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The New Year in Real Estate
May 19, 2011 by chris · Leave a Comment
Second, the maximum amount that you can borrow by refinancing your mortgage has been lowered to 85% (from 90%).Housing Affordability and You: Is now the time to buy?
May 19, 2011 by chris · Leave a Comment
Everybody already knows that housing prices are on the rise. Today the average price of GTA-area listing on MLS (the central database for real estate listings) is nearly the same as it was during the housing bubble of 1989. (See graph at left.)
Does this mean that housing has once again become unaffordable?
The answer is NO.
Nobody needs to tell you that the majority of homes and condos aren’t bought outright; they’re paid for using a mortgage. This means that housing price alone is not a reliable indicator of housing affordability.
A better way to gauge housing affordability is by measuring what percentage of a family’s household income is spend on carrying costs, specifically mortgage payments, property taxes and utilities.
So, how much income are families in the GTA spending on carrying costs today? Far, far less than in 1989. (See graph at right.)
- In 1989, an average +50% of household income went to carrying costs.
- By 1998, that number had dropped below 30%.
- The number has stayed low ever since, coming to rest between 30-35%.
- In other words, housing today is as affordable as it has been in recent years.
Is now the right time for you to buy?
If you’re planning to buy in the next few months and would like a FREE, no-obligation consultation on the buying process, fill out the contact form on this site or call me at (416) 565 9955.
Toronto First Time Buyer Tips
April 7, 2011 by chris · Leave a Comment
When an offer on a condo is accepted, the buyer usually pays a small deposit to the seller as a sign of good faith. This deposit is subtracted from your downpayment; in other words, if you’re buying a $200000 condo and paying a $10000 downpayment, you might make a $5000 deposit. Once you’ve paid this deposit, your remaining downpayment will be $5000.
Typically, your closing costs will be around 1.5% of your purchase price.
How can I learn more?
If you’re a first time buyer and you’d like to learn more, contact us today using the form below (or email nazaars@rogers.com) for a completely FREE home buyer’s consultation. Or, click here for a free, customized list of condo units that suit your needs and price range.
So, You Want to Buy A Condo: An Intro to the Buying Process
February 15, 2011 by Condo Guy · Leave a Comment
You’ve decided to purchase a condominium apartment. Great! Now the question is: do you need a realtor?
I think the best way to answer that question is by explaining what a realtor does and what to look for in a good realtor.
Free Consultation
Realtors don’t charge by the hour. We meet with you for free, and we’re here to act as a sounding board so that you can figure things out. There are no fees and no hidden costs.
A good realtor won’t pressure you into a deal. He or she will talk to you about where you want to buy, and when, and why. A realtor can give you up-to-date facts about areas, units, and buildings — like whether one condo building is managed better than another.
A realtor can help you consider everything: market conditions, interest rates, and price directions. Is it better to buy now or later? Do you want to rent, or own?
Budgeting
Next comes budgeting. If you’d like to buy a condo, but don’t have a financial plan, a realtor can help you figure out what you’ll need to do based on your current situation.
If you’ve never owned before, a realtor can help you break down what home ownership means: what your closing costs will be, when to pay them, what your monthly carrying costs will be, and what your options are for each one.
Navigating the Market
The real estate market is full of lingo and new situations. What’s the difference between a fixed interest rate and a variable interest rate? Should you choose a closed mortgage or an open mortgage?
Your realtor is your partner, your one-stop shop for knowledge. If you need a good lawyer, mortgage broker or home inspector, your realtor can recommend one.
Finding Your Dream Home
Finally, a good realtor will take you to as many properties as you want to see, as many times as you want to see them. Nobody benefits from unhappy clients. The deal you sign should be the deal you really want.
- Nazaar Shadir
Non Canadian Resident Mortgage
March 13, 2009 by Condo Guy · Leave a Comment
For a Canadian citizen and Canadian residents the requirement for down payment is 20%. If you’re planning to have less of that amount, Canadians and residents will be referred to the CMHC for mortgage insurance, it will allow you to purchase a home with as little as 5% down payment. For non-Canadians on working visa, the requirements are a little different,
Now, with non-Canadians, non-residents (foreigners not residing in Canada) or Canadian citizens non-residing in Canada (Canadian citizens who live abroad) the down payment requirements changes quite a bit. First off, financial institutions will ask for a minimum down payment of 35% to 50%, depending on each case.
