According to the most recent census, more Canadians are homeowners than ever before. While financial advisors may tout the gains offered through stocks and bonds, there’s only one investment in which you can live as it appreciates. One common denominator that both routes to wealth share is the advantage that can be gained by obtaining professional guidance along the way.
Regardless of whether you’re a first-timer or a seasoned homebuyer, by working with a realtor, you’ll gain important information and advice to help achieve an accepted offer at a reasonable price.
As a first step in the house-hunting process, you will be asked to sign a Buyer Agency Agreement. It outlines your realtor’s commitment to represent your best interests by working exclusively on your behalf for a designated period of time.
After obtaining a list of your must-haves, your realtor can begin searching for available properties on the Multiple Listing Service. Information on the MLS is displayed instantly, giving your realtor up-to-the minute access to data that can affect your decisions. You can also regularly receive email notifications of listings that match your criteria.
Using the MLS, your realtor can compare asking prices to recent sold prices in the area and explore a number of other variables as well, like the number of days a property has been on the market and any price changes that have been undertaken.
Greater Toronto realtors also have access to an important tool called the Buyer Registry Service (BRS), a password-protected database in which your realtor can register your housing criteria. As a privacy precaution, your personal information is only accessible to your realtor, whose name is displayed for making contact.
Realtors who represent sellers can check the BRS to determine whether buyers’ preferences match their clients’ properties. While you can still depend on a regular email of homes that match your criteria, communication between realtors using the BRS can occur even faster.
Be sure to visit www.BRAFirst.ca for more information on the Buyer Representation Agreement.
Given your realtor’s extensive network of contacts in the community, they may even be aware of a home’s availability prior to it being listed on MLS.
If you’re interested in exploring new home options, your realtor can also search RealNet Canada’s extensive database of construction developments by housing type, location, price range and many other specific criteria.
After these avenues have helped you identify a preferred property, your realtor can use his or her direct access to even more databases to help you arrive at an appropriate offer.
Teranet’s land registry system for example, offers key data like neighbourhood demographic profiles, aerial views and land surveys. It can even provide information on the sold prices of properties not listed on MLS.
The Municipal Property Assessment Corporation (MPAC) database also provides information, on a property’s value, square footage, year of
Equipped with all of this information, sound advice and professional negotiating skills at your side, you’ll soon be placing they keys in the door of your perfect home.
For more information on the home buying process and regardless of whether you choose new or resale, every market is different be sure to contact a realtor. Their skills and expertise can give you a winning advantage.
July 23, 2010
Bill Johnston is president of the Toronto Real Estate Board. The views expressed here are those of the president. For more information, go to www.TorontoRealEstateBoard.com. Follow on Twitter @TREB_Official, on Facebook TorontoRealEstateBoard and www.youtube.com/TREBChannel.
Sunday, August 22, 2010
New home sales in GTA down in June
New home sales in the Greater Toronto Area were down by 26 per cent in June compared with the same time last year, according to a report Wednesday by the Building, Industry and Land Development Association.
Reflecting the slowdown already evident in the resale market, this is the first month that new home sales have shown a decline compared with last year when the financial crisis had tanked real estate sales.
According to BILD, 2,920 homes sold in June compared with 3,925 in June of 2009.
Much of the decrease was attributed to low-rise sales, down by 46 per cent from last year. High rise sales remained steady.
“With relatively few new project openings thus far this year, low rise sales have been naturally constrained,” said the organization.
A record low inventory of low rise homes has slowed sales. Builders are also facing difficulty acquiring developable sites in the GTA, according to group.
Another issue is affordability. Low rise homes are more expensive than high rise developments, so first time buyers are being squeezed out of the market.
The Bank of Canada announced on Tuesday it is also increasing its key overnight rate by a quarter of a percentage point, which is putting pressure on long term mortgage rates. The bank also downgraded its outlook for growth this year and next due to greater than expected weakness in the economy.
July 21, 2010
Tony Wong
BUSINESS REPORTER
Reflecting the slowdown already evident in the resale market, this is the first month that new home sales have shown a decline compared with last year when the financial crisis had tanked real estate sales.
According to BILD, 2,920 homes sold in June compared with 3,925 in June of 2009.
Much of the decrease was attributed to low-rise sales, down by 46 per cent from last year. High rise sales remained steady.
“With relatively few new project openings thus far this year, low rise sales have been naturally constrained,” said the organization.
A record low inventory of low rise homes has slowed sales. Builders are also facing difficulty acquiring developable sites in the GTA, according to group.
Another issue is affordability. Low rise homes are more expensive than high rise developments, so first time buyers are being squeezed out of the market.
The Bank of Canada announced on Tuesday it is also increasing its key overnight rate by a quarter of a percentage point, which is putting pressure on long term mortgage rates. The bank also downgraded its outlook for growth this year and next due to greater than expected weakness in the economy.
July 21, 2010
Tony Wong
BUSINESS REPORTER
New home sales in GTA down in June
New home sales in the Greater Toronto Area were down by 26 per cent in June compared with the same time last year, according to a report Wednesday by the Building, Industry and Land Development Association.
Reflecting the slowdown already evident in the resale market, this is the first month that new home sales have shown a decline compared with last year when the financial crisis had tanked real estate sales.
According to BILD, 2,920 homes sold in June compared with 3,925 in June of 2009.
Much of the decrease was attributed to low-rise sales, down by 46 per cent from last year. High rise sales remained steady.
“With relatively few new project openings thus far this year, low rise sales have been naturally constrained,” said the organization.
A record low inventory of low rise homes has slowed sales. Builders are also facing difficulty acquiring developable sites in the GTA, according to group.
Another issue is affordability. Low rise homes are more expensive than high rise developments, so first time buyers are being squeezed out of the market.
The Bank of Canada announced on Tuesday it is also increasing its key overnight rate by a quarter of a percentage point, which is putting pressure on long term mortgage rates. The bank also downgraded its outlook for growth this year and next due to greater than expected weakness in the economy.
July 21, 2010
Tony Wong
BUSINESS REPORTER
Reflecting the slowdown already evident in the resale market, this is the first month that new home sales have shown a decline compared with last year when the financial crisis had tanked real estate sales.
According to BILD, 2,920 homes sold in June compared with 3,925 in June of 2009.
Much of the decrease was attributed to low-rise sales, down by 46 per cent from last year. High rise sales remained steady.
“With relatively few new project openings thus far this year, low rise sales have been naturally constrained,” said the organization.
A record low inventory of low rise homes has slowed sales. Builders are also facing difficulty acquiring developable sites in the GTA, according to group.
Another issue is affordability. Low rise homes are more expensive than high rise developments, so first time buyers are being squeezed out of the market.
The Bank of Canada announced on Tuesday it is also increasing its key overnight rate by a quarter of a percentage point, which is putting pressure on long term mortgage rates. The bank also downgraded its outlook for growth this year and next due to greater than expected weakness in the economy.
July 21, 2010
Tony Wong
BUSINESS REPORTER
Bank of Canada raises interest rates further
The Bank of Canada increased the target for its trend-setting overnight lending rate on July 20, 2010, raising it by a quarter of a percentage point to 0.75 per cent. The increase follows on the heels of an equal interest rate increase in June 2010, when it was raised for the first time since 2007. The Bank rate now stands at one per cent.
In its most recent interest rate announcement, the Bank marked down its outlook for economic growth globally, emphasizing the uneven economic recovery in the U.S., and weakening prospects for European economic growth.
In the Bank’s view, Canada’s domestic economy is evolving largely as expected in recent months, but trimmed its forecast for economic growth this year and next by 0.2 per cent to 3.5 per cent in 2010 and 2.9 per cent in 2011. While the Bank raised its forecast for Canadian economic to 2.2 per cent in 2012, it nonetheless left the easing trend for growth intact.
The Bank indicated, “[this] revision reflects a slightly weaker profile for global economic growth and more modest consumption growth in Canada. The Bank anticipates that business investment and net exports will make a relatively larger contribution to growth.
Where the domestic recovery had previously been led by housing and consumer spending it is now guided more by government stimulus.”
The Bank also reaffirmed its view that housing activity and household expenditures was pulled forward into the first half of 2010, causing to soften in the second half. It also recognized that business investment has been weaker than it previously expected, “held back by global uncertainties.” The Bank anticipates “that business investment and net exports will make a relatively larger contribution to growth” over its forecast horizon.
As of July 20th, the advertised five-year conventional mortgage rate of 5.79 per cent was down 0.06 per cent from one year earlier, and 0.2 per cent below where it stood when Bank made its previous interest rate announcement on June 1, 2010. However, it is 0.3 percentage points higher than it was at the beginning of the year.
The Bank has signaled to financial markets that it is leaving its options wide open as to whether it will raise interest rates further when it makes its next rate announcement on September 8th.
“As it did with its previous announcement in June, the Bank messaged financial markets that further interest rate increases are not pre-ordained,” said CREA Chief Economist Gregory Klump. “The strength of recent economic indicators have prompted the Bank to raise interest rates, but the Bank has signaled that may keep rates on hold should the economic recovery begin to show signs of loosing steam.”
The Bank’s July MPR will be published on July 22. The Bank will make its next scheduled rate announcement on September 8th.
July 20, 2010, 4:05:23 PM | Alyson Fair
In its most recent interest rate announcement, the Bank marked down its outlook for economic growth globally, emphasizing the uneven economic recovery in the U.S., and weakening prospects for European economic growth.
In the Bank’s view, Canada’s domestic economy is evolving largely as expected in recent months, but trimmed its forecast for economic growth this year and next by 0.2 per cent to 3.5 per cent in 2010 and 2.9 per cent in 2011. While the Bank raised its forecast for Canadian economic to 2.2 per cent in 2012, it nonetheless left the easing trend for growth intact.
The Bank indicated, “[this] revision reflects a slightly weaker profile for global economic growth and more modest consumption growth in Canada. The Bank anticipates that business investment and net exports will make a relatively larger contribution to growth.
Where the domestic recovery had previously been led by housing and consumer spending it is now guided more by government stimulus.”
The Bank also reaffirmed its view that housing activity and household expenditures was pulled forward into the first half of 2010, causing to soften in the second half. It also recognized that business investment has been weaker than it previously expected, “held back by global uncertainties.” The Bank anticipates “that business investment and net exports will make a relatively larger contribution to growth” over its forecast horizon.
As of July 20th, the advertised five-year conventional mortgage rate of 5.79 per cent was down 0.06 per cent from one year earlier, and 0.2 per cent below where it stood when Bank made its previous interest rate announcement on June 1, 2010. However, it is 0.3 percentage points higher than it was at the beginning of the year.
The Bank has signaled to financial markets that it is leaving its options wide open as to whether it will raise interest rates further when it makes its next rate announcement on September 8th.
“As it did with its previous announcement in June, the Bank messaged financial markets that further interest rate increases are not pre-ordained,” said CREA Chief Economist Gregory Klump. “The strength of recent economic indicators have prompted the Bank to raise interest rates, but the Bank has signaled that may keep rates on hold should the economic recovery begin to show signs of loosing steam.”
The Bank’s July MPR will be published on July 22. The Bank will make its next scheduled rate announcement on September 8th.
July 20, 2010, 4:05:23 PM | Alyson Fair
Toronto Home Sales Drop 37% GTA Realtors Report Mid-Month Resale Housing Figures
Toronto Realtors reported 2,790 sales through the Multiple Listing Service® (MLS®) during the first two weeks of July 2010. This represented a 37 per cent decrease compared to the 4,437 sales recorded during the same period in 2009. New listings decreased by eight per cent annually to 5,184.
“Last summer existing home sales spiked well above the expected long-term trend. Sales were also unseasonably high during the first four months of this year,” said Toronto Real Estate Board President Bill Johnston. “Transactions will be down yearover- year in the second half of 2010 as the level of sales balances out.”
“With year-to-date sales up by more than 18 per cent compared to last year, we continue to look forward to one of the best years on record under the current TREB trading area,” continued Johnston.
The average price for July mid-month transactions was $427,931 – up eight per cent compared to the average of $394,750 recorded during the first 14 days of July 2009.
“The average home selling price in the GTA will continue to grow on an annual basis in the second half,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “Even with the pace of transactions slowing, there will be enough sales relative to listings to support sustainable rates of price growth.”
Source: Toronto Real Estate Board
“Last summer existing home sales spiked well above the expected long-term trend. Sales were also unseasonably high during the first four months of this year,” said Toronto Real Estate Board President Bill Johnston. “Transactions will be down yearover- year in the second half of 2010 as the level of sales balances out.”
“With year-to-date sales up by more than 18 per cent compared to last year, we continue to look forward to one of the best years on record under the current TREB trading area,” continued Johnston.
The average price for July mid-month transactions was $427,931 – up eight per cent compared to the average of $394,750 recorded during the first 14 days of July 2009.
“The average home selling price in the GTA will continue to grow on an annual basis in the second half,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “Even with the pace of transactions slowing, there will be enough sales relative to listings to support sustainable rates of price growth.”
Source: Toronto Real Estate Board
7 Home buyer Education Do’s and Don’ts
First time homebuyers might be doing a number of vital mistakes possibly costing them lots of money throughout the lifetime of the mortgage. Not having a certain amount of education those homebuyers might waste thousands of dollars when buying their new home. Or when selling it or refinancing it, missing out low refinance mortgage rates too.
The basic homebuyer education tip is to know that purchasing a house is doing an investment which is usually ones by far the most expensive purchase ever. Here are 7 new homebuyer education topics.
1 – Learning your credit.
Not fixing your credit. You will certainly be surprised from the amount of first time homebuyers who send their mortgage application wishing to be Okayed. Too many of them have not even looked at their own credit rating.
Too many never checked their credit report in order to repair their statement. Before applying go search for Internet sites which will offer you a full credit profile checkup including possibility to repair most of the glitches in your credit score. Those changes might bring you closer to meet the criteria for a mortgage loan.
2 – Homebuyer’s opportunities.
Not searching for first-time homebuyer opportunities. These types of opportunities and offers are usually financed through cities or federal agencies. You might want to check FHA loan requirements or the USDA VA – 0 down home mortgage loans; those generally provide very low advance payment support to homebuyers which match specific requirements. Checking for the first time homebuyer’s assistance is the smartest move.
3 - Getting pre-approved.
Acquiring pre-qualified as opposed to pre-approved. The majority of homebuyers tend to be mixing up these a pair of phrases. Pre-qualification is known as a more informal procedure in which the loan provider might draw ones credit rating and depending on the details to inform them or give a pre-qualification letter. The pre-approval procedure typically demands one to hand in tax returns, existing pay out statement as well as bank statements prior to the stage the bank issues your letter which expresses you will be pre-approved with the mortgage.
4 - Going for a huge mortgage.
Simply because you are approved for a large amount of money does not mean you need to take it. Keep in mind that life usually may toss you some unwanted financial surprises whenever you least anticipate it. Get a first time homebuyers loan that allows those unexpected events to be handled and still enables you to come up with the month-to-month payment without getting broke to the bone.
5 – Not shopping for the best loan.
Despite the new federal requirements that uncover the majority of the concealed charges applied by quite a few mortgage companies, homebuyers even now get mortgage loan quotes that include heaps of junk fees. Do not go lazy while shopping for your best deal. Search for alternatives, negotiate, and benchmark your loan provider.
6 – Prepare for the closing costs.
Being able to get a mortgage loan is one thing. Managing closing costs is a different story. These types of costs generally consist of lawyer charges, title coverage, and prepaid homeowners insurance along with house taxations and loan provider charges. Those expenses generally sum up for approximately 3 % to 5 % of the loan. The home buyer without education might not be ready for those fees. It’s up to you to ensure your loan provider puts together an exact price tag to close your spread sheet. Know that you can get some house owner tax credit return 2010 .
7 – Life still goes on.
Ever heard of Murphy laws? Those statements that say: What ever might go wrong usually do…? And that means you need to leave enough cash as free money in order to keep on living. If you don’t plan for these expected and unexpected events, your mortgage returns will soon be too heavy on your family’s budget.
If you think you have not undertaken enough preparation steps before applying for your mortgage, it is worth to get more financial education in order to be a new home owner.
The basic homebuyer education tip is to know that purchasing a house is doing an investment which is usually ones by far the most expensive purchase ever. Here are 7 new homebuyer education topics.
1 – Learning your credit.
Not fixing your credit. You will certainly be surprised from the amount of first time homebuyers who send their mortgage application wishing to be Okayed. Too many of them have not even looked at their own credit rating.
Too many never checked their credit report in order to repair their statement. Before applying go search for Internet sites which will offer you a full credit profile checkup including possibility to repair most of the glitches in your credit score. Those changes might bring you closer to meet the criteria for a mortgage loan.
2 – Homebuyer’s opportunities.
Not searching for first-time homebuyer opportunities. These types of opportunities and offers are usually financed through cities or federal agencies. You might want to check FHA loan requirements or the USDA VA – 0 down home mortgage loans; those generally provide very low advance payment support to homebuyers which match specific requirements. Checking for the first time homebuyer’s assistance is the smartest move.
3 - Getting pre-approved.
Acquiring pre-qualified as opposed to pre-approved. The majority of homebuyers tend to be mixing up these a pair of phrases. Pre-qualification is known as a more informal procedure in which the loan provider might draw ones credit rating and depending on the details to inform them or give a pre-qualification letter. The pre-approval procedure typically demands one to hand in tax returns, existing pay out statement as well as bank statements prior to the stage the bank issues your letter which expresses you will be pre-approved with the mortgage.
4 - Going for a huge mortgage.
Simply because you are approved for a large amount of money does not mean you need to take it. Keep in mind that life usually may toss you some unwanted financial surprises whenever you least anticipate it. Get a first time homebuyers loan that allows those unexpected events to be handled and still enables you to come up with the month-to-month payment without getting broke to the bone.
5 – Not shopping for the best loan.
Despite the new federal requirements that uncover the majority of the concealed charges applied by quite a few mortgage companies, homebuyers even now get mortgage loan quotes that include heaps of junk fees. Do not go lazy while shopping for your best deal. Search for alternatives, negotiate, and benchmark your loan provider.
6 – Prepare for the closing costs.
Being able to get a mortgage loan is one thing. Managing closing costs is a different story. These types of costs generally consist of lawyer charges, title coverage, and prepaid homeowners insurance along with house taxations and loan provider charges. Those expenses generally sum up for approximately 3 % to 5 % of the loan. The home buyer without education might not be ready for those fees. It’s up to you to ensure your loan provider puts together an exact price tag to close your spread sheet. Know that you can get some house owner tax credit return 2010 .
7 – Life still goes on.
Ever heard of Murphy laws? Those statements that say: What ever might go wrong usually do…? And that means you need to leave enough cash as free money in order to keep on living. If you don’t plan for these expected and unexpected events, your mortgage returns will soon be too heavy on your family’s budget.
If you think you have not undertaken enough preparation steps before applying for your mortgage, it is worth to get more financial education in order to be a new home owner.
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