Watch This Video! Benefits of Home Inspections

I sometimes have clients who are reluctant to spend the three or four hundred dollars it costs for a qualified home inspection before they purchase a resale house or condo. That money is likely the best money you will ever spend because in the long run, it could end up saving you thousands and thousands of dollars. If you or someone you know needs a qualified home inspector, please call me, I have a great list of professionals I work with that I would be happy to recommend.

Benefits of Home Inspections

Oh, by the way, I'm never too busy for your referrals.

Lina

What is CMHC Mortgage Loan Insurance?

Mortgage loan insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price. Mortgage loan insurance helps protect lenders against mortgage default, and enables consumers to purchase homes with as little as 5% down payment — with interest rates comparable to those with a 20% down payment.

To obtain mortgage loan insurance, lenders pay an insurance premium. The CMHC Mortgage Loan Insurance premium is calculated as a percentage of the loan and is based on the size of your down payment. The higher the percentage of the total house price/value that you borrow, the higher percentage you will pay in insurance premiums.Typically, your lender will pass this cost on to you. The premium can be paid in a single lump sum or it can be added to your mortgage and included in your monthly payments.

Mortgage loan insurance is not to be confused with mortgage life insurance which guarantees that your remaining mortgage at the time of your death will not be a burden to your estate.

Source: CMHC for Consumers

HELLO AGAIN

After a long sabbatical, I am back to publish some useful information for home buyers and sellers or for those of you just interested in staying up-to-date on the latest real estate information in and around your neighbourhood.

With the continuation of the positive real estate climate we are in right now, and interest rates poised to stay relatively stable until at least June of 2010, now is a great time, not only for new home buyers, but for those looking to move up, to sell and buy.

I look forward to the opportunity of reconnecting with past clients, old friends and family and to building new relationships through this medium. Your comments and questions are always welcome.

Thank you all for your continued support.

Lina

Five Things You Should Know About the New Government Mortgage Rules

If you are planning to buy a home soon, here are a few things you should know about the federal government's new mortgage rules, which come into effect on October 15, 2008.

1. The maximum time allowed to pay off a mortgage (the amortization period) is now 35 years. Prior to October 15, it was 40 years.

2. Homebuyers now must make a minimum down payment of at least 5% of the purchase price of the home. Previously, it was possible to borrow 100% of the purchase price.

3. The new rules only apply to high-ratio mortgages, i.e. where the homebuyer makes a down payment of less than 20% of the purchase price. In Canada, these mortgages require the homebuyer to obtain mortgage default insurance.

4. Individuals who already hold mortgages with 40-year amortizations and/or down payments of less than 5% are not affected by these changes.

5. Historically, the majority of homebuyers who chose a 40-year mortgage also qualified for shorter amortization periods such as 20, 30 or 35 years.

Talk to your mortgage professional about the mortgage option that is right for you. For more information about the government's new mortgage rules and for additional tips, tools and information on the homebuying process, visit Homeownership.ca today.

Credit: http://www.newscanada.com/

BUYING A CONDO-Will your lifestyle stay the same?

Condominium purchases differ from a typical home purchase, so buyers need to be aware of the unique aspects of condominium ownership, and be sure they have reviewed all legal documents to ensure they can keep the lifestyle they have - or dream of having. Here are some things to consider or discuss with your real estate lawyer, suggests Ray Leclair, vice-president of TitlePLUS title insurance:

• Is exterior décor important to you? If so, keep in mind condo rules may limit your ability to add decorative touches such as painting, changing your door or using certain types of window coverings.
  
• Do you have a pet? Many condos have by-laws which state owners can't have animals.
• Does outdoor dining play a big role in your summer plans? Many condos have outlawed the use of barbeques and have strict rules about patio furniture.
• Do you value your independence? A part of condominium living is managing the business of the condominium. Although mostly dealt with by a board with minimum involvement of the owners, the Board may make decisions that affect the owners' lifestyle or pocketbook.

"While condominiums are a great alternative to detached houses for many homebuyers, lifestyle needs are an important aspect to consider," says Leclair. "Some people may prefer the low-maintenance style of living, but the restrictions it imposes may not suit everyone. Be sure to review the fine-print with your lawyer."

A useful resource for homebuyers is the TitlePLUS Real Simple Real Estate Guide, a website that provides information on what lawyers do and how to avoid fraud, as well as mortgage calculators, a locate-a-lawyer feature and other tools. It is available for free at http://www.titleplus.ca/.

Credit: http://www.newscanada.com/