Monday, June 09, 2008

Canada Real Estate Practices

Canada Real Estate Practices

Overview

Canadian real estate agents work in much the same way in all of the provinces and territories. However, educational and licensing requirements vary provincially and agents are licensed by their provincial regulators.

The majority of Canadian real estate agents are Realtors®- i.e. are members of the Canadian Real Estate Association (CREA). Canadian Realtors place almost all of their property listings on the Multiple Listing Service (MLS), and as a result property listings are available to view by all Realtors in the marketplace.

Both the Land Titles (Torrens) System and Registry System are established and maintained through provincial legislation. While the Land Titles System provides a certified, accurate land record and guarantees title; the Registry system requires buyers to search titles based on a history of conveyances and satisfy themselves. Regardless of the system used, the information is computerized and publicly accessible in exchange for a user fee which varies with the municipality.

Real Estate Practices

Generally speaking, one Realtor will act on behalf of a seller and another will represent a buyer. Sellers typically pay the broker's commission and costs relating to the closing. Legal fees are shared by the buyer and seller.

The Realtor will draft the Contract of Purchase and Sale (the Offer), and do the negotiating between buyer and seller via the seller's Realtor. Typically, they then provide the contracts to the lawyer/notary who handles the legal aspects of the transfer of title. Along with the offer, the buyer brings a deposit to show good faith to the seller. The seller's agent is obligated to bring all offers to the seller's attention. If the offer is accepted and all the conditions are met, the offer becomes binding between the buyer and seller.

Mortgages are commonly used to purchase real property and second, third and fourth mortgages are permissible in Canada. Mortgages are available primarily from banks and lending institutions and the typical maximum term is 10 years, although the average consumer is usually in a 5-7 year term mortgage. At the end of the term, the outstanding balance is due but is usually renegotiated for a further term at the then current rate of interest.

Interest paid on a mortgage in Canada is not tax-deductible. And unless one has at least 25% of the purchase price of a home to put down or 50% for vacant land, mortgage insurance is charged by the lender. The percentage charged on the mortgage varies, depending on the amount put down, but starts at 3.25% for those putting only 5% down. Usually, the payments are simply worked into one's mortgage payments. Given that non-resident borrowers are limited to borrowing 65% of the property value; this added cost is non-applicable to a foreign buyer.

The closing process typically occurs less than 60 days following execution of the contract on resale property. Although there is no legal requirement to do so, the closing usually occurs through both the buyer's and seller's legal counsel.

All Realtors in Canada must pay a federal tax of 6%, called the Goods and Services Tax, on commissions earned, and in some provinces a provincial tax is levied as well. The seller pays for these taxes. Resale homes are not subject to the 6% federal tax, although one must pay it on new homes. If the new home is to be a primary residence, a rebate is offered.

Capital gains is payable on homes sold by non-residents. A capital gains tax of 25% is charged on the gain and, if not paid, the buyer's Realtor must withhold anywhere from 20 to 25% of the total sales price from the seller in order to ensure payment is made.

Read more about relocaiton: http://www.mississauga4sale.com/relocation.htm

Mark

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


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

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Website : Mississauga4Sale.com


Sunday, June 08, 2008

2008 Mortgage Rates

2008 Mortgage Rates

With the Bank of Canada interest rate decision coming up next week, mortgage rates are a hot topic at the moment. The CMHC has just reported that posted mortgage rates eased by about 50 basis points in the first four months of 2008, although rates in late April were 30 to 35 basis points higher than they were 12 months prior. Mortgage rates are expected to trend marginally lower throughout 2008, but will be within 25-50 basis points of their current levels.
I came across a handy site that is useful They compare over 500 Canadian mortgage rates from banks to brokers and showed that best current 1 year closed fixed rate was 6.05%.
It will be interesting to see what the Bank of Canada does next week.
Cheers,
Mark

Friday, June 06, 2008

Current Mortgage Interest Rates across the GTA

The table below shows you the current posted and rates offered by various mortgage brokers across the GTA

TERMPOSTED OUR RATES*
6 Month 6.20%6.20%
1 Year6.15%4.65%
2 Year6.15%4.90%
3 Year6.15%4.99%
4 Year6.59%5.25%
5 Year6.65%5.24%
7 Year7.40%5.80%
10 Year7.75%5.90%
Variable Rate4.00%
Prime Rate4.75%












Enjoy the heat this weekend!

Mark

Read more about:Homes for Sale

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

Homes for Sale

Thursday, June 05, 2008

Steady GTA Resale Housing Market in May

Steady GTA Resale Housing Market in May

TORONTO, June 4, 2008 -- The Greater Toronto Area resale housing market recorded 9,411 transactions in May, Toronto Real Estate Board President Maureen O’Neill announced today.

On a year-over-year basis the GTA average price increased four per cent to $398,148 in May from the May 2007 average of $382,787. Prices increased three per cent in the City of Toronto to $434,271 from $422,163 during the same period a year ago, while in the 905 Region there was a five per cent increase to $374,629 from $355,341 last May.

“Price gains show that real estate continues to be a solid investment for the consumer,” said Ms. O’Neill. “We are confident about the market because employment in the GTA continues to be strong and interest rates remain low. As long as consumers have the financial resources to buy homes and a variety of choices to manage carrying costs, the market should remain stable.”

“May’s sales figures represent a 16 per cent decline in the GTA from the record month a year ago when 11,146 sales were recorded,” said Ms. O’Neill. “More than 9,000 properties changing hands still represents considerable market activity.”

In the City of Toronto, there were 3,711 sales, down 19 per cent from last May’s 4,578 sales and down 6 per cent from May 2006. In the 905 Region, 5,700 transactions were recorded, which represents a 13 per cent decline from the 6,568 sales during the same period a year ago but up 4 per cent from May 2006.

“The Toronto Land Transfer Tax has been in effect for four months and the decline in sales has been running for the same time period,” said Ms. O’Neill. “We’re keeping a close watch on the effect of this new tax.”

Two specific areas North of Toronto experienced increased sales activity in May. In Uxbridge (N16) sales were up 10 per cent, while Stouffville (N12) saw a 12 per cent increase in sales, driven mainly by detached home transactions.

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



Read more about:Homes for Sale

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

Homes for Sale

GTA Single Family Residential Historic Price Graph

You may see the current prices in graphical format for the GTA, click the image below to see the full size version


Read more about:Homes for Sale

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

Homes for Sale

June Report - Sales in May were moderate again and prices stable - sign of things to come?

June Report - Sales last month were moderate again and prices stable - sign of things to come?

TORONTO - Wednesday, June 4, 2008 -- TREB Members saw 9,411 sales of single family dwellings in May, TREB President Maureen O’Neill announced today. “While off last year’s pace, a 9,000 plus sales month is certainly indicative of a healthy market,” said the President.

Prices trended upward on a year-over-year basis, with the overall average going to $398,148, up four per cent over the May 2007 figure of $382,787.

The City of Toronto experienced a three per cent increase, to $434,271 over last May’s $422,163. The 905 suburbs averaged $374,629, up five per cent over the same time last year, when the corresponding figure was $355,341.

“Furthermore, inventory has increased 15 per cent to 27,267 listings over May of 2007. This is good news for potential homebuyers as it should keep year-over-year price increases to the low single digits.”

Sales GTA-wide declined 16 per cent from May of 2007, which saw 11,146 sales, a record month. However, this overall decline masked significant regional variations.

Within the City of Toronto, sales fell 19 per cent to 3,711 from last May’s figure of 4,578. Within the 905 suburbs, on the other hand, the decline was a less pronounced 13 per cent, to 5,700 sales from last May’s figure of 6,568.

Breaking down the total, 3,626 sales were reported in TREB’s 28 West districts and averaged $377,098; 1,606 sales were reported in the 14 Central districts and averaged $528,938; 1,938 sales were reported in the 23 North districts and averaged $430,240; and 2,241 sales were reported in TREB’s 21 East districts and averaged $310,724.


Read more about:Homes for Sale

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

Homes for Sale

Wednesday, June 04, 2008

SPOTLIGHT ON BEING AMERICAN

We Canadians often take aim at our friends to the south of us and poke fun at our differences. The numbers below will give you even more insight into the differences between Canadians and Americans, some of them are very enlightening, Enjoy! Mark


SPOTLIGHT ON BEING AMERICAN
Here are some facts about Americans that should prove that Canadians are very similar. First, some money-related statistics.
- 3 out of 4 of us store our bills in our wallets in rigid order with singles leading up to higher denominations.
- How far would you go for $10 million? 25% would abandon their friends, family, and church. 7% would murder.
- 53% prefer ATM machines over tellers.
- 56% of women do the bills in a marriage.
- 2 out of 3 of us wouldn't give up their spouse even for a night for a million U.S. dollars.
- The biggest cause of matrimonial fighting is money.
- 35% give to charity at least once a month.

And some non-monetary statistics:
- 21% of Americans don't make their bed daily. 5% of Americans never do.
- Men do 29% of laundry each week.
- Only 7% of women trust their husbands to do laundry correctly.
- 40% of women have hurled footwear at a man.
- 13% of Americans admit to occasionally doing their offspring's homework.
- 91% of Americans lie regularly.
- 27% admit to cheating on a test or quiz.
- 29% admit they've intentionally stolen something from a store.
- 50% admit they regularly sneak food into movie theaters.
- 90% believe in divine retribution.
- 10% believe in the 10 Commandments.
- 82% believe in an afterlife.
- 45% believe in ghosts.
- 13% (mostly men) have spent a night in jail.
- 58% have called into work sick when they weren't.
- 10% switch tags in the store to pay less for an item.
- 69% eat the cake before the frosting.
- When nobody else is around, 47% drink straight from the carton.
- 85% will eat Spam this year.
- 70% drink orange juice daily.
- 22% skip lunch daily.
- 9% skip breakfast daily.
- 66% eat cereal regularly.
- 22% of all restaurant meals include french fries.
- 14% eat the watermelon seeds.
- Only 13% brush their teeth from side to side.
- 45% use mouthwash every day.
- 22% leave the glob of toothpaste in the sink.
- Nearly 1/3 of U.S. women color their hair.
- 9% of women and 8% of men have had cosmetic surgery.
- 53% of women will not leave the house without makeup on.
- 58% of women paint their nails regularly.
- 33% of women lie about their weight.
- 10% of us claim to have seen a ghost.
- 57% have had deja vu.
- 49% believe in ESP.
- 44% have broken a bone.
- 57% have had deja vu.
- Only 30% know their cholesterol level.
- 14% have attended a self-help meeting (coin club meetings don't count).
- 15% regularly go to a shrink.
- 78% would rather die quickly than live in a retirement home.
- 30% of us refuse to sit on a public toilet seat.
- 54% always wash their hands after using the toilet.
- 39% of us peek in our host's bathroom cabinet.
- 17% have been caught by the host.
- 29% of us ignore RSVP.
- 71% of us eavesdrop.
- Less than 10% are trilingual.
- 37% claim to know how to use all the features on their VCR.
- 40% of us have had music lessons.
- 44% reuse tinfoil.
- 57% save pretty gift paper to reuse.
- 66% of women and 59% of men have used a mix to cook and taken credit for doing it from scratch.
- 53% read their horoscopes regularly.
- 57% have had deja vu.
- 16% of us have forgotten our own wedding anniversary (mostly men).
- 90% of us depend on alarm clocks to wake us.
- 53% of us would take advice from Anne Landers.
- On average, Americans send 38 Christmas cards every year.
- 20% of women consider their parents to be their best friends.
- 2 out of 5 have married their first love.
- Only 4% asked the parents' approval for their bride's hand.
- 1 in 5 men proposed on his knees.
- 6% propose over the phone.
- 67% of us speed up at a yellow light.
- 44% of men tailgate to speed up the person in front of them.
- 25% drive after we've been drinking.
- 80% sing in the car.
- 12% of men never use their car blinkers.
- Only 30% of Americans can flare their nostrils.
- Snickers is the most popular candy.
- 45% of us consistently follow the speed limit.

So you see, we're not so different. Except maybe the last one, because everyone in Canada speeds. And Coffee Crisp is our most popular chocolate bar, which no doubt has something to do with our love for anything and everything coffee.

I have to give credit where credit is due, these numerical funnies come from my friend John R. and he may be reached for more humour at coinman@look.ca.

Have a nice day,
Mark

CMHC report on New Home Market Condominium Apartment Starts on the Rise

New Home Market Condominium Apartment Starts on the Rise

Condominium apartment starts
dominated new home construction
during April in the Greater Toronto
Area (GTA). Pre-construction
condominium apartment sales from
the last two years continued to
convert into strong housing starts
last month.


On an unadjusted basis, total housing
starts through the first four months
of 2008 were up by approximately
47 per cent compared to the same
time period a year earlier. Condominium
apartment starts were
nearly three times the levels compared
to the same time period a year earlier. Low borrowing costs and
steady job growth in the past couple
of years induced more homebuyers
to purchase condominium apartments
at the pre-construction stage.
The lower price tag for condominium
apartments, compared to
that of more expensive singleconstruction
of this housing type
has become less popular, CMHC’s
2008 Renovation and Home Purchase
Survey found that single-detached
homes have remained the housing
type of choice for many households.
detached homes, was especially
attractive to first time buyers.
Single-detached home starts remained
virtually unchanged on a
year-over-year basis, edging lower by
less than half a per cent for the first
four months of the year. While the construction of this housing type has become less popular.

Read more about:Homes for Sale

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

Homes for Sale

Tuesday, June 03, 2008

CMHC reports on National Vacancy Rates

National Vacancy Rate Unchanged at 2.6 Per Cent in October 2007

The average rental apartment vacancy rate in purpose
built apartment buildings with three or more units in
Canada's 34 major centres1 was unchanged at 2.6 per
cent in October 2007 compared to a year ago. The
centres with the highest vacancy rates in 2007 were
Windsor (12.8 per cent), Saint John (5.2 per cent)
and Moncton (4.3 per cent). The centres with the
lowest vacancy rates were Kelowna (0.0 per cent),
Victoria (0.5 per cent), Greater Sudbury (0.6 per
cent) and Saskatoon (0.6 per cent).
Strong employment growth, solid income gains, and high
immigration levels continued to support strong demand
for both ownership and rental housing. The rising gap
between the cost of home ownership and renting also
kept demand strong for rental accommodation. However,
modest rental construction and increased competition
from the condominium market offset the strong
rental demand, keeping the rental apartment vacancy
rate unchanged from a year earlier. Condominiums are
a relatively inexpensive type of housing for renters
moving to home ownership. Also, some condominium
apartments are owned by investors who rent them out.
Therefore, high levels of condominium completions have
created competition for the rental market and have put
upward pressure on vacancy rates.
The highest average monthly rents for two-bedroom
apartments in new and existing structures were in
Calgary ($1,089), Vancouver ($1,084), Toronto
($1,061) and Ottawa ($961), followed by Edmonton
($958) and Barrie ($934). The lowest average monthly
rents for two-bedroom apartments in new and
existing structures were in Trois-Rivières ($487) and
Saguenay ($490).
Year-over-year comparison of rents can be slightly
misleading because rents in newly built structures
tend to be higher than in existing buildings. However,
by excluding new structures, we can get a better
indication of actual rent increases paid by tenants.
The average rent for two-bedroom apartments in
existing structures increased in all major centres
except Windsor where the average rent in existing
structures was essentially unchanged for a second
consecutive year. The largest rent increases occurred
in markets where vacancy rates were quite low.
Rents in existing structures were up 18.8 per cent in
Edmonton, 15.3 per cent in Calgary, 13.5 per cent in
Saskatoon, 7.7 per cent in Greater Sudbury and 7.0
per cent in Kelowna. Overall, the average rent for
two-bedroom apartments in existing structures
across Canada's 34 major centres increased by 3.5
per cent between October 2006 and October 2007.
CMHC's October 2007 Rental Market Survey also
covers condominium apartments offered for rent in
the following centres: Vancouver, Calgary, Edmonton,
Toronto, Ottawa, Montréal, and Québec. In 2007,
vacancy rates for rental condominium apartments
were below one per cent in four of the seven centres
surveyed. Rental condominiums in Vancouver had
the lowest vacancy rate at 0.2 per cent. On the other
hand, Québec and Montréal registered the highest
vacancy rates for condominium apartments at 2.4 per
cent and 3.8 per cent in 2007, respectively. The
survey showed that vacancy rates for rental condominium
apartments in 2007 were lower than vacancy
rates in the conventional rental market in Vancouver,
Calgary, Toronto and Ottawa, the same in Edmonton,
and higher in Québec and Montréal. The highest
average monthly rents for two-bedroom condominium
apartments were in Toronto ($1,533), Vancouver
($1,435), and Calgary ($1,217). All surveyed
centres posted average monthly rents for twobedroom
condominium apartments that were higher
than average monthly rents for two-bedroom private
apartments in the conventional rental market in 2007.

Read more about:Homes for Sale

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

Homes for Sale

Monday, June 02, 2008

How can you save on the mortgage interest paid

This page will give you ideas and examples on how you can lower the amount of interest you pay on your mortgage

Owning a home gives you many options. You get to choose the carpets, the paint colour, renovations and additions you make on your house. You also have opportunities to choose how you pay down your mortgage. Here are six ways to shave interest and time off your mortgage:

  1. Increase your mortgage payment frequency
  2. Shorten your amortization period
  3. Increase your regular mortgage payment
  4. Choose a mortgage with a prepayment option
  5. Invest your tax refunds and cash windfalls
  6. Keep your mortgage payments high



1. Increase your mortgage payment frequency*

If you increase the frequency of your mortgage payments from monthly to bi-weekly, your payment amount is halved. By making a payment every two weeks you then make one additional payment every year. That will cut your interest cost over the life of your mortgage.

Example:Mortgage amount: $200,000Interest rate: 5%Amortization: 25 years

Total number of paymentsRegular paymentTotal paymentTotal interest
Monthly payment300$1,163.21 $348,963$148,963
Bi-weekly payment650$536.27 $348,577$148,577
Interest saved $386

2. Shorten your amortization period*

By shortening your amortization period to less than 25 years you can create big-time interest savings.

Example:Mortgage amount: $200,000Interest rate:
5%Payments: bi-weekly

YearsNumber of paymentsTotal paymentsTotal interest
25650$348,577$148,577
20520$315,072$115,072
15390$283,411$83,411

3. Increase your regular mortgage payment*

Increasing your regular payment helps you reduce your mortgage principal faster. And that means you save interest. Better still, you'll be mortgage-free that much sooner. A Citizens Bank mortgage lets you increase your payments up to 20% each year without penalty.

Example:Mortgage amount: $200,000Interest rate: 5%Amortization: 25 yearsPayments: bi-weekly

The table below shows the effect of increasing mortgage payments after only one year. Imagine what could happen if this was done in each year of your mortgage term?




ScenarioBi-
weekly pymnt
Total pymntsTotal intrstIntrst savedYrs
No increase in payments$536.27$348,577$148,577N/A25
Increase payments by 5% at end of first year$563.27$334,776$134,776$13,80122
Increase payments by 20% at end of first year$643.27$306,799$106,799$41,78818.5

4. Choose a mortgage with a prepayment option*

A prepayment option gives you the right to prepay specified amounts of your mortgage principal. A Citizens Bank mortgage lets you prepay up to 20% of the original principal. You can do this once each mortgage year without penalty. This may seem like a small thing, but even $100 applied against your principal will save you interest.

Example:Mortgage amount: $200,000Interest rate: 5%Amortization: 25 yearsPayments: bi-weekly

ScenarioTotal paymentsTotal interestInterest SavedYears
No prepayments during normal term$348,577$148,577N/A25.0
Prepayment of $100 at end of each year$346,307$146,307$2,27024.7
Prepayment of $1,000 at end of each year$328,872$128,872$19,70522.0

5. Invest your tax refunds and cash windfalls

If you find yourself suddenly richer, think about investing the money rather than spending it. If you have a mortgage, you should consider making a lump-sum mortgage payment against the principal. Or, you could contribute the extra cash to your RRSP.


6. Keep your mortgage payments high

When the time comes to renew your mortgage and interest rates are down, the temptation is often to lower your monthly payment. But that can be short-term thinking. The short-term benefits will eventually be eaten up by extra interest charges.

If you're already making high mortgage payments, the smart choice is to keep them high. That way you'll pay off your mortgage faster. Your reward will be big interest savings over the life of your mortgage.

If you decide at some point to decrease your mortgage payments, you can do so at any time. You may, however, need to pay a small mortgage modification fee.

Note: CMHC (Canada Mortgage and Housing Corporation)If you hold a mortgage secured by CMHC, be aware of its limitations. CMHC mortgages do not offer you the flexibility to lengthen the amortization in the event that you find your payments are too high. When flexibility is important to you, consider using other techniques.

In conclusion

One of the best methods to pay down your mortgage quicker is to reduce your original or current amortization period and use accelerated bi-weekly payments. With these two options you will pay your mortgage off in about 17 years versus 25 years!

Read more about this: http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm

All the best,

Mark

Read more about:Homes for Sale

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 ArgentinoP. Eng. BrokerSpecializing in Residential & Investment Real EstateThinking 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 905-828-3434mark@mississauga4sale.com8 Website : Mississauga4Sale.com

Homes for Sale