Looking to buy but not sure where? Check out the Real Estate Guide 2010 from Toronto Life.
I highly recommend you pick the guide up...even though you can check out 94 neighbourhood profiles online, the printed magazine has a thorough renovation guide with great sources for everything you need.
TORONTO LIFE REAL ESTATE GUIDE 2010
Thursday, October 1, 2009
Wednesday, September 30, 2009
Mortgages
From the desk of Peter Majthenyi and Andre Semeniuk of My Mortgage Planner...
A Harsh But Short Recession
It appears our recession has come to an end and Canada is leading other nations on a slow climb to prosperity. After shedding more than 400,000 jobs, there will still be significant challenges to get many Canadians back to work in the years to come.
As a result, our Government has committed to keeping interest rates low until at least 2011 in order to maintain our economic momentum. Real estate appears to be one of the first sectors to be rebounding by posting an 18% jump in July 2009 alone, fueled primarily by record low mortgage rates.
Considering the Bank of Canada is in no position to increase interest rates anytime soon, the majority of borrowers are opting to tie their mortgage to the benchmark over night rate of .25%. This means taking a 5 year variable mortgage, which is currently as low as 2.4%.
Even if we factor in gradual rate increases in the future, this interest rate will still out perform the alternatives. Also keep in mind that a variable mortgage allows you to “abort” at any point for free, so you are more nimble to react to a changing interest rate market.
In most cases, we will all pay 5-6% for our mortgages over time regardless if we choose a variable or fixed right now, yet our goal is not to pay it any sooner than we have to!
The mortgage product that will dominate the 2010 landscape will be the “Mortgage & Line of Credit Combo”. This type of mortgage allows borrowers to pay their mortgage off much quicker as well as to engage in tax efficient investing.
The line of credit availability grows with every dollar paid down on the mortgage principal, with the line of credit hopefully leveraged only to invest in appreciating assets. This growing line of credit allows all of one's income to be used to pay down mortgage principal while never leaving one short of cash.
In the past, we'd often have thousands of dollars sitting in our chequing account earning very little interest and not working for us, while with this growing line of credit at 3.25% we will always be prepared for unexpected situations.
In order to secure this type of financing package, the borrower must have good income and credit, as well as at least 20% equity … eventually every homeowner will end up in a mortgage of this nature because there is absolutely no down side, and it is a key tool to create personal net worth much quicker.
Financial literacy includes understanding your “Mortgage Plan”. We welcome you to call us soon for a complimentary assessment of maneuvers you can implement now to ultimately build your personal wealth sooner … the cost of procrastination can be significant.
Here's to a healthy fall market.
Anytime,
Peter & Andre
A Harsh But Short Recession
It appears our recession has come to an end and Canada is leading other nations on a slow climb to prosperity. After shedding more than 400,000 jobs, there will still be significant challenges to get many Canadians back to work in the years to come.
As a result, our Government has committed to keeping interest rates low until at least 2011 in order to maintain our economic momentum. Real estate appears to be one of the first sectors to be rebounding by posting an 18% jump in July 2009 alone, fueled primarily by record low mortgage rates.
Considering the Bank of Canada is in no position to increase interest rates anytime soon, the majority of borrowers are opting to tie their mortgage to the benchmark over night rate of .25%. This means taking a 5 year variable mortgage, which is currently as low as 2.4%.
Even if we factor in gradual rate increases in the future, this interest rate will still out perform the alternatives. Also keep in mind that a variable mortgage allows you to “abort” at any point for free, so you are more nimble to react to a changing interest rate market.
In most cases, we will all pay 5-6% for our mortgages over time regardless if we choose a variable or fixed right now, yet our goal is not to pay it any sooner than we have to!
The mortgage product that will dominate the 2010 landscape will be the “Mortgage & Line of Credit Combo”. This type of mortgage allows borrowers to pay their mortgage off much quicker as well as to engage in tax efficient investing.
The line of credit availability grows with every dollar paid down on the mortgage principal, with the line of credit hopefully leveraged only to invest in appreciating assets. This growing line of credit allows all of one's income to be used to pay down mortgage principal while never leaving one short of cash.
In the past, we'd often have thousands of dollars sitting in our chequing account earning very little interest and not working for us, while with this growing line of credit at 3.25% we will always be prepared for unexpected situations.
In order to secure this type of financing package, the borrower must have good income and credit, as well as at least 20% equity … eventually every homeowner will end up in a mortgage of this nature because there is absolutely no down side, and it is a key tool to create personal net worth much quicker.
Financial literacy includes understanding your “Mortgage Plan”. We welcome you to call us soon for a complimentary assessment of maneuvers you can implement now to ultimately build your personal wealth sooner … the cost of procrastination can be significant.
Here's to a healthy fall market.
Anytime,
Peter & Andre
Tuesday, September 29, 2009
Home Renovation Tax Credit
You've likely heard of the Home Renovation Tax Credit (HRTC). Here are the details you need to know if you're going to take advantage of this great incentive...
For renovations done between January 28, 2009 and February 1, 2010, you can claim a 15% credit against renovation expenses after the first $1,000. The maximum tax credit is $1350 which represents $9000 worth of renovations.
Renovations must be to any dwelling that you own and use personally, or is used by a spouse or child. Eligible dwellings include a cottage, provided it is for personal use.
Rental properties are not eligible, but you may qualify for the credit if, for example, you renovated the personal use areas on a house that is your principal residence but which contains a rental unit.
For expenditures made for common areas or that benefit the housing unit as a whole (such as re-shingling a roof), you must divide the expense between personal use and income-earning use.
Here are the renovation expenses that qualify:
- renovating a kitchen, bathroom or basement,
- building an addition, deck, shed, or fence,
- new carpet or hardwood floors,
- installing a new furnace, fireplace or water heater,
- re-shingling a roof, a new driveway or resurfacing,
- painting (interior or exterior)
- permanent swimming pools, sodding or some landscaping.
The renovation must be of an enduring nature and integral to the dwelling, and can include the cost of labour and professional services, building materials, fixtures, rentals, and permits.
Furniture, appliances, electronics, or tools, are not eligible for the tax credit. Routine repairs, maintenance and cleaning normally performed on an annual or more frequent basis are also not eligible.
The tax credit is family-based; one tax credit is available per household. If two families share the same home (as co-owners, not renters), then both are eligible for separate tax credits. The tax credit can be applied to the tax return of either spouse.
Most home have received a green envelope on their door to keep all required documentation which includes agreements, invoices, receipts, and cancelled cheques.
You should also check out the ecoENERGY retrofit program if you plan to do any renovations that will save energy.
For more details on the government websites, click below...
HOME RENOVATION TAX CREDIT 2009
ecoENERGY PROGRAM
For renovations done between January 28, 2009 and February 1, 2010, you can claim a 15% credit against renovation expenses after the first $1,000. The maximum tax credit is $1350 which represents $9000 worth of renovations.
Renovations must be to any dwelling that you own and use personally, or is used by a spouse or child. Eligible dwellings include a cottage, provided it is for personal use.
Rental properties are not eligible, but you may qualify for the credit if, for example, you renovated the personal use areas on a house that is your principal residence but which contains a rental unit.
For expenditures made for common areas or that benefit the housing unit as a whole (such as re-shingling a roof), you must divide the expense between personal use and income-earning use.
Here are the renovation expenses that qualify:
- renovating a kitchen, bathroom or basement,
- building an addition, deck, shed, or fence,
- new carpet or hardwood floors,
- installing a new furnace, fireplace or water heater,
- re-shingling a roof, a new driveway or resurfacing,
- painting (interior or exterior)
- permanent swimming pools, sodding or some landscaping.
The renovation must be of an enduring nature and integral to the dwelling, and can include the cost of labour and professional services, building materials, fixtures, rentals, and permits.
Furniture, appliances, electronics, or tools, are not eligible for the tax credit. Routine repairs, maintenance and cleaning normally performed on an annual or more frequent basis are also not eligible.
The tax credit is family-based; one tax credit is available per household. If two families share the same home (as co-owners, not renters), then both are eligible for separate tax credits. The tax credit can be applied to the tax return of either spouse.
Most home have received a green envelope on their door to keep all required documentation which includes agreements, invoices, receipts, and cancelled cheques.
You should also check out the ecoENERGY retrofit program if you plan to do any renovations that will save energy.
For more details on the government websites, click below...
HOME RENOVATION TAX CREDIT 2009
ecoENERGY PROGRAM
Thursday, July 9, 2009
Stop the Smell!
With city workers on strike, it can be frustrating not knowingexactly what services are and are not availble.
I've had buyers who want to purchase a home but can't find out if they are eligible to put in a parking pad. You can't get a building permit to start renovations. And yes, the smell and sight of garbage is starting to grate on everyone.
Check out this City of Toronto link for current updates and status of all services, as well as where you can take that stinking garbage.
Am I ever glad I don't advertise on garbage cans :)
How the Strike Affects City Services
Markets & Mortgages
Markets
Even thought kids are out of school and people are in the mindset of summer vacation, the real estate market didn't get the message!
The GTA resale housing market just had the best June on record, Ontario saw a 15% increase in building permits, and interest rates continue to be a huge motivator.
Check out the full report and commentary from the Toronto Real Estate Board below as well as the full Market Watch report for prices and activity in your neighbourhood..
GTA Resale Housing Market Posts Best June on Record
TORONTO, July 6, 2009 - In June 2009, Greater Toronto REALTORS® reported a record10,955 sales, up 27 per cent from June 2008. The seasonally adjusted annual rate of sales in June was 100,700.1
"The record result in June is testament to the fundamentally sound housing market in the GTA," said the Toronto Real Estate Board’s newly appointed President Tom Lebour.
"An increasing number of households have been confident in purchasing a home in the region’s affordable and diverse resale housing market."
The average price for June transactions was $403,972 – up by two per cent compared to the same month last year.
"The re-emergence of seller’s market conditions has exerted upward pressure on home prices," explained Jason Mercer, TREB's Senior Manager of Market Analysis.
"Look for sales to remain high relative to listings in the second half of the year. This will keep home prices growing."
City of Toronto ("416") 2008 to 2009 Snapshot:
2009 # of sales: 4,362
average price: $441,703
2008 # of sales: 3,481
average price: $433,082
Click here for the full Toronto Real Estate Board Market Watch.
Mortgages
From the desk of Peter Majthenyi and Andre Semeniuk:
With fixed mortgage rates being so low, why would I go variable?
I have been listening to many borrowers struggle with the fixed vs. variable dilemma for quite some time.
The challenge is to keep in mind that most of us will have a mortgage for 15-20 years and not just for the next 5 years. It is important to not fixate on the current mortgage rate, but rather consider the long-term interest you will pay.
Choosing 5 year fixed or 5 year variable … we will likely pay a higher rate in the future regardless. Currently variable is about 1.5% less than a 5 year fixed term, so what's your rush to pay 1.5% more? This is a lesson in not paying any sooner than we have to!
A variable rate is about saving thousands of dollars in the first years of a mortgage, allowing our money to be better leveraged in the short run, for instance to increase savings or provide cash resources.
Our ambition is to keep our hands on our money as long as possible before we have to forfeit it to the lender. Ideally, the best strategy is to direct these funds to the mortgage principal immediately considering the first few years of a mortgage is primarily interest.
Variable rate mortgages are based on the Bank prime rate that is dictated by the Bank of Canada, which has committed to not changing it for at least another year.
Once our economy begins to show signs of sustained recovery we can expect this rate to increase, which is typically adjusted by .25% a couple of times a year.
The Bank of Canada only meets 8 times a year and is reluctant to change these rates upward frequently and, when they do anticipate changes, they are well publicized in advance and therefore are quite predictable.
If you are considering a traditional 5 year fixed term then you are most likely concerned about rates rising significantly in the future. If so, you should consider this; if 3 years from now rates start to skyrocket you will very disappointed that you are in a closed mortgage and cannot convert prior to renewal. Fixed mortgages require you to wait until maturity before considering new mortgage options and by then it's usually too late.
A variable mortgage allows you to convert to another mortgage at anytime with no penalty. This convertible safety net is what we all want so we avoid future disappointment, especially considering we are not paying our mortgage off anytime soon.
It is financially prudent to try to avoid being locked into any financial product because flexibility is your savior to paying less interest. I can tell you that anyone you know who currently has a mortgage problem is most likely in a fixed term.
Chances are, once you have a variable mortgage you will leave it variable until the day you pay your mortgage off and never consider a fixed mortgage again. However, if you are simply terrified of significant future rate hikes and feel current mortgage rates are very suitable for your budget and tolerance, than please consider a fixed term of 10 years or longer.
The Power of the "Mortgage and Line of Credit COMBO!"
Those that have good equity, good income to mortgage ratios, and acceptable credit should consider nothing else than a "Mortgage & Line of Credit Combination". This product is the future of mortgages and attaining financial independence sooner.
Currently, only about 6 of 52 mortgage lenders carry this product line, but in the coming year or so they will all need it in order to stay competitive. There are no premiums or additional cost to set up or maintain a "Mortgage Plan" like this.
This mortgage package is an excellent vehicle to help pay your mortgage off much faster, while never having to approach a lender again for any future financing requests. Used correctly it is likely the most powerful weapon in your financial arsenal.
Briefly, as you pay your mortgage principal down the credit limit on your secured line grows and becomes available immediately. And currently, the interest rate is 3.25%. This mechanism allows borrowers to direct all their savings and income to paying the mortgage principal down while never leaving them short of cash, allowing their money to work far more efficiently.
This popular line of credit product is also paramount for those that want to engage in tax-efficient investing (The Smith Manoeuvre). To learn more, we should connect to explore if this is a program available to you, or someone you know.
Please introduce our material to anyone you may want to empower with the most current mortgage information that Banks often neglect to share with us.
To connect with Peter today, go to http://www.mymortgageplanner.ca/
Even thought kids are out of school and people are in the mindset of summer vacation, the real estate market didn't get the message!
The GTA resale housing market just had the best June on record, Ontario saw a 15% increase in building permits, and interest rates continue to be a huge motivator.
Check out the full report and commentary from the Toronto Real Estate Board below as well as the full Market Watch report for prices and activity in your neighbourhood..
GTA Resale Housing Market Posts Best June on Record
TORONTO, July 6, 2009 - In June 2009, Greater Toronto REALTORS® reported a record10,955 sales, up 27 per cent from June 2008. The seasonally adjusted annual rate of sales in June was 100,700.1
"The record result in June is testament to the fundamentally sound housing market in the GTA," said the Toronto Real Estate Board’s newly appointed President Tom Lebour.
"An increasing number of households have been confident in purchasing a home in the region’s affordable and diverse resale housing market."
The average price for June transactions was $403,972 – up by two per cent compared to the same month last year.
"The re-emergence of seller’s market conditions has exerted upward pressure on home prices," explained Jason Mercer, TREB's Senior Manager of Market Analysis.
"Look for sales to remain high relative to listings in the second half of the year. This will keep home prices growing."
City of Toronto ("416") 2008 to 2009 Snapshot:
2009 # of sales: 4,362
average price: $441,703
2008 # of sales: 3,481
average price: $433,082
Click here for the full Toronto Real Estate Board Market Watch.
Mortgages
From the desk of Peter Majthenyi and Andre Semeniuk:
With fixed mortgage rates being so low, why would I go variable?
I have been listening to many borrowers struggle with the fixed vs. variable dilemma for quite some time.
The challenge is to keep in mind that most of us will have a mortgage for 15-20 years and not just for the next 5 years. It is important to not fixate on the current mortgage rate, but rather consider the long-term interest you will pay.
Choosing 5 year fixed or 5 year variable … we will likely pay a higher rate in the future regardless. Currently variable is about 1.5% less than a 5 year fixed term, so what's your rush to pay 1.5% more? This is a lesson in not paying any sooner than we have to!
A variable rate is about saving thousands of dollars in the first years of a mortgage, allowing our money to be better leveraged in the short run, for instance to increase savings or provide cash resources.
Our ambition is to keep our hands on our money as long as possible before we have to forfeit it to the lender. Ideally, the best strategy is to direct these funds to the mortgage principal immediately considering the first few years of a mortgage is primarily interest.
Variable rate mortgages are based on the Bank prime rate that is dictated by the Bank of Canada, which has committed to not changing it for at least another year.
Once our economy begins to show signs of sustained recovery we can expect this rate to increase, which is typically adjusted by .25% a couple of times a year.
The Bank of Canada only meets 8 times a year and is reluctant to change these rates upward frequently and, when they do anticipate changes, they are well publicized in advance and therefore are quite predictable.
If you are considering a traditional 5 year fixed term then you are most likely concerned about rates rising significantly in the future. If so, you should consider this; if 3 years from now rates start to skyrocket you will very disappointed that you are in a closed mortgage and cannot convert prior to renewal. Fixed mortgages require you to wait until maturity before considering new mortgage options and by then it's usually too late.
A variable mortgage allows you to convert to another mortgage at anytime with no penalty. This convertible safety net is what we all want so we avoid future disappointment, especially considering we are not paying our mortgage off anytime soon.
It is financially prudent to try to avoid being locked into any financial product because flexibility is your savior to paying less interest. I can tell you that anyone you know who currently has a mortgage problem is most likely in a fixed term.
Chances are, once you have a variable mortgage you will leave it variable until the day you pay your mortgage off and never consider a fixed mortgage again. However, if you are simply terrified of significant future rate hikes and feel current mortgage rates are very suitable for your budget and tolerance, than please consider a fixed term of 10 years or longer.
The Power of the "Mortgage and Line of Credit COMBO!"
Those that have good equity, good income to mortgage ratios, and acceptable credit should consider nothing else than a "Mortgage & Line of Credit Combination". This product is the future of mortgages and attaining financial independence sooner.
Currently, only about 6 of 52 mortgage lenders carry this product line, but in the coming year or so they will all need it in order to stay competitive. There are no premiums or additional cost to set up or maintain a "Mortgage Plan" like this.
This mortgage package is an excellent vehicle to help pay your mortgage off much faster, while never having to approach a lender again for any future financing requests. Used correctly it is likely the most powerful weapon in your financial arsenal.
Briefly, as you pay your mortgage principal down the credit limit on your secured line grows and becomes available immediately. And currently, the interest rate is 3.25%. This mechanism allows borrowers to direct all their savings and income to paying the mortgage principal down while never leaving them short of cash, allowing their money to work far more efficiently.
This popular line of credit product is also paramount for those that want to engage in tax-efficient investing (The Smith Manoeuvre). To learn more, we should connect to explore if this is a program available to you, or someone you know.
Please introduce our material to anyone you may want to empower with the most current mortgage information that Banks often neglect to share with us.
To connect with Peter today, go to http://www.mymortgageplanner.ca/
Jenny Shops!
As our resident designer, Jenny helps our clients maximize the value of the homes when they are selling and helps make the most of the homes they buy through her design expertise.
That means a lot of shopping!
That means a lot of shopping!
Clients often ask where they can find great furniture, accessories, and the best deals for home improvement supplies.
Check out her favorite sources, suppliers and stores, featuring West Elm this month.
Want to know where to find what you're looking for? Just ask!
jenny@markrichards.ca
GREAT DEALS: BB Bargoons July Clearance Sale
10 Days only - July 9th-19th Keele Location
BB Bargoons is having their semi-annual clearance sale and marking down premium quality select fabric, furniture, decorative accessories and drapery at up to 75% off. Look for brand names such as Beacon Hill and Robert Allen at ridiculously low prices.
http://www.bbbargoons.com/
THIS MONTH: Great Style, Great Value, and Great Stock!
As someone who often needs to buy furniture and accessories 'yesterday', I have truly come to appreciate West Elm.
Anyone who has been excited to find the perfect piece for their home, only to find out it will take 4-10 weeks for delivery knows what I'm talking about.
Located in Liberty Village, West Elm is a sister company to Pottery Barn but with a more contemporary, zen style (think more Crate & Barrel).
They offer a great selection of furniture, as well as the full spectrum of accessories.
For the decorating-challenged, their products all coordinate and flow together, tending towards calm neutrals and playing with textures. They have a great core of basic pieces but with a nice side of unique, funky suprises as well.
The quality is good, prices fall around the halfway mark between Ikea and Pottery Barn depending on what you're looking for. Not to mention the great sales they offer.
The best part? They have a massive warehouse so most items can go home with you or delivered within a couple of days.
Their staff is unbelievably helpful and friendly without being overbearing and can really help you pull a room together or track down a piece that will fit.
You cannot order online for delivery in Canada but they carry pretty much everything you see on the U.S. site in their Toronto store.
Enjoy shopping!
- Jenny
http://www.westelm.com/
Check out her favorite sources, suppliers and stores, featuring West Elm this month.
Want to know where to find what you're looking for? Just ask!
jenny@markrichards.ca
GREAT DEALS: BB Bargoons July Clearance Sale
10 Days only - July 9th-19th Keele Location
BB Bargoons is having their semi-annual clearance sale and marking down premium quality select fabric, furniture, decorative accessories and drapery at up to 75% off. Look for brand names such as Beacon Hill and Robert Allen at ridiculously low prices.
http://www.bbbargoons.com/
THIS MONTH: Great Style, Great Value, and Great Stock!
As someone who often needs to buy furniture and accessories 'yesterday', I have truly come to appreciate West Elm.
Anyone who has been excited to find the perfect piece for their home, only to find out it will take 4-10 weeks for delivery knows what I'm talking about.
Located in Liberty Village, West Elm is a sister company to Pottery Barn but with a more contemporary, zen style (think more Crate & Barrel).They offer a great selection of furniture, as well as the full spectrum of accessories.
For the decorating-challenged, their products all coordinate and flow together, tending towards calm neutrals and playing with textures. They have a great core of basic pieces but with a nice side of unique, funky suprises as well.
The quality is good, prices fall around the halfway mark between Ikea and Pottery Barn depending on what you're looking for. Not to mention the great sales they offer.
The best part? They have a massive warehouse so most items can go home with you or delivered within a couple of days.
Their staff is unbelievably helpful and friendly without being overbearing and can really help you pull a room together or track down a piece that will fit.
You cannot order online for delivery in Canada but they carry pretty much everything you see on the U.S. site in their Toronto store.Enjoy shopping!
- Jenny
http://www.westelm.com/
Thursday, June 11, 2009
Markets & Mortgages
May 2009 Market Watch
It's been a hot spring market as evidenced by a two percent increase in activity from May 2008!
I believe this has been a result of pent up buyers who have been holding off until the market softens but have other reasons motivating a purchase other than just price. It's also a result of incredibly cheap money.
Check out the full report and commentary from the Toronto Real Estate Board below..
GTA May Resale Housing Sales Higher Than Last Year
TORONTO - June 2, 2009
In May 2009, Greater Toronto REALTORS® reported 9,589 sales, up almost two percent from May 2008 – the first annual increase since December 2007.
The seasonally adjusted annual rate of sales in May was 81,300. “The resale housing market in the GTA has remained resilient in the face of challenging times globally,” according to TREB President Maureen O’Neill.
“Many home buyers have taken advantage of extremely low mortgage rates.”
The average price for May transactions was $395,609 – down less than one per cent compared to the same month last year.
“The average resale home price has moved in line with last year’s level because of tighter market conditions experienced this Spring,” stated Jason Mercer, TREB’s Senior Manager of Market Analysis.
“Home sales have increased strongly relative to new listings, bolstering home prices.” Seasonally adjusting TREB MLS® data removes recurring seasonal trends observed each year.
For example, MLS® sales are highest in late spring each year and lowest in the winter months. Removing the recurring seasonality, allows for the analysis of a meaningful trend reflecting actual changes in market conditions.
By multiplying the monthly seasonally-adjusted figure by 12, creating an annual rate, we can compare how the current month relates to historical annual figures.
Click here for the full Toronto Real Estate Board Market Watch.
Mortgages
Rates have inched up...but still great historically speaking according to Peter from Mortage Architects...
"It appears commodity prices are rising, as well as the Canadian dollar. Now we can expect a slow and gradual rise in mortgage rates to more normal levels .... keeping in mind that all these rates are historically amazing!
A quarter percent here or there on your mortgage should not influence you to not buy or refinance now ... 2009-10 is likely the best time to make your "Mortgage Move" considering the odds are very very low we'll have these kind of borrowing rates in our life time again.
Be sure your "Mortgage Plan" is reviewed now regardless of your situation to ensure there's no regrets at renewal time. We are here to help you and your friends with that assessment, where Banks are not."
The sooner the better - Peter & Team
Check out current Posted Rates and his Best Rates....
Posted Rates*
6 mth - 4.75%
1 Year - 3.9%
2 Year - 4.05%
3 Year - 4.15%
4 Year - 4.84%
5 Year - 5.45%
7 Year - 6.30%
10 Year - 6.80%
Best Rates*
6 Mth - 4.25%
1 Year - 3.29%
2 Year - 3.5%
3 Year - 3.15%
4 Year - 3.69%
5 Year - 3.75%
7 Year - 5.10%
10 Year - 5.19%
Variable Rate 2.65%
Prime Rate 2.25%
*Interest Rates are provided for information purposes only and are subject to change at any time without notice. The products listed above are available only in Canada to Canadian residents. Rates shown are for single family residential properties only and are subject to meeting all lenders credit granting criteria. Rates shown above may be specific to the sender and some conditions may apply. E&OE.
It's been a hot spring market as evidenced by a two percent increase in activity from May 2008!
I believe this has been a result of pent up buyers who have been holding off until the market softens but have other reasons motivating a purchase other than just price. It's also a result of incredibly cheap money.
Check out the full report and commentary from the Toronto Real Estate Board below..
GTA May Resale Housing Sales Higher Than Last Year
TORONTO - June 2, 2009
In May 2009, Greater Toronto REALTORS® reported 9,589 sales, up almost two percent from May 2008 – the first annual increase since December 2007.
The seasonally adjusted annual rate of sales in May was 81,300. “The resale housing market in the GTA has remained resilient in the face of challenging times globally,” according to TREB President Maureen O’Neill.
“Many home buyers have taken advantage of extremely low mortgage rates.”
The average price for May transactions was $395,609 – down less than one per cent compared to the same month last year.
“The average resale home price has moved in line with last year’s level because of tighter market conditions experienced this Spring,” stated Jason Mercer, TREB’s Senior Manager of Market Analysis.
“Home sales have increased strongly relative to new listings, bolstering home prices.” Seasonally adjusting TREB MLS® data removes recurring seasonal trends observed each year.
For example, MLS® sales are highest in late spring each year and lowest in the winter months. Removing the recurring seasonality, allows for the analysis of a meaningful trend reflecting actual changes in market conditions.
By multiplying the monthly seasonally-adjusted figure by 12, creating an annual rate, we can compare how the current month relates to historical annual figures.
Click here for the full Toronto Real Estate Board Market Watch.
Mortgages
Rates have inched up...but still great historically speaking according to Peter from Mortage Architects...
"It appears commodity prices are rising, as well as the Canadian dollar. Now we can expect a slow and gradual rise in mortgage rates to more normal levels .... keeping in mind that all these rates are historically amazing!
A quarter percent here or there on your mortgage should not influence you to not buy or refinance now ... 2009-10 is likely the best time to make your "Mortgage Move" considering the odds are very very low we'll have these kind of borrowing rates in our life time again.
Be sure your "Mortgage Plan" is reviewed now regardless of your situation to ensure there's no regrets at renewal time. We are here to help you and your friends with that assessment, where Banks are not."
The sooner the better - Peter & Team
Check out current Posted Rates and his Best Rates....
Posted Rates*
6 mth - 4.75%
1 Year - 3.9%
2 Year - 4.05%
3 Year - 4.15%
4 Year - 4.84%
5 Year - 5.45%
7 Year - 6.30%
10 Year - 6.80%
Best Rates*
6 Mth - 4.25%
1 Year - 3.29%
2 Year - 3.5%
3 Year - 3.15%
4 Year - 3.69%
5 Year - 3.75%
7 Year - 5.10%
10 Year - 5.19%
Variable Rate 2.65%
Prime Rate 2.25%
*Interest Rates are provided for information purposes only and are subject to change at any time without notice. The products listed above are available only in Canada to Canadian residents. Rates shown are for single family residential properties only and are subject to meeting all lenders credit granting criteria. Rates shown above may be specific to the sender and some conditions may apply. E&OE.
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