Frequently Used Real Estate Terms

If you are new to real estate and hear terms and phrases that you are not quite sure on their meaning why not bookmark this page and get your real estate terms explained.

Acceleration Clause

The acceleration clause in a mortgage contract states that the entire balance of the debt is due and payable in full should the mortgagee default on the mortgage.

Acquisition Cost

The acquisition cost combines the purchase price with the estimated closing costs of the home.

Adjustable Rate Mortgage

An adjustable rate mortgage is also referred to as an ARM. This type of mortgage includes a lower initial rate of interest that changes after a predetermined time has passed and it is adjusted periodically. At that

The vast majority of successful real estate agents are true professionals who take the long view.

Their advice is in their clients' best interests. Some agents go further by being fully transparent when conflicts arise (which often do) and make certain they are fully disclosed to their clients.

Realtors live a conflicted life.

On the one hand, they are salespeople that only make money when their deal closes.

On the other hand, they are consultants. They advise buyers and sellers throughout the process, ideally giving clients advice that is disinterested from their own financial outcome.

Often, these two objectives are aligned and there is no issue. For example, a listing agent makes more money if he is able to sell a house for a higher

Borrower or credit costs can be outrageous.

To go get a line of credit, you are usually paying upwards of prime plus 3% or even 5%. These lines of credit can be based on interest only or principle and interest payments. This kind of loan is based on how the lender views you as a risk. In other words, they look at the amount of money you are making and the amount of debt you have and then decide how much credit they are willing to give you. Usually, these loans are not very big as there is no security. And even though a lender considers your income vs your debt for a mortgage you will not get as much as you would get through a mortgage BECAUSE….

…a mortgage is based on securing a loan against a property. If you fail in making a mortgage payment and

We know that getting ready to purchase a home can be confusing.

It is important to know the difference between a pre-qualification and a pre-approval, as one could lead you on, while the other nurtures your path to home ownership.

One of the primary steps of Buying a Home, is getting pre-approved for a mortgage. You should do this before the house hunt begins, so we (your Realtor) can show you houses that you can afford, to ensure we don’t waste any time or get your hopes up. There should be an open line of communication between your Realtor and your Mortgage Agent throughout the process, from determining the price range criteria, to putting forth an offer.

In the grand scope of things, a Pre-Qualification is a birds eye view of your ability to

For many sellers, Cash is King.

Cash is a safe bet, and you don’t have to take your chances with a buyer who needs to jump through hoops to get a mortgage loan to buy your property. But is the cash offer always the right deal for your home sale?

The Appeal of Cash

The first thing you need to address when you receive an offer is how strong the home buyer is financially and how likely they are to close. A cash offer is always worth considering, because a failure to obtain financing is the main reason why deals fail to close. In the era of strict lending criteria, some buyers no longer qualify for a mortgage. In other scenarios, lenders quash the financing because the appraisal figure comes in lower than the purchase price. There’s no lender with a

Whatever you do with your life, and wherever you live, you have to sort out your finances.

Having enough money to live, to pay bills, to buy treats etc… is fundamental to being independent and being able to live a comfortable life.

Being able to maximise your money (whatever your income), and knowing how to get the most out of every penny is crucial because  it frees you up to concentrate on the important things in life.

Leaving money worries behind means knowing that you have things under control. You can free up valuable time and energy so that you can get on with actually living! With all this in mind I have put together a list of my Top 10 tips to get your finances organised – starting today. I hope they will get you started and move you

Need to sell a house underwater?  If you don’t know what this means then let me enlighten you. It means the house is not worth what you need to sell it for.

Maybe your job has just relocated you, a family member is sick, the neighborhood is declining. Whatever the reason is, you need to move, and you need to sell your house fast. You call up a realtor and they tell you all the things that you need to do to get it sold, such as cleaning up, painting the house and even what he believes it will sell for. But we have 1 problem…… The house is worth less than you paid for it. This does not mean that you made a mistake in buying the home, lots of other factors can combine to make this situation occur. In BC for example if you paid market value for a home and

Selling a paid-off home is pure profit, but our brains just don’t see it that way

Most financial choices boil down to simple math. Add up the gains, subtract the costs, and you should get a number that helps you draw a conclusion. Those numbers are particularly useful when trying to make a major life decision, such as whether or not to sell the family home.

Given how hot big city markets like Toronto are these days, the math would certainly make a compelling case to sell. Yet according to the April sales data from the Toronto Real Estate Board (TREB), listings are down 27% year-over-year in the GTA. Despite brisk sales and skyrocketing prices, most homeowners living in semi-detached and detached homes are choosing to stay put. (A similar lack of

Worrying about debt is stressful. Worrying about how to avoid foreclosure is one of the most stressful situations someone can find themselves in.

If you’re struggling to make your mortgage payments or if you can’t pay your mortgage at all right now, there are things you can do that will help you to avoid foreclosure and manage your situation better.

It would be a good idea to take action regarding the following tips if you’re one, two or three payments behind on your own mortgage. There are many homeowners in different kinds of scenarios some include death in the family,  divorce, job loss, or medical emergencies that lead them to falling behind in foreclosure. The great news is because there are methods to prevent foreclosure and save your house.

5 Reasons to Offer Owner Financing

It seems a bit counter intuitive for someone who owns home to allow a buyer to pay over time for their property. After all, wouldn’t it be better to get all the money in one go thereby requiring the buyer to get financing from a bank? Well, sometimes it’s more lucrative for the seller to offer financing and here’s why:

1. Better Selling Price

In a buyer’s market, it can take a while for a property to sell, and once a home has been on the market for longer than 60 days,  real estate agents often encourage the seller to drop the price. To attract more interest, they make sure that all the marketing materials, including the For Sale sign, clearly show that the price has been reduced. However, instead of cutting the