that the balance of risks remains within the zone articulated in October, and therefore has decided to maintain the target for the overnight rate at 1 per cent. The timing and direction of the next change to the policy rate will depend on how new information influences this balance of risks.



This is from the papers.....

The Bank of Canada kept its benchmark interest rate steady at one per cent today, continuing its longest stretch of inaction on record.

Canada's central bank last changed its target for the overnight rate in late 2010, when it was raised to its current level. The bank announces its latest policy decision on interest rates every six weeks, and the bank has now stood pat for 26 consecutive policy meetings.

In a statement accompanying Wednesday's decision, the bank said it expects inflation to remain lower than previously anticipated for the next little while. It also said it expects a soft landing in the housing market.

The bank wasn't expected to raise or lower rates on Wednesday, but watchers are closely parsing the statement to gauge which direction the bank is heading in - a rate hike to cool inflation, or a rate cut to stimulate the economy.

Wednesday's statement suggests the bank is leaning toward the former.

The loonie plunged in the immediate aftermath of the news, shedding about a third of a cent to trade at 90.70 cents US.





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

* 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 Foreclosures
www.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 patterns
www.mississauga4sale.com/TREBprice.htm
* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

The Rest Is Just Sand - great way of thinking to become Inspired

This is a very good article and puts things into perspective - it's very true and inspirational!

This was a re-tweet that I just read and copied here for you to read and enjoy!

To your success!
Mark

So here is the article.....


"A professor stood before his philosophy class and had some items in front of him. When the class began, he wordlessly picked up a very large and empty mayonnaise jar and proceeded to fill it with golf balls. He then asked the students if the jar was full. They agreed that it was.

The professor then picked up a box of pebbles and poured them into the jar. He shook the jar lightly. The pebbles rolled into the open areas between the golf balls. He then asked the students again if the jar was full. They agreed it was.

The professor next picked up a box of sand and poured it into the jar. Of course, the sand filled up everything else. He asked once more if the jar was full.. The students responded with a unanimous 'yes.'

The professor then produced two Beers from under the table and poured the entire contents into the jar effectively filling the empty space between the sand.The students laughed..

'Now,' said the professor as the laughter subsided, 'I want you to recognize that this jar represents your life. The golf balls are the important things--your family, your children, your health, your friends and your favorite passions--and if everything else was lost and only they remained,
your life would still be full. The pebbles are the other things that matter like your job, your house and your car.. The sand is everything else--the small stuff.

'If you put the sand into the jar first,' he continued, 'there is no room for the pebbles or the golf balls. The same goes for life.

If you spend all your time and energy on the small stuff you will never have room for the things that are important to you.

Pay attention to the things that are critical to your happiness.

Spend time with your children. Spend time with your parents. Visit with grandparents. Take your spouse out to dinner. Play another 18. There will always be time to clean the house and mow the lawn.

Take care of the golf balls first--the things that really matter. Set your priorities. The rest is just sand.

One of the students raised her hand and inquired what the Beer represented. The professor smiled and said, 'I'm glad you asked.'

'If you fill your life with only beer, you wont find room for anything else.'

__________________
My son Evan read this and responded to me and said " The fortunate part is that you can definitely empty out the jar and fill it again in a different way."

.... and I never thought of this, but it's so true, you can start over at anytime in your life with new goals and aspirations, love it!
Have a great day!
Mark

Mid January 2014 sales figures report from the Toronto Real Estate Board

This is the mid-month report from the Toronto Real Estate board with regards
to sales figures



In summary:

* transactions for first two weeks of 2014 are down approximately 8% compared to first two weeks of 2013

* new listings were down about 20%

* average selling price was up by about 12% compared to same period 1 year ago

See full report and statistics below.

Mark


GTA REALTORS(r) RELEASE MID-MONTH RESALE HOUSING FIGURES

TORONTO, January 17, 2014 -



Greater Toronto Area REALTORS(r) reported 1,287 transactions through the TorontoMLS system during the first two weeks of 2014. This result was down by approximately eight per cent compared to 1,396 sales reported during the same period in 2013.

New listings entered into the system were down by a greater 20 per cent year-over-year.

"The expectation is that home sales through the TorontoMLS System will be up in 2014. This is because the cost of purchasing an average priced home, including mortgage payments, property taxes and utilities, will remain affordable for a household earning the average income in the GTA," said Toronto Real Estate Board President Dianne Usher.

"Aside from the fact that January sales from year-to-year tend to be volatile, the dip in sales during the first two weeks in January was likely due in large part to a lack of new listings. Quite simply, some would be home buyers could not find a home that met their needs," continued Ms. Usher.

The average selling price for the first 14 days of January 2014 was $515,990 - up by 12 per cent compared to the average price reported for the same timeframe in 2013.

"The average selling price in the GTA will continue to trend upward in 2014.

Listings will remain below the pre-recession peak and sales are expected to increase over 2013. This means that we will continue to see substantial competition between buyers for some home types and in some areas of the GTA," said Jason Mercer, TREB's Senior Manager of Market Analysis.

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

* 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 Foreclosures
www.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 patterns
www.mississauga4sale.com/TREBprice.htm
* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm