Royal Bank RBC Economics Research - PROVINCIAL OUTLOOK - Latest Edition

Rebalancing regional growth patterns
Our provincial forecasts are more rooted than ever before in the strength of our conviction that the gap between growth in the more heavily resource based provinces and central Canada will narrow during 2007-08.

There are four key reasons for this.

First up is fiscal policy, which has tilted in favour of stimulating central Canada with the recent federal budget funding a federal government spending surge in Ontario. Some of this will begin to flow in 2007, while much of it will carry on for many years. On the heels of Quebec’s election on March 26, six other provinces and the feds are heading towards elections either this year or next (all but British
Columbia, Nova Scotia and New Brunswick).

Despite higher federal transfers that are likely to be put towards tax relief, Quebec actually gets unfairly criticized for overspending when, in fact, its rate of growth in program spending has been the second weakest of all the provinces in the past four years. British Columbia opted for consumer-oriented tax relief in its budget and has had the weakest spending growth of all provinces. The remaining question mark is Ontario’s government, which appears to have exercised some spending restraint but may be lowballing revenues to leave room for pre-election off-budget spending.

Second is the investment picture where the gap between the west and central Canada is likely to become more balanced. According to Statistics Canada’s
recent investment intentions survey, the country is in the middle of an investment
surge, albeit one that is moderating and with the public sector doing much
of the heavy lifting. This survey was done before recent budgetary measures
that add to private-sector investment incentives, particularly for manufacturers
that now face two-year write-offs on equipment spending.

Third, we firmly believe that central Canada’s manufacturing base will stabilize and that its export prospects will improve. Strong global growth, overblown concerns about the health of the U.S. economy, an expected depreciation in the currency and sustained lower-than-peak commodity input prices should all gradually turn central Canada’s manufacturing base around except for labour-intensive
sectors facing a China-related market share battle for U.S. imports. A cooling
in U.S. dollar-denominated commodity prices will still leave room for attractive
exploration, appraisal and development activity across the west.

Fourth, despite concerns about the phasing out of accelerated depreciation on oil sands projects, the impact won’t be felt for many years, if at all, given current project commitments. The near-term focus remains on those factors pointing to moderately weaker growth prospects in the energy-rich provinces — cooler
commodity prices causing weaker provincial royalties and surpluses, softer profit
growth and less upward pressure on wages. For the prairie provinces, attractive
mining and hydro prospects, a decent early read on crop conditions and farm
subsidies in the recent federal budget should further assist near-term growth.
For our latest macroeconomic and financial market forecast report, go to: www.rbc.com/economics/market/pdf/fcst.pdf

Source: "Financial Markets Monthly", Economics Departnment, RBC Financial Group.

Read more about the economics of real estate in Ontario and the GTA



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

Can the Media drive Real Estate Market Prices Down?

What is the impact on the media on the real estate markets?

I think you will find this an informative perspective on the real estate market, but a long article to read. I found it a very interesting article because it echo's the sentiments down in the US and these types of articles seems to rear their head because the markets are very soft throughout the US.

When our Canadian markets last experienced a downward trend, from about 1990 to 1994, there were many negative articles about the state of the real estate market and I believe that this had a very strong influence on people's decisions to NOT purchase a home or even make a move. I firmly believe that the press influences if not drives our real estate marketplace in the GTA. The next time there is some skepticism in the press, just watch how the local real estate market stalls.

Enjoy, your comments are always appreciated!

Mark

Media coverage can dampen real estate market

Fact or fiction: The media decides whether you buy or sell a home.

Sounds ridiculous, even insulting. But many real estate professionals insist there is a psychological component to buying a house -- and that a lot of negative publicity about the housing market can have an effect on whether consumers will buy, sell or sit.

Chances are, when you are thinking about buying a home (and you're really honest with yourself), factors such as your credit rating, income, debt load, the available houses in your market and the prices in your market are going to have more of an impact than what you read or hear over your morning coffee.

But that's not to say the broadcast and printed word don't have some impact.

Many blame the media for the slowdown that hit the housing market in 2006. "What happened to us is the media," says Ellen Renish, regional vice president for the National Association of Realtors, or NAR.

Stories about a real estate "bubble" and its potential to burst caused consumers to "not do anything," she says. "And nothing happened. The bubble stories really stopped things for three months," Renish says. "It was pretty scary."

Looking for deals

When it comes to sales, the biggest factor is "the local economy," says Dick Gaylord, president-elect of the NAR. "But I can tell you that almost every buyer I talk to today thinks they're going to get a phenomenal deal."

In the Midwest this year, one big yardstick is job growth torquing the force of supply and demand. "If jobs come, there will be buyers," says Lawrence Yun, a senior economist with the National Association of Realtors. "And if jobs don't come, there won't be buyers."

"But I think the media does have an influence," he says. "I get calls from Realtors who have been working with buyers for months -- then the buyer reads or hears something that predicts a price crash or large inventory and the buyer decides to wait. The media is trying to portray the reality of the market."

But many times "there tends to be a slight slant that tends to scare potential buyers," he says. "People start placing a lot of reliance on what they read, particularly from major papers."

This is one reason it pays to investigate on your own. Especially since neighborhoods and price ranges in various areas of a region, state and town can be vastly different.

Also, talk with a couple of pros in your area. "You might find out that the market is better than you were led to believe in the press," says David Ledebuhr, regional vice president for the National Association of Realtors.

The long-range view
Real estate professionals would like to see more of the long-range perspective in real estate media coverage.

The real estate market is cyclical, says Ron Phipps, broker for Phipps Realty in Warwick, R.I. "For those of us who've been doing this for a while, this is a normal cycle," he says of the current buyer's market climate. "It's not particularly bad."

He worries that the media "amplifies minor changes," he says. "The media is like the wind: It creates white caps, it creates a lot of excitement -- which can cause people to be overwhelmed."

While talk of a real estate bubble "is great theater," the hard fact is that most people buy a home to have a place to live, Phipps says. The price will differ according to what a buyer can afford, but that basic need is always there.

Real estate professionals have also seen a wide range of interest rates in the past two or three decades. And while nobody likes to see climbing rates and the bigger mortgage payments that result, some agents remember when rates for a typical home were in the teens. And, they also remember that lower home prices added some balance to the equation.

"I sold houses when the rates were 16, 18 percent," says Renish.

"And I bought my first house at 9 percent," she recalls.

What part does the economy play?

From a practical standpoint, many of the areas of the country that are seeing depressed growth or declining prices can link it to one or more of several factors: a shrinking jobs market or faltering local economy (including a higher number of foreclosures); overbuilding; or speculators who bought to make income or quick profit and dumped the properties when interest rates started to rise or prices started to decline.

Mike Fratantoni, senior economist with the Mortgage Bankers Association, agrees that jobs are the No. 1 factor when it comes to the health of the home market. "Absolutely, the job market is most important," Fratantoni says. "And we think that the Fed's successive rate increases have not quite worked their way through the economy yet. We do anticipate that as these work into the economy, we will see some slight increase in unemployment," likely by the middle of 2007.

And while the media likely has "some psychological aspect" for the buyer and seller, says Fratantoni, "at the end of the day it's the fundamentals" like affordability, a strong job market and income growth that signal buyers that "it's a good time to get in," he says.

When it comes to buying and selling, "I do think there is something about psychology," says Nicolas Retsinas, director of the Joint Center for Housing Studies at Harvard University.

Nationally, home prices increased 60 percent in the period between 2001 and 2006, he says. "If you bought a home five years ago, you're in pretty good shape as far as equity building."

When it comes to the recent decline, "part of it was psychology," Retsinas says. "We had seen interest rates heading up. As we look back, at some point buyers started to wonder, 'Will these exist tomorrow?'"

In addition, home prices had been escalating so much faster than salaries that "the mortgages couldn't bridge the gap between incomes and house prices," he says. "It's almost as if house prices had to take a breather."

All real estate is local
One common complaint from real estate professionals regarding media coverage is the failure to understand and communicate that all real estate is local. So while a bubble, hot market, flipping trend or price decrease gets a lot of media attention, it doesn't mirror the entire market.

"It's a reflection of something going on in one area, in one dynamic spot," says Dave Dalzell, a regional vice president for the NAR. But consumers hear it and get concerned, he says. Then "we have to take and analyze the neighborhood" where they're buying, he says. "My town just had the biggest jump in home values in 20 years," he says. "We think it will slow down some, but won't lose money."

Ken Libby, owner/broker of Stowe Realty in Stowe, Vt., echoes the thought. "The only argument I have with the media is when people try to paint one picture for the whole country," he says. "And you can't do that." By Dana Dratch • Bankrate.com

Read more about the real estate market trends and current status.





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

3 Steps to take before you purchase your first or next home

This article will outline the 3 steps to take before you buy your first or next home

A little time spent shoring up your credit, crafting your budget and organizing financial documents will go far in smoothing the way to a home purchase. Ideally, you can start working on your home-buying project before you even start shopping for homes. Keep in mind that most buyers take eight weeks to actually shop for a home, according to a survey by the National Association of Realtors. Your financial prep work should start well ahead of those eight weeks.

"My advice is to start to talk to your local Realtor six months ahead of time," says Pat Vredevoogd Combs, a practicing residential broker in Grand Rapids, Mich., and president of the National Association of Realtors. "Most have a good handle on mortgage people in the area. And, there are a lot of really cool mortgage programs out there for first-time buyers."

3 steps to take before applying

1. Get your credit in shape.
2. Organize your documents.
3. Check your budget.

For example, Combs says some local governments will offer interest rate or down payment subsidies to buyers who agree to buy a home in certain areas. And governments or employers may subsidize teachers, fire fighters, police officers, nurses and other service professionals who have difficulty affording a home in high-priced communities. A hospital trying to recruit and retain nurses, for example, might offer a down payment loan, which is forgiven and turned into a grant if that nurse remains employed with the hospital for several years, says Combs.

Before you begin your house hunting, there are three important steps to take to make sure you are eligible for the best interest rates and to make the mortgage application process a breeze.

1. Get your credit in shape: Order your credit reports
One of the first steps any prospective buyer should take is to take advantage of the free credit reports everyone is entitled to request annually, thanks to federal law. While there are many sites on the Web offering "free" credit reports, many of those offers require that you sign up for a free trial of a credit-monitoring service that will cost money if you fail to cancel during the free trial period. The official site where you can get free, no-strings-attached credit reports annually from the Equifax, Experian and TransUnion credit bureaus is www.annualcreditreport.com. You can receive one free credit report from each of these three agencies every year.

David Reed, an Austin, Texas, mortgage banker and author of "Mortgage Confidential: What You Need to Know That Your Lender Won't Tell You," says you should review each of those reports for errors. There could be mistaken entries noting late payments or account information that belongs to someone else. Common names sometimes get mixed up on credit reports, as do "Juniors" and "Seniors" in the same family.

"I see that a lot," says Reed.

If you spot an error, you should write to that specific creditor and request a correction. Bankrate has a work sheet to help you request and track corrections on each of your credit reports.

How's your credit?
While paying down your credit card balances will improve your financial picture, this is not the time to close credit accounts because reducing the amount of credit available to you can actually lower your credit score.

"Don't assume you should just get rid of it," says Combs.

If you already own a home and have an existing home equity line of credit, or HELOC, Combs recommends that you not get rid of it in preparation for a new home purchase. "I think you ought to leave it alone. Sometimes buyers are going to need it; they can use it as an easy bridge loan (to cover the down payment temporarily until you sell the old home) so they don't have to go through the trouble of getting one."

2. Organize your financial paperwork
You also should gather up all the financial documents that a lender will need when you submit an application. They include copies of your income tax returns, W-2 wage statements, paycheck stubs, bank and investment account statements, divorce decrees and child support documents and recent credit card statements. Having those documents handy will also help you put together a realistic budget and help you figure out what you really can afford to pay as a down payment and toward subsequent monthly payments for mortgage principal and interest, plus property taxes and insurance.


Documents to gather:

• Tax returns for the past two years.
• Two most recent pay stubs.
• Most recent credit-card statements.
• Most recent bank and investment account statements.
• Divorce decrees and child support documents.
• Your budget.

3. Craft a budget: How much house can you afford?
There is a difference between the maximum payment a borrower can qualify for -- which can sometimes be surprisingly high -- and the amount you can comfortably afford, says Combs.

"Each person has to know the difference in his own mind," she says. "If you're just getting by with your current rent payment, and the lender says you can qualify for more, give it some thought."

However, first-time buyers, in particular, often don't know how the tax-deductibility of mortgage interest and property taxes can help offset a mortgage payment that is higher than their rent. A good real estate agent can help you figure out the bottom line.

Keep it steady
Once you're closing in on your purchase, and especially after you've applied for a mortgage, do your best not to change your financial picture. "When you sit at the closing table, you will be asked to sign a document that says your credit is the same as it was when you originally applied for the loan," says Combs.

If at all possible, put off job changes. Lenders like to see a steady history of employment and frown on job changes while your application is pending, unless the new job is in the same field and at the same or greater pay. By Elizabeth Razzi • Bankrate.com Elizabeth Razzi is a freelance personal finance reporter and author of "The Fearless Home seller." She is based in the Washington, D.C., area.

Read more about the steps to buying a home



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

Do I have to pay GST on a resale residential Purchase?

GST and the Resale Home

You don't have to pay GST on the purchase price of a used residential home. In other words, the purchase is "exempt" form GST.

Revenue Canada defines "used residential property" to include a previously occupied house, condominium apartment, summer cottage, vacation property or non-commercial hobby farm. They refer to "used" as residential property that has been occupied as a residence before you bought it.

Used property can also mean a recently built house hat is substantially complete and has been sold at least once before you buy it. For example, if a new house is purchased and resold before being occupied, the home's resale price will normally be exempt from GST.

An owner-occupied home is considered a residential property when it's used primarily as your residence. So, if you are self-employed and purchase a resale home that includes a room used as an office, the entire home still qualifies for the GST exception.

However, if your owner-occupied home is not used mainly for residential purposes (for example, a retail store with a small apartment upstairs), only the residential portion is exempt from GST on resale. The non-residential portion of the purchase price is taxable.

If you are planning to purchase a resale home, the seller can supply you with a certificate stating the property qualifies as "used" for GST purposes.

As with most taxes, there are exceptions to the GST rules regarding resale housing. For instance, most sales of real property by charities, non-profit organizations and other public service agencies are exempt form GST. Contact your REALTOR for additional information.

Read more about GST and buyer costs


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

Healthy Spring Market Ahead - RE/MAX forcast

Re/Max forecasts heated spring market Mar 21, 2007

Higher housing values, tight inventory levels, and all-out bidding wars have yet to deter first-time buyers in major Canadian centres this year, says a new report by Re/Max.

“Buyers are finding the means necessary to enter the market, even in the western provinces, where double-digit price gains have been reported and sales to listings ratios hover above the 80 per cent mark,” says Elton Ash, regional executive vice-president, Re/Max of Western Canada. “Purchasers simply refuse to be priced out of the market, even though household income has not kept pace with housing appreciation. Something’s got to give – and the trends identified in this report show it’s the how, what, where and when of the equation.”

The Re/Max Affordability Report, which highlights first-time buying activity and trends in 13 housing markets across the country, says that substantial price increases have had little impact on buyer intentions. The greatest year-over-year price appreciation is in Edmonton, Calgary, Saskatoon and Kelowna, where averages rose 52, 29, 26, and 23 per cent respectively. Average price in the country’s most expensive market – Greater Vancouver - has jumped 11 per cent, topping the half million-dollar mark.

While prices in these markets may now seem costly, entry-level product such as condominiums can start at half the average price, says Re/Max.

Condominiums now represent just under one in every two sales in markets like Vancouver and Victoria. In Edmonton, Calgary, and the Greater Toronto Area, close to one in every three sales involve a condominium apartment or town home. In smaller markets like Saskatoon, Regina, and Winnipeg, condominiums are gaining momentum. Condominium sales represent approximately 12 per cent of total residential sales in Halifax-Dartmouth and Ottawa, says the report.

“Low interest rates and solid economic performance in most major Canadian centres have also played a substantial role in providing purchasers with the confidence to go out and buy their first home,” says Michael Polzler, executive vice-president and regional director, Re/Max Ontario-Atlantic Canada. “Yet, in some centres, there are other motivating factors at play. Price increases, for example, are a reality in the marketplace. One year can set you back – from location to house size – and your dollar just doesn’t have the same purchasing power.”

Re/Max says innovative financing has allowed a growing number of first-time buyers to enter the marketplace. New mortgage products with longer amortization periods are helping to make mortgage payments easier to carry, the company says.

The offloading of family wealth and inheritance are also factors influencing home-buying activity, says Ash. Some first-time buyers are digging into RRSPs and borrowing money from parents, while others are looking to offset carrying costs through in-law suites, now factored into debt service ratios by a growing number of lending institutions.

“Despite a decade of year-over-year price increases, compounded by challenging market conditions this year, entry-level buyers continue to be a driving force in real estate,” says Polzler. He says, “Their undaunted enthusiasm is expected to translate into sales at or ahead of last year’s record levels in the spring.”

This makes sense, Read more about the spring market cycle



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

You can be "Mortgage Free" sooner than you think

You can be mortgage free sooner than you think

(NC)-Are you feeling weighed down by the years remaining on your mortgage? Worried about when you should lock in your variable rate, or unsure of refinancing with rates on the rise? Getting a good interest rate is crucial, but there's a lot more you can do to ensure that you are mortgage free sooner. Flexibility and options are key - and the advice of an unbiased mortgage professional can help you make the most of these alternatives.

The experts at Mortgage Alliance suggest the following:

1. Match your mortgage payments with your pay periods. Not only does it make budgeting easier, but if you have bi-weekly payments you'll be making an extra payment each year (and you won't even feel it!)

2. Shorten your amortization. If you can budget for the higher monthly payments, this will help you build equity faster and take years off your mortgage.

3. Use your pre-payment option. Many people get a mortgage with this feature, but only 3% actually take advantage of it. A few hundred here and there can add up to thousands saved later on.

4. Income increasing? Consider permanently increasing your payments to match. Again, you won't feel the strain, but your equity is increasing and interest decreasing with every extra dollar you put in.

5. Most mortgages allow a lump sum payment in any one calendar year - and if you don't use it, you lose it. Just because you don't have a huge sum to put away doesn't mean it isn't worth it. Even small extra payments could pay big dividends later.

6. Shop around for better terms at renewal. Although it seems easier to just sign the form your bank sends, most people renew at rates higher than what they could have achieved if they had negotiated. Your mortgage professional is not just there for the purchase, but throughout the life of your mortgage.

Information provided by Mortgage Alliance. Visit www.rightmortgage.ca or call 1-877-366-3487 to find out more. Credit: www.newscanada.com

http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm


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

Basement Apartment requirements and considerations

Basic requirement for legal basement apartment in Toronto

There is no single government authority, which provides written certification that any given basement apartment is legal. Smart real estate agents never list a house as having a legal basement apartment since they do not want to guarantee that the basement apartment complies fully with all the applicable fire codes, building codes, Electrical Safety Authority regulations and zoning and housing standards by-laws.

The Ontario Building Code which prescribes minimum requirements for the construction of buildings is a code that applies only when the house was built. The building code changes over the time but for the most part, it does not apply retroactively.

The fire code which prescribes construction and safety issues as they relate to how the building is required to perform should it catch fire, can apply retroactively.

Here are few basic requirements for a legal basement apartment in Toronto :

(1) The detached or semi detached house must be at least 5 years old.

(2) The front of the house cannot be significantly altered to change its appearance from that of a one unit building.

(3) Basement unit must be smaller than the other units.

(4) Minimum ceiling height is 6'5". Ceiling must be continuous. Suspended (T-bar type) ceilings and exposed joists are not acceptable. Furnace room ceiling must be dry walled or plastered too.

(5) Doors must be solid wood or metal and minimum thickness is 1.75". Exterior door must be at least 32"x78". The smallest dimension of the window is 18" and the opening must be at least 600sq in. Windows must be within 3' of ground, and if there is window well it must extend 3' from the house wall to allow room to crawl out.

(6) Bathrooms have to have either a window or fan

(7) In most areas an additional parking space is required for new apartments.

(8) New apartments require building permits before construction begins.

(9) The property owner is responsible to make sure that smoke alarms are installed and maintained.
Carbon Monoxide alarms are required under many Municipal By-laws. They are to be provided in each dwelling unit in a building containing a fuel fired appliance or an attached garage. Even if they are not required by legislation they make good sense with to-day's design methods providing for air-tight construction of dwelling units.
Smoke alarms must be installed in each dwelling unit on every floor including those containing a bedroom or sleeping area. The alarm must be audible in bedrooms when the bedroom doors are closed. The smoke alarm may be battery operated or connected to an electrical circuit with no disconnect switch between the over current device and the smoke alarm. Interconnected smoke alarms may be required if:
· 15 min. Fire Resistance Rating is used between dwelling units
· one dwelling unit must exit through another dwelling unit
If required, interconnected smoke alarms must be installed in every storey above and below grade in each dwelling unit, and in every shared means of escape where applicable. These alarms must be audible in bedrooms when the intervening doors are closed.

(10) An electrical inspection by Electrical Safety Authority and all the deficiencies identified during the inspection must be addressed. Owners should retain the letter of compliance received from the Electrical Safety Authority for future reference purposes. This letter must be made available to the Chief Fire Official upon request.
(11) A continuous separation with a 30 min. Fire Resistance Rating is required between dwelling units and between dwelling units and other areas. This may be provided by existing membrane of lath and plaster or gypsum board.
Openings in Fire Separation shall be protected with rated doors installed in hollow metal or solid wood frames and equipped with self closing devices
Lesser degrees of Fire Resistance Rating may be acceptable with the provision of interconnected Smoke Alarms or Sprinkler Protection. The containment features are intended to provide protection for the occupants living in a dwelling unit from a fire occurring in another portion of the building, outside of their control.


(12) A single means of egress - provision for the escape of persons from each dwelling unit in the event of fire - may be acceptable if the following conditions are met:
· It is properly separated with a 30 min. Fire Resistance Rating
· The flame spread rating of means of escape does not exceed 150 (wood paneling is unacceptable)
· The means of escape does not involve entering another dwelling unit or other occupancy and leads directly to the outside at ground level.
Two means of escape are required if one means of escape is through another dwelling unit. An existing means of egress may be acceptable if the building is sprinklered.
By Nalliah Thayabharan
Registered Home Inspector. Member of OAHI & CAHPI-Ontario
ASHI certified Inspector.
Expert Building Inspections Ltd
905 940 0811 www.expertinspector.com

You may wish to read more about basement apartments in Mississauga

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

Relax, your cottage by the lake isn't just a dream

Relax, your cottage by the lake isn't just a dream

(NC)-As you breathe in that deep breath of fresh air you know you've found that idyllic spot where you've always dreamed of spending your golden years. It's the perfect cedar-shingled cottage right on the lake, where you can relax and enjoy the company of family and friends. Like a growing number of Canadians in their peak income years, a vacation property has always been part of your retirement plan and now that you've found it, only one step remains; financing it.

In the past, financing for a recreational property has been more challenging than for a principal residence, as traditional lending institutions have found second homes to be a less than desirable investment. But as the recreational property market continues to grow across the country Canadians longing for a summer, winter or all-season retreat, are finding they have other options.

"A growing number of Canadians are factoring a vacation property into their retirement planning," says Stan Falkowski, president of Mortgage Intelligence Inc. "While recreational property mortgages are still relatively new to the market, they can provide Canadians with an easy and affordable way to make that cottage, chalet or retreat a reality."

A recreational property mortgage, like the one available through Mortgage Intelligence, can help qualified homebuyers make that beach sunset or ski chalet possible with as little as 15 per cent down. Whether a homebuyer is purchasing a waterfront home, resort-style condominium or timeshare property, this type of product can provide a mortgage on an owner-occupied second property located in a known vacation area. To make qualification even easier this product can also function as a blanket mortgage utilizing a principal residence as additional collateral.

"Vacation properties are more than just a financial investment for most Canadians. They quite often become the spot where families come together," adds Falkowski. "By visiting a Mortgage Intelligence broker Canadians can get the financing they need to realize their vacation property dreams and start a whole new string of family traditions."

More information on how a recreational property mortgage can help Canadians realize their dream of vacation property ownership is available online at www.mortgageintelligence.ca or toll-free at 1-800-268-8815. Credit: www.newscanada.com

More on Vacation Properties in Ontario

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

Federal Budget Commentary from CREA - March 2007

Federal Budget Misses Investment Opportunity

No firm action on capital gains


OTTAWA, March 19 /CNW Telbec/ - The federal government has failed to provide an opportunity for Canadians to increase their investments in real property.

This opportunity would have come in a proposal from The Canadian Real Estate Association (CREA) to allow the deferral of capital gains tax and recaptured capital cost allowance when an investment property is sold, and the proceeds of the sale are invested in another investment property within one year.

The Association, on behalf of more than 88,000 REALTORS(R) in Canada, has been calling on the federal government to make such changes to the capital gains tax for several years now. CREA's proposal would provide several economic benefits, including a boost in Canada's productivity, expansion of rental housing, and encouragement of urban regeneration.

"Small investors are holding onto their real property investments because of the tax consequences associated with selling and reinvesting, and this is unduly influencing typical market activity," noted CREA Chief Executive Officer Pierre Beauchamp. "Despite our disappointment, CREA remains committed to working with the federal government to develop a policy that will encourage investment in real property."

Canadian REALTORS(R) were also disappointed to learn that the federal government did not revise the current Home Buyers' Plan to include a market adjustment for the maximum RRSP withdrawal limit - a move that would have been beneficial to first-time homebuyers.

"The maximum loan limit under the Home Buyers' Plan has been losing ground as a percentage of rising average resale home prices for more than a decade," noted Beauchamp. "Plan users are being forced to finance bigger mortgages, causing their debt burden to rise even as interest rates remain low."

The $20,000 maximum loan limit for a home downpayment has not been adjusted since the plan was established in 1992, which has had a negative impact on its effectiveness.

The lack of inflation adjustment is an obvious oversight in the design of the plan. Canadians REALTORS(R) have been calling on the federal government to raise the maximum loan limit to $25,000 to account for inflationary gains over the past 15 years. REALTORS(R) would also like to see the loan limits adjusted every five years to account for inflation.

"Though we are disappointed that these much needed changes are not reflected in the 2007 Federal Budget, we hope that the federal government will make improvements to the plan - and the affordability of Canadian housing - a priority in the immediate future," added Beauchamp.

About The Canadian Real Estate Association

The Canadian Real Estate Association is one of Canada's largest single-industry trade Associations, and represents more than 88,000 REALTORS(R) across Canada. CREA's primary mission is to represent its members at the federal level of government and to act as a watchdog on national legislation affecting or impacting the real estate industry. CREA also works to defend the public's right to own and enjoy property.

This article is courtesy of The Canadian Real Estate Association



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

Variable rate mortgage - Is it right for you?

Is a variable rate mortgage right for you?
(NC)-If you are not a market watcher, a variable rate mortgage may make you nervous. With this type of mortgage, the interest rate payable fluctuates with the prime lending rate. While a variable rate mortgage can save you money when you are financing your home purchase, you need to be comfortable with the associated risks.

As a general rule, variable rate mortgages ordinarily offer lower interest rates than fixed rate mortgages. In the long run, variable rate mortgages have proven to be a good bet to save money. More and more Canadians have been turning to variable rate mortgages to finance their home buying.

Some people may shy away from variable rate mortgages as their monthly payment amount may change. But with products like CIBC's Better Than Prime Mortgage, your monthly payment amount will be the same, even if the prime lending rate fluctuates. This will help you budget effectively and take advantage of lower rates.

There are three basic types of variable rate mortgages available on the market today:

1. Interest rate changes with prime or stays just below prime- these types of mortgages can be either closed or open. If there is a discount on the prime rate, the mortgage is usually closed.

2. Interest rate is discounted and has a special introductory offer- this type of variable rate mortgage carries an introductory rate that is discounted from the prime lending rate for a specified length of time. After the introductory period, a smaller discount may apply for the remainder of the term.

3. Interest rate fluctuates and is capped- this type of mortgage offers the security of a cap on the interest rate, which means that your interest rate will never rise above a certain level, often the 5-year fixed rate. The interest rate is usually higher than the prime lending rate, but this type of mortgage offers protection against rising interest rates. These mortgages are usually closed.

For more information about whether a variable rate mortgage is right for you, contact your local CIBC branch or call 1 800 465-CIBC (2422). You can also visit the CIBC website at www.cibc.com. Credit: www.newscanada.com

More information on Mortgages and Rates

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